Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents components of (loss) income from continuing operations before income taxes for the years ended December 31:



	2013			2012			2011
Domestic	$	(171,878	)	$	(37,910	)	$	16,173
Foreign	52,071			148,805			142,764
Total	$	(119,807	)	$	110,895		$	158,937

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense from continuing operations for the years ended December 31:



	2013			2012			2011
Current:
U.S. Federal	$	10,453		$	3,381		$	(921	)
Foreign	59,481			39,185			41,244
State and local	3,231			2,006			932
Total current	73,165			44,572			41,255
Deferred:
U.S. Federal	(20,180		)	(2,344		)	9,727
Foreign	9,678			(13,159		)	(40,105		)
State and local	(5,948		)	(844		)	(2,849		)
Total deferred	(16,450		)	(16,347		)	(33,227		)
Income tax expense	$	56,715		$	28,225		$	8,028

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense attributable to (loss) income from continuing operations differed from the amounts computed by applying the U.S. federal income tax rate of 35 percent to pretax (loss) income from continuing operations. The following table presents these differences for the years ended December 31:



	2013			2012			2011
Statutory tax (benefit) expense	$	(41,932	)	$	38,813		$	55,628
Brazil nontaxable incentive	(7,849		)	(10,622		)	(10,652		)
Valuation allowance	43,884			1,609			(35,650		)
Brazil tax goodwill amortization	(3,807		)	(4,802		)	(5,231		)
Foreign tax rate differential	(12,432		)	(14,332		)	(10,946		)
Previously undistributed subsidiary earnings	59,460			10,648			10,724
Accrual adjustments	5,755			494			(2,584		)
Non-deductible goodwill	5,189			—			—
FCPA provision, nondeductible portion	5,412			2,939			1,563
Other	3,035			3,478			5,176
Income tax expense	$	56,715		$	28,225		$	8,028

Summary of Income Tax Contingencies

Details of the unrecognized tax benefits are as follows:



	2013			2012
Balance at January 1	$	13,178		$	12,636
Increases related to prior year tax positions	1,489			712
Decreases related to prior year tax positions	—			(181		)
Increases related to current year tax positions	2,864			180
Reduction due to lapse of applicable statute of limitations	(986		)	(169		)
Balance at December 31	$	16,545		$	13,178

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities at December 31 are as follows:



	2013			2012
Deferred tax assets:
Accrued expenses	$	56,351		$	43,622
Warranty accrual	25,973			26,296
Deferred compensation	15,776			18,587
Allowance for doubtful accounts	8,280			9,239
Inventories	13,437			12,930
Deferred revenue	14,900			15,101
Pension and post-retirement benefits	48,565			66,222
Finance lease receivables	—			6,210
Tax credits	34,146			23,738
Net operating loss carryforwards	79,300			74,528
Capital loss carryforwards	2,853			3,534
State deferred taxes	13,630			17,341
Other	2,233			5,903
	315,444			323,251
Valuation allowance	(92,138		)	(57,303		)
Net deferred tax assets	$	223,306		$	265,948

Deferred tax liabilities:
Property, plant and equipment	$	15,989		$	14,369
Goodwill and intangible assets	19,978			41,175
Finance lease receivables	1,042			—
Investment in partnership	12,824			17,056
Undistributed earnings	27,766			5,016
Other	6,759			3,511
Net deferred tax liabilities	84,358			81,127
Net deferred tax asset	$	138,948		$	184,821

Schedule of Deferred Income Taxes by Balance Sheet Account

Deferred income taxes reported in the consolidated balance sheets as of December 31 are as follows:



	2013			2012
Deferred income taxes - current assets	$	110,165		$	143,248
Deferred income taxes - long-term assets	39,461			76,375
Other current liabilities	(1,528		)	(552		)
Deferred income taxes - long-term liabilities	(9,150		)	(34,250		)
Net deferred tax asset	$	138,948		$	184,821

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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