Income Taxes (Tables)

Pretax earnings from continuing operations consist of the following:

The principal components of income tax expense follow:

Reconciliations of the U.S. federal statutory income tax rate to the Company's effective tax rate follow:



	2013		2014		2015
Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of federal tax benefit	1.3		1.0		1.0
Non-U.S. rate differential	(4.8	)	(4.2	)	(2.4	)
Non-U.S. tax holidays	(1.8	)	(1.1	)	(1.1	)
U.S. manufacturing deduction	(1.6	)	(1.5	)	(1.2	)
Gains on divestitures	—		—		1.5
Spinoff-related	—		—		1.1
Goodwill impairment	4.8		5.3		—
Artesyn repatriation	2.2		—		—
Other	0.2		0.3		0.4
Effective income tax rate	35.3	%	34.8	%	34.3	%



	2014			2015
Unrecognized tax benefits, beginning	$	127		120
Additions for current year tax positions	9			7
Additions for prior year tax positions	25			8
Reductions for prior year tax positions	(19		)	(9	)
Reductions for settlements with tax authorities	(4		)	—
Reductions for expiration of statutes of limitations	(18		)	(42	)
Unrecognized tax benefits, ending	$	120		84

The principal items that gave rise to deferred income tax assets and liabilities follow:



	2014			2015
Deferred tax assets:
Net operating losses and tax credits	$	238		207
Accrued liabilities	311			270
Postretirement and postemployment benefits	93			86
Employee compensation and benefits	196			180
Pensions	28			194
Other	137			173
Total	$	1,003		1,110

Valuation allowances	$	(154	)	(160	)

Deferred tax liabilities:
Intangibles	$	(649	)	(648	)
Property, plant and equipment	(258		)	(260	)
Other	(98		)	(51	)
Total	$	(1,005	)	(959	)

Net deferred income tax liability	$	(156	)	(9	)