INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Components of income (loss) before income taxes

The components of income before income taxes for the three years ended December 31, 2014 were as follows:



	Year Ended December 31,
	2014		2013		2012
U.S.	$	303,933	$	281,724	$	243,382
Non-U.S.	71,880		134,717		126,188
Total	$	375,813	$	416,441	$	369,570

Components of income tax expense (benefit)

The components of income tax expense (benefit) for the three years ended December 31, 2014 were as follows:



	Year Ended December 31,
	2014		2013			2012
Current:
Federal	$	71,601	$	58,099		$	72,809
Non-U.S.	24,210		40,348			33,510
State and local	8,235		8,490			8,172
	104,046		106,937			114,491
Deferred:
Federal	15,175		21,946			(1,673		)
Non-U.S.	1,370		(5,734		)	(750		)
State and local	1,342		1,605			286
	17,887		17,817			(2,137		)
Total	$	121,933	$	124,754		$	112,354

Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes

The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2014 were as follows:



	Year Ended December 31,
	2014			2013			2012
Statutory rate of 35% applied to pre-tax income	$	131,534		$	145,754		$	129,350
Effect of state and local income taxes, net of federal tax benefit	6,694			7,124			5,598
Asset impairments	11,674			1,735			645
Taxes less than the U.S. tax rate on non-U.S. earnings, including utilization of tax loss carry-forwards, losses with no benefit and changes in non-U.S. valuation allowance	(11,348		)	(19,087		)	(11,908		)
Manufacturing deduction	(7,316		)	(6,386		)	(6,287		)
U.S. tax cost (benefit) of foreign source income	(514		)	745			(5,290		)
Resolution and adjustments to uncertain tax positions	(4,501		)	(313		)	(1,493		)
Other	(4,290		)	(4,818		)	1,739
Total	$	121,933		$	124,754		$	112,354
Effective tax rate	32.45		%	29.96		%	30.40		%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities at December 31, 2014 and 2013, were as follows:



	December 31,
	2014			2013
Deferred tax assets:
Tax loss and credit carry-forwards	$	46,112		$	51,762
Inventory	1,931			1,277
Other accruals	15,427			15,709
Employee benefits	20,750			18,909
Pension obligations	4,969			4,643
Other	5,608			9,828
Deferred tax assets, gross	94,797			102,128
Valuation allowance	(48,840		)	(49,684		)
Deferred tax assets, net	45,957			52,444
Deferred tax liabilities:
Property, plant and equipment	37,352			38,653
Intangible assets	18,642			24,014
Inventory	9,623			7,311
Pension obligations	1,731			7,315
Other	10,018			8,777
Deferred tax liabilities	77,366			86,070
Total deferred taxes	$	(31,409	)	$	(33,626	)

Summary of the activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits:



	2014			2013
Balance at January 1	$	25,907		$	25,255
Increase related to current year tax provisions	700			1,990
(Decrease) increase related to prior years' tax positions	(848		)	208
Increase related to acquisitions	—			3,528
Decrease related to settlements with taxing authorities	(1,216		)	(95		)
Resolution of and other decreases in prior years' tax liabilities	(3,727		)	(3,491		)
Other	(2,427		)	(1,488		)
Balance at December 31	$	18,389		$	25,907

- 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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