Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Earnings before income taxes for the years ended December 31, 2015, 2014 and 2013 consisted of the following components (in thousands):

	2015		2014		2013
United States	$	710,614	$	665,219	$	517,432
Other		291,731		256,237		236,698
	$	1,002,345	$	921,456	$	754,130

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015			2014			2013
Current:
Federal	$	229,224		$	218,302		$	166,430
State		22,041			37,155			12,577
Foreign		71,507			56,107			40,451
Deferred:
Domestic		(10,134	)		(30,664	)		(1,965	)
Foreign		(6,360	)		(5,477	)		(1,656	)
	$	306,278		$	275,423		$	215,837

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations between the statutory federal income tax rate and the effective income tax rate for the years ended December 31, 2015, 2014 and 2013 were as follows:

	2015			2014			2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
Foreign rate differential		(3.3	)		(3.9	)		(4.1	)
R&D tax credits		(0.5	)		(0.4	)		(0.5	)
State taxes, net of federal benefit		2.0			2.0			1.9
Section 199 deduction		(1.3	)		(1.6	)		(1.8	)
Other, net		(1.3	)		(1.2	)		(1.9	)
		30.6	%		29.9	%		28.6	%

Schedule of Deferred Tax Assets and Liabilities

Components of the deferred tax assets and liabilities at December 31 were as follows (in thousands):

	2015			2014
Deferred tax assets:
Reserves and accrued expenses	$	146,014		$	130,508
Inventories		9,309			10,186
Net operating loss carryforwards		45,616			41,480
R&D credits		8,504			7,145
Foreign tax credits		7,940			-
Valuation allowance		(19,338	)		(16,169	)
Total deferred tax assets	$	198,045		$	173,150
Deferred tax liabilities:
Reserves and accrued expenses	$	11,222		$	27,981
Amortizable intangible assets		962,143			798,502
Plant and equipment		4,004			4,741
Total deferred tax liabilities	$	977,369		$	831,224

Schedule of Unrecognized Tax Benefits Roll Forward

The Company recognizes in the consolidated financial statements only those tax positions determined to be "more likely than not" of being sustained upon examination based on the technical merits of the positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2015			2014			2013
Beginning balance	$	28,567		$	26,924		$	24,865
Additions for tax positions of prior periods		3,525			6,532			3,055
Additions for tax positions of the current period		3,299			5,571			1,639
Additions due to acquisitions		6,177			-			5,026
Reductions for tax positions of prior periods		(12,206	)		(1,008	)		(3,675	)
Reductions for tax positions of the current period
Settlements with taxing authorities		(142	)		(518	)		-
Lapse of applicable statute of limitations		(3,080	)		(8,934	)		(3,986	)
Ending balance	$	26,140		$	28,567		$	26,924