INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of income tax expense (benefit)

(9) INCOME TAXES (Continued)

Income tax expense (benefit) consists of:



	2016			2015			2014
Current:
Federal	$	41,539		$	23,130		$	52,588
State	5,467			4,431			5,059
Foreign	19,123			15,077			32,443
	66,129			42,638			90,090
Non-current:	(381		)	(69		)	(447		)
Deferred:
Federal	8,504			3,382			447
State	202			(333		)	1,376
Foreign	(32,391		)	1,809			3,428
	(23,685		)	4,858			5,251
	$	42,063		$	47,427		$	94,894

Schedule of reconciliation of statutory federal income tax rate and effective tax rate

The reconciliations of the statutory federal income tax rate and the effective tax rate follows:



	2016		2015		2014
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.7		3.1		1.8
Carryforwards, credits and changes in valuation allowances	2.9		(0.1	)	(0.4	)
Foreign tax rate differences	(4.8	)	(5.7	)	(4.4	)
Changes in unrecognized tax benefits	(0.2	)	(0.1	)	(0.2	)
Domestic production activities deduction	(2.0	)	(3.8	)	(1.6	)
Goodwill impairment	—		11.3		—
UK tax rate reduction	1.0		7.7		—
Reversal of contingent liability	(2.2	)	—		—
UK defined benefit pension plan	(14.6	)	—		—
Other	2.3		3.6		3.2
	19.1	%	51.0	%	33.4	%

Schedule of tax effects of significant items comprising net deferred income tax liabilities

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows:

(9) INCOME TAXES (Continued)



	2016			2015
Deferred income tax assets:
Accrued expenses and allowances	$	16,549		$	18,320
Accrued insurance	1,071			1,408
Tax credits and loss carryforwards	104,439			130,743
Defined benefit pension liability	80,425			32,278
Inventory allowances	1,385			911
Accrued warranty	9,436			12,818
Deferred compensation	37,988			36,672
Gross deferred income tax assets	251,293			233,150
Valuation allowance	(81,923		)	(90,837		)
Net deferred income tax assets	169,370			142,313
Deferred income tax liabilities:
Work in progress	2,161			3,087
Property, plant and equipment	37,961			41,147
Intangible assets	50,405			54,162
Other liabilities	6,164			3,517
Total deferred income tax liabilities	96,691			101,913
Net deferred income tax asset/(liability)	$	72,679		$	40,400

Schedule of deferred income tax assets (liabilities) presented on the Consolidated Balance Sheets

Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets:



Balance Sheet Caption	2016			2015
Other assets	$	108,482		$	76,069
Deferred income taxes	(35,803		)	(35,669		)
Net deferred income tax asset/(liability)	$	72,679		$	40,400

Schedule of activity related to unrecognized tax benefits

The following summarizes the activity related to our unrecognized tax benefits in 2016 and 2015, in thousands:



	2016			2015
Gross unrecognized tax benefits—beginning of year	$	3,876		$	4,268
Gross decreases—tax positions in prior period	99			(173		)
Gross increases—current‑period tax positions	695			687
Settlements with taxing authorities	(105		)	(361		)
Lapse of statute of limitations	(1,165		)	(545		)
Gross unrecognized tax benefits—end of year	$	3,400		$	3,876