Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Components of income (loss) from continuing operations before taxes and noncontrolling interest

Income (loss) from continuing operations before taxes and noncontrolling interests consists of the following components:

	Years ended December 31,
	2013			2012			2011
Domestic	$	(26,065	)	$	(15,995	)	$	2,143
Foreign		202,470			186,032			328,973
	$	176,405		$	170,037		$	331,116

Components of income taxes

Significant components of income taxes are as follows:

	Years ended December 31,
	2013			2012			2011
Current:
Federal	$	(603	)	$	8,409		$	10,968
State and local		280			574			(801	)
Foreign		51,225			44,351			66,844
		50,902			53,334			77,011
Deferred:
Federal		2,215			(8,557	)		6,188
State and local		92			(240	)		(2,286	)
Foreign		(573	)		1,969			10,206
		1,734			(6,828	)		14,108
Total income tax expense	$	52,636		$	46,506		$	91,119

Deferred tax assets and liabilities

Note 5 – Income Taxes (continued)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:

	December 31,
	2013			2012
Deferred tax assets:
Pension and other retiree obligations	$	34,343		$	58,577
Inventories		8,759			13,881
Net operating loss carryforwards		182,691			158,638
Tax credit carryforwards		20,780			16,180
Other accruals and reserves		31,469			34,194
Total gross deferred tax assets		278,042			281,470
Less valuation allowance		(183,289	)		(166,266	)
		94,753			115,204
Deferred tax liabilities:
Tax over book depreciation		(10,652	)		(13,975	)
Earnings not permanently reinvested		-			(1,652	)
Convertible debentures		(162,371	)		(149,113	)
Other - net		(5,932	)		(2,711	)
Total gross deferred tax liabilities		(178,955	)		(167,451	)
Net deferred tax assets (liabilities)	$	(84,202	)	$	(52,247	)

Federal statutory income tax rate reconciliation

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax provision is as follows:

	Years ended December 31,
	2013			2012			2011
Tax at statutory rate	$	61,742		$	59,513		$	115,891
State income taxes, net of U.S. federal tax benefit		242			217			(2,005	)
Effect of foreign operations		(18,696	)		(19,083	)		(52,609	)
Unrecognized tax benefits		2,862			6,626			4,869
Change in valuation allowance on non-U.S. deferred tax assets		(285	)		(4,036	)		(5,554	)
Tax benefit of operating loss carryforwards		(1,259	)		(671	)		(1,588	)
Foreign income taxable in the U.S.		11,961			7,476			22,822
Tax on foreign dividends paid to the U.S.		-			-			15,453
U.S. foreign tax credits		-			(4,257	)		(12,322	)
Effect of statutory rate changes on deferred tax assets		(2,867	)		-			9,040
Other		(1,064	)		721			(2,878	)
Total income tax expense	$	52,636		$	46,506		$	91,119

Net operating loss carryforwards

At December 31, 2013, the Company had the following significant net operating loss carryforwards for tax purposes:

			Expires
Austria	$	13,699	No expiration
Belgium		196,898	No expiration
Brazil		16,736	No expiration
Germany		49,880	No expiration
Israel		79,406	No expiration
Netherlands		24,136	2014 - 2022
United States		41,575	2033
California		54,317	2016 - 2033
Pennsylvania		637,923	2018 - 2033

Summary of significant tax credit carryforwards available

At December 31, 2013, the Company had the following significant tax credit carryforwards available:

			Expires
U.S. Foreign Tax Credit	$	11,026		2020 - 2022
California Research Credit		9,062	No expiration

Unrecognized tax benefits

The following table summarizes changes in the liabilities associated with unrecognized tax benefits:

	Years ended December 31,
	2013			2012			2011
Balance at beginning of year	$	51,771		$	48,152		$	52,066
Addition based on tax positions related to the current year		-			665			2,459
Addition based on tax positions related to prior years		4,015			3,498			7,232
Currency translation adjustments		310			(215	)		(749	)
Reduction based on tax positions related to prior years		(2,054	)		-			(3,293	)
Reduction for settlements		(7,316	)		(329	)		(9,528	)
Reduction for lapses of statute of limitation		(849	)		-			(35	)
Balance at end of year	$	45,877		$	51,771		$	48,152