Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule Of Earnings Before Provision For Income Taxes And Discontinued Operations [Table Text Block]

Income taxes have been based on the following components of “Earnings before provision for income taxes and discontinued operations” in the Consolidated Statements of Earnings:



	Years Ended December 31,
	2013		2012		2011
Domestic	$	775,499	$	700,745	$	577,142
Foreign	461,913		436,826		433,120
	$	1,237,412	$	1,137,571	$	1,010,262

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense (benefit) relating to continuing operations for the years ended December 31, 2013, 2012, and 2011 is comprised of the following:



	Years Ended December 31,
	2013			2012			2011
Current:
U.S. Federal	$	155,151		$	219,850		$	159,250
State and local	20,298			(304		)	(12,058		)
Foreign	110,216			96,713			98,919
Total current	285,665			316,259			246,111
Deferred:
U.S. Federal	$	23,664		$	19,475		$	850
State and local	(5,864		)	(2,584		)	(2,535		)
Foreign	(31,858		)	(28,698		)	(7,350		)
Total deferred	(14,058		)	(11,807		)	(9,035		)
Total expense	$	271,607		$	304,452		$	237,076

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Differences between the effective income tax rate and the U.S. federal income statutory rate are as follows:



	Years Ended December 31,
	2013		2012		2011
U.S. Federal income tax rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of Federal income tax benefit	1.1		1.1		1.1
Foreign operations tax effect	(7.1	)	(7.2	)	(6.9	)
R&E tax credits (1)	(0.8	)	—		(0.4	)
Domestic manufacturing deduction	(2.0	)	(1.8	)	(1.6	)
Foreign tax credits	0.4		0.2		0.3
Branch losses	(0.2	)	—		—
Release of valuation allowance	—		—		(1.0	)
Resolution of tax contingencies	(5.4	)	(1.4	)	(4.0	)
Other, principally non-tax deductible items	0.9		0.9		1.0
Effective rate from continuing operations	21.9	%	26.8	%	23.5	%


(1)	On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, and this legislation retroactively extended the R&E tax credit for two years, from January 1, 2012 through December 31, 2013. Income tax expense for 2013 includes $4.8 million for the entire benefit of the R&E tax credit attributable to 2012.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to future deferred tax assets and liabilities are as follows:



	December 31, 2013			December 31, 2012
Deferred Tax Assets:
Accrued compensation, principally postretirement and other employee benefits	$	136,712		$	197,253
Accrued expenses, principally for state income taxes, interest, and warranty	41,834			46,739
Net operating loss and other carryforwards	123,748			107,959
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes	23,756			23,239
Accounts receivable, principally due to allowance for doubtful accounts	5,247			5,479
Accrued insurance	4,364			5,002
Long-term liabilities, principally warranty, environmental, and exit costs	4,636			2,781
Other assets	12,215			9,235
Total gross deferred tax assets	352,512			397,687
Valuation allowance	(15,554		)	(18,887		)
Total deferred tax assets	$	336,958		$	378,800

Deferred Tax Liabilities:
Intangible assets, principally due to different tax and financial reporting bases and amortization lives	$	(720,951	)	$	(719,904	)
Plant and equipment, principally due to differences in depreciation	(66,285		)	(65,480		)
Accounts receivable	(6,674		)	(5,725		)
Total gross deferred tax liabilities	(793,910		)	(791,109		)
Net deferred tax liability	$	(456,952	)	$	(412,309	)

Classified as follows in the consolidated balance sheets:
Current deferred tax asset	$	74,631		$	54,219
Non-current deferred tax asset	18,670			10,236
Current deferred tax liability	(970		)	(3,395		)
Non-current deferred tax liability	(549,283		)	(473,369		)
	$	(456,952	)	$	(412,309	)

Schedule Of Unrecognized Tax Benefits [Table Text Block]

The following table is a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:



	Continuing				Discontinued			Total
Unrecognized tax benefits at January 1, 2011	$	166,906			$	67,275		$	234,181
Additions based on tax positions related to the current year	10,835				986			11,821
Additions for tax positions of prior years	14,636				1,971			16,607
Reductions for tax positions of prior years	(40,563		)		(12,302		)	(52,865		)
Settlements	(6,673		)		(3,469		)	(10,142		)
Lapse of statutes	(6,197		)		(216		)	(6,413		)
Unrecognized tax benefits at December 31, 2011	138,944				54,245			193,189
Additions based on tax positions related to the current year	10,188				26			10,214
Additions for tax positions of prior years	4,128				3,470			7,598
Reductions for tax positions of prior years	(14,257		)		(25		)	(14,282		)
Settlements	(418		)		(85		)	(503		)
Lapse of statutes	(12,550		)		(3,429		)	(15,979		)
Unrecognized tax benefits at December 31, 2012	126,035				54,202			180,237
Additions based on tax positions related to the current year	9,056				1			9,057
Additions for tax positions of prior years	7,584				3,315			10,899
Reductions for tax positions of prior years (A)	(62,610		)		(40,240		)	(102,850		)
Settlements	(2,823		)		(2,523		)	(5,346		)
Lapse of statutes	(7,845		)		(1,564		)	(9,409		)
Unrecognized tax benefits at December 31, 2013	$	69,397		(B)	$	13,191		$	82,588

_________


(A)	The settlement of certain income tax examinations of the 2009 and 2010 tax years resulted in a significant decrease in gross unrecognized tax benefits.

(B)

If recognized, the net amount of potential tax benefits that would impact the Company’s effective tax rate is $50.6 million. During the years ended December 31, 2013, 2012, and 2011, the Company recorded potential interest and penalty expense (income) of $(5.5) million, $0.1 million and $(9.1) million, respectively, related to its unrecognized tax benefits as a component of provision for income taxes. The Company had accrued interest and penalties of $17.1 million at December 31, 2013 and $25.0 million at December 31, 2012, which are not included in the above table.