Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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, 2013	$	121,864			$	54,225			$	176,089
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 ⁽¹⁾	(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	65,226				13,214				78,440
Additions based on tax positions related to the current year	11,751				14				11,765
Additions for tax positions of prior years	1,065				499				1,564
Reductions for tax positions of prior years	(5,782		)		(265		)		(6,047		)
Settlements	(843		)		(155		)		(998		)
Lapse of statutes	(5,050		)		(2,585		)		(7,635		)
Unrecognized tax benefits at December 31, 2014	66,367				10,722				77,089
Additions based on tax positions related to the current year	17,131				—				17,131
Additions for tax positions of prior years	2,900				—				2,900
Reductions for tax positions of prior years ⁽¹⁾	(17,135		)		—				(17,135		)
Settlements	(1,153		)		—				(1,153		)
Lapse of statutes	(12,744		)		—				(12,744		)
Unrecognized tax benefits at December 31, 2015	$	55,366		⁽²⁾	$	10,722		⁽³⁾	$	66,088


⁽¹⁾	The settlement of certain income tax examinations of the 2009 and 2010 tax years (in the year ended December 31, 2013) and 2011 and 2012 (in the year ended December 31, 2015) resulted in a significant decrease in unrecognized tax benefits.

⁽²⁾

If recognized, the net amount of potential tax benefits that would impact the Company’s effective tax rate is $50.3 million. During the years ended December 31, 2015, 2014, and 2013, the Company recorded income of $4.3 million, $1.3 million and $5.5 million, respectively, as a component of provision for income taxes related to the reversal of previously accrued interest and penalties on unrecognized tax benefits. The Company had accrued interest and penalties of $13.9 million at December 31, 2015 and $15.5 million at December 31, 2014, which are not included in the above table.


⁽³⁾	The Company had recorded $10.7 million of unrecognized tax benefits related to operations previously classified as Discontinued Operations. Upon disposal of the Discontinued Operations, these unrecognized tax benefits were transferred to Continuing Operations. If recognized, the potential tax benefits will be recorded in Discontinued Operations.

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,
	2015		2014		2013
Domestic	$	530,268	$	789,689	$	714,723
Foreign	270,342		304,518		331,263
	$	800,610	$	1,094,207	$	1,045,986

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, 2015, 2014, and 2013 is comprised of the following:



	Years Ended December 31,
	2015			2014			2013
Current:
U.S. Federal	$	115,130		$	231,939		$	114,218
State and local	11,706			8,434			17,468
Foreign	79,982			97,037			89,702
Total current	206,818			337,410			221,388
Deferred:
U.S. Federal	$	19,238		$	7,386		$	35,315
State and local	(3,433		)	11,250			(4,556		)
Foreign	(17,894		)	(39,979		)	(3,688		)
Total deferred	(2,089		)	(21,343		)	27,071
Total expense	$	204,729		$	316,067		$	248,459

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,
	2015		2014		2013
U.S. Federal income tax rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of Federal income tax benefit	1.6		1.3		1.2
Foreign operations tax effect	(4.3	)	(3.7	)	(3.3	)
Research & experimentation tax credits ⁽¹⁾	(0.4	)	(0.3	)	(0.7	)
Domestic manufacturing deduction	(3.0	)	(3.0	)	(2.2	)
Foreign tax credits	(2.4	)	0.4		0.3
Branch losses	(0.2	)	(0.7	)	(0.2	)
Release of valuation allowance	—		(0.6	)	—
Resolution of tax contingencies	(1.8	)	(0.5	)	(7.2	)
Other, principally non-tax deductible items	1.1		1.0		0.9
Effective rate from continuing operations	25.6	%	28.9	%	23.8	%


⁽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, 2015			December 31, 2014
Deferred Tax Assets:
Accrued compensation, principally postretirement and other employee benefits	$	133,000		$	151,640
Accrued expenses, principally for state income taxes, interest, and warranty	42,213			45,262
Net operating loss and other carryforwards	210,396			190,298
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes	12,329			13,285
Accounts receivable, principally due to allowance for doubtful accounts	4,937			4,323
Accrued insurance	4,365			5,529
Long-term liabilities, principally warranty, environmental, and exit costs	4,509			4,096
Other assets	(36,576		)	(26,793		)
Total gross deferred tax assets	375,173			387,640
Valuation allowance	(171,365		)	(141,252		)
Total deferred tax assets	$	203,808		$	246,388

Deferred Tax Liabilities:
Intangible assets, principally due to different tax and financial reporting bases and amortization lives	$	(699,876	)	$	(676,647	)
Plant and equipment, principally due to differences in depreciation	(56,872		)	(55,012		)
Accounts receivable	(8,236		)	(6,481		)
Total gross deferred tax liabilities	(764,984		)	(738,140		)
Net deferred tax liability	$	(561,176	)	$	(491,752	)

Classified as follows in the consolidated balance sheets:
Non-current deferred tax asset	14,533			12,866
Non-current deferred tax liability	(575,709		)	(504,618		)
	$	(561,176	)	$	(491,752	)