INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Components of income (loss) before income taxes

The components of income before income taxes for the three years ended December 31, 2013 were as follows:



	Year Ended December 31,
	2013		2012		2011
U.S.	$	281,724	$	243,382	$	204,667
Non-U.S.	134,717		126,188		96,664
Total	$	416,441	$	369,570	$	301,331

Components of income tax expense (benefit)

The components of income tax expense (benefit) for the three years ended December 31, 2013 were as follows:



	Year Ended December 31,
	2013			2012			2011
Current:
Federal	$	58,099		$	72,809		$	42,510
Non-U.S.	40,348			33,510			19,970
State and local	8,490			8,172			6,699
	106,937			114,491			69,179
Deferred:
Federal	21,946			(1,673		)	12,140
Non-U.S.	(5,734		)	(750		)	2,768
State and local	1,605			286			231
	17,817			(2,137		)	15,139
Total	$	124,754		$	112,354		$	84,318

Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes

The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2013 were as follows:



	Year Ended December 31,
	2013			2012			2011
Statutory rate of 35% applied to pre-tax income	$	145,754		$	129,350		$	105,466
Effect of state and local income taxes, net of federal tax benefit	7,124			5,598			4,585
Taxes (less) more than the U.S. tax rate on non-U.S. earnings, including utilization of tax loss carry-forwards, losses with no benefit and changes in non-U.S. valuation allowance	(17,352		)	(11,263		)	(13,637		)
Manufacturing deduction	(6,386		)	(6,287		)	(5,330		)
U.S. tax cost (benefit) of foreign source income	995			(4,766		)	145
Resolution and adjustments to uncertain tax positions	(313		)	(1,493		)	(5,103		)
Other	(5,068		)	1,215			(1,808		)
Total	$	124,754		$	112,354		$	84,318
Effective tax rate	29.96		%	30.40		%	27.98		%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities at December 31, 2013 and 2012, were as follows:



	December 31,
	2013			2012
Deferred tax assets:
Tax loss and credit carry-forwards	$	51,762		$	40,373
Inventory	1,277			1,328
Other accruals	15,709			14,981
Employee benefits	18,909			17,904
Pension obligations	4,643			82,903
Other	9,828			12,686
Deferred tax assets, gross	102,128			170,175
Valuation allowance	(49,684		)	(38,799		)
Deferred tax assets, net	52,444			131,376
Deferred tax liabilities:
Property, plant and equipment	38,653			41,380
Intangible assets	24,014			19,545
Inventory	7,311			5,783
Pension obligations	7,315			2,940
Other	8,777			8,769
Deferred tax liabilities	86,070			78,417
Total Deferred taxes	$	(33,626	)	$	52,959

Summary of the activity related to unrecognized tax benefits

The following table summarizes the activity related to unrecognized tax benefits:



	2013			2012
Balance at January 1	$	25,255		$	26,656
Increase related to current year tax provisions	1,990			3,838
Increase related to prior years' tax positions	208			212
Increase related to acquisitions	3,528			1,274
Decrease related to settlements with taxing authorities	(95		)	(940		)
Resolution of and other decreases in prior years' tax liabilities	(3,491		)	(5,964		)
Other	(1,488		)	179
Balance at December 31	$	25,907		$	25,255

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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