INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Components of income (loss) before income taxes

The components of income before income taxes for the three years ended December 31, 2018 were as follows:



	Year Ended December 31,
	2018		2017		2016
U.S.	$	255,088	$	213,171	$	209,409
Non-U.S.	113,572		153,065		67,979
Total	$	368,660	$	366,236	$	277,388

Components of income tax expense (benefit)

The components of income tax expense (benefit) for the three years ended December 31, 2018 were as follows:



	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	45,521		$	89,182		$	57,090
Non-U.S.	28,894			25,746			23,344
State and local	10,515			7,640			8,386
	84,930			122,568			88,820
Deferred:
Federal	(691		)	(4,391		)	(1,716		)
Non-U.S.	(3,121		)	(82		)	(8,261		)
State and local	549			666			172
	(3,263		)	(3,807		)	(9,805		)
Total	$	81,667		$	118,761		$	79,015

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, 2018 were as follows:



	Year Ended December 31,
	2018			2017			2016
Statutory rate applied to pre-tax income	$	77,419		$	128,182		$	97,086
State and local income taxes, net of federal tax benefit	8,844			5,671			5,554
Excess tax benefits resulting from exercises of stock-based compensation	(1,094		)	(6,276		)	—
Net impact of the U.S. Tax Act	4,823			21,949			—
Foreign withholding taxes	(4,424		)	6,667			—
Intangible and asset impairments/(write-off)	—			—			(4,438		)
Foreign rate variance	(4,560		)	(13,929		)	(8,128		)
Venezuela deconsolidation/devaluation	—			—			5,192
Bargain purchase gain	—			(17,556		)	—
Valuation allowances	5,596			102			(8,525		)
Manufacturing deduction	—			(5,922		)	(5,190		)
Research and development credit	(3,859		)	(2,688		)	(2,748		)
Other	(1,078		)	2,561			212
Total	$	81,667		$	118,761		$	79,015
Effective tax rate	22.2		%	32.4		%	28.5		%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities at December 31, 2018 and 2017, were as follows:



	December 31,
	2018			2017
Deferred tax assets:
Tax loss and credit carry-forwards	$	60,756		$	60,454
Inventory	3,544			2,501
Other accruals	13,172			14,873
Employee benefits	22,963			18,468
Pension obligations	12,122			12,363
Other	3,739			4,923
Deferred tax assets, gross	116,296			113,582
Valuation allowance	(69,400		)	(68,694		)
Deferred tax assets, net	46,896			44,888
Deferred tax liabilities:
Property, plant and equipment	28,606			21,427
Intangible assets	10,950			10,729
Inventory	4,814			5,891
Pension obligations	19,346			16,137
Other	8,770			15,483
Deferred tax liabilities	72,486			69,667
Total deferred taxes	$	(25,590	)	$	(24,779	)

Summary of the activity related to unrecognized tax benefits

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



	2018			2017
Balance at beginning of year	$	28,449		$	18,499
Increase related to current year tax provisions	1,431			1,448
Increase related to prior years' tax positions	4,917			1,460
Increase related to acquisitions	—			8,223
Decrease related to settlements with taxing authorities	(111		)	(522		)
Resolution of and other decreases in prior years' tax liabilities	(1,501		)	(1,734		)
Other	(4,381		)	1,075
Balance at end of year	$	28,804		$	28,449