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INCOME TAXES | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of income before income taxes for the three years ended December 31, 2014 were as follows:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
U.S. |  | $ | 303,933 |  |  | $ | 281,724 |  |  | $ | 243,382 |
Non-U.S. |  | 71,880 |  |  | 134,717 |  |  | 126,188 |
Total |  | $ | 375,813 |  |  | $ | 416,441 |  |  | $ | 369,570 |
The components of income tax expense (benefit) for the three years ended December 31, 2014 were as follows:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |  |
Federal |  | $ | 71,601 |  |  | $ | 58,099 |  |  | $ | 72,809 |
Non-U.S. |  | 24,210 |  |  | 40,348 |  |  | 33,510 |
State and local |  | 8,235 |  |  | 8,490 |  |  | 8,172 |
|  | 104,046 |  |  | 106,937 |  |  | 114,491 |
Deferred: |  |  |  |  |  |
Federal |  | 15,175 |  |  | 21,946 |  |  | (1,673 | )
Non-U.S. |  | 1,370 |  |  | (5,734 | ) |  | (750 | )
State and local |  | 1,342 |  |  | 1,605 |  |  | 286 |
|  | 17,887 |  |  | 17,817 |  |  | (2,137 | )
Total |  | $ | 121,933 |  |  | $ | 124,754 |  |  | $ | 112,354 |
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, 2014 were as follows:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Statutory rate of 35% applied to pre-tax income |  | $ | 131,534 |  |  | $ | 145,754 |  |  | $ | 129,350 |
Effect of state and local income taxes, net of federal tax benefit |  | 6,694 |  |  | 7,124 |  |  | 5,598 |
Asset impairments |  | 11,674 |  |  | 1,735 |  |  | 645 |
Taxes less 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 |  | (11,348 | ) |  | (19,087 | ) |  | (11,908 | )
Manufacturing deduction |  | (7,316 | ) |  | (6,386 | ) |  | (6,287 | )
U.S. tax cost (benefit) of foreign source income |  | (514 | ) |  | 745 |  |  | (5,290 | )
Resolution and adjustments to uncertain tax positions |  | (4,501 | ) |  | (313 | ) |  | (1,493 | )
Other |  | (4,290 | ) |  | (4,818 | ) |  | 1,739 |
Total |  | $ | 121,933 |  |  | $ | 124,754 |  |  | $ | 112,354 |
Effective tax rate |  | 32.45 | % |  | 29.96 | % |  | 30.40 | %
The 2014 effective tax rate is impacted by impairment charges, the geographic mix of earnings and taxes at lower rates in foreign jurisdictions, including Canada, Mexico, Poland and the United Kingdom, as well as loss utilization in other foreign jurisdictions. Total income tax payments, net of refunds, were $119,102 in 2014, $84,567 in 2013 and $78,506 in 2012. Deferred Taxes Significant components of deferred tax assets and liabilities at December 31, 2014 and 2013, were as follows:
|  | December 31,
|  | 2014 |  | 2013
Deferred tax assets: |  |  |  |
Tax loss and credit carry-forwards |  | $ | 46,112 |  |  | $ | 51,762 |
Inventory |  | 1,931 |  |  | 1,277 |
Other accruals |  | 15,427 |  |  | 15,709 |
Employee benefits |  | 20,750 |  |  | 18,909 |
Pension obligations |  | 4,969 |  |  | 4,643 |
Other |  | 5,608 |  |  | 9,828 |
Deferred tax assets, gross |  | 94,797 |  |  | 102,128 |
Valuation allowance |  | (48,840 | ) |  | (49,684 | )
Deferred tax assets, net |  | 45,957 |  |  | 52,444 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | 37,352 |  |  | 38,653 |
Intangible assets |  | 18,642 |  |  | 24,014 |
Inventory |  | 9,623 |  |  | 7,311 |
Pension obligations |  | 1,731 |  |  | 7,315 |
Other |  | 10,018 |  |  | 8,777 |
Deferred tax liabilities |  | 77,366 |  |  | 86,070 |
Total deferred taxes |  | $ | (31,409 | ) |  | $ | (33,626 | )
At December 31, 2014, certain subsidiaries had tax loss carry-forwards of approximately $103,036 that will expire in various years from 2015 through 2030, plus $75,398 for which there is no expiration date. In assessing the realizability of deferred tax assets, the Company assesses whether it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At December 31, 2014, a valuation allowance of $48,840 was recorded against certain deferred tax assets based on this assessment. The Company believes it is more likely than not that the tax benefit of the remaining net deferred tax assets will be realized. The amount of net deferred tax assets considered realizable could be increased or reduced in the future if the Company's assessment of future taxable income or tax planning strategies changes. The Company does not provide deferred income taxes on unremitted earnings of certain non-U.S. subsidiaries which are deemed permanently reinvested. It is not practicable to calculate the deferred taxes associated with the remittance of these earnings. Deferred income taxes associated with earnings of $16,032 that are not expected to be permanently reinvested were not significant. Unrecognized Tax Benefits Liabilities for unrecognized tax benefits are classified as "Accrued taxes" non-current unless expected to be paid in one year. The Company recognizes interest and penalties related to unrecognized tax benefits in "Income taxes." Current income tax expense included income of $1,406 for the year ended December 31, 2014 and an expense of $492 for the year ended December 31, 2013 for interest and penalties. For those same years, the Company's accrual for interest and penalties related to unrecognized tax benefits totaled $8,019 and $10,257, respectively. The following table summarizes the activity related to unrecognized tax benefits:
|  | 2014 |  | 2013
Balance at January 1 |  | $ | 25,907 |  |  | $ | 25,255 |
Increase related to current year tax provisions |  | 700 |  |  | 1,990 |
(Decrease) increase related to prior years' tax positions |  | (848 | ) |  | 208 |
Increase related to acquisitions |  | — |  |  | 3,528 |
Decrease related to settlements with taxing authorities |  | (1,216 | ) |  | (95 | )
Resolution of and other decreases in prior years' tax liabilities |  | (3,727 | ) |  | (3,491 | )
Other |  | (2,427 | ) |  | (1,488 | )
Balance at December 31 |  | $ | 18,389 |  |  | $ | 25,907 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $9,132 at December 31, 2014 and $13,739 at December 31, 2013. The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2010. The Company is currently subject to various U.S. state audits and non-U.S. income tax audits. The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until after the close of an audit. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits. It is reasonably possible there could be a further reduction of $3,901 in prior years' unrecognized tax benefits in 2015. In July 2012, the Company received a Notice of Reassessment (the "Reassessments") from the Canada Revenue Agency (the “CRA”) in respect to its 2004 to 2010 taxation years to disallow the deductibility of inter-company dividends. The Company appealed the Reassessments to the Tax Court of Canada. As part of the appeals process to the Tax Court of Canada, the Company had elected to deposit the entire amount of the dispute in order to suspend continuing interest charges. In September 2014, the Department of Justice Canada consented to a judgment, wholly in the Company's favor. In vacating the reassessment, this tax litigation is concluded. In December 2014 the Company received a partial refund of the cash deposit with a value of $50,282. The Company also received interest on the deposit of $1,236. The Company expects the balance of the cash deposit of $27,068, recorded in Other current assets as of December 31, 2014, plus 1% annual interest to be received in the first quarter of 2015.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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