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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Components of income (loss) before income taxes | The components of income before income taxes for the three years ended December 31, 2017 were as follows:
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015
U.S. |  | $ | 213,171 |  |  | $ | 209,409 |  |  | $ | 118,037 |
Non-U.S. |  | 153,065 |  |  | 67,979 |  |  | 51,750 |
Total |  | $ | 366,236 |  |  | $ | 277,388 |  |  | $ | 169,787 |
Components of income tax expense (benefit) | The components of income tax expense (benefit) for the three years ended December 31, 2017 were as follows:
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |  |
Federal |  | $ | 89,182 |  |  | $ | 57,090 |  |  | $ | 60,500 |
Non-U.S. |  | 25,746 |  |  | 23,344 |  |  | 28,046 |
State and local |  | 7,640 |  |  | 8,386 |  |  | 9,557 |
|  | 122,568 |  |  | 88,820 |  |  | 98,103 |
Deferred: |  |  |  |  |  |
Federal |  | (4,391 | ) |  | (1,716 | ) |  | (47,902 | )
Non-U.S. |  | (82 | ) |  | (8,261 | ) |  | (3,362 | )
State and local |  | 666 |  |  | 172 |  |  | (4,464 | )
|  | (3,807 | ) |  | (9,805 | ) |  | (55,728 | )
Total |  | $ | 118,761 |  |  | $ | 79,015 |  |  | $ | 42,375 |
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, 2017 were as follows:
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015
Statutory rate of 35% applied to pre-tax income |  | $ | 128,182 |  |  | $ | 97,086 |  |  | $ | 59,426 |
State and local income taxes, net of federal tax benefit |  | 5,671 |  |  | 5,554 |  |  | 1,868 |
Excess tax benefits resulting from exercises of stock-based compensation |  | (6,276 | ) |  | — |  |  | — |
Net impact of the U.S. Tax Act |  | 21,949 |  |  | — |  |  | — |
Foreign withholding taxes |  | 6,667 |  |  | — |  |  | — |
Intangible and asset impairments/(write-off) |  | — |  |  | (4,438 | ) |  | 2,184 |
Foreign rate variance |  | (13,929 | ) |  | (8,128 | ) |  | (11,399 | )
Venezuela deconsolidation/devaluation |  | — |  |  | 5,192 |  |  | 11,396 |
Bargain purchase gain |  | (17,556 | ) |  | — |  |  | — |
Valuation allowances |  | 102 |  |  | (8,525 | ) |  | 2,900 |
Manufacturing deduction |  | (5,922 | ) |  | (5,190 | ) |  | (9,207 | )
U.S. tax cost (benefit) of foreign source income |  | 294 |  |  | (489 | ) |  | (8,754 | )
Other |  | (421 | ) |  | (2,047 | ) |  | (6,039 | )
Total |  | $ | 118,761 |  |  | $ | 79,015 |  |  | $ | 42,375 |
Effective tax rate |  | 32.4 | % |  | 28.5 | % |  | 25.0 | %
Significant components of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities at December 31, 2017 and 2016, were as follows:
|  | December 31,
|  | 2017 |  | 2016
Deferred tax assets: |  |  |  |
Tax loss and credit carry-forwards |  | $ | 65,284 |  |  | $ | 52,270 |
Inventory |  | 2,501 |  |  | 2,080 |
Other accruals |  | 14,873 |  |  | 18,186 |
Employee benefits |  | 18,468 |  |  | 23,596 |
Pension obligations |  | 12,363 |  |  | 2,503 |
Other |  | 4,923 |  |  | 3,020 |
Deferred tax assets, gross |  | 118,412 |  |  | 101,655 |
Valuation allowance |  | (68,694 | ) |  | (47,849 | )
Deferred tax assets, net |  | 49,718 |  |  | 53,806 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | 21,427 |  |  | 32,210 |
Intangible assets |  | 10,729 |  |  | 17,506 |
Inventory |  | 5,891 |  |  | 10,059 |
Pension obligations |  | 16,137 |  |  | 17,915 |
Other |  | 20,313 |  |  | 9,309 |
Deferred tax liabilities |  | 74,497 |  |  | 86,999 |
Total deferred taxes |  | $ | (24,779 | ) |  | $ | (33,193 | )
Summary of the activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits:
|  | 2017 |  | 2016
Balance at beginning of year |  | $ | 18,499 |  |  | $ | 14,332 |
Increase related to current year tax provisions |  | 1,448 |  |  | 1,975 |
Increase related to prior years' tax positions |  | 1,460 |  |  | 5,188 |
Increase related to acquisitions |  | 8,223 |  |  | — |
Decrease related to settlements with taxing authorities |  | (522 | ) |  | (265 | )
Resolution of and other decreases in prior years' tax liabilities |  | (1,734 | ) |  | (1,982 | )
Other |  | 1,075 |  |  | (749 | )
Balance at end of year |  | $ | 28,449 |  |  | $ | 18,499 |

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- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
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