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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of income (loss) before income taxes | The components of income before income taxes were as follows:
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
U.S. |  | $ | 237,296 |  |  | $ | 255,088 |  |  | $ | 213,171 |
Non-U.S. |  | 131,197 |  |  | 113,572 |  |  | 153,065 |
Total |  | $ | 368,493 |  |  | $ | 368,660 |  |  | $ | 366,236 |
Components of income tax expense (benefit) | The components of income tax expense (benefit) were as follows:
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Federal |  | $ | 25,063 |  |  | $ | 45,521 |  |  | $ | 89,182 |
Non-U.S. |  | 26,540 |  |  | 28,894 |  |  | 25,746 |
State and local |  | 9,064 |  |  | 10,515 |  |  | 7,640 |
|  | 60,667 |  |  | 84,930 |  |  | 122,568 |
Deferred: |  |  |  |  |  |
Federal |  | 6,971 |  |  | (691 | ) |  | (4,391 | )
Non-U.S. |  | 6,513 |  |  | (3,121 | ) |  | (82 | )
State and local |  | 1,259 |  |  | 549 |  |  | 666 |
|  | 14,743 |  |  | (3,263 | ) |  | (3,807 | )
Total |  | $ | 75,410 |  |  | $ | 81,667 |  |  | $ | 118,761 |
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, 2019 were as follows:
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Statutory rate applied to pre-tax income |  | $ | 77,384 |  |  | $ | 77,419 |  |  | $ | 128,182 |
State and local income taxes, net of federal tax benefit |  | 8,830 |  |  | 8,844 |  |  | 5,671 |
Excess tax benefits resulting from exercises of stock-based compensation |  | (3,451 | ) |  | (1,094 | ) |  | (6,276 | )
Net impact of the U.S. Tax Act |  | — |  |  | 4,823 |  |  | 21,949 |
Foreign withholding taxes |  | — |  |  | (4,424 | ) |  | 6,667 |
Resolution and settlements to uncertain tax positions |  | (9,432 | ) |  | (457 | ) |  | 2,216 |
Foreign Derived Intangible Income Deduction |  | (4,315 | ) |  | (2,647 | ) |  | — |
Foreign rate variance |  | 7,023 |  |  | (4,560 | ) |  | (13,929 | )
Bargain purchase gain |  | — |  |  | — |  |  | (17,556 | )
Valuation allowances |  | 3,198 |  |  | 5,596 |  |  | 102 |
Manufacturing deduction |  | — |  |  | — |  |  | (5,922 | )
Research and development credit |  | (4,786 | ) |  | (3,859 | ) |  | (2,688 | )
Other |  | 959 |  |  | 2,026 |  |  | 345 |
Total |  | $ | 75,410 |  |  | $ | 81,667 |  |  | $ | 118,761 |
Effective tax rate |  | 20.5 | % |  | 22.2 | % |  | 32.4 | %
Significant components of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities at December 31, 2019 and 2018, were as follows:
|  | December 31,
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Tax loss and credit carry-forwards |  | $ | 64,712 |  |  | $ | 60,756 |
Inventory |  | 3,442 |  |  | 3,544 |
Other accruals |  | 13,048 |  |  | 13,172 |
Employee benefits |  | 24,532 |  |  | 22,963 |
Pension obligations |  | 11,561 |  |  | 12,122 |
Other |  | 3,401 |  |  | 3,739 |
Deferred tax assets, gross |  | 120,696 |  |  | 116,296 |
Valuation allowance |  | (71,546 | ) |  | (69,400 | )
Deferred tax assets, net |  | 49,150 |  |  | 46,896 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | 39,583 |  |  | 28,606 |
Intangible assets |  | 16,695 |  |  | 10,950 |
Inventory |  | 6,427 |  |  | 4,814 |
Pension obligations |  | 25,171 |  |  | 19,346 |
Other |  | 11,285 |  |  | 8,770 |
Deferred tax liabilities |  | 99,161 |  |  | 72,486 |
Total deferred taxes |  | $ | (50,011 | ) |  | $ | (25,590 | )
Summary of the activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits:
|  | 2019 |  | 2018
Balance at beginning of year |  | $ | 28,804 |  |  | $ | 28,449 |
Increase related to current year tax provisions |  | 1,204 |  |  | 1,431 |
Increase/(decrease) related to prior years' tax positions |  | (101 | ) |  | 4,917 |
Decrease related to settlements with taxing authorities |  | (3,567 | ) |  | (111 | )
Resolution of and other decreases in prior years' tax liabilities |  | (5,692 | ) |  | (1,501 | )
Other |  | (63 | ) |  | (4,381 | )
Balance at end of year |  | $ | 20,585 |  |  | $ | 28,804 |

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