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INCOME TAXES | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | (9) INCOME TAXES Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows:
| 2016 |  | 2015 |  | 2014
United States | $ | 136,682 |  |  | $ | 99,175 |  |  | $ | 168,975 |
Foreign | 83,772 |  |  | (6,168 | ) |  | 115,208 |
| $ | 220,454 |  |  | $ | 93,007 |  |  | $ | 284,183 |
(9) INCOME TAXES (Continued) Income tax expense (benefit) consists of:
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal | $ | 41,539 |  |  | $ | 23,130 |  |  | $ | 52,588 |
State | 5,467 |  |  | 4,431 |  |  | 5,059 |
Foreign | 19,123 |  |  | 15,077 |  |  | 32,443 |
| 66,129 |  |  | 42,638 |  |  | 90,090 |
Non-current: | (381 | ) |  | (69 | ) |  | (447 | )
Deferred: |  |  |  |  |
Federal | 8,504 |  |  | 3,382 |  |  | 447 |
State | 202 |  |  | (333 | ) |  | 1,376 |
Foreign | (32,391 | ) |  | 1,809 |  |  | 3,428 |
| (23,685 | ) |  | 4,858 |  |  | 5,251 |
| $ | 42,063 |  |  | $ | 47,427 |  |  | $ | 94,894 |
The reconciliations of the statutory federal income tax rate and the effective tax rate follows:
| 2016 |  | 2015 |  | 2014
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit | 1.7 |  |  | 3.1 |  |  | 1.8 |
Carryforwards, credits and changes in valuation allowances | 2.9 |  |  | (0.1 | ) |  | (0.4 | )
Foreign tax rate differences | (4.8 | ) |  | (5.7 | ) |  | (4.4 | )
Changes in unrecognized tax benefits | (0.2 | ) |  | (0.1 | ) |  | (0.2 | )
Domestic production activities deduction | (2.0 | ) |  | (3.8 | ) |  | (1.6 | )
Goodwill impairment | — |  |  | 11.3 |  |  | — |
UK tax rate reduction | 1.0 |  |  | 7.7 |  |  | — |
Reversal of contingent liability | (2.2 | ) |  | — |  |  | — |
UK defined benefit pension plan | (14.6 | ) |  | — |  |  | — |
Other | 2.3 |  |  | 3.6 |  |  | 3.2 |
| 19.1 | % |  | 51.0 | % |  | 33.4 | %
Fiscal 2016 includes $32,450 of deferred income tax benefit attributable to the re-measurement of the deferred tax asset related to the Company's U.K. defined benefit pension plan. This item arose from a 2016 international legal reorganization executed to better reflect the Company's operational business strategies. The Company considered many factors in effecting this realignment, including streamlining treasury functions, creating a platform for future growth, and capital allocation considerations. In addition, in fiscal 2016 the Company recorded a $9,888 valuation allowance against a tax credit which is not more likely than not to be realized. In 2016 and 2015, the Company was required to remeasure its U.K. deferred income tax assets to account for a change in the U.K. corporate tax rate. The Company recorded deferred income tax expense of $1,860 and $7,120 for this change in U.K. tax rates. The reversal of a $16,591 contingent non-current liability in 2016 is not taxable. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows: (9) INCOME TAXES (Continued)
| 2016 |  | 2015
Deferred income tax assets: |  |  |
Accrued expenses and allowances | $ | 16,549 |  |  | $ | 18,320 |
Accrued insurance | 1,071 |  |  | 1,408 |
Tax credits and loss carryforwards | 104,439 |  |  | 130,743 |
Defined benefit pension liability | 80,425 |  |  | 32,278 |
Inventory allowances | 1,385 |  |  | 911 |
Accrued warranty | 9,436 |  |  | 12,818 |
Deferred compensation | 37,988 |  |  | 36,672 |
Gross deferred income tax assets | 251,293 |  |  | 233,150 |
Valuation allowance | (81,923 | ) |  | (90,837 | )
Net deferred income tax assets | 169,370 |  |  | 142,313 |
Deferred income tax liabilities: |  |  |
Work in progress | 2,161 |  |  | 3,087 |
Property, plant and equipment | 37,961 |  |  | 41,147 |
Intangible assets | 50,405 |  |  | 54,162 |
Other liabilities | 6,164 |  |  | 3,517 |
Total deferred income tax liabilities | 96,691 |  |  | 101,913 |
Net deferred income tax asset/(liability) | $ | 72,679 |  |  | $ | 40,400 |
Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets:
Balance Sheet Caption | 2016 |  | 2015
Other assets | $ | 108,482 |  |  | $ | 76,069 |
Deferred income taxes | (35,803 | ) |  | (35,669 | )
Net deferred income tax asset/(liability) | $ | 72,679 |  |  | $ | 40,400 |
Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 31, 2016 and December 26, 2015 respectively, there were $104,439 and $130,743 relating to tax credits and loss carryforwards. Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 31, 2016 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting 2017. Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. (9) INCOME TAXES (Continued) The following summarizes the activity related to our unrecognized tax benefits in 2016 and 2015, in thousands:
| 2016 |  | 2015
Gross unrecognized tax benefits—beginning of year | $ | 3,876 |  |  | $ | 4,268 |
Gross decreases—tax positions in prior period | 99 |  |  | (173 | )
Gross increases—current‑period tax positions | 695 |  |  | 687 |
Settlements with taxing authorities | (105 | ) |  | (361 | )
Lapse of statute of limitations | (1,165 | ) |  | (545 | )
Gross unrecognized tax benefits—end of year | $ | 3,400 |  |  | $ | 3,876 |
There are approximately $1,210 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2016, the Company recorded a reduction of its gross unrecognized tax benefit of $1,165 with $810 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2015, the Company recorded a reduction of its gross unrecognized tax benefit of $545, with $511 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States. In addition to these amounts, there was an aggregate of $192 and $280 of interest and penalties at December 31, 2016 and December 26, 2015, respectively. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2013 and forward remain open under U.S. statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $3,328 and $3,813 at December 31, 2016 and December 26, 2015, respectively. All foreign subsidiaries are considered permanently invested at December 31, 2016. Provision has not been made for United States income taxes on the undistributed earnings of the Company’s foreign subsidiaries (approximately $424,000 at December 31, 2016 and $415,000 at December 26, 2015, respectively) because the Company intends to reinvest those earnings. Such earnings would become taxable upon the sale or liquidation of these foreign subsidiaries or upon remittance of dividends. The determination of the additional U.S. federal and state income taxes or foreign withholding taxes have not been provided, as the determination is not practicable. Furthermore, the currency translation adjustments in “Accumulated other comprehensive income (loss)” are not adjusted for income taxes as they relate to indefinite investments in foreign subsidiaries.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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