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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Taxes [Abstract] |
Components of income (loss) from continuing operations before taxes and noncontrolling interest | Income (loss) from continuing operations before taxes and noncontrolling interests consists of the following components:
|  | Years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Domestic |  | $ | (26,065 | ) |  | $ | (15,995 | ) |  | $ | 2,143 |
Foreign |  |  | 202,470 |  |  |  | 186,032 |  |  |  | 328,973 |
|  | $ | 176,405 |  |  | $ | 170,037 |  |  | $ | 331,116 |
Components of income taxes | Significant components of income taxes are as follows:
|  | Years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (603 | ) |  | $ | 8,409 |  |  | $ | 10,968 |
State and local |  |  | 280 |  |  |  | 574 |  |  |  | (801 | )
Foreign |  |  | 51,225 |  |  |  | 44,351 |  |  |  | 66,844 |
|  |  | 50,902 |  |  |  | 53,334 |  |  |  | 77,011 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2,215 |  |  |  | (8,557 | ) |  |  | 6,188 |
State and local |  |  | 92 |  |  |  | (240 | ) |  |  | (2,286 | )
Foreign |  |  | (573 | ) |  |  | 1,969 |  |  |  | 10,206 |
|  |  | 1,734 |  |  |  | (6,828 | ) |  |  | 14,108 |
Total income tax expense |  | $ | 52,636 |  |  | $ | 46,506 |  |  | $ | 91,119 |
Deferred tax assets and liabilities | Note 5 – Income Taxes (continued) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | December 31, |
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |
Pension and other retiree obligations |  | $ | 34,343 |  |  | $ | 58,577 |
Inventories |  |  | 8,759 |  |  |  | 13,881 |
Net operating loss carryforwards |  |  | 182,691 |  |  |  | 158,638 |
Tax credit carryforwards |  |  | 20,780 |  |  |  | 16,180 |
Other accruals and reserves |  |  | 31,469 |  |  |  | 34,194 |
Total gross deferred tax assets |  |  | 278,042 |  |  |  | 281,470 |
Less valuation allowance |  |  | (183,289 | ) |  |  | (166,266 | )
|  |  | 94,753 |  |  |  | 115,204 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Tax over book depreciation |  |  | (10,652 | ) |  |  | (13,975 | )
Earnings not permanently reinvested |  |  | - |  |  |  | (1,652 | )
Convertible debentures |  |  | (162,371 | ) |  |  | (149,113 | )
Other - net |  |  | (5,932 | ) |  |  | (2,711 | )
Total gross deferred tax liabilities |  |  | (178,955 | ) |  |  | (167,451 | )
Net deferred tax assets (liabilities) |  | $ | (84,202 | ) |  | $ | (52,247 | )
Federal statutory income tax rate reconciliation | A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax provision is as follows:
|  | Years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Tax at statutory rate |  | $ | 61,742 |  |  | $ | 59,513 |  |  | $ | 115,891 |
State income taxes, net of U.S. federal tax benefit |  |  | 242 |  |  |  | 217 |  |  |  | (2,005 | )
Effect of foreign operations |  |  | (18,696 | ) |  |  | (19,083 | ) |  |  | (52,609 | )
Unrecognized tax benefits |  |  | 2,862 |  |  |  | 6,626 |  |  |  | 4,869 |
Change in valuation allowance on non-U.S. deferred tax assets |  |  | (285 | ) |  |  | (4,036 | ) |  |  | (5,554 | )
Tax benefit of operating loss carryforwards |  |  | (1,259 | ) |  |  | (671 | ) |  |  | (1,588 | )
Foreign income taxable in the U.S. |  |  | 11,961 |  |  |  | 7,476 |  |  |  | 22,822 |
Tax on foreign dividends paid to the U.S. |  |  | - |  |  |  | - |  |  |  | 15,453 |
U.S. foreign tax credits |  |  | - |  |  |  | (4,257 | ) |  |  | (12,322 | )
Effect of statutory rate changes on deferred tax assets |  |  | (2,867 | ) |  |  | - |  |  |  | 9,040 |
Other |  |  | (1,064 | ) |  |  | 721 |  |  |  | (2,878 | )
Total income tax expense |  | $ | 52,636 |  |  | $ | 46,506 |  |  | $ | 91,119 |
Net operating loss carryforwards | At December 31, 2013, the Company had the following significant net operating loss carryforwards for tax purposes:
|  |  |  |  | Expires |
Austria |  | $ | 13,699 |  |  | No expiration |
Belgium |  |  | 196,898 |  |  | No expiration |
Brazil |  |  | 16,736 |  |  | No expiration |
Germany |  |  | 49,880 |  |  | No expiration |
Israel |  |  | 79,406 |  |  | No expiration |
Netherlands |  |  | 24,136 |  |  | 2014 - 2022 |
United States |  |  | 41,575 |  |  | 2033 |
California |  |  | 54,317 |  |  | 2016 - 2033 |
Pennsylvania |  |  | 637,923 |  |  | 2018 - 2033 |
Summary of significant tax credit carryforwards available | At December 31, 2013, the Company had the following significant tax credit carryforwards available:
|  |  |  |  | Expires |
U.S. Foreign Tax Credit |  | $ | 11,026 |  |  |  | 2020 - 2022 |
California Research Credit |  |  | 9,062 |  |  | No expiration |
Unrecognized tax benefits | The following table summarizes changes in the liabilities associated with unrecognized tax benefits:
|  | Years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Balance at beginning of year |  | $ | 51,771 |  |  | $ | 48,152 |  |  | $ | 52,066 |
Addition based on tax positions related to the current year |  |  | - |  |  |  | 665 |  |  |  | 2,459 |
Addition based on tax positions related to prior years |  |  | 4,015 |  |  |  | 3,498 |  |  |  | 7,232 |
Currency translation adjustments |  |  | 310 |  |  |  | (215 | ) |  |  | (749 | )
Reduction based on tax positions related to prior years |  |  | (2,054 | ) |  |  | - |  |  |  | (3,293 | )
Reduction for settlements |  |  | (7,316 | ) |  |  | (329 | ) |  |  | (9,528 | )
Reduction for lapses of statute of limitation |  |  | (849 | ) |  |  | - |  |  |  | (35 | )
Balance at end of year |  | $ | 45,877 |  |  | $ | 51,771 |  |  | $ | 48,152 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
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- Definition Tabular disclosure of 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 (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + 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 + Details
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