v3.3.1.900

Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes Income before income taxes and Provision for (benefit from) income taxes consisted of the following:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
| (In thousands)
Income (loss) before income taxes: |  |  |  |  |  |  |  |
Domestic operations | $ | (16,487 | ) |  | $ | 53,153 |  |  | $ | (7,899 | )
Foreign operations | 253,389 |  |  | 305,095 |  |  | 310,694 |
| $ | 236,902 |  |  | $ | 358,248 |  |  | $ | 302,795 |
Provision for (benefit from) income taxes: |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Federal | $ | 465 |  |  | $ | 798 |  |  | $ | (464 | )
State | 1,076 |  |  | 2,047 |  |  | 871 |
Foreign | 70,900 |  |  | 74,618 |  |  | 83,299 |
| 72,441 |  |  | 77,463 |  |  | 83,706 |
Deferred: |  |  |  |  |  |  |  |
Domestic operations | $ | (1,231 | ) |  | $ | (127,114 | ) |  | $ | 11,603 |
Foreign operations | (21,486 | ) |  | (12,374 | ) |  | (1,657 | )
| (22,717 | ) |  | (139,488 | ) |  | 9,946 |
| $ | 49,724 |  |  | $ | (62,025 | ) |  | $ | 93,652 |
The Company’s Provision for (benefit from) income taxes differs from the amount that would be computed by applying the U.S. federal statutory rate as follows:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
| (In thousands)
Taxes calculated at the U.S. federal statutory rate | $ | 82,940 |  |  | $ | 125,386 |  |  | $ | 105,978 |
State taxes | 768 |  |  | 2,323 |  |  | 871 |
Effect of tax rates on international operations | (36,364 | ) |  | (34,619 | ) |  | (42,972 | )
Change in enacted international tax rates | (4,415 | ) |  | (149 | ) |  | (5,217 | )
Changes in valuation allowance and tax reserves | 1,784 |  |  | (156,071 | ) |  | 30,554 |
Other | 5,011 |  |  | 1,105 |  |  | 4,438 |
Provision for (benefit from) income taxes | $ | 49,724 |  |  | $ | (62,025 | ) |  | $ | 93,652 |
Deferred income taxes, net reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. During the year ended December 31, 2015, adjustments were made retrospectively to provisional amounts recorded as of December 31, 2014, due to the finalization of the valuation of specific tax items related to the acquisition consummated during the three months ended June 27, 2014. The significant components of deferred tax assets and liabilities, in addition to the reconciliation of the beginning and ending amount of gross unrecognized tax benefits below, include the impact of these retrospective adjustments. Significant components of the deferred tax assets and liabilities are as follows:
| December 31,
| 2015 |  | 2014
| (In thousands)
Deferred tax assets: |  |  |
Post-retirement benefit obligation | $ | 75,045 |  |  | $ | 92,995 |
Expenses currently not deductible | 109,283 |  |  | 116,247 |
Net operating loss carryforward | 211,627 |  |  | 228,863 |
Tax credit carryforward | 10,343 |  |  | 11,509 |
Depreciation and amortization | 7,533 |  |  | 11,121 |
Other | 25,379 |  |  | 22,285 |
Valuation allowance | (161,030 | ) |  | (159,252 | )
Deferred tax assets, net | $ | 278,180 |  |  | $ | 323,768 |
Deferred tax liabilities: |  |  |  |  |
Depreciation and amortization | $ | (317,464 | ) |  | $ | (353,660 | )
Post-retirement benefit obligation | (13,581 | ) |  | (12,116 | )
Inventory | (17,122 | ) |  | (16,549 | )
Other | (174,367 | ) |  | (193,618 | )
Total deferred tax liabilities | $ | (522,534 | ) |  | $ | (575,943 | )
Total deferred tax liabilities, net | $ | (244,354 | ) |  | $ | (252,175 | )
The Company evaluates the recoverability of its deferred tax assets on a jurisdictional basis by considering whether deferred tax assets will be realized on a more likely than not basis. To the extent a portion or all of the applicable deferred tax assets do not meet the more likely than not threshold, a valuation allowance is recorded. During the year ended December 31, 2015, the valuation allowance increased from $159.3 million to $161.0 million with a net increase of $8.6 million recognized in Provision for (benefit from) income taxes, a decrease of $3.9 million recognized in Other comprehensive (loss) income and a $3.0 million decrease related to changes in foreign currency rates. As a result of the effect of the Victor Acquisition on expected future income in the United States, the realizability of certain deferred assets were reassessed in 2014. The reduction of valuation allowances associated with this reassessment resulted in a non-cash income tax benefit of $145.4 million for the year ended December 31, 2014. Consideration was given to U.S. tax planning strategies and future U.S. taxable income as to how much of the relevant deferred tax asset could be realized on a more likely than not basis. The Company has U.S. net operating loss carryforwards of $267.3 million expiring in years 2021 through 2032, and alternative minimum tax credits of $9.8 million that may be carried forward indefinitely. Tax credit carryforwards include foreign tax credits that have been offset by a valuation allowance. The Company’s ability to use these various carryforwards to offset any taxable income generated in future taxable periods may be limited under Section 382 and other federal tax provisions. For the years ended December 31, 2015, 2014 and 2013, all undistributed earnings of the Company’s controlled international subsidiaries are considered to be permanently reinvested outside the U.S. and no tax expense in the U.S. has been recognized under the applicable accounting standard for these reinvested earnings. The amount of unremitted earnings from the Company’s international subsidiaries, subject to local statutory restrictions, as of December 31, 2015 is $1.3 billion. The amount of deferred tax liability that would have been recognized had such earnings not been indefinitely reinvested is not reasonably determinable. The Company records a liability for unrecognized income tax benefits for the amount of benefit included in its previously filed income tax returns and in its financial results expected to be included in income tax returns to be filed for periods through the date of its Consolidated Financial Statements for income tax positions for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (inclusive of associated interest and penalties):
| (In thousands)
Balance, December 31, 2013 | $ | 71,595 |
Acquisitions | 37,328 |
Addition for tax positions taken in prior periods | 3,752 |
Addition for tax positions taken in the current period | 894 |
Reduction for tax positions taken in prior periods | (27,601 | )
Other, including the impact of foreign currency translation | (8,443 | )
Balance, December 31, 2014 | 77,525 |
Addition for tax positions taken in prior periods | 3,924 |
Addition for tax positions taken in the current period | 924 |
Reduction for tax positions taken in prior periods | (23,616 | )
Other, including the impact of foreign currency translation | (5,879 | )
Balance, December 31, 2015 | $ | 52,878 |
The Company is routinely examined by tax authorities around the world. Tax examinations remain in process in multiple countries, including but not limited to Sweden, China, Indonesia, France, Mexico, Brazil and various states. The Company files numerous group and separate tax returns in U.S. federal and state jurisdictions, as well as many international jurisdictions. In the U.S., tax years dating back to 2006 remain subject to examination, as well as the 2003 and 2005 tax years due to tax attributes available to be carried forward to open or future tax years. With some exceptions, other major tax jurisdictions generally are not subject to tax examinations for years beginning before 2008. The Company’s total unrecognized tax benefits were $52.9 million and $77.5 million as of December 31, 2015 and 2014, respectively, inclusive of $11.2 million and $14.7 million, respectively, of interest and penalties. These amounts were offset by tax benefits of $0.1 million as of both December 31, 2015 and 2014. The net liabilities for uncertain tax positions as of December 31, 2015 and 2014 were $52.8 million and $77.4 million, respectively, and, if recognized, would favorably impact the effective tax rate. The Company records interest and penalties on uncertain tax positions as a component of Provision for (benefit from) income taxes, which was $1.8 million, $2.5 million and $4.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Due to the difficulty in predicting with reasonable certainty when tax audits will be fully resolved and closed, the range of reasonably possible significant increases or decreases in the liability for unrecognized tax benefits that may occur within the next 12 months is difficult to ascertain. Currently, the Company estimates that it is reasonably possible that the expiration of various statutes of limitations, resolution of tax audits and court decisions may reduce its tax expense in the next 12 months up to $0.9 million.

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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=6907707&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=6907707&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=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 + Details
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