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Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal income taxes has been provided thereon. The estimate of undistributed earnings of the Company’s foreign subsidiaries amounted to $671 million as of December 31, 2014. Upon distribution of those earnings in the form of dividends or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable. 

On January 2, 2013, the “American Taxpayer Relief Act of 2012” extended the Research and Development tax credit retroactive to January 1, 2012 and was extended through December 31, 2013. The Research and Development credit for 2012 of $1.2 million was recognized on the Company’s 2012 U.S. federal income tax return but was recorded for financial statement purposes in the first quarter of 2013 in accordance with ASC 740. 

The Company paid $69.9 million, $41.0 million and $37.9 million in income taxes in 2014, 2013 and 2012, respectively. 

## 7. Other Accrued Liabilities 

Other accrued liabilities consist of the following: 

## 8. Employee Benefit Plans 

<img src='content_image/158307.jpg'>

The Company has a defined-contribution 401(k) plan covering domestic employees and a defined- contribution pension plan covering certain foreign employees. The Company generally makes contributions to the plans equal to each participant’s eligible contributions for the plan year up to a specified percentage of the participant’s annual compensation. The Company’s contribution expense was $5.9 million, $4.9 million and $4.4 million in 2014, 2013 and 2012, respectively. 

## 9. Commitments and Contingencies 

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $4.2 million, $3.5 million and $2.9 million in 2014, 2013 and 2012, respectively. Future annual minimum lease commitments at December 31, 2014 are as follows: 2015—$2.5 million; 2016— $1.4 million, 2017—$0.7 million; 2018—$0.5 million; 2019—$0.4 million and thereafter—$4.6 million. 

## Brazilian Tax Issue 

From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. 

