Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of income tax provision (benefits) from continuing operations

Our Provision for income taxes from continuing operations consisted of the following (in millions):



	For the Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	106.0		$	101.0		$	84.3
State	14.5			13.1			10.1
Foreign	9.7			3.6			9.6
Total current	130.2			117.7			104.0
Deferred:
Federal	(4.5		)	(21.4		)	2.3
State	(1.2		)	(0.6		)	1.0
Foreign	(0.4		)	(0.3		)	2.2
Total deferred	(6.1		)	(22.3		)	5.5
Total provision for income taxes	$	124.1		$	95.4		$	109.5

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Interest expense, net of capitalized interest	$	28.1	$	25.2	$	18.9
Interest income	1.1		1.6		1.7
Interest expense, net	$	27.0	$	23.6	$	17.2

Income from continuing operations before income taxes

Income from continuing operations before income taxes was comprised of the following (in millions):



	For the Years Ended December 31,
	2016		2015		2014
Domestic	$	374.8	$	276.7	$	283.7
Foreign	27.9		5.9		33.9
Total	$	402.7	$	282.6	$	317.6

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):



	For the Years Ended December 31,
	2016			2015			2014
Provision at the U.S. statutory rate of 35%	$	141.0		$	98.9		$	111.2
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	12.8			8.0			8.8
Other permanent items	4.2			(9.1		)	(8.2		)
Tax credits, net of unrecognized tax benefits	(27.9		)	(0.7		)	—
Change in unrecognized tax benefits	(0.3		)	(0.9		)	0.2
Change in valuation allowance	(4.3		)	(0.6		)	0.2
Foreign taxes at rates other than 35% and miscellaneous other	(1.4		)	(0.2		)	(2.7		)
Total provision for income taxes	$	124.1		$	95.4		$	109.5

Summary of deferred tax assets (liabilities)

Deferred tax assets (liabilities) were comprised of the following (in millions):



	As of December 31,
	2016			2015
Gross deferred tax assets:
Warranties	$	36.3		$	33.7
Loss carryforwards (foreign, U.S. and state)	19.8			20.0
Post-retirement and pension benefits	33.9			47.7
Inventory reserves	9.6			9.0
Receivables allowance	4.5			4.1
Compensation liabilities	20.6			19.3
Deferred income	1.5			1.6
Insurance liabilities	6.5			6.3
Legal reserves	12.0			10.9
Hedges	—			5.3
State credits, net of federal effect	18.4			8.3
Other	5.4			7.1
Total deferred tax assets	168.5			173.3
Valuation allowance	(17.1		)	(19.9		)
Total deferred tax assets, net of valuation allowance	151.4			153.4
Gross deferred tax liabilities:
Depreciation	(3.3		)	(2.5		)
Hedges	(3.2		)	—
Intangibles	(4.9		)	(2.2		)
Other	(3.3		)	(3.0		)
Total deferred tax liabilities	(14.7		)	(7.7		)
Net deferred tax assets	$	136.7		$	145.7

Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



Balance as of December 31, 2014	$	1.6
Increases related to prior year tax positions	0.5
Decreases related to prior year tax positions	(1.2		)
Increases related to current year tax positions	—
Settlement	(0.4		)
Balance as of December 31, 2015	0.5
Increases related to prior year tax positions	1.0
Decreases related to prior year tax positions	—
Increases related to current year tax positions	1.4
Settlement	(0.5		)
Balance as of December 31, 2016	$	2.4