Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

U.S. and outside U.S. components of income (loss) before income taxes were as follows:

The provision for income taxes consisted of:

Significant components of deferred tax assets and liabilities were as follows:



	December 31,
(In millions)	2017			2016
Deferred tax assets attributable to:
Accrued expenses	$	155.2		$	49.3
Non-deductible interest	85.9			—
Foreign tax credit carryforwards	34.9			—
Net operating loss carryforwards	390.7			225.9
Inventories	13.4			—
Research and development credit	7.5			—
Provisions for pensions and other long-term employee benefits	86.4			56.2
Contingencies related to contracts	111.3			188.3
Other contingencies	33.5			63.1
Fair value losses/gains	12.4			103.1
Other	11.1			15.1
Deferred tax assets	942.3			701.0
Valuation allowance	(430.0		)	(172.7		)
Deferred tax assets, net of valuation allowance	512.3			528.3
Deferred tax liabilities attributable to:
Revenue in excess of billings on contracts accounted for under the percentage of completion method	41.2			—
U.S. tax on foreign subsidiaries’ undistributed earnings not indefinitely reinvested	4.9			—
Foreign exchange	21.5			—
Property, plant and equipment, intangibles and other assets	403.3			101.1
Margin recognition on construction contracts	6.4			4.1
Deferred tax liabilities	477.3			105.2
Net deferred tax assets	$	35.0		$	423.1

The following table presents a summary of changes in our unrecognized tax benefits and associated interest and penalties⁽¹⁾:



(In millions)	Federal, State and Foreign Tax			Accrued Interest and Penalties		Total Gross Unrecognized Income Tax Benefits
Balance at December 31, 2015	$	—		$	—	$	—
Additions for tax positions related to prior years	—			—		—
Additions for tax positions related to current year	16.6			—		16.6
Reductions for tax positions due to settlements	—			—		—
Balance at December 31, 2016	$	16.6		$	—	$	16.6
Reductions for tax positions related to prior years	(13.6		)	—		(13.6		)
Additions for tax positions related to current year	39.5			3.8		43.3
Reductions for tax positions due to settlements	(0.2		)	—		(0.2		)
Additions for tax positions related to purchase accounting	48.1			2.1		50.2
Balance at December 31, 2017	$	90.4		$	5.9	$	96.3

The effective income tax rate was different from the statutory federal income tax rate due to the following:



	Year Ended December 31,
	2017		2016		2015
Statutory income tax rate	19.3	%	34.4	%	38.0	%
Net difference resulting from:
Foreign earnings subject to different tax rates	18.2	%	(18.5	)%	28.4	%
Net change in unrecognized tax benefits	4.3	%	3.0	%	—	%
Adjustments on prior year taxes	(4.4	)%	2.4	%	(11.0	)%
Change in valuation allowance	19.3	%	13.1	%	36.9	%
Deferred tax asset/liability revaluation for tax rate change	1.4	%	(0.8	)%	1.8	%
U.S. transition tax	17.1	%	—	%	—	%
Other	5.1	%	(0.9	)%	(3.5	)%
Effective income tax rate	80.3	%	32.7	%	90.6	%