Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Data from Continuing Operations

For each of the years ended December 31, 2014, 2013, and 2012 the tax data related to continuing operations is as follows:



	2014			2013			2012
Income components:
United States	$	44.5		$	28.5		$	33.0
International	217.5			152.0			116.1
Income from continuing operations before income tax	262.0			180.5			149.1
Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal	16.2			10.6			(32.6		)
United States – state and local	0.7			4.2			(8.7		)
International	54.6			39.6			46.8
Total current income tax expense	71.5			54.4			5.5
Deferred income tax expense (benefit) components:
United States – federal	(0.6		)	(331.2		)	40.1
United States – state and local	5.1			(36.7		)	9.9
International	(4.7		)	3.9			(15.9		)
Total deferred income tax (benefit) expense	(0.2		)	(364.0		)	34.1
Income tax expense (benefit)	$	71.3		$	(309.6	)	$	39.6
Effective income tax rate	27.2		%	(171.5		)%	26.6		%

Reconciliation of Tax Provision for Continuing Operations

A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2014, 2013, and 2012:



	2014		2013		2012
Tax provision at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Tax exempt interest	(10.3	)%	(17.5	)%	(19.7	)%
U.S. tax on foreign earnings	9.3	%	(0.7	)%	0.5	%
Valuation allowance on deferred tax assets	8.6	%	(191.1	)%	27.7	%
Tax on undistributed foreign earnings	(8.1	)%	6.1	%	1.3	%
Foreign tax rate differential	(6.2	)%	(4.8	)%	(3.0	)%
State and local income tax	1.6	%	0.6	%	1.4	%
Other adjustments	(1.3	)%	(0.6	)%	(3.9	)%
Foreign Tax Holiday	(1.3	)%	(1.0	)%	—	%
U.S. permanent items	(1.0	)%	(1.3	)%	0.5	%
Audit settlements & unrecognized tax benefits	0.9	%	3.8	%	(13.2	)%
Effective income tax rate	27.2	%	(171.5	)%	26.6	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities include the following:



	2014			2013
Deferred Tax Assets:
Accruals	$	69.0		$	64.5
Asbestos	272.6			272.7
Employee benefits	109.4			106.6
Credit carryforwards	29.3			47.2
Loss carryforwards	128.0			125.2
Other	36.0			34.4
Gross deferred tax assets	644.3			650.6
Less: Valuation allowance	147.1			135.3
Net deferred tax assets	$	497.2		$	515.3
Deferred Tax Liabilities:
Undistributed earnings	$	(61.2	)	$	(82.3	)
Intangibles	(58.7		)	(58.8		)
Accelerated depreciation	(26.0		)	(25.8		)
Investment	(0.4		)	(0.4		)
Total deferred tax liabilities	$	(146.3	)	$	(167.3	)
Net deferred tax assets	$	350.9		$	348.0

Deferred Taxes in Consolidated Balance Sheets

Deferred taxes are presented in the Consolidated Balance Sheets as follows:



	2014			2013
Current assets	$	56.2		$	59.5
Non-current assets	304.1			303.6
Current liabilities	—			—
Other non-current liabilities	(9.4		)	(15.1		)
Net deferred tax assets	$	350.9		$	348.0

Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block]



	Federal			State			Foreign			Total
DTA valuation allowance - December 31, 2011	$	327.0		$	127.5		$	25.9		$	480.4
Change in assessment	—			—			(6.5		)	(6.5		)
Current year operations	25.8			(5.1		)	42.1			62.8
DTA valuation allowance - December 31, 2012	352.8			122.4			61.5			536.7
Change in assessment	(339.6		)	(35.0		)	3.7			(370.9		)
Current year operations	(13.2		)	(42.7		)	25.4			(30.5		)
DTA valuation allowance - December 31, 2013	—			44.7			90.6			135.3
Change in assessment	—			—			2.5			2.5
Current year operations	—			0.3			9.0			9.3
DTA valuation allowance - December 31, 2014	$	—		$	45.0		$	102.1		$	147.1

Attributes Available for Utilization

We have the following tax attributes available for utilization at December 31, 2014:



Attribute	Amount		First Year of Expiration
U.S. federal net operating losses	$	1.9	12/31/2023
U.S. state net operating losses	$	1,355.6	12/31/2015
U.S. federal tax credits	$	23.4	12/31/2021
U.S. state tax credits	$	5.9	12/31/2027
Foreign net operating losses	$	297.0	12/31/2015

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2014, 2013, and 2012 is as follows:



	2014			2013			2012
Unrecognized tax benefits – January 1	$	161.2		$	208.8		$	198.7
Additions for:
Prior year tax positions	2.4			1.6			48.4
Current year tax positions	2.8			8.0			0.8
Assumed in Acquisition	—			—			3.8
Reductions for:
Prior year tax positions	(2.8		)	(55.4		)	(4.8		)
Settlements	(1.0		)	(1.0		)	(33.6		)
Expiration of Statute of Limitations	(2.5		)	(0.8		)	(4.5		)
Unrecognized tax benefits – December 31	$	160.1		$	161.2		$	208.8

Open Tax Years by Major Jurisdiction

The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2014:



Jurisdiction	Earliest Open Year
China	2009
Czech	2013
Germany	2006
Italy	2005
Japan	2010
Korea	2006
Luxembourg	2011
Mexico	2009
United States	2009