Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Data from Continuing Operations

For each of the years ended December 31, 2015, 2014, and 2013 the tax data related to continuing operations is as follows:



	2015			2014			2013
Income components:
United States	$	159.3		$	44.5		$	28.5
International	223.0			217.5			152.0
Income from continuing operations before income tax	382.3			262.0			180.5
Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal	(8.5		)	16.2			10.6
United States – state and local	0.1			0.7			4.2
International	52.9			54.6			39.6
Total current income tax expense	44.5			71.5			54.4
Deferred income tax expense (benefit) components:
United States – federal	31.9			(0.6		)	(331.2		)
United States – state and local	6.0			5.1			(36.7		)
International	(12.3		)	(4.7		)	3.9
Total deferred income tax (benefit) expense	25.6			(0.2		)	(364.0		)
Income tax expense (benefit)	$	70.1		$	71.3		$	(309.6	)
Effective income tax rate	18.3		%	27.2		%	(171.5		)%

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, 2015, 2014, and 2013:



	2015		2014		2013
Tax provision at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Tax exempt interest	(6.7	)%	(10.3	)%	(17.5	)%
U.S. tax on foreign earnings	3.8	%	9.3	%	(0.7	)%
Valuation allowance on deferred tax assets	2.1	%	8.6	%	(191.1	)%
Tax on undistributed foreign earnings	(5.6	)%	(8.1	)%	6.1	%
Foreign tax rate differential	(3.6	)%	(6.2	)%	(4.8	)%
State and local income tax	1.0	%	1.6	%	0.6	%
Other adjustments	(0.6	)%	(1.3	)%	(0.6	)%
Foreign tax holiday	(1.1	)%	(1.3	)%	(1.0	)%
U.S. permanent items	(1.0	)%	(1.0	)%	(1.3	)%
Audit settlements & unrecognized tax benefits	(5.0	)%	0.9	%	3.8	%
Effective income tax rate	18.3	%	27.2	%	(171.5	)%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities include the following:



	2015			2014
Deferred Tax Assets:
Accruals	$	88.0		$	69.0
Asbestos	228.7			272.6
Employee benefits	110.4			109.4
Credit carryforwards	34.5			29.3
Loss carryforwards	125.1			128.0
Other	15.5			36.0
Gross deferred tax assets	602.2			644.3
Less: Valuation allowance	135.7			147.1
Net deferred tax assets	$	466.5		$	497.2
Deferred Tax Liabilities:
Undistributed earnings	$	(39.6	)	$	(61.2	)
Intangibles	(70.8		)	(58.7		)
Accelerated depreciation	(31.0		)	(26.0		)
Investment	(0.5		)	(0.4		)
Total deferred tax liabilities	$	(141.9	)	$	(146.3	)
Net deferred tax assets	$	324.6		$	350.9

Deferred Taxes in Consolidated Balance Sheets

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



	2015			2014
Current assets	$	—		$	56.2
Non-current assets	326.1			304.1
Other non-current liabilities	(1.5		)	(9.4		)
Net deferred tax assets	$	324.6		$	350.9

Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block]

The table included below provides a rollforward of our valuation allowance on net deferred income tax assets from December 31, 2012 to December 31, 2015.



	Federal			State			Foreign			Total
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
Change in assessment	—			—			(7.4		)	(7.4		)
Current year operations	—			(3.5		)	(0.5		)	(4.0		)
DTA valuation allowance - December 31, 2015	$	—		$	41.5		$	94.2		$	135.7

Attributes Available for Utilization

We have the following tax attributes available for utilization at December 31, 2015:



Attribute	Amount		First Year of Expiration
U.S. federal net operating losses	$	1.4	12/31/2024
U.S. state net operating losses	$	1,313.5	12/31/2016
U.S. federal tax credits	$	28.6	12/31/2021
U.S. state tax credits	$	5.8	12/31/2027
Foreign net operating losses	$	296.2	12/31/2016

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, 2015, 2014, and 2013 is as follows:



	2015			2014			2013
Unrecognized tax benefits – January 1	$	160.1		$	161.2		$	208.8
Additions for:
Prior year tax positions	1.8			2.4			1.6
Current year tax positions	3.4			2.8			8.0
Assumed in Acquisition	1.9			—			—
Reductions for:
Prior year tax positions	(56.6		)	(2.8		)	(55.4		)
Settlements	(19.0		)	(1.0		)	(1.0		)
Expiration of Statute of Limitations	(4.0		)	(2.5		)	(0.8		)
Unrecognized tax benefits – December 31	$	87.6		$	160.1		$	161.2

Open Tax Years by Major Jurisdiction

The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2015:



Jurisdiction	Earliest Open Year
China	2010
Czech	2013
Germany	2008
Italy	2005
Korea	2008
Luxembourg	2011
Mexico	2010
United States	2012