Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The Company’s income (loss) before taxes is as follows:



(in millions) For year ended December 31,	2015		2014		2013
U.S. operations	$	261.9	$	141.8	$	177.2
Non-U.S. operations	74.6		139.4		148.8
Total	$	336.5	$	281.2	$	326.0

Schedule Of Provision For Income Taxes

The Company’s provision (benefit) for income taxes consists of:



(in millions) For year ended December 31,	2015			2014		2013
Current:
U.S. federal tax	$	43.0		$	14.0	$	11.4
U.S. state and local tax	5.4			2.6		3.4
Non-U.S. tax	18.4			33.1		41.3
Total current	66.8			49.7		56.1
Deferred:
U.S. federal tax	36.5			30.1		43.8
U.S. state and local tax	(0.4		)	1.3		0.6
Non-U.S. tax	3.6			6.5		4.6
Total deferred	39.7			37.9		49.0
Total provision (benefit) for income taxes	$	106.5		$	87.6	$	105.1

Schedule Of Deferred Tax Assets And Liabilities

A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate is as follows:



(in millions) For year ended December 31,	2015		2014		2013
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
Increase (reduction) from:
Income taxed at non-U.S. rates	(2.0	)%	(4.0	)%	(2.0	)%
Non-U.S. income inclusion, net of tax credits	—	%	0.1	%	0.1	%
State and local taxes, net of federal benefit	1.3	%	1.3	%	1.2	%
U.S. research and development tax credit	(0.9	)%	(1.0	)%	(1.9	)%
U.S. domestic manufacturing deduction	(1.3	)%	(0.7	)%	(1.0	)%
Non-deductible acquisition costs	—	%	—	%	2.3	%
Other	(0.4	)%	0.5	%	(1.5	)%
Effective tax rate	31.7	%	31.2	%	32.2	%

Reconciliation Of The Statutory U.S. Federal Rate To The Effective Tax Rate

The components of deferred tax assets and liabilities included on the Company’s Consolidated Balance Sheets are as follows:



(in millions) December 31,	2015			2014
Deferred tax assets:
Asbestos-related liabilities	$	162.7		$	182.6
Tax loss and credit carryforwards	105.6			113.8
Pension and post-retirement benefits	69.1			78.7
Inventories	23.5			19.3
Accrued bonus and stock-based compensation	17.1			14.9
Environmental reserves	16.0			24.5
Other	55.3			50.4
Total	449.3			484.2
Less: valuation allowance	145.9			141.0
Total deferred tax assets, net of valuation allowance	303.4			343.2
Deferred tax liabilities:
Basis difference in intangible assets	(142.2		)	(134.8		)
Basis difference in fixed assets	(21.5		)	(25.8		)
Total deferred tax liabilities	(163.7		)	(160.6		)
Net deferred tax asset	$	139.7		$	182.6
Balance sheet classification:
Current deferred tax assets	27.5			$	33.0
Long-term deferred tax assets	162.4			196.2
Accrued liabilities	(0.2		)	(0.4		)
Long-term deferred tax liability	(50.0		)	(46.3		)
Net deferred tax asset	$	139.7		$	182.6

Summary Of Tax Loss And Tax Credit Carryforwards

As of December 31, 2015, the Company had U.S. federal, U.S. state and non-U.S. tax loss and credit carryforwards that will expire, if unused, as follows:



(in millions) Year of expiration	U.S. Federal Tax Credits			U.S. Federal Tax Losses			U.S. State Tax Credits			U.S. State Tax Losses			Non- U.S. Tax Losses			Total
2016-2020	$	17.9		$	0.2		$	4.0		$	27.3		$	16.3
After 2020	3.5			1.8			2.4			795.9			3.0
Indefinite	—			—			19.6			—			98.6
Total tax carryforwards	$	21.4		$	2.0		$	26.0		$	823.2		$	117.9
Deferred tax asset on tax carryforwards	$	21.4		$	0.7		$	16.9		$	37.7		$	28.9		$	105.6
Valuation allowance on tax carryforwards	(21.4		)	(0.4		)	(16.3		)	(36.9		)	(23.7		)	(98.7		)
Net deferred tax asset on tax carryforwards	$	—		$	0.3		$	0.6		$	0.8		$	5.2		$	6.9

Schedule Of Gross Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of the Company’s gross unrecognized tax benefits, excluding interest and penalties, is as follows:



(in millions)	2015			2014			2013
Balance of liability as of January 1	$	40.7		$	31.4		$	19.2
Increase as a result of tax positions taken during a prior year	1.5			2.0			6.7
Decrease as a result of tax positions taken during a prior year	(2.1		)	(1.2		)	(0.3		)
Increase as a result of tax positions taken during the current year	9.2			11.2			5.9
Decrease as a result of settlements with taxing authorities	—			(1.1		)	—
Reduction as a result of a lapse of the statute of limitations	(4.1		)	(1.6		)	(0.1		)
Balance of liability as of December 31	$	45.2		$	40.7		$	31.4