Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The Company’s income before taxes is as follows:



(in millions) For year ended December 31,	2016		2015		2014
U.S. operations	$	63.5	$	261.9	$	141.8
Non-U.S. operations	100.6		74.6		139.4
Total	$	164.1	$	336.5	$	281.2

Schedule Of Provision For Income Taxes

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



(in millions) For year ended December 31,	2016			2015			2014
Current:
U.S. federal tax	$	38.7		$	43.0		$	14.0
U.S. state and local tax	5.1			5.4			2.6
Non-U.S. tax	21.6			18.4			33.1
Total current	65.4			66.8			49.7
Deferred:
U.S. federal tax	(28.0		)	36.5			30.1
U.S. state and local tax	1.5			(0.4		)	1.3
Non-U.S. tax	1.4			3.6			6.5
Total deferred	(25.1		)	39.7			37.9
Total provision for income taxes	$	40.3		$	106.5		$	87.6

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,	2016		2015		2014
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
Increase (reduction) from:
Income taxed at non-U.S. rates	(7.4	)%	(2.0	)%	(4.0	)%
Non-U.S. income inclusion, net of tax credits	(1.0	)%	—	%	0.1	%
State and local taxes, net of federal benefit	3.1	%	1.3	%	1.3	%
U.S. research and development tax credit	(3.2	)%	(0.9	)%	(1.0	)%
U.S. domestic manufacturing deduction	(3.2	)%	(1.3	)%	(0.7	)%
Other	1.3	%	(0.4	)%	0.5	%
Effective tax rate	24.6	%	31.7	%	31.2	%

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,	2016			2015
Deferred tax assets:
Asbestos-related liabilities	$	215.4		$	162.7
Tax loss and credit carryforwards	101.3			105.6
Pension and post-retirement benefits	74.3			69.1
Inventories	25.0			23.5
Accrued bonus and stock-based compensation	16.9			17.1
Environmental reserves	12.3			16.0
Other	36.7			55.3
Total	481.9			449.3
Less: valuation allowance	148.2			145.9
Total deferred tax assets, net of valuation allowance	333.7			303.4
Deferred tax liabilities:
Basis difference in intangible assets	(147.2		)	(142.2		)
Basis difference in fixed assets	(17.6		)	(21.5		)
Total deferred tax liabilities	(164.8		)	(163.7		)
Net deferred tax asset	$	168.9		$	139.7
Balance sheet classification:
Current deferred tax assets	$	29.6		$	27.5
Long-term deferred tax assets	181.8			162.4
Accrued liabilities	(0.1		)	(0.2		)
Long-term deferred tax liability	(42.4		)	(50.0		)
Net deferred tax asset	$	168.9		$	139.7

Summary Of Tax Loss And Tax Credit Carryforwards

As of December 31, 2016, 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
2017-2021	$	18.5		$	0.2		$	4.0		$	33.5		$	49.8
After 2021	1.5			1.0			2.0			824.5			9.2
Indefinite	—			—			20.0			—			89.9
Total tax carryforwards	$	20.0		$	1.2		$	26.0		$	858.0		$	148.9
Deferred tax asset on tax carryforwards	$	20.0		$	0.5		$	17.0		$	38.1		$	25.7		$	101.3
Valuation allowance on tax carryforwards	(20.0		)	(0.4		)	(16.3		)	(37.5		)	(22.3		)	(96.5		)
Net deferred tax asset on tax carryforwards	$	—		$	0.1		$	0.7		$	0.6		$	3.4		$	4.8

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)	2016			2015			2014
Balance of liability as of January 1	$	45.2		$	40.7		$	31.4
Increase as a result of tax positions taken during a prior year	0.5			1.5			2.0
Decrease as a result of tax positions taken during a prior year	(7.3		)	(2.1		)	(1.2		)
Increase as a result of tax positions taken during the current year	10.3			9.2			11.2
Decrease as a result of settlements with taxing authorities	(1.2		)	—			(1.1		)
Reduction as a result of a lapse of the statute of limitations	(1.0		)	(4.1		)	(1.6		)
Balance of liability as of December 31	$	46.5		$	45.2		$	40.7