Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The Company’s income before taxes is as follows:



(in millions) For year ended December 31,	2017		2016		2015
U.S. operations	$	270.1	$	63.5	$	261.9
Non-U.S. operations	97.4		100.6		74.6
Total	$	367.5	$	164.1	$	336.5

Schedule Of Provision For Income Taxes

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



(in millions) For the year ended December 31,	2017		2016			2015
Current:
U.S. federal tax	$	58.4	$	38.7		$	43.0
U.S. state and local tax	5.0		5.1			5.4
Non-U.S. tax	29.3		21.6			18.4
Total current	92.7		65.4			66.8
Deferred:
U.S. federal tax	99.2		(28.0		)	36.5
U.S. state and local tax	0.1		1.5			(0.4		)
Non-U.S. tax	3.0		1.4			3.6
Total deferred	102.3		(25.1		)	39.7
Total provision for income taxes	$	195.0	$	40.3		$	106.5

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 the year ended December 31,	2017		2016		2015
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
Increase (reduction) from:
Income taxed at non-U.S. rates	(0.5	)%	(7.4	)%	(2.0	)%
Non-U.S. income inclusion, net of tax credits	(1.6	)%	(1.0	)%	—	%
State and local taxes, net of federal benefit	1.0	%	3.1	%	1.3	%
U.S. research and development tax credit	(1.0	)%	(3.2	)%	(0.9	)%
U.S. domestic manufacturing deduction	(1.6	)%	(3.2	)%	(1.3	)%
Enactment of Tax Cuts and Jobs Act	23.8	%	—	%	—	%
Other	(2.0	)%	1.3	%	(0.4	)%
Effective tax rate	53.1	%	24.6	%	31.7	%

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,	2017			2016
Deferred tax assets:
Asbestos-related liabilities	$	127.0		$	215.4
Tax loss and credit carryforwards	104.2			101.3
Pension and post-retirement benefits	41.6			74.3
Inventories	18.3			25.0
Accrued bonus and stock-based compensation	11.5			16.9
Environmental reserves	8.0			12.3
Restructuring reserves	6.4			3.0
Warranty	4.9			8.0
Compensated Absences	4.8			7.4
Other	—			18.3
Total	$	326.7		$	481.9
Less: valuation allowance	123.0			148.2
Total deferred tax assets, net of valuation allowance	$	203.7		$	333.7
Deferred tax liabilities:
Basis difference in fixed assets	$	(6.0	)	$	(17.6	)
Basis difference in intangible assets	(116.9		)	(147.2		)
Other	(21.5		)	—
Total deferred tax liabilities	$	(144.4	)	$	(164.8	)
Net deferred tax asset	$	59.3		$	168.9
Balance sheet classification:
Current deferred tax assets	$	—		$	29.6
Long-term deferred tax assets	104.2			181.8
Accrued liabilities	—			(0.1		)
Long-term deferred tax liability	(44.9		)	(42.4		)
Net deferred tax asset	$	59.3		$	168.9

Summary Of Tax Loss And Tax Credit Carryforwards

As of December 31, 2017, 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
2018-2022	$	—		$	—		$	3.6		$	43.3		$	48.8
After 2022	2.2			1.0			1.8			808.3			4.5
Indefinite	—			—			20.6			—			132.0
Total tax carryforwards	$	2.2		$	1.0		$	26.0		$	851.6		$	185.3
Deferred tax asset on tax carryforwards	$	2.2		$	0.2		$	20.5		$	45.3		$	36.0		$	104.2
Valuation allowance on tax carryforwards	(1.8		)	(0.2		)	(19.9		)	(44.6		)	(33.2		)	(99.7		)
Net deferred tax asset on tax carryforwards	$	0.4		$	—		$	0.6		$	0.7		$	2.8		$	4.5

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)	2017			2016			2015
Balance of liability as of January 1	$	46.5		$	45.2		$	40.7
Increase as a result of tax positions taken during a prior year	2.5			0.5			1.5
Decrease as a result of tax positions taken during a prior year	(1.5		)	(7.3		)	(2.1		)
Increase as a result of tax positions taken during the current year	5.2			10.3			9.2
Decrease as a result of settlements with taxing authorities	(0.3		)	(1.2		)	—
Reduction as a result of a lapse of the statute of limitations	(6.0		)	(1.0		)	(4.1		)
Balance of liability as of December 31	$	46.4		$	46.5		$	45.2