Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Tax Cut and Jobs Act [Line Items]

Tax Cut and Jobs Act [Table Text Block]

During the years ended December 31, 2018 and 2017, we recorded the following (benefit) provision related to the enactment of the TCJA:

	Year ended December 31,
(in millions)	2018			2017
Re-measurement	$	(5.1	)	$	75.0
Toll Tax	0.7			8.0
Assertion Tax	(0.4		)	4.0
Total (benefit) provision for income taxes	$	(4.8	)	$	87.0

Schedule Of Income Before Taxes

income before taxes is as follows:

(in millions) For year ended December 31,	2018		2017		2016
U.S. operations	$	296.4	$	270.1	$	63.5
Non-U.S. operations	115.0		97.4		100.6
Total	$	411.4	$	367.5	$	164.1

As of December 31, 2018, we have made the following determinations with regards to our non-U.S. earnings:

(in millions)	Permanently reinvested		Not permanently reinvested
Amount of earnings	$	232.4	$	1,168.7
Associated tax	NA *		$	7.5

* Determination of U.S. income taxes and non-U.S. withholding taxes due upon repatriation of this $232 million of earnings is not practicable because the amount of such taxes depends upon circumstances existing in numerous taxing jurisdictions at the time the remittance occurs.

Schedule Of Provision For Income Taxes

provision (benefit) for income taxes consists of:

(in millions) For the year ended December 31,	2018		2017		2016
Current:
U.S. federal tax	$	9.3	$	58.4	$	38.7
U.S. state and local tax	4.9		5.0		5.1
Non-U.S. tax	14.0		29.3		21.6
Total current	28.2		92.7		65.4
Deferred:
U.S. federal tax	35.7		99.2		(28.0		)
U.S. state and local tax	2.0		0.1		1.5
Non-U.S. tax	10.0		3.0		1.4
Total deferred	47.7		102.3		(25.1		)
Total provision for income taxes	$	75.9	$	195.0	$	40.3

Schedule Of Deferred Tax Assets And Liabilities

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

For the year ended December 31,	2018		2017		2016
Statutory U.S. federal tax rate	21.0	%	35.0	%	35.0	%
Increase (reduction) from:
Income taxed at non-U.S. rates	(0.2	)%	(0.5	)%	(7.4	)%
Non-U.S. income inclusion, net of tax credits	(2.3	)%	(1.6	)%	(1.0	)%
State and local taxes, net of federal benefit	1.4	%	1.0	%	3.1	%
U.S. research and development tax credit	(0.7	)%	(1.0	)%	(3.2	)%
U.S. domestic manufacturing deduction	(0.3	)%	(1.6	)%	(3.2	)%
Effect of the enactment of the TCJA	(0.8	)%	23.8	%	—	%
U.S. deduction for foreign - derived intangible income	(1.1	)%	—	%	—	%
Global intangible low taxed income	2.2	%	—	%	—	%
Other	(0.8	)%	(2.0	)%	1.3	%
Effective tax rate	18.4	%	53.1	%	24.6	%

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

The components of deferred tax assets and liabilities included on our Consolidated Balance Sheets are as follows:

(in millions) December 31,	2018			2017
Deferred tax assets:
Asbestos-related liabilities	$	110.0		$	127.0
Tax loss and credit carryforwards	124.8			104.2
Pension and post-retirement benefits	50.2			41.6
Inventories	20.8			18.3
Accrued bonus and stock-based compensation	11.5			11.5
Environmental reserves	6.2			8.0
Restructuring reserves	3.0			6.4
Warranty	5.8			4.9
Insurance	3.1			2.9
Compensated Absences	6.2			4.8
Total	$	341.6		$	329.6
Less: valuation allowance	124.3			123.0
Total deferred tax assets, net of valuation allowance	$	217.3		$	206.6
Deferred tax liabilities:
Basis difference in fixed assets	$	(53.7	)	$	(6.0	)
Basis difference in intangible assets	(176.0		)	(116.9		)
Other	(22.0		)	(24.4		)
Total deferred tax liabilities	$	(251.7	)	$	(147.3	)
Net deferred tax asset (liability)	$	(34.4	)	$	59.3
Balance sheet classification:
Long-term deferred tax assets	18.8			104.2
Long-term deferred tax liability	(53.2		)	(44.9		)
Net deferred tax asset (liability)	$	(34.4	)	$	59.3

Summary Of Tax Loss And Tax Credit Carryforwards

As of December 31, 2018, we 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
2019-2023	$	2.8		$	—		$	2.6		$	56.5		$	45.6
After 2023	1.0			0.9			4.2			815.0			4.4
Indefinite	0.8			27.3			22.1			2.1			181.1
Total tax carryforwards	$	4.6		$	28.2		$	28.9		$	873.6		$	231.1
Deferred tax asset on tax carryforwards	$	4.6		$	5.9		$	22.9		$	45.8		$	45.5		$	124.7
Valuation allowance on tax carryforwards	(2.9		)	(0.2		)	(20.2		)	(45.1		)	(32.8		)	(101.2		)
Net deferred tax asset on tax carryforwards	$	1.7		$	5.7		$	2.7		$	0.7		$	12.7		$	23.5

Schedule Of Gross Unrecognized Tax Benefits Reconciliation

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

(in millions)	2018			2017			2016
Balance of liability as of January 1,	$	46.4		$	46.5		$	45.2
Increase as a result of tax positions taken during a prior year	4.6			2.5			0.5
Decrease as a result of tax positions taken during a prior year	(1.5		)	(1.5		)	(7.3		)
Increase as a result of tax positions taken during the current year	3.1			5.2			10.3
Decrease as a result of settlements with taxing authorities	(1.1		)	(0.3		)	(1.2		)
Reduction as a result of a lapse of the statute of limitations	(9.5		)	(6.0		)	(1.0		)
Balance of liability as of December 31,	$	42.0		$	46.4		$	46.5