Our income before taxes is as follows:


(in millions) For year ended December 31,	2020		2019		2018
U.S. operations	$	124.9	$	64.0	$	296.4
Non-U.S. operations	99.6		106.7		115.0
Total	$	224.5	$	170.7	$	411.4


(in millions) For the year ended December 31,	2020		2019		2018
Current:
U.S. federal tax	$	11.3	$	31.0	$	9.3
U.S. state and local tax	1.6		2.2		4.9
Non-U.S. tax	12.4		29.0		14.0
Total current	25.3		62.2		28.2
Deferred:
U.S. federal tax	16.5		(26.4)		35.7
U.S. state and local tax	(0.1)		3.0		2.0
Non-U.S. tax	1.7		(1.7)		10.0
Total deferred	18.1		(25.1)		47.7
Total provision for income taxes *	$	43.4	$	37.1	$	75.9

* Included in the above amounts are excess tax benefits from share-based compensation of $0.6, $3.8 and $5.4 in 2020, 2019 and 2018, respectively, which were reflected as reductions in our provision for income taxes in 2020, 2019 and 2018.

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


For the year ended December 31,	2020		2019		2018
Statutory U.S. federal tax rate	21.0	%	21.0	%	21.0	%
Increase (reduction) from:
Income taxed at non-U.S. rates	(3.1)	%	2.6	%	(0.2)	%
Non-U.S. income inclusion, net of tax credits	2.3	%	3.4	%	(0.1)	%
State and local taxes, net of federal benefit	0.5	%	2.5	%	1.4	%
U.S. research and development tax credit	(2.3)	%	(1.7)	%	(0.7)	%
U.S. domestic manufacturing deduction	—	%	—	%	(0.3)	%
Effect of the enactment of the Tax Cuts and Jobs Act of 2017	—	%	—	%	(0.8)	%
U.S. deduction for foreign - derived intangible income	(0.5)	%	(5.1)	%	(1.1)	%

Other	1.4	%	(1.0)	%	(0.8)	%
Effective tax rate	19.3	%	21.7	%	18.4	%

* Determination of U.S. income taxes and non-U.S. withholding taxes due upon repatriation of this $303.8 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.

During 2020, 2019 and 2018, tax (benefit) provision of $(13.5) million, $(12.6) million and $(7.1) million, respectively, related to changes in pension and post-retirement plan assets and benefit obligations, were recorded to accumulated other comprehensive loss.


(in millions) December 31,	2020		2019
Deferred tax assets:
Asbestos-related liabilities	$	150.3	$	158.4
Tax loss and credit carryforwards	124.5		120.7
Pension and post-retirement benefits	66.0		56.9
Inventories	29.8		26.0
Other	41.4		46.6
Total	$	412.0	$	408.6
Less: valuation allowance	153.4		150.0
Total deferred tax assets, net of valuation allowance	$	258.6	$	258.6
Deferred tax liabilities:
Basis difference in fixed assets	$	(60.6)	$	(58.7)
Basis difference in intangible assets	(212.7)		(195.4)
Other	(24.0)		(25.2)
Total deferred tax liabilities	$	(297.3)	$	(279.3)
Net deferred tax asset (liability)	$	(38.7)	$	(20.7)
Balance sheet classification:
Long-term deferred tax assets	14.9		35.1
Long-term deferred tax liability	(53.6)		(55.8)
Net deferred tax asset (liability)	$	(38.7)	$	(20.7)

As of December 31, 2020, 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
2020-2024	$	2.8	$	—	$	3.3	$	97.8	$	12.4
After 2024	4.6		0.8		2.4		797.2		7.4
Indefinite	—		—		22.8		7.2		215.6
Total tax carryforwards	$	7.4	$	0.8	$	28.5	$	902.2	$	235.4
Deferred tax asset on tax carryforwards	$	7.4	$	0.2	$	22.6	$	45.0	$	49.3	$	124.5
Valuation allowance on tax carryforwards	(6.5)		(0.2)		(21.0)		(43.0)		(47.6)		(118.3)
Net deferred tax asset on tax carryforwards	$	0.9	$	—	$	1.6	$	2.0	$	1.7	$	6.2

As of December 31, 2020, and 2019, we determined that it was more likely than not that $118.3 million and $115.2 million, respectively, of our deferred tax assets related to tax loss and credit carryforwards will not be realized. As a result, we recorded a valuation allowance against these deferred tax assets. We also determined that it is more likely than not that a portion of the benefit related to U.S. state and non-U.S. deferred tax assets other than tax loss and credit carryforwards will not be realized. Accordingly, as of December 31, 2020 and 2019, a valuation allowance of $35.1 million and $34.8 million, respectively, was established against these U.S. state and non-U.S. deferred tax assets. Our total valuation allowance as of December 31, 2020 and 2019 was $153.4 million and $150.0 million, respectively.


(in millions)	2020		2019		2018
Balance of liability as of January 1,	$	39.8	$	42.0	$	46.4
Increase as a result of tax positions taken during a prior year	5.4		1.1		4.6
Decrease as a result of tax positions taken during a prior year	(0.4)		(0.5)		(1.5)
Increase as a result of tax positions taken during the current year	1.8		3.2		3.1
Decrease as a result of settlements with taxing authorities	(2.5)		—		(1.1)
Reduction as a result of a lapse of the statute of limitations	(10.1)		(6.0)		(9.5)
Balance of liability as of December 31,	$	34.0	$	39.8	$	42.0

As of December 31, 2020, 2019 and 2018, the amount of our unrecognized tax benefits that, if recognized, would affect our effective tax rate were $32.6 million, $43.8 million and $43.1 million, respectively. The difference between these amounts and those reflected in the table above relates to (1) offsetting tax effects from other tax jurisdictions, and (2) interest expense, net of deferred taxes and (3) unrecognized tax benefits whose reversals would be recorded to goodwill.

We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax expense. During the years ended December 31, 2020, 2019 and 2018, we recognized interest and penalty (income)/ expense of $(0.5) million, $0.8 million and $0.7 million, respectively, in our Consolidated Statements of Operations. As of December 31, 2020 and 2019, we had accrued $7.5 million and $8.0 million, respectively, of interest and penalties related to unrecognized tax benefits on our Consolidated Balance Sheets.

During the next twelve months, it is reasonably possible that our unrecognized tax benefits could change by $10.6 million due to settlements of income tax examinations, the expiration of statutes of limitations or other resolution of uncertainties. However, if the ultimate resolution of income tax examinations results in amounts that differ from this estimate, we will record additional income tax expense or benefit in the period in which such matters are effectively settled.

Our income tax returns are subject to examination by the U.S. federal, U.S. state and local, and non-U.S. tax authorities. With few exceptions, the years open to examination are as follows: