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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

As of December 31, 2020, we have made the following determinations with regard to our non-U.S. earnings:


(in millions)	Permanently reinvested		Not permanently reinvested
Amount of earnings	$	303.8	$	1,392.7
Associated tax	NA *		$	11.1

* 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.

Schedule Of Provision For Income Taxes

provision (benefit) for income taxes consists of:


(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

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,	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	%

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

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


(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)

Summary Of Tax Loss And Tax Credit Carryforwards

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

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)	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