Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Earnings (Loss) from Operations Before Income Taxes

Income taxes have been based on the following components of earnings (loss) from operations before income taxes for the years ended December 31, 2013, 2012 and 2011:

	2013		2012			2011
U.S.	$	66.7	$	(710.1	)	$	(274.5	)
Foreign		142.3		70.1			37.1
Total	$	209.0	$	(640.0	)	$	(237.4	)

Components of Income Tax Expense (Benefit) from Operations

The components of income tax expense (benefit) from operations for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Federal:
Current	$	(15.1	)	$	8.6		$	(10.1	)
Deferred		(23.9	)		(55.5	)		(82.1	)
State:
Current		(4.8	)		10.5			(19.5	)
Deferred		(2.6	)		(18.3	)		(21.5	)
Foreign:
Current		51.8			46.5			36.3
Deferred		(14.6	)		21.8			(19.4	)
Total	$	(9.2	)	$	13.6		$	(116.3	)

Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate

The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s effective income tax rate:

	2013			2012			2011
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Adjustment of uncertain tax positions		(5.4	)		3.1			30.2
Foreign tax rate differential		(11.3	)		3.2			15.5
Adjustment of interest on uncertain tax positions		(0.8	)		0.6			10.1
Domestic manufacturing deduction		(0.1	)		0.5			2.2
Acquisition-related expenses		0.7			(0.1	)		(0.1	)
Change in valuation allowances		3.1			(4.4	)		(1.0	)
State and local income taxes, net of U.S. federal income tax benefit		2.4			—			(1.6	)
Restructuring, impairment and other charges		—			(40.1	)		(39.5	)
Reorganization		(32.8	)		3.9			—
Foreign tax		4.0			(1.7	)		—
Other		0.8			(2.1	)		(1.8	)
Effective income tax rate		(4.4	%)		(2.1	%)		49.0	%

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2013 and 2012 were as follows:

	2013			2012
Deferred tax assets:
Pension and other postretirement benefits plan liabilities	$	167.4		$	524.1
Net operating losses and other tax carryforwards		328.3			331.6
Accrued liabilities		153.9			155.2
Foreign depreciation		51.3			50.5
Other		38.7			48.9
Total deferred tax assets		739.6			1,110.3
Valuation allowances		(268.2	)		(273.6	)
Net deferred tax assets	$	471.4		$	836.7
Deferred tax liabilities:
Accelerated depreciation	$	(180.3	)	$	(226.3	)
Other intangible assets		(86.2	)		(98.6	)
Inventories		(26.9	)		(30.7	)
Other		(39.8	)		(30.2	)
Total deferred tax liabilities		(333.2	)		(385.8	)
Net deferred tax assets	$	138.2		$	450.9

Transactions Affecting Valuation Allowance On Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Balance, beginning of year	$	273.6		$	273.2		$	259.5
Current year expense - net		6.4			28.2			2.4
Write-offs		(8.3	)		(37.9	)		(1.8	)
Foreign exchange and other		(3.5	)		10.1			13.1
Balance, end of year	$	268.2		$	273.6		$	273.2

Unrecognized Tax Benefits

Changes in the Company’s unrecognized tax benefits at December 31, 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Balance at beginning of year	$	47.9		$	76.4		$	157.1
Additions for tax positions of the current year		2.1			6.3			6.1
Additions for tax positions of prior years		3.7			3.9			6.0
Reductions for tax positions of prior years		(16.2	)		(29.6	)		(26.9	)
Settlements during the year		(0.7	)		(5.6	)		(3.3	)
Lapses of applicable statutes of limitations		(3.0	)		(3.5	)		(62.3	)
Foreign exchange and other		—			—			(0.3	)
Balance at end of year	$	33.8		$	47.9		$	76.4