INCOME TAXES INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of the following:



(In millions)	2017		2016		2015
Domestic	$	47.1	$	45.4	$	23.6
Foreign	57.5		58.7		62.7
	$	104.6	$	104.1	$	86.3

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision/(benefit) from continuing operations consisted of the following:



(In millions)	2017			2016			2015
Current:
Federal	$	29.7		$	9.6		$	1.2
Foreign	10.2			11.4			17.4
State	1.1			0.8			0.8
Total current	41.0			21.8			19.4
Deferred:
Federal	(10.7		)	2.9			(1.8		)
Foreign	(4.5		)	(1.0		)	(4.0		)
State	0.2			1.1			(1.0		)
Total deferred	$	(15.0	)	$	3.0		$	(6.8	)
	$	26.0		$	24.8		$	12.6

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:



	2017		2016		2015
U.S. Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.0		(0.3	)	(0.3	)
Foreign operations	(10.2	)	(8.4	)	(13.1	)
R&D tax credits	(0.9	)	(0.6	)	(1.0	)
Uncertain tax position adjustments	(0.5	)	(2.5	)	(1.5	)
Deferred tax adjustments - restructuring and rate adjustments	(1.2	)	0.3		1.1
Valuation allowance on state and foreign deferred tax	(1.2	)	2.4		4.1
Purchase of noncontrolling interest	(2.3	)	—		(9.4	)
Share-based compensation	(1.9	)	(1.1	)	—
Realized foreign currency loss	(1.5	)	—		—
Other items	(1.3	)	(1.0	)	(0.3	)
Impact of the Tax Act
Transition tax	18.1		—		—
Deferred tax effects	(8.3	)	—		—
Effective tax rate	24.8	%	23.8	%	14.6	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows:



(In millions)	2017			2016
Deferred tax assets:
Accrued expenses and reserves	$	9.6		$	10.0
Compensation and employee benefits	17.4			24.2
Other items	15.0			10.9
Valuation allowance on state and foreign deferred tax	(9.8		)	(9.8		)
Total deferred tax assets	32.2			35.3
Deferred tax liabilities:
Accelerated depreciation on fixed assets	12.0			13.8
Amortization of intangibles	41.9			56.5
Other items	0.3			0.9
Total deferred tax liabilities	54.2			71.2
Net deferred tax liabilities	$	(22.0	)	$	(35.9	)

Summary of Operating Loss Carryforwards

The Company has foreign income tax net operating loss (“NOL”) carryforwards of $7.0 million and state income tax NOL and credit carryforwards of $7.2 million, which will expire on various dates as follows:



(In millions)
2018-2019	$	1.1
2020-2024	3.0
2025-2029	2.2
2030-2034	2.6
2035-2039	0.2
Unlimited	5.1
	$	14.2

Schedule of Unrecognized Tax Benefits Rollforward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2017, 2016, and 2015 (excluding interest and penalties) is as follows:



(In millions)	2017			2016			2015
Beginning balance	$	1.3		$	2.4		$	4.4
Additions for tax positions of the current year	0.4			0.1			0.2
Additions for tax positions of prior years	0.2			0.1			0.2
Reductions for tax positions of prior years	—			(0.2		)	(0.8		)
Statute expirations	(0.6		)	(1.1		)	(1.6		)
Settlements	—			—			—
Ending balance	$	1.3		$	1.3		$	2.4