Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Selected Data with Respect to the Company's Income Tax Provision

The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions):



	2015			2014		2013
Income before income taxes:
United States	$	347.2		$	385.6	$	360.8
International	71.4			99.9		113.0
TOTAL INCOME BEFORE INCOME TAXES	$	418.6		$	485.5	$	473.8
Provision for income taxes — current:
Federal	$	110.4		$	90.1	$	94.6
State	13.7			15.4		15.1
International	17.6			22.5		21.0
Total provision-current	141.7			128.0		130.7
Provision for income taxes — deferred:
Federal	(1.7		)	24.4		14.4
State	0.4			2.7		0.1
International	(3.9		)	3.2		(1.2		)
Total provision — deferred	(5.2		)	30.3		13.3
TOTAL PROVISION FOR INCOME TAXES	$	136.5		$	158.3	$	144.0

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions):



	2015			2014
Deferred tax assets:
Inventories	$	6.8		$	4.6
Income tax credits	31.9			30.6
Accrued liabilities	25.0			23.3
Pension	58.2			43.6
Post retirement and post employment benefits	10.4			11.3
Stock-based compensation	12.6			11.4
Net operating loss carryforwards	31.0			46.3
Miscellaneous other	7.0			7.5
Gross deferred tax assets	182.9			178.6
Valuation allowance	(22.0		)	(34.3		)
Total deferred tax assets, net of valuation allowance	160.9			144.3
Deferred tax liabilities:
Acquisition basis difference	(149.2		)	(145.8		)
Property, plant, and equipment	(41.6		)	(41.9		)
Total deferred tax liabilities	(190.8		)	(187.7		)
TOTAL NET DEFERRED TAX LIABILITY	$	(29.9	)	$	(43.4	)
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Current tax assets (included in Deferred taxes and other)	$	—		$	31.2
Non-current tax assets (included in Other long-term assets)	6.2			1.1
Current tax liabilities (included in Other accrued liabilities)	—			(1.2		)
Non-current tax liabilities (included in Other Non-current liabilities)	(36.1		)	(74.5		)
TOTAL NET DEFERRED TAX LIABILITY	$	(29.9	)	$	(43.4	)

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



	2015			2014			2013
Unrecognized tax benefits at beginning of year	$	21.6		$	14.8		$	13.5
Additions based on tax positions relating to the current year	2.9			2.9			2.2
Reductions based on expiration of statute of limitations	(2.8		)	(1.2		)	(1.5		)
Additions to tax positions relating to previous years	0.4			9.5			2.1
Settlements	(1.8		)	(4.4		)	(1.5		)
TOTAL UNRECOGNIZED TAX BENEFITS	$	20.3		$	21.6		$	14.8

Schedule of Effective Income Tax Rate Reconciliation

The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows:



	2015		2014		2013
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	2.3		2.0		2.1
Foreign income taxes	(3.9	)	(2.1	)	(3.6	)
Other, net	(0.8	)	(2.3	)	(3.1	)
CONSOLIDATED EFFECTIVE INCOME TAX RATE	32.6	%	32.6	%	30.4	%