Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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):



	2017			2016			2015
Income before income taxes:
United States	$	354.7		$	349.5		$	347.2
International	88.4			80.9			71.4
TOTAL INCOME BEFORE INCOME TAXES	$	443.1		$	430.4		$	418.6
Provision for income taxes — current:
Federal	$	164.1		$	85.5		$	110.4
State	15.3			17.4			13.7
International	28.1			17.0			17.6
Total provision — current	207.5			119.9			141.7
Provision for income taxes — deferred:
Federal	(10.4		)	13.5			(1.7		)
State	(0.9		)	1.3			0.4
International	(3.0		)	(2.1		)	(3.9		)
Total provision — deferred	(14.3		)	12.7			(5.2		)
TOTAL PROVISION FOR INCOME TAXES	$	193.2		$	132.6		$	136.5

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):



	2017			2016
Deferred tax assets:
Inventories	$	5.2		$	8.8
Income tax credits	21.0			30.9
Accrued liabilities	17.2			20.8
Pension	55.8			77.6
Post retirement and post employment benefits	6.5			10.0
Stock-based compensation	13.4			17.5
Net operating loss carryforwards	19.0			27.2
Miscellaneous other	10.7			7.5
Gross deferred tax assets	148.8			200.3
Valuation allowance	(19.4		)	(22.6		)
Total deferred tax assets, net of valuation allowance	129.4			177.7
Deferred tax liabilities:
Acquisition basis difference	(116.5		)	(162.1		)
Property, plant, and equipment	(30.3		)	(46.3		)
Total deferred tax liabilities	(146.8		)	(208.4		)
TOTAL NET DEFERRED TAX LIABILITY	$	(17.4	)	$	(30.7	)
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Non-current tax assets (included in Other long-term assets)	6.3			10.5
Non-current tax liabilities (included in Other Non-Current Liabilities)	(23.7		)	(41.2		)
TOTAL NET DEFERRED TAX LIABILITY	$	(17.4	)	$	(30.7	)

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):



	2017			2016			2015
Unrecognized tax benefits at beginning of year	$	20.2		$	20.3		$	21.6
Additions based on tax positions relating to the current year	13.6			2.8			2.9
Reductions based on expiration of statute of limitations	(1.4		)	(5.7		)	(2.8		)
Additions to tax positions relating to previous years	1.0			2.9			0.4
Settlements	(3.9		)	(0.1		)	(1.8		)
TOTAL UNRECOGNIZED TAX BENEFITS	$	29.5		$	20.2		$	20.3

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:



	2017		2016		2015
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.2		2.4		2.3
Foreign income taxes	(3.1	)	(3.4	)	(3.9	)
TCJA and related	12.8		—		—
Other, net	(2.3	)	(3.2	)	(0.8	)
CONSOLIDATED EFFECTIVE INCOME TAX RATE	43.6	%	30.8	%	32.6	%