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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014



	Years ended December 31,
Components of Income from Continuing Operations Before Taxes	2014			2013		2012
	($ in millions)
Domestic	$	164.4		$	222.2	$	189.9
Foreign	(1.7		)	27.8		35.3
Income from continuing operations before taxes	$	162.7		$	250.0	$	225.2
Components of Income Tax Provision
Current expense:
Federal	$	25.9		$	42.1	$	16.9
State	1.3			9.4		4.3
Foreign	5.3			8.5		10.4
	32.5			60.0		31.6
Deferred	25.2			11.4		44.0
Income tax provision	$	57.7		$	71.4	$	75.6

Effective tax rate reconciliation

The following table accounts for the difference between the actual tax provision and the amounts obtained by applying the statutory U.S. federal income tax rate of 35% to the income from continuing operations before taxes.



	Years ended December 31,
Effective Tax Rate Reconciliation (Percent)	2014		2013		2012
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
Foreign rate differential	(0.2	)	(0.1	)	(0.1	)
Domestic manufacturing/export tax incentive	(1.8	)	(1.6	)	(1.0	)
Return to provision	(0.7	)	(0.1	)	—
Dividends paid to CEOP	(0.5	)	(0.3	)	(0.4	)
Change in tax contingencies	(0.3	)	(3.8	)	0.5
State income taxes, net	2.4		2.3		1.3
Change in valuation allowance	1.1		(2.1	)	0.1
Remeasurement of deferred taxes	0.4		0.1		0.7
Research tax credit	—		(0.8	)	—
Section 45O tax credit	—		—		(3.0	)
Australia dividend residual tax expense	—		—		0.3
Other, net	0.1		—		0.2
Effective tax rate	35.5	%	28.6	%	33.6	%

Components of deferred tax assets and liabilities



	December 31,
Components of Deferred Tax Assets and Liabilities	2014			2013
	($ in millions)
Deferred tax assets:
Pension and postretirement benefits	$	108.0		$	74.6
Environmental reserves	56.5			60.2
Asset retirement obligations	22.9			25.7
Accrued liabilities	43.9			48.2
Tax credits	9.2			13.3
Federal and state net operating losses	6.6			7.2
Capital loss carryforward	4.8			3.0
Other miscellaneous items	16.5			10.7
Total deferred tax assets	268.4			242.9
Valuation allowance	(16.6		)	(13.4		)
Net deferred tax assets	251.8			229.5
Deferred tax liabilities:
Property, plant and equipment	177.9			182.5
Intangible amortization	10.5			8.4
Inventory and prepaids	5.6			3.1
Partnerships	98.2			93.7
Total deferred tax liabilities	292.2			287.7
Net deferred tax liability	$	(40.4	)	$	(58.2	)

Summary of Valuation Allowance

The activity of our deferred income tax valuation allowance was as follows:



	December 31,
	2014			2013
	($ in millions)
Beginning balance	$	13.4		$	21.1
Charged to income tax provision	4.1			4.9
Deductions from reserves - credited to income tax provision	(0.9		)	(12.6		)
Ending balance	$	16.6		$	13.4

Unrecognized tax benefits

The amounts of unrecognized tax benefits were as follows:



	December 31,
	2014			2013
	($ in millions)
Beginning balance	$	34.5		$	40.1
Increase for current year tax positions	2.2			—
Increase for prior year tax positions	0.2			4.5
Reductions due to statute of limitations	(0.4		)	(10.0		)
Decrease for prior year tax positions	(0.3		)	(0.1		)
Decrease due to tax settlements	(0.1		)	—
Ending balance	$	36.1		$	34.5

Tax years subject to examination

For our primary tax jurisdictions, the tax years that remain subject to examination are as follows:



	Tax Years
U.S. federal income tax	2008; 2010 - 2013
U.S. state income tax	2006 - 2013
Canadian federal income tax	2010 - 2013
Canadian provincial income tax	2008 - 2013

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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