Income taxes (Tables)

12 Months Ended

Dec. 31, 2016

Total Income (Loss) Before Income Taxes and Provision for Income Taxes

Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2016.



Year ended December 31,	2016			2015			2014
Income (loss) before income taxes
United States	$	(88.3	)	$	(130.6	)	$	(19.9	)
Foreign	108.8			71.8			165.4
Total income (loss) before income taxes	$	20.5		$	(58.8	)	$	145.5
Provision for income taxes
Current
United States	$	6.7		$	1.0		$	2.1
Foreign	47.7			42.2			59.4
State and local	—			0.3			1.0
Total	54.4			43.5			62.5
Deferred
United States	—			—			—
Foreign	2.8			0.9			23.7
Total provision for income taxes	$	57.2		$	44.4		$	86.2

Reconciliation of the Provision for Income Taxes

Following is a reconciliation of the provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported:



Year ended December 31,	2016			2015			2014
United States statutory income tax provision (benefit)	$	7.2		$	(20.6	)	$	50.9
Income and losses for which no provision or benefit has been recognized	65.5			69.1			35.7
Foreign rate differential and other foreign tax expense	(21.1		)	(15.9		)	(22.0		)
Income tax withholdings	22.8			12.5			17.1
Permanent items	(4.7		)	(1.9		)	1.1
Enacted rate changes	3.5			9.1			—
Change in uncertain tax positions	0.4			1.5			0.2
Change in valuation allowances due to changes in judgment	(16.4		)	(5.4		)	7.0
Income tax credits, U.S.	—			(4.0		)	(3.9		)
Other	—			—			0.1
Provision for income taxes	$	57.2		$	44.4		$	86.2

Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2016 and 2015 were as follows:



As of December 31,	2016			2015
Deferred tax assets
Tax loss carryforwards	$	889.6		$	854.5
Postretirement benefits	728.9			695.7
Foreign tax credit carryforwards	317.6			263.2
Other tax credit carryforwards	91.4			86.7
Deferred revenue	81.0			65.7
Employee benefits and compensation	49.1			49.9
Purchased capitalized software	32.6			39.5
Depreciation	28.3			36.8
Warranty, bad debts and other reserves	16.1			14.1
Capitalized costs	10.9			13.0
Capitalized research and development	—			3.2
Other	27.7			39.7
	2,273.2			2,162.0
Valuation allowance	(2,084.6		)	(2,024.9		)
Total deferred tax assets	$	188.6		$	137.1
Deferred tax liabilities
Capitalized research and development	$	20.3		$	—
Other	28.4			22.7
Total deferred tax liabilities	$	48.7		$	22.7
Net deferred tax assets	$	139.9		$	114.4

Reconciliation of Changes in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Year ended December 31,	2016			2015			2014
Balance at January 1	$	27.7		$	35.0		$	26.3
Additions based on tax positions related to the current year	2.7			3.4			14.4
Changes for tax positions of prior years	2.0			(4.0		)	(1.4		)
Reductions as a result of a lapse of applicable statute of limitations	(2.8		)	(3.4		)	(1.6		)
Settlements	(0.1		)	(0.9		)	(0.9		)
Changes due to foreign currency	(3.7		)	(2.4		)	(1.8		)
Balance at December 31	$	25.8		$	27.7		$	35.0