Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income from continuing operations before income tax expense

Income from continuing operations before income tax expense consists of the following:



	Year Ended December 31,
	2015		2014		2013
	(In millions)
United States	$	44.0	$	53.1	$	48.4
Outside the United States	26.0		18.7		11.9
	$	70.0	$	71.8	$	60.3

Income Taxes

Income taxes consisted of the following:



	Year Ended December 31,
	2015			2014			2013
	(In millions)
Current expense:
Federal	$	11.7		$	17.4		$	16.0
State	0.7			0.8			1.5
Foreign	6.0			6.2			4.2
	18.4			24.4			21.7
Deferred expense (benefit):
Federal	2.7			1.0			1.2
State	0.6			(0.8		)	(2.6		)
Foreign	(0.4		)	0.3			(0.9		)
	2.9			0.5			(2.3		)
Income tax expense	$	21.3		$	24.9		$	19.4

Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates

The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2015, 2014 and 2013 are as follows:



	Year Ended December 31,
Rate Reconciliation	2015			2014			2013
	(In millions)
Tax at statutory rate	$	24.5		$	25.1		$	21.1
Effect of state income taxes, net	0.6			1.4			1.1
Effect of foreign operations	(1.6		)	(0.9		)	(0.2		)
Valuation allowance	(0.7		)	(1.1		)	(1.6		)
Non-deductible items	1.7			1.8			0.7
Manufacturer's deduction	(1.1		)	(1.4		)	(1.4		)
Other, net	(2.1		)	—			(0.3		)
Total	$	21.3		$	24.9		$	19.4

Significant components of the Company's net deferred tax assets and liabilities

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



	Year Ended December 31,
	2015			2014
	(In millions)
Deferred tax assets:
Postretirement benefit obligation	$	4.8		$	6.2
Inventory	12.0			13.7
Net operating loss and credit carryforwards	6.1			6.3
Warranty reserve	1.9			2.5
Accrued litigation	2.9			1.9
Compensation	6.0			6.0
Other	11.0			10.6
Total deferred tax assets	44.7			47.2
Deferred tax liabilities:
Depreciation and amortization	15.2			13.2
Pension	21.0			23.3
Goodwill	2.5			2.7
Intangible assets	16.8			14.5
Other	1.6			1.4
Total deferred tax liabilities	57.1			55.1
Net deferred tax liabilities prior to valuation allowances	(12.4		)	(7.9		)
Valuation allowances	(4.8		)	(7.1		)
Net deferred tax liability	$	(17.2	)	$	(15.0	)

Reconciliation of unrecognized tax benefits

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



	2015			2014			2013
	(In millions)
Unrecognized Tax Benefit — January 1,	$	6.5		$	5.9		$	6.1
Gross Increases — Tax Positions in Prior Period	0.3			0.8			0.4
Gross Decreases — Tax Positions in Prior Period	(0.1		)	(0.2		)	(0.6		)
Lapse of Statute of Limitations	(0.4		)	—			—
Unrecognized Tax Benefit — December 31,	$	6.3		$	6.5		$	5.9