Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income taxes

Note 4 – Income taxes

	Three Months					Six Months
	Ended June 30,					Ended June 30,
(In millions)		2014		2013		2014		2013
Continuing operations
Provision (benefit) for income taxes (in millions)	$	4.7		10.7		13.7		16.1
Effective tax rate		87.0	%	39.3	%	(18.7)	%	41.1	%

2014 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first six months of 2014 was negative and less than the 35% U.S. statutory tax rate primarily due to the significant nondeductible expenses resulting from the currency devaluation in Venezuela in the first quarter.  These nondeductible expenses caused our earnings before tax in the period to be negative.  Excluding these nondeductible expenses, our effective tax rate on continuing operations in the first six months is 37%. The rate is higher than 35% primarily due to cross border payments, nondeductible expenses in Mexico due to a recent law change and the characterization of a French business tax as an income tax, partially offset by the geographical mix of earnings.

2013 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first six months of 2013 was higher than the 35% U.S. statutory tax rate primarily due to a nondeductible remeasurement charge related to net monetary assets resulting from a currency devaluation in Venezuela in the first quarter, as well as additional devaluations forecasted in the second half of 2013.Excluding the aforementioned Venezuela remeasurement charge, our effective tax rate on continuing operations in the first six months is 30%. 

	Three Months					Six Months
	Ended June 30,					Ended June 30,
(In millions)		2014		2013		2014		2013
Continuing operations
Provision (benefit) for income taxes (in millions)	$	4.7		10.7		13.7		16.1
Effective tax rate		87.0	%	39.3	%	(18.7)	%	41.1	%

2014 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first six months of 2014 was negative and less than the 35% U.S. statutory tax rate primarily due to the significant nondeductible expenses resulting from the currency devaluation in Venezuela in the first quarter.  These nondeductible expenses caused our earnings before tax in the period to be negative.  Excluding these nondeductible expenses, our effective tax rate on continuing operations in the first six months is 37%. The rate is higher than 35% primarily due to cross border payments, nondeductible expenses in Mexico due to a recent law change and the characterization of a French business tax as an income tax, partially offset by the geographical mix of earnings.

2013 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first six months of 2013 was higher than the 35% U.S. statutory tax rate primarily due to a nondeductible remeasurement charge related to net monetary assets resulting from a currency devaluation in Venezuela in the first quarter, as well as additional devaluations forecasted in the second half of 2013.Excluding the aforementioned Venezuela remeasurement charge, our effective tax rate on continuing operations in the first six months is 30%.