XML 70 R44.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income before income taxes includes the following components (in millions):



	Year Ended
	Dec 31, 2014			Dec 31, 2013		Dec 31, 2012
United States	$	(5.1	)	$	2.0	$	38.4
Foreign	(631.0		)	25.0		48.5
Total	$	(636.1	)	$	27.0	$	86.9

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes consisted of the following (in millions):



	Year Ended
	Dec 31, 2014			Dec 31, 2013			Dec 31, 2012
Current tax expense (benefit):
Federal	$	(7.4	)	$	(11.5	)	$	12.0
State	0.5			(0.2		)	3.4
Foreign	29.6			51.9			52.6
Deferred tax expense (benefit):
Federal	15.1			9.0			5.7
State	0.7			(0.6		)	(0.6		)
Foreign	(30.2		)	(9.8		)	5.5
Total	$	8.3		$	38.8		$	78.6

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of reported income tax expense (benefit) to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income is as follows (in millions):



	Year Ended
	Dec 31, 2014			Dec 31, 2013			Dec 31, 2012
Income tax expense (benefit) at Federal statutory tax rate	$	(222.6	)	$	9.4		$	30.4
Foreign tax rate differential	29.0			(5.1		)	(0.2		)
Foreign withholding tax and surcharges	5.8			7.3			4.7
Change in valuation allowance	98.1			24.8			31.2
Change in uncertain tax positions	(10.0		)	9.2			11.7
Nondeductible / nontaxable items⁽¹⁾	100.3			(6.8		)	(0.3		)
Other (net)	7.7			—			1.1
Total	$	8.3		$	38.8		$	78.6

^{(1) For the year ended December 31, 2014, the major components consist of}^{$40.5 million}^{for goodwill impairments,}^{$8.4 million}^{for the FCPA accrual and}^{$78.1 million}^{for Venezuela devaluation and functional currency adjustments, partially offset by}^{$32.9 million}^{for Venezuela inflation adjustments.}

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows (in millions):



	Dec 31, 2014			Dec 31, 2013
Deferred tax assets:
Net operating loss carryforwards	$	117.9		$	98.3
Pension and retiree benefits accruals	44.7			33.0
Inventory	9.3			12.8
Depreciation and fixed assets	13.6			12.0
Tax credit carryforwards	9.8			9.3
Other liabilities	72.3			67.7
Valuation allowance	(145.4		)	(93.8		)
Total deferred tax assets	122.2			139.3
Deferred tax liabilities:
Convertible debt discount	186.2			165.7
Inventory	1.8			1.2
Depreciation and fixed assets	43.2			87.4
Intangibles	13.5			42.8
Other	12.2			11.0
Total deferred tax liabilities	256.9			308.1
Net deferred tax assets (liabilities)	$	(134.7	)	$	(168.8	)

Summary of Income Tax Examinations

The Company has recognized deferred tax assets of approximately $15 million for tax loss carryforwards in various taxing jurisdictions as follows (in millions):



	Tax Loss
Jurisdiction	Carryforward		Expiration
United States	$	20.1	2033-2034
New Zealand	8.1		Indefinite
France	13.0		Indefinite
Others	5.5		Various
Total	$	46.7

Summary of Income Tax Contingencies

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the year:



(in millions)	Dec 31, 2014			Dec 31, 2013			Dec 31, 2012
Unrecognized Tax Benefit — Beginning balance	$	57.7		$	64.2		$	58.8
Gross Increases — Tax Positions in Prior Period	1.6			0.8			3.4
Gross Decreases — Tax Positions in Prior Period	(0.7		)	(0.9		)	(4.2		)
Gross Increases — Tax Positions in Current Period	7.3			8.9			15.1
Dispositions	(0.9		)	—			—
Settlements	(0.4		)	(4.5		)	—
Lapse of Statute of Limitations	(12.9		)	(3.6		)	(9.6		)
Foreign Currency Translation	(19.8		)	(7.2		)	0.7
Unrecognized Tax Benefit — Ending Balance	$	31.9		$	57.7		$	64.2

- 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.

+ References+ Details