Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income or loss from continuing operations before income taxes, based on geographic location of the operations

Income before income taxes:



	2013		2012		2011
United States	$	314.5	$	680.8	$	527.6
Non-United States	102.6		85.2		169.2
Income before income taxes	$	417.1	$	766.0	$	696.8

Schedule of the provision for income taxes

The provision for income taxes consisted of the following:



	2013			2012			2011
Current:
Federal	$	99.9		$	103.5		$	53.8
State and local	14.4			7.2			6.8
Foreign	39.3			36.3			55.1
	$	153.6		$	147.0		$	115.7
Deferred:
Federal	$	(3.4	)	$	105.2		$	117.7
State and local	2.9			18.1			11.7
Foreign	1.0			(0.2		)	(4.9		)
	$	0.5		$	123.1		$	124.5
United States and foreign tax expense on income	$	154.1		$	270.1		$	240.2

Summary of variation of effective income tax rate from continuing operations from the statutory federal income tax rate

The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. Federal income tax rate of 35% to income before taxes:



	2013			2012			2011
Income tax at the U.S. federal statutory rate	$	146.0		$	268.1		$	243.9
Adjustments:
State and local income taxes, net of federal tax benefit	10.9			15.6			11.2
Tax on foreign remittances and U.S. tax on foreign income	41.0			9.5			15.3
Tax expense related to undistributed earnings of foreign subsidiaries	8.7			—			—
Foreign losses without current tax benefits	9.5			16.1			7.7
Foreign earnings taxed at different rates including tax holidays	(4.4		)	(18.1		)	(26.4		)
U.S. domestic manufacturing deduction	(11.3		)	(7.5		)	(6.6		)
U.S. foreign tax credit	(25.9		)	(13.7		)	—
U.S. research tax credit	(3.8		)	(0.4		)	(1.5		)
Accruals and settlements related to tax audits	(16.9		)	4.3			1.2
Other items, net	0.3			(3.8		)	(4.6		)
Provision for income taxes	$	154.1		$	270.1		$	240.2
Effective income tax rate	36.9		%	35.3		%	34.5		%

Components of deferred tax assets and liabilities

The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2013 and 2012 was as follows:



	2013			2012
Deferred tax assets:
Accrued postretirement benefits cost	$	130.1		$	185.0
Accrued pension cost	—			137.1
Inventory	4.0			15.4
Other employee benefit accruals	20.3			26.6
Tax loss and credit carryforwards	166.7			145.1
Other, net	52.6			59.9
Valuation allowances	(195.9		)	(183.9		)
	$	177.8		$	385.2
Pension assets	(33.4		)	—
Deferred tax liabilities - principally depreciation and amortization	(239.0		)	(231.9		)
Net deferred tax (liabilities) assets	$	(94.6	)	$	153.3

Summary of unrecognized tax benefits for the years ended

The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2013 and 2012:



	2013			2012
Beginning balance, January 1	$	112.6		$	87.2
Tax positions related to the current year:
Additions	9.3			20.6
Tax positions related to prior years:
Additions	6.9			7.0
Reductions	(1.4		)	(1.7		)
Settlements with tax authorities	(77.9		)	—
Lapses in statutes of limitation	—			(0.5		)
Ending balance, December 31	$	49.5		$	112.6