Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of the provision for income taxes

The components of the provision for income taxes from continuing operations are as follows:



	Year Ended December 31,
	2013			2012			2011
	(in millions)
Current:
Federal	$	141.8		$	(5.7	)	$	20.8
State	13.7			7.0			5.5
Foreign	3.1			6.4			5.4
Total current	158.6			7.7			31.7
Deferred:
Federal	44.3			126.6			62.2
State	2.3			3.2			1.3
Foreign	(0.8		)	(3.5		)	(3.0		)
Total deferred	45.8			126.3			60.5
Provision	$	204.4		$	134.0		$	92.2

Reconciliation between the statutory United States Federal income tax rate and the Company's effective income tax rate

The following is a reconciliation between the statutory U.S. Federal income tax rate and the Company’s effective income tax rate on income from continuing operations:



	Year Ended December 31,
	2013		2012		2011
Statutory rate	35.0	%	35.0	%	35.0	%
State taxes	2.1		2.0		2.1
Domestic production activities deduction	(1.4	)	—		—
Noncontrolling interest in partially-owned subsidiaries	(0.9	)	—		—
Tax assessments and settlements	—		(0.6	)	—
Changes in valuation allowance and reserves	(0.8	)	(1.4	)	0.4
Other, net	0.6		(0.3	)	1.1
Effective rate	34.6	%	34.7	%	38.6	%

Components of deferred tax liabilities and assets

The components of deferred tax liabilities and assets are as follows:



	December 31,
	2013			2012
	(in millions)
Deferred tax liabilities:
Depreciation, depletion, and amortization	$	668.9		$	887.6
Derivatives	—			12.4
Accrued liabilities and other	48.3			—
Convertible debt	105.4			96.5
Total deferred tax liabilities	822.6			996.5
Deferred tax assets:
Workers compensation, pensions, and other benefits	61.3			52.4
Warranties and reserves	13.8			15.6
Equity items	33.4			81.5
Tax loss carryforwards and credits	27.5			249.7
Inventory	18.8			17.9
Accrued liabilities and other	—			3.9
Total deferred tax assets	154.8			421.0
Net deferred tax liabilities before valuation allowance	667.8			575.5
Valuation allowance	10.2			19.7
Net deferred tax liabilities before reserve for uncertain tax positions	678.0			595.2
Deferred tax assets included in reserve for uncertain tax positions	(38.6		)	(39.4		)
Adjusted net deferred tax liabilities	$	639.4		$	555.8

Change in unrecognized tax benefits

The change in unrecognized tax benefits for the years ended December 31, 2013, 2012, and 2011 was as follows:



	Year Ended December 31,
	2013			2012			2011
	(in millions)
Beginning balance	$	48.7		$	52.5		$	36.8
Additions for tax positions related to the current year	4.8			4.1			3.8
Additions for tax positions of prior years	2.8			—			16.4
Reductions for tax positions of prior years	—			(1.1		)	(0.1		)
Settlements	(0.3		)	(3.4		)	(3.5		)
Expiration of statute of limitations	(1.0		)	(3.4		)	(0.9		)
Ending balance	$	55.0		$	48.7		$	52.5

- 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.

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