Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of the provision for income taxes

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



	Year Ended December 31,
	2016			2015			2014
	(in millions)
Current:
Federal	$	(130.3	)	$	271.2		$	322.7
State	3.3			19.6			19.4
Foreign	7.7			18.6			18.5
Total current	(119.3		)	309.4			360.6
Deferred:
Federal	313.0			117.4			(4.0		)
State	8.1			(0.3		)	1.2
Foreign	0.3			(0.5		)	(3.0		)
Total deferred	321.4			116.6			(5.8		)
Provision	$	202.1		$	426.0		$	354.8

Reconciliation between the statutory U.S. 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 before income taxes:



	Year Ended December 31,
	2016		2015		2014
Statutory rate	35.0	%	35.0	%	35.0	%
State taxes	1.4		1.2		1.4
Domestic production activities deduction	—		(1.4	)	(2.0	)
Noncontrolling interest in partially-owned subsidiaries	(1.3	)	(0.8	)	(1.1	)
Changes in valuation allowances and reserves	0.3		—		0.1
Other, net	0.3		—		(0.1	)
Effective rate	35.7	%	34.0	%	33.3	%

Components of deferred tax liabilities and assets

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



	December 31,
	2016			2015
	(in millions)
Deferred tax liabilities:
Depreciation, depletion, and amortization	$	919.6		$	711.6
Partially-owned subsidiaries basis difference	171.5			144.0
Convertible debt	137.4			125.2
Total deferred tax liabilities	1,228.5			980.8
Deferred tax assets:
Workers compensation, pensions, and other benefits	46.7			73.7
Warranties and reserves	12.1			11.4
Equity items	52.6			52.4
Tax loss carryforwards and credits	24.9			25.7
Inventory	29.2			34.1
Accrued liabilities and other	6.5			8.3
Total deferred tax assets	172.0			205.6
Net deferred tax liabilities before valuation allowances	1,056.5			775.2
Valuation allowances	11.7			10.1
Net deferred tax liabilities before reserve for uncertain tax positions	1,068.2			785.3
Deferred tax assets included in reserve for uncertain tax positions	(11.2		)	(50.5		)
Adjusted net deferred tax liabilities	$	1,057.0		$	734.8

Change in unrecognized tax benefits

The change in unrecognized tax benefits for the years ended December 31, 2016, 2015, and 2014 was as follows:



	Year Ended December 31,
	2016			2015			2014
	(in millions)
Beginning balance	$	65.2		$	62.3		$	55.0
Additions for tax positions related to the current year	—			5.5			5.0
Additions for tax positions of prior years	1.0			—			2.5
Reductions for tax positions of prior years	(26.6		)	(0.7		)	(0.1		)
Settlements	(7.1		)	(1.9		)	—
Expiration of statute of limitations	(4.3		)	—			(0.1		)
Ending balance	$	28.2		$	65.2		$	62.3