Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of the provision for income taxes

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



	Year Ended December 31,
	2017			2016			2015
	(in millions)
Current:
Federal	$	(11.1	)	$	(130.3	)	$	271.2
State	0.6			3.3			19.6
Foreign	6.3			7.7			18.6
Total current	(4.2		)	(119.3		)	309.4
Deferred:
Federal
Effect of Tax Cuts and Jobs Act	(476.2		)	—			—
Other	135.6			313.0			117.4
	(340.6		)	313.0			117.4
State	4.2			8.1			(0.3		)
Foreign	(1.0		)	0.3			(0.5		)
Total deferred	(337.4		)	321.4			116.6
Provision	$	(341.6	)	$	202.1		$	426.0

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,
	2017		2016		2015
Statutory rate	35.0	%	35.0	%	35.0	%
Effect of Tax Cuts and Jobs Act	(128.0	)	—		—
State taxes	1.3		1.4		1.2
Domestic production activities deduction	—		—		(1.4	)
Noncontrolling interest in partially-owned subsidiaries	(1.0	)	(1.3	)	(0.8	)
Settlements with tax authorities	(1.1	)	(0.1	)	—
Equity compensation	0.5		—		—
Changes in valuation allowances and reserves	1.8		0.3		—
Other, net	(0.3	)	0.4		—
Effective rate	(91.8	)%	35.7	%	34.0	%

Components of deferred tax liabilities and assets

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



	December 31,
	2017			2016
	(in millions)
Deferred tax liabilities:
Depreciation, depletion, and amortization	$	628.0		$	919.6
Partially-owned subsidiaries basis difference	117.2			171.5
Convertible debt	93.3			137.4
Total deferred tax liabilities	838.5			1,228.5
Deferred tax assets:
Workers compensation, pensions, and other benefits	23.8			46.7
Warranties and reserves	7.1			12.1
Equity items	32.0			52.6
Tax loss carryforwards and credits	33.7			24.9
Inventory	17.0			29.2
Accrued liabilities and other	10.9			6.5
Total deferred tax assets	124.5			172.0
Net deferred tax liabilities before valuation allowances	714.0			1,056.5
Valuation allowances	12.0			11.7
Net deferred tax liabilities before reserve for uncertain tax positions	726.0			1,068.2
Deferred tax assets included in reserve for uncertain tax positions	(2.1		)	(11.2		)
Adjusted net deferred tax liabilities	$	723.9		$	1,057.0

Change in unrecognized tax benefits

The change in unrecognized tax benefits for the years ended December 31, 2017, 2016, and 2015 was as follows:



	Year Ended December 31,
	2017			2016			2015
	(in millions)
Beginning balance	$	28.2		$	65.2		$	62.3
Additions for tax positions related to the current year	—			—			5.5
Additions for tax positions of prior years	4.7			1.0			—
Reductions for tax positions of prior years	—			(26.6		)	(0.7		)
Settlements	(23.3		)	(7.1		)	(1.9		)
Expiration of statute of limitations	(1.3		)	(4.3		)	—
Ending balance	$	8.3		$	28.2		$	65.2