Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Components of Income Taxes and Comprehensive Provision for Income Taxes Allocation

 

Years ended December 31,

 

 

2014

 

 

2015

 

 

2016

 

 

(In millions)

 

Pre-tax income (loss):

 

 

 

 

 

 

 

 

 

 

 

U.S.

$

59.2

 

 

$

5.5

 

 

$

11.5

 

Non-U.S.

 

74.5

 

 

 

(36.3

)

 

 

49.7

 

Total

$

133.7

 

 

$

(30.8

)

 

$

61.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected tax expense (benefit), at U.S. federal

   statutory income tax rate of 35%

$

46.8

 

 

$

(10.8

)

 

$

21.4

 

Non-U.S. tax rates

 

(4.2

)

 

 

.5

 

 

 

(4.3

)

Incremental net tax (benefit) on earnings and losses

   of non-U.S. companies

 

(3.7

)

 

 

(8.7

)

 

 

2.2

 

Valuation allowance

 

-

 

 

 

159.0

 

 

 

(2.2

)

U.S. - Canada APA

 

-

 

 

 

-

 

 

 

(3.4

)

Adjustment to the reserve for uncertain tax

   positions, net

 

(5.1

)

 

 

.7

 

 

 

2.4

 

Nondeductible expenses

 

1.9

 

 

 

2.1

 

 

 

1.5

 

U.S. state income taxes and other, net

 

(1.2

)

 

 

-

 

 

 

.3

 

Provision for income taxes

$

34.5

 

 

$

142.8

 

 

$

17.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of income tax expense:

 

 

 

 

 

 

 

 

 

 

 

Currently payable:

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

$

1.9

 

 

$

.3

 

 

$

-

 

Non-U.S.

 

15.2

 

 

 

3.3

 

 

 

9.5

 

 

 

17.1

 

 

 

3.6

 

 

 

9.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes (benefit):

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

10.0

 

 

 

(6.4

)

 

 

4.3

 

Non-U.S.

 

7.4

 

 

 

145.6

 

 

 

4.1

 

 

 

17.4

 

 

 

139.2

 

 

 

8.4

 

Provision for income taxes

$

34.5

 

 

$

142.8

 

 

$

17.9

 

 

 

Years ended December 31,

 

 

2014

 

 

2015

 

 

2016

 

 

(In millions)

 

Comprehensive provision for income taxes (benefit)

   allocable to:

 

 

 

 

 

 

 

 

 

 

 

Net income

$

34.5

 

 

$

142.8

 

 

$

17.9

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

Currency translation

 

(16.9

)

 

 

-

 

 

 

-

 

Marketable securities

 

(6.7

)

 

 

1.1

 

 

 

1.3

 

Pension plans

 

(30.1

)

 

 

1.5

 

 

 

(.8

)

OPEB plans

 

(.4

)

 

 

(.1

)

 

 

(.2

)

Interest rate swap

 

-

 

 

 

(1.3

)

 

 

.2

 

Total

$

(19.6

)

 

$

144.0

 

 

$

18.4

 

 
Components of Net Deferred Income Taxes

The components of our net deferred income taxes at December 31, 2015 and 2016 are summarized in the following table.

 

 

December 31,

 

 

2015

 

 

2016

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

 

(In millions)

 

Tax effect of temporary differences related to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

$

3.2

 

 

$

(3.5

)

 

$

3.7

 

 

$

(3.7

)

Property and equipment

 

-

 

 

 

(59.3

)

 

 

-

 

 

 

(58.1

)

Accrued OPEB costs

 

2.0

 

 

 

-

 

 

 

2.0

 

 

 

-

 

Accrued pension cost

 

39.4

 

 

 

-

 

 

 

48.3

 

 

 

-

 

Currency revaluation on intercompany debt

 

18.6

 

 

 

-

 

 

 

24.0

 

 

 

-

 

Other accrued liabilities and deductible differences

 

19.4

 

 

 

-

 

 

 

12.6

 

 

 

-

 

Other taxable differences

 

-

 

 

 

(.5

)

 

 

-

 

 

 

(.4

)

Tax on unremitted earnings of non-U.S. subsidiaries

 

-

 

 

 

(1.9

)

 

 

-

 

 

 

(2.9

)

Tax loss and tax credit carryforwards

 

157.4

 

 

 

-

 

 

 

145.5

 

 

 

-

 

Valuation allowance

 

(168.9

)

 

 

-

 

 

 

(173.4

)

 

 

-

 

Adjusted gross deferred tax assets (liabilities)

 

71.1

 

 

 

(65.2

)

 

 

62.7

 

 

 

(65.1

)

Netting by tax jurisdiction

 

(57.1

)

 

 

57.1

 

 

 

(54.6

)

 

 

54.6

 

Net noncurrent deferred tax asset (liability)

$

14.0

 

 

$

(8.1

)

 

$

8.1

 

 

$

(10.5

)

 
Changes in Amount of Uncertain Tax Positions

The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties discussed above) during 2014, 2015 and 2016:  

 

 

Years ended December 31,

 

 

2014

 

 

2015

 

 

2016

 

 

(In millions)

 

Changes in unrecognized tax benefits:

 

 

 

 

 

 

 

 

 

 

 

Unrecognized tax benefits at beginning of year

$

15.9

 

 

$

10.4

 

 

$

9.7

 

Net increase (decrease):

 

 

 

 

 

 

 

 

 

 

 

Tax positions taken in prior periods

 

(5.4

)

 

 

(.3

)

 

 

(.1

)

Tax positions taken in current period

 

1.1

 

 

 

1.1

 

 

 

2.5

 

Lapse due to applicable statute of limitations

 

-

 

 

 

(.2

)

 

 

(.2

)

Settlements with taxing authorities

 

-

 

 

 

-

 

 

 

(2.3

)

Change in currency exchange rates

 

(1.2

)

 

 

(1.3

)

 

 

.3

 

Unrecognized tax benefits at end of year

$

10.4

 

 

$

9.7

 

 

$

9.9