Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income (loss) before income taxes for the Company’s U.S. and non-U.S. operations was as follows:



(In millions)	2018		2017			2016
U.S.	$	190.8	$	(119.8	)	$	(782.1	)
Non-U.S.	56.9		33.3			48.1
Income (loss) before income taxes	$	247.7	$	(86.5	)	$	(734.0	)

Schedule income tax provision (benefit)

The income tax provision (benefit) was as follows:



(In millions)	2018			2017			2016
Current:
Federal	$	1.0		$	(0.8	)	$	0.5
State	(0.8		)	(1.3		)	(1.5		)
Foreign	10.1			6.2			14.4
Total	10.3			4.1			13.4
Deferred:
Federal	1.3			2.4			(115.8		)
State	(0.5		)	(14.4		)	(3.5		)
Foreign	(0.1		)	1.1			(1.0		)
Total	0.7			(10.9		)	(120.3		)
Income tax provision (benefit)	$	11.0		$	(6.8	)	$	(106.9	)

Schedule of effective income tax rate reconciliation

The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit):



(In millions)	2018			2017			2016
Taxes computed at the federal rate	$	52.0		$	(30.3	)	$	(256.9	)
Goodwill impairment	—			36.6			—
State and local income taxes, net of federal tax benefit	(0.5		)	—			(26.8		)
Valuation allowance	(48.0		)	(14.5		)	171.5
Repatriation of foreign earnings (GILTI starting in 2018)	5.4			14.2			2.1
Impact of U.S. tax reform	5.9			(4.1		)	—
Foreign earnings taxed at different rate	3.2			(3.5		)	(1.2		)
Adjustment to prior years’ taxes	(5.8		)	(5.2		)	3.4
Withholding taxes	2.7			2.2			—
Preferential tax rate	(4.8		)	(3.7		)	(4.1		)
Other	0.9			1.5			5.1
Income tax provision (benefit)	$	11.0		$	(6.8	)	$	(106.9	)

Schedule of deferred tax assets and liabilities

Changes to certain deferred tax assets and the valuation allowance at December 31, 2017 as a result of the Company’s final transition tax calculation for federal and state purposes were as follows (in millions):



Deferred Income Tax Assets	Estimate Refinement			Originally Reported			Change
Net operating loss tax carryovers	$	355.9		$	336.1		$	19.8
Tax credits	63.2			92.6			(29.4		)

Gross deferred income tax assets	733.3			742.9			(9.6		)
Valuation allowance	(264.4		)	(274.0		)	9.6
Total deferred income tax assets	$	468.9		$	468.9		$	—

The utilization of income tax credits of $28.2 million does not match the change in the deferred tax asset amount due to the refinement of the transition tax calculation.

The Company continues to maintain a valuation allowance on the federal, state and some foreign net deferred tax assets as of December 31, 2018. Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2018 and 2017 were as follows:



(In millions)	2018			2017
Deferred income tax assets
Pensions	$	159.4		$	158.0
Postretirement benefits other than pensions	87.3			86.5
Net operating loss tax carryovers	307.5			336.1
Tax credits	49.7			92.6
Deferred compensation and other benefit plans	2.4			13.8
Other items	67.3			55.9
Gross deferred income tax assets	673.6			742.9
Valuation allowance for deferred tax assets	(194.8		)	(274.0		)
Total deferred income tax assets	478.8			468.9
Deferred income tax liabilities
Bases of property, plant and equipment	371.5			375.3
Inventory valuation	67.1			50.0
Bases of amortizable intangible assets	29.9			38.7
Other items	14.5			7.0
Total deferred tax liabilities	483.0			471.0
Net deferred tax liability	$	(4.2	)	$	(2.1	)

Schedule of NOL's and tax credits

The following summarizes the carryforward periods for the tax attributes related to NOLs and credits by jurisdiction.



($ in millions)
Jurisdiction	Attribute	Amount	Expiration Period	Amount expiring within 5 years	Amount expiring in 5-20 years
U.S.	NOL	$943	20 years	$—	$943
U.S.	Foreign Tax Credit	$37	10 years	$13	$24
U.S.	Research and Development Credit	$1	20 years	$—	$1
State	NOL	$140	Various	$30	$110
State	Credits	$12	Various	$3	$9
U.K.	NOL	$13	Indefinite	$—	$—
Luxembourg	NOL	$18	Indefinite	$—	$—
Poland	Economic Zone Credit	$2	9 years	$—	$2

Schedule of income taxes paid

Income taxes paid and amounts received as refunds were as follows:



(In millions)	2018			2017			2016
Income taxes paid	$	9.7		$	10.4		$	8.6
Income tax refunds received	(1.6		)	(7.1		)	(10.5		)
Income taxes paid (received), net	$	8.1		$	3.3		$	(1.9	)

Schedule of changes in unrecognized income tax benefits

The changes in the liability for unrecognized income tax benefits for the years ended December 31, 2018, 2017 and 2016 were as follows:



(In millions)	2018			2017			2016
Balance at beginning of year	$	14.7		$	22.7		$	19.6
Increases in prior period tax positions	—			—			7.9
Decreases in prior period tax positions	(0.1		)	(0.7		)	(0.1		)
Increases in current period tax positions	0.7			0.7			0.6
Expiration of the statute of limitations	(0.6		)	(0.4		)	(1.1		)
Settlements	—			(7.6		)	(4.2		)
Balance at end of year	$	14.7		$	14.7		$	22.7

Summary of income tax examinations

A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows:



Jurisdiction		Earliest Year Open to Examination
U.S. Federal		2017
States:
Pennsylvania		2015
Foreign:
China		2015
Poland		2012
United Kingdom		2016