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Income Taxes
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Domestic and Foreign Components of Income (Loss) Before Income Taxes
 
Successor
Predecessor
 
Year Ended December 31,
Period from
January 1, 2013
through
January 31,
 
2015
2014
2013
2013
Domestic
$
(19.4
)
$
(8.8
)
$
(153.8
)
$
(1.5
)
Foreign
180.6

45.6

(109.9
)
17.1

Total
$
161.2

$
36.8

$
(263.7
)
$
15.6


Provision (Benefit) for Income Taxes
 
Successor
 
Year Ended December 31, 2015
Year Ended December 31, 2014
Year Ended December 31, 2013
 
Current  
Deferred  
Total  
Current  
Deferred  
Total  
Current  
Deferred  
Total  
U.S. federal
$
—

$
19.2

$
19.2

$
—

$
(2.1
)
$
(2.1
)
$
—

$
(43.7
)
$
(43.7
)
U.S. state and local
3.1

8.6

11.7

2.0

(2.9
)
(0.9
)
2.3

(2.5
)
(0.2
)
Foreign
65.2

(32.8
)
32.4

38.3

(33.2
)
5.1

73.7

(74.6
)
(0.9
)
Total
$
68.3

$
(5.0
)
$
63.3

$
40.3

$
(38.2
)
$
2.1

$
76.0

$
(120.8
)
$
(44.8
)
 
Predecessor
 
Period from January 1, 2013 through January 31, 2013
 
Current
Deferred
Total
U.S. federal
$
(8.8
)
$
7.0

$
(1.8
)
U.S. state and local
0.1

(0.2
)
(0.1
)
Foreign
6.7

2.3

9.0

Total
$
(2.0
)
$
9.1

$
7.1


Reconciliation to US Statutory Rate
 
Successor
Predecessor
 
Year Ended December 31, 2015
Year Ended December 31, 2014
Year Ended December 31, 2013
Period from
January 1
2013 through
January 31,
2013
Statutory U.S. federal income tax rate(1)
$
56.4

35.0
 %
$
12.9

35.0
 %
$
(92.3
)
35.0
 %
$
5.5

35.0
 %
Foreign income taxed at rates other than 35%
(41.4
)
(25.6
)
(46.7
)
(127.0
)
(36.6
)
13.9

1.0

6.6

Changes in valuation allowances
34.4

21.3

44.4

120.9

55.0

(20.9
)
1.4

8.9

Foreign exchange gain (loss), net
(10.5
)
(6.5
)
8.7

23.7

8.7

(3.3
)
0.5

3.1

Unrecognized tax benefits(2)
0.4

0.3

(44.0
)
(119.7
)
35.1

(13.2
)
—

—

Foreign taxes
5.8

3.6

1.2

3.3

8.9

(3.4
)
—

—

Non-deductible interest
4.9

3.0

15.4

41.9

6.4

(2.4
)
—

—

Non-deductible expenses
5.5

3.4

14.2

38.6

19.4

(7.4
)
—

—

Tax credits
(5.5
)
(3.4
)
(5.1
)
(13.8
)
(1.6
)
0.6

—

—

Venezuela impairment
10.7

6.6

—

—

—

—

—

—

Capital loss(3)
—

—

—

—

(46.7
)
17.7

—

—

U.S. state and local taxes, net
8.1

5.0

—

—

(0.2
)
0.1

—

—

Other - net
(5.5
)
(3.4
)
1.1

2.8

(0.9
)
0.3

(1.3
)
(8.0
)
Total income tax provision (benefit) / effective tax rate
$
63.3

39.3
 %
$
2.1

5.7
 %
$
(44.8
)
17.0
 %
$
7.1

45.6
 %
(1)
The U.S. statutory rate has been used as management believes it is more meaningful to the Company.
(2)
Within this amount, the Company released and recorded an unrecognized tax benefit of $21.1 million related to non-deductible interest and debt acquisition costs in 2014 and 2013. These adjustments were fully offset by changes in the valuation allowance.
(3)
In 2013, the Company recognized a tax benefit of $46.7 million related to a capital loss, which is fully offset by a $46.7 million increase to the valuation allowance.
Deferred Tax Balances
Successor
 
Year Ended December 31,
 
2015
2014
Deferred tax asset
 
 
Tax loss, credit and interest carryforwards
$
227.4

$
198.5

Goodwill and intangibles
93.6

90.8

Compensation and employee benefits
93.8

92.5

Accruals and other reserves
30.4

58.4

Other
12.1

—

Total deferred tax assets
457.3

440.2

Less: Valuation allowance
(127.8
)
(101.9
)
Net deferred tax assets
329.5

338.3

Deferred tax liabilities
 
 
Property, Plant & Equipment
(191.5
)
(215.0
)
Equity Investment & Other Securities
(0.5
)
(2.2
)
Unremitted earnings
(6.3
)
(8.5
)
Long-Term Debt
(6.6
)
(8.1
)
Other
—

(5.5
)
Total deferred tax liabilities
(204.9
)
(239.3
)
Net deferred tax asset
$
124.6

$
99.0

 
 
 
Current asset
$
69.5

$
64.5

Current liability
(6.6
)
(7.3
)
Non-current assets
227.2

250.0

Non-current liability
(165.5
)
(208.2
)
Net deferred tax asset
$
124.6

$
99.0

At December 31, 2015, the Company had $144.4 million of net operating and capital loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $76.4 million have indefinite carryforward periods, and the remaining $68.0 million are subject to expiration between the years 2018 through 2025.
In the U.S., there were approximately $86.3 million of federal net operating loss carryforwards (tax effected) subject to expiration in years beyond 2032, and $4.2 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2035. Tax credit carryforwards at December 31, 2015 amounted to $19.6 million subject to expiration between the years 2019 and 2035. Interest carryforwards at December 31, 2015 of $16.8 million have an indefinite carryforward period. Utilization of our net operating loss and tax credit carryforwards may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating loss and tax credit carryforwards before their utilization.
Of the net operating loss, tax credit and interest carryforwards (tax-effected), $43.9 million has not been benefited, as it relates to the windfall tax benefit on stock compensation that occurred in 2015 which has not reduced income taxes payable. If realized, the unrecorded net operating loss carryforwards will be recognized as a benefit through equity. We have adopted a “with and without” approach with regards to windfall tax benefits from stock based compensation.
At December 31, 2014, the Company had $118.3 million of net operating and capital loss carryforwards (tax effected) in certain non-U.S. jurisdictions, net of uncertain tax positions. Of these, $78.2 million have indefinite carryforward periods, and the remaining $40.1 million are subject to expiration between the years 2019 through 2026. In the U.S., there were approximately $53.2 million of federal net operating loss carryforwards (tax effected) subject to expirations in years beyond 2032, and $2.5 million of state net operating loss carryforwards (tax effected) subject to expiration between the years 2018 and 2034. Tax credit carryforwards at December 31, 2014, amounted to $11.6 million, of which $0.6 million is subject to expiration in 2016. The remaining tax credit carryforwards expire between the years 2018 and 2034. Interest carryforwards at December 2014, amounted to $12.9 million, and had an indefinite carryforward period.
The Company had valuation allowances that primarily related to the realization of recorded tax benefits on tax loss carryforwards from operations in Austria, Luxembourg, Netherlands and the United Kingdom at December 31, 2015 and 2014 of 127.8 million and 101.9 million, respectively. The $25.9 million increase is a result of current year taxable losses in Netherlands of $25.0 million and $0.9 million of various unbenefited losses.
The Company has determined that the majority of unremitted earnings of our subsidiaries will not be permanently reinvested, and accordingly, has provided a deferred tax liability at December 31, 2015 and 2014 of 6.3 million and 8.5 million, respectively. The Company has included in the current income tax provision a total benefit of $0.4 million related to subsidiary earnings and reduced withholding tax rates on prior year earnings. In 2015, the Company asserted indefinite reinvestment on $33.2 million of 2015 undistributed earnings from operations in China. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company would be subject withholding tax of $1.7 million.
Total Gross Unrecognized Tax Benefits
 
Successor
Predecessor
 
Year Ended December 31,
Period from
January 1
2013 through
January 31,
 
2015
2014
2013
2013
Balance at January 1
$
5.3

$
38.9

$
—

$
—

Increases related to acquisition
—

—

11.3

—

Increases related to positions taken on items from prior years
—

—

—

—

Decreases related to positions taken on items from prior years
(0.6
)
(33.6
)
—

—

Increases related to positions taken in the current year
—

—

27.6

—

Settlement of uncertain tax positions with tax authorities
—

—

—

—

Decreases due to expiration of statutes of limitations
—

—

—

—

Balance at December 31
$
4.7

$
5.3

$
38.9

$
—


At December 31, 2015 and 2014, the total amount of gross unrecognized tax benefits was $4.7 million and $5.3 million, of which $4.7 million and $5.3 million would impact the effective tax rate, if recognized, respectively.
Interest and penalties associated with gross unrecognized tax benefits are included as components of the "Provision (benefit) for income taxes," and totaled an income tax expense of $0.4 million in 2015 and an income tax benefit of $6.8 million in 2014. Accrued interest and penalties are included within the related tax liability line in the balance sheet. The Company’s accrual for interest and penalties at December 31, 2015 and 2014 was $0.7 million and $0.3 million, respectively.
During 2014, resolution on two separate tax matters resulted in the adjustment of gross unrecognized tax benefits. In April 2014, documentation was secured to support tax deductions related to pre-acquisition activities. Additionally, in December 2014, the Company received affirmative guidance with respect to the treatment of certain 2013 charges. As a result, the Company believes it is more likely than not to sustain the position and adjusted the unrecognized tax benefits related to these matters, resulting in a tax benefit of $31.0 million (offset by an unfavorable change in the valuation allowance of $21.1 million).
The Company is subject to income tax in approximately 45 jurisdictions outside the U.S. The Company’s significant operations outside the U.S. are located in Belgium, China, Germany and Mexico. The statute of limitations varies by jurisdiction with 2006 being the oldest tax year still open in the material jurisdictions. The Company is currently under audit in certain jurisdictions for tax years under responsibility of the predecessor, as well as tax periods under the Company's ownership. Pursuant to the acquisition agreement, all tax liabilities related to tax years prior to 2013 acquisition will be indemnified by DuPont.
As of December 31, 2015 and 2014, we had gross unrecognized tax benefits of $5.4 million and $5.6 million, respectively, including interest and penalties. Due to the high degree of uncertainty regarding future timing of cash flows associated with these liabilities, we are unable to estimate the years in which settlement will occur with the respective taxing authorities.