Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The Company’s provision for income taxes consists of the following:



	Year Ended December 31,
	2015			2014			2013
	(in millions)
Current:
United States	$	(0.5	)	$	(0.3	)	$	(0.4	)
State and local	0.3			0.4			0.2
Foreign	25.9			22.3			15.6
Total current	25.7			22.4			15.4
Deferred:
United States	(4.6		)	0.1			0.2
State and local	(0.2		)	(0.2		)	(0.8		)
Foreign	(0.5		)	(0.3		)	(5.9		)
Total deferred	(5.3		)	(0.4		)	(6.5		)
Total income tax expense	$	20.4		$	22.0		$	8.9

Earnings (Loss) Before Income Taxes

The following sets forth the amount of (loss) earnings before income taxes:



	Year Ended December 31,
	2015			2014			2013
	(in millions)
(Loss) earnings before income taxes:
United States	$	(60.3	)	$	(38.5	)	$	(36.2	)
Rest of the world	41.9			45.6			20.4
	$	(18.4	)	$	7.1		$	(15.8	)

Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate differs from the amount calculated using the statutory U.S. federal income tax rate, principally due to the following:



	Year Ended December 31,
	2015			2014			2013
	(in millions)
Income tax (benefit) expense computed at U.S. federal statutory rate	$	(6.4	)	$	2.5		$	(5.5	)
Foreign withholding tax	4.2			7.0			3.7
State and local income taxes, net of federal benefit	0.1			0.2			(0.6		)
Foreign tax differential	(1.0		)	(3.1		)	(2.3		)
Change in tax rates	0.3			—			(3.2		)
Change in valuation allowances	15.7			6.6			7.8
Uncertain tax positions	6.5			0.4			0.3
Reduction in valuation allowances for business combination	(4.0		)	—			—
Dividend elimination and subpart F	2.4			8.7			6.7
Acquisition expenditures capitalized for tax	—			—			1.3
Other permanent differences	2.4			2.6			1.2
Tax credits	(2.3		)	(1.7		)	(1.2		)
Adjust deferred taxes	(1.4		)	(0.5		)	0.6
Share-based compensation	3.0			0.3			0.4
Other	0.9			(1.0		)	(0.3		)
Income tax expense	$	20.4		$	22.0		$	8.9

Net Deferred Tax Assets and Liabilities

Significant components of net deferred tax assets and liabilities are as follows:



	December 31,
	2015			2014
	(in millions)
Deferred tax assets:
Net operating loss and other deferred carryforwards	$	81.3		$	73.6
Tax credit carryforwards	17.2			19.5
Inventories	6.7			8.6
Employee benefits	14.3			10.9
Accrued liabilities and other	7.7			6.3
Total deferred tax assets	127.2			118.9
Less valuation allowances	(70.0		)	(65.3		)
Deferred tax assets, net of valuation allowances	57.2			53.6
Deferred tax liabilities:
Goodwill and other intangible assets	88.3			98.7
Property and equipment	11.4			9.3
Undistributed non-U.S. earnings	20.8			14.2
Total deferred tax liabilities	120.5			122.2
Net deferred tax liabilities	$	(63.3	)	$	(68.6	)

Unrecognized Tax Benefits

The reconciliation of the beginning and ending total amounts of unrecognized tax benefits (exclusive of interest and penalties) is as follows:



	Year Ended December 31,
	2015			2014			2013
	(in millions)
Balance as of beginning of year	$	1.0		$	0.6		$	0.3
Additions for tax positions of prior years	11.4			0.1			0.3
Additions for tax positions of current year	6.7			0.5			—
Reductions due to lapse of statutes and settlements	(1.0		)	(0.2		)	—
Balance as of the end of year	$	18.1		$	1.0		$	0.6

Tax Years Subject to Examination, by Jurisdiction

The following tax years remain subject to examinations by major tax jurisdictions:



		Tax Years
Tax Jurisdiction:
United States		2012 - current
Germany		2010 - current
China		2012 - current
Netherlands		2010 - current
Canada		2013 - current
India		2014 - current