Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

"Earnings before income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2017, 2016 and 2015:



(in millions)	2017		2016		2015
Domestic	$	20.6	$	30.5	$	121.3
Foreign	98.2		74.3		75.1
Total	$	118.8	$	104.8	$	196.4

Schedule of the Components of Income Taxes

"Income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2017, 2016 and 2015:



(in millions)	2017			2016			2015
Current:
Federal and state	$	21.9		$	15.7		$	51.1
Foreign	26.2			19.5			18.2
Total current expense	48.1			35.2			69.3
Deferred:
Federal and state	(55.6		)	(15.5		)	(27.9		)
Foreign	(7.7		)	5.6			(2.1		)
Total deferred benefit	(63.3		)	(9.9		)	(30.0		)
Income taxes	$	(15.2	)	$	25.3		$	39.3

Reconciliation of the U.S. Federal Statutory Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2017, 2016 and 2015:



	2017		2016		2015
Federal income tax at statutory rate	35.0	%	35.0	%	35.0	%
State income (benefit) provision	(2.9	)	1.5		1.4
Manufacturing and research incentives	(1.7	)	(1.9	)	(1.7	)
Taxes on foreign income	(6.6	)	(9.3	)	(9.6	)
Repatriation of foreign income - Tax Act	11.4		—		—
Change in federal income tax statutory rate - Tax Act	(38.3	)	—		—
Adjustments for valuation allowances	(10.6	)	2.5		(13.8	)
Business divestitures	—		—		4.1
Out of period adjustments	—		(2.8	)	—
Other items	0.9		(0.9	)	4.6
Effective tax rate	(12.8	)%	24.1	%	20.0	%

Schedules of Significant Deferred Tax Assets and Liabilities

Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows:



(in millions)	2017			2016
Non-current deferred tax assets (liabilities):
Inventories	$	3.5		$	7.2
Accounts receivable	0.9			1.7
Property, plant and equipment	(2.4		)	(2.7		)
Intangible assets	(118.0		)	(190.8		)
Deferred employee benefits	19.9			19.2
Product warranty reserves	7.5			13.3
Product liability reserves	2.2			0.9
Loss carryforwards	41.3			43.8
Deferred revenue	—			1.3
Other	12.9			35.4
Non-current deferred tax liabilities	(32.2		)	(70.7		)
Less valuation allowance	(42.0		)	(59.9		)
Net non-current deferred tax liabilities	$	(74.2	)	$	(130.6	)

Current and long-term tax assets and liabilities included in the consolidated balance sheets are comprised of the following as of December 31, 2017 and 2016:



(in millions)	2017			2016			Financial Statement Line Item
Income taxes receivable	$	4.3		$	2.9		Prepaids and other current assets
Deferred tax assets	18.1			7.2			Other non-current assets
Income taxes payable	(6.2		)	(2.5		)	Accrued expenses and other liabilities
Income taxes payable	(12.5		)	—			Other long-term liabilities
Deferred tax liabilities	(92.3		)	(137.8		)	Deferred income taxes

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2017, 2016 and 2015:



(in millions)	2017			2016			2015
Balance at beginning of year	$	12.5		$	16.6		$	16.6
Additions based on tax positions related to the current year	—			0.8			0.2
Additions for tax positions of prior years	0.2			1.0			—
Reductions for tax positions of prior years	(0.4		)	—			—
Reductions for equity adjustment	—			(4.3		)	—
Reductions for lapse of statute	—			(1.6		)	(0.2		)
Balance at end of year	$	12.3		$	12.5		$	16.6