Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Data from Continuing Operations

For each of the years ended December 31, 2013, 2012, and 2011 the tax data related to continuing operations is as follows:



	2013			2012			2011
Income (loss) components:
United States	$	28.5		$	33.0		$	(464.4	)
International	152.0			116.1			148.5
Income (loss) from continuing operations before income tax	180.5			149.1			(315.9		)
Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal	10.6			(32.6		)	(78.9		)
United States – state and local	4.2			(8.7		)	(12.1		)
International	39.6			46.8			49.2
Total current income tax expense (benefit)	54.4			5.5			(41.8		)
Deferred income tax expense (benefit) components:
United States – federal	(331.2		)	40.1			318.2
United States – state and local	(36.7		)	9.9			(14.6		)
International	3.9			(15.9		)	(1.2		)
Total deferred income tax expense (benefit)	(364.0		)	34.1			302.4
Income tax expense (benefit)	$	(309.6	)	$	39.6		$	260.6
Effective income tax rate	(171.5		)%	26.6		%	(82.5		)%

Reconciliation of Tax Provision for Continuing Operations

A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2013, 2012, and 2011:



	2013		2012		2011
Tax provision at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Valuation allowance on deferred tax assets	(191.1	)	27.7		(108.1	)
Tax exempt interest	(17.5	)	(19.7	)	4.1
Tax on undistributed foreign earnings	6.1		1.3		(21.8	)
Foreign tax rate differential	(5.8	)	(3.0	)	1.2
Audit settlements & unrecognized tax benefits	3.8		(13.2	)	—
U.S. permanent items	(1.3	)	0.5		—
U.S. tax on foreign earnings	(0.7	)	0.5		0.4
Other adjustments	(0.6	)	(2.8	)	(3.9	)
State and local income tax	0.6		1.4		0.5
Medicare Part D subsidy	—		(1.1	)	0.4
Change in state tax rate	—		—		9.7
Effective income tax rate	(171.5	)%	26.6	%	(82.5	)%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities include the following:



	2013			2012
Deferred Tax Assets:
Accruals	$	64.5		$	65.2
Asbestos	272.7			296.7
Employee benefits	106.6			137.2
Credit carryforwards	47.2			46.1
Loss carryforwards	125.2			119.3
Other	34.4			40.1
Subtotal	650.6			704.6
Valuation allowance	$	(135.3	)	$	(536.7	)
Net deferred tax assets	515.3			167.9
Deferred Tax Liabilities:
Undistributed earnings	(82.3		)	(71.4		)
Intangibles	(58.8		)	(59.2		)
Accelerated depreciation	(25.8		)	(25.0		)
Investment	(0.4		)	(0.7		)
Total deferred tax liabilities	$	(167.3	)	$	(156.3	)
Net deferred tax assets	$	348.0		$	11.6

Deferred Taxes in Consolidated Balance Sheets

Deferred taxes are presented in the Consolidated Balance Sheets as follows:



	2013			2012
Current assets	$	59.5		$	19.9
Non-current assets	303.6			21.4
Current liabilities	—			(3.5		)
Other non-current liabilities	(15.1		)	(26.2		)
Net deferred tax assets	$	348.0		$	11.6

Attributes Available for Utilization

We have the following tax attributes available for utilization at December 31, 2013:



Attribute	Amount		First Year of Expiration
U.S. federal net operating losses	$	2.1	12/31/2023
U.S. state net operating losses	1,348.4		12/31/2014
U.S. federal tax credits	39.0		12/31/2020
U.S. state tax credits	8.2		12/31/2014
Foreign net operating losses	281.4		12/31/2014

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2013, 2012, and 2011 is as follows:



	2013			2012			2011
Unrecognized tax benefits – January 1	$	208.8		$	198.7		$	203.4
Additions for:
Prior year tax positions	1.6			48.4			1.5
Current year tax positions	8.0			0.8			15.1
Assumed in Acquisition	—			3.8			—
Reductions for:
Prior year tax positions	(55.4		)	(4.8		)	(21.2		)
Settlements	(1.0		)	(33.6		)	—
Expiration of Statute of Limitations	(0.8		)	(4.5		)	(0.1		)
Unrecognized tax benefits – December 31	$	161.2		$	208.8		$	198.7

Open Tax Years by Major Jurisdiction

The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2013:



Jurisdiction	Earliest Open Year
Czech Republic	2008
Germany	2006
Italy	2007
Japan	2010
Korea	2008
United States	2009