Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Earnings from Continuing Operations

Income (loss) from continuing operations are summarized below:

(in millions)	2017			2016			2015
(Loss) income from continuing operations before income taxes:
Domestic	$	(98.5	)	$	(293.0	)	$	(184.0	)
Foreign		59.0			24.9			73.0
Total	$	(39.5	)	$	(268.1	)	$	(111.0	)

Schedule of Income Tax Expense (Benefit) from Continuing Operations

Income tax provision (benefit) from continuing operations is summarized as follows:

(in millions)	2017			2016			2015
Current:
Federal and state	$	(12.8	)	$	(13.0	)	$	(48.6	)
Foreign		7.4			12.1			11.9
Total current	$	(5.4	)	$	(0.9	)	$	(36.7	)
Deferred:
Federal and state	$	(7.0	)	$	98.7		$	(8.3	)
Foreign		(37.1	)		2.7			3.9
Total deferred	$	(44.1	)	$	101.4		$	(4.4	)
Provision (benefit) for taxes on income	$	(49.5	)	$	100.5		$	(41.1	)

Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Income Tax Rate for Continuing Operations

The federal statutory income tax rate is reconciled to the Company’s effective income tax rate for continuing operations for the years ended December 31, 2017, 2016 and 2015 as follows:

	2017			2016			2015
Federal income tax at statutory rate		35.0	%		35.0	%		35.0	%
State income provision (benefit)		16.3			2.3			5.7
Manufacturing & research incentives		7.9			2.0			(0.4	)
Taxes on foreign income which differ from the U.S. statutory rate		41.5			2.4			8.3
Adjustments for unrecognized tax benefits		0.5			(4.0	)		1.5
Adjustments for valuation allowances		287.7			(69.8	)		(8.5	)
Spin-off tax costs		—			(1.3	)		(1.8	)
U.S. Tax Reform		(228.3	)		—			—
Other items		(35.4	)		(4.1	)		(2.8	)
Effective tax rate		125.2	%		(37.5	)%		37.0	%

Schedules of Deferred Tax Assets (Liabilities)

Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items:

(in millions)	2017			2016
Non-current deferred tax assets (liabilities):
Inventories	$	16.5		$	14.2
Accounts receivable		(5.4	)		(4.6	)
Property, plant and equipment		(9.7	)		19.0
Intangible assets		(33.8	)		(35.9	)
Deferred employee benefits		47.3			71.8
Product warranty reserves		5.5			6.1
Product liability reserves		5.0			7.8
Tax credits		6.7			4.9
Loss carryforwards		159.2			145.4
Deferred revenue		7.4			10.8
Transition tax		(26.2	)		—
Other		2.2			(1.7	)
Total non-current deferred tax assets		174.7			237.8
Less valuation allowance		(162.3	)		(269.6	)
Net deferred tax assets (liabilities), non-current	$	12.4		$	(31.8	)

The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2017 and December 31, 2016 as follows:

(in millions)	2017			2016
Long-term income tax assets, included in other non-current assets	$	25.4		$	4.8
Long-term deferred income tax liability		(13.0	)		(36.6	)
Net deferred income tax asset (liability)	$	12.4		$	(31.8	)

Schedule of Open Tax Years for Which the Company could be Subject to Income Tax Examination

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The following table provides the open tax years for which the Company could be subject to income tax examination by the tax authorities in its major jurisdictions:

Jurisdiction		Open Years
U.S. Federal		2012 — 2017
China		2007 — 2017
France		2013 — 2017
Germany		2011 — 2017

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 is as follows:

(in millions)	2017			2016			2015
Balance at beginning of year	$	21.5		$	19.4		$	20.8
Additions based on tax positions related to the current year		0.9			1.1			1.3
Additions for tax positions of prior years		4.9			5.0			0.2
Reductions for tax positions of prior years		(0.5	)		(3.6	)		—
Reductions based on settlements with taxing authorities		(6.7	)		—			—
Reductions for lapse of statute		(0.6	)		(0.4	)		(2.9	)
Balance at end of year	$	19.5		$	21.5		$	19.4