Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

The components of income from continuing operations before income tax were as follows:



(in millions of dollars)	2017		2016		2015
Domestic operations	$	68.7	$	33.9	$	60.9
Foreign operations	89.4		91.2		70.5
Total	$	158.1	$	125.1	$	131.4

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 35% to our effective income tax rate for continuing operations was as follows:



(in millions of dollars)	2017			2016			2015
Income tax at U.S. statutory rate of 35%	$	55.3		$	43.8		$	46.0
Effect of the U.S. Tax Act	(25.7		)	—			—
State, local and other tax, net of federal benefit	3.6			2.4			2.1
U.S. effect of foreign dividends and withholding taxes	4.9			4.6			3.9
Unrealized foreign currency expense (benefit) on intercompany debt	—			0.7			(0.7		)
Realized foreign exchange net loss on intercompany loans	—			(9.6		)	—
Revaluation of previously held equity interest	—			(12.0		)	—
Foreign income taxed at a lower effective rate	(6.9		)	(4.6		)	(5.6		)
Interest on Brazilian Tax Assessment	2.2			2.8			2.7
Expiration of tax credits	—			10.9			1.0
Decrease in valuation allowance	(0.6		)	(9.9		)	(1.3		)
Excess benefit from stock-based compensation	(5.6		)	—			—
Other	(0.8		)	0.5			(2.6		)
Income taxes as reported	$	26.4		$	29.6		$	45.5
Effective tax rate	16.7		%	23.7		%	34.6		%

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense were as follows:



(in millions of dollars)	2017			2016		2015
Current expense
Federal and other	$	41.1		$	0.7	$	2.1
Foreign	30.5			22.9		16.0
Total current income tax expense	71.6			23.6		18.1
Deferred expense
Federal and other	(47.4		)	3.5		22.8
Foreign	2.2			2.5		4.6
Total deferred income tax (benefit) expense	(45.2		)	6.0		27.4
Total income tax expense	$	26.4		$	29.6	$	45.5

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets (liabilities) were as follows:



(in millions of dollars)	2017			2016
Deferred tax assets
Compensation and benefits	$	18.5		$	20.7
Pension	49.6			28.6
Inventory	10.6			12.4
Other reserves	15.2			19.1
Accounts receivable	5.7			7.0
Foreign tax credit carryforwards	29.1			—
Net operating loss carryforwards	126.6			47.2
Other	5.6			10.3
Gross deferred income tax assets	260.9			145.3
Valuation allowance	(45.0		)	(11.7		)
Net deferred tax assets	215.9			133.6
Deferred tax liabilities
Depreciation	(17.2		)	(12.6		)
Identifiable intangibles	(237.9		)	(240.4		)
Gross deferred tax liabilities	(255.1		)	(253.0		)
Net deferred tax liabilities	$	(39.2	)	$	(119.4	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:



(in millions of dollars)	2017			2016			2015
Balance at beginning of year	$	43.7		$	34.8		$	45.9
Additions for tax positions of prior years	2.9			3.0			3.0
Reductions for tax positions of prior years	(0.7		)	(0.5		)	—
Esselte Acquisition	1.6			—			—
Increase resulting from foreign currency translation	—			6.4			—
Decrease resulting from foreign currency translation	(0.3		)	—			(14.1		)
Balance at end of year	$	47.2		$	43.7		$	34.8