Income taxes

9 Months Ended

Sep. 30, 2022

Income taxes

Income taxes

Note 12 – Income taxes:

	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2022		2021		2022
	(In millions)
Expected tax expense (benefit), at U.S. federal statutory   income tax rate of 21%	$	2.5	$	(2.9)	$	9.1	$	9.6
Rate differences on equity in earnings of Kronos,   net of dividends		(1.5)		(2.7)		(3.7)		(6.1)
U.S. state income taxes and other, net		.1		.1		.1		.1
Income tax expense (benefit)	$	1.1	$	(5.5)	$	5.5	$	3.6
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$	1.1	$	(5.5)	$	5.5	$	3.6
Additional paid-in capital		—		—		—		.1
Other comprehensive income:
Currency translation		(.5)		(1.7)		(.2)		(3.6)
Pension plans		.3		.2		.9		.7
Total	$	.9	$	(7.0)	$	6.2	$	.8

In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings of Kronos. Because we and Kronos are part of the same U.S. federal income tax group, any dividends we receive from Kronos are nontaxable to us. Accordingly, we do not recognize and we are not required to pay income taxes on dividends from Kronos. We received aggregate dividends from Kronos of $19.0 million in the first nine months of 2021 and $20.1 million in the first nine months of 2022. The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings of Kronos represent the income tax benefit associated with the nontaxable dividends we received from Kronos compared to the amount of deferred income taxes we recognized on our equity in earnings of Kronos.

On August 16, 2022, the Inflation Reduction Act was signed into law. Among other things, this legislation provides for a 15% corporate alternative minimum tax on certain large corporations, imposes a 1% excise tax on qualifying stock buybacks for transactions occurring after December 31, 2022 and provides for certain energy-related tax credits. We have evaluated the relevant provisions of the Act and do not expect them to have a material impact on our tax provision.