Note 14 - Income taxes:

The provision for income taxes attributable to continuing operations, the difference between such provision for income taxes, the amount that would be expected using the U.S. federal statutory income tax rate of 35% and the comprehensive provision for income taxes are presented below.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35%	$	34.4		$	27.0		$	(33.8	)
Incremental U.S. tax and rate differences on equity in earnings		(13.3	)		(7.4	)		(7.4	)
Tax rate changes		(1.4	)		-			-
Nondeductible goodwill impairment		-			2.2			-
U.S. state income taxes other, net		.1			(1.9	)		(.7	)
Income tax expense (benefit)	$	19.8		$	19.9		$	(41.9	)

	Years ended December 31,
	2011		2012			2013
	(In millions)
Components of income tax expense (benefit):
Currently payable (receivable)	$	.9	$	(15.0	)	$	-
Deferred income taxes (benefit)		18.9		34.9			(41.9	)
Income tax expense (benefit)	$	19.8	$	19.9		$	(41.9	)

	Years ended December 31,
	2011			2012			2013
	(In millions)
Comprehensive provision for income taxes (benefit) allocable to:
Income (loss) from continuing operations	$	19.8		$	19.9		$	(41.9	)
Discontinued operations		4.9			9.1			-
Other comprehensive income (loss):
Marketable securities		63.8			(43.6	)		26.2
Currency translation		(3.1	)		3.0			.7
Pension liabilities		(4.3	)		(3.7	)		5.3
OPEB plans		(.1	)		(.2	)		.2
Total	$	81.0		$	(15.5	)	$	(9.5	)

The components of the net deferred tax liability at December 31, 2012 and 2013 are summarized in the following table.

	December 31,
	2012						2013
	Assets			Liabilities			Assets			Liabilities
	(In millions)
Tax effect of temporary differences related to:
Inventories	$	1.0		$	-		$	.9		$	-
Marketable securities		-			(62.5	)		-			(88.1	)
Property and equipment		-			(3.8	)		-			(4.1	)
Accrued OPEB costs		1.6			-			1.3			-
Accrued pension cost		4.9			-			1.7			-
Accrued environmental liabilities		16.9			-			40.1			-
Other accrued liabilities and deductible differences		3.0			-			2.5			-
Other taxable differences		-			(8.7	)		-			(7.7	)
Investment in Kronos Worldwide, Inc.		-			(120.0	)		-			(106.5	)
Tax loss and tax credit carryforwards		.1			-			1.8			-
Valuation allowance		(.1	)		-			-			-
Adjusted gross deferred tax assets(liabilities)		27.4			(195.0	)		48.3			(206.4	)
Netting of items by tax jurisdiction		(23.1	)		23.1			(44.5	)		44.5
		4.3			(171.9	)		3.8			(161.9	)
Less net current deferred tax asset		4.3			-			3.8			-
Net noncurrent deferred tax liability	$	-		$	(171.9	)	$	-		$	(161.9	)

Tax authorities are examining certain of our U.S. and non-U.S. tax returns, including those of Kronos, and tax authorities have or may propose tax deficiencies, including penalties and interest. We cannot guarantee that these tax matters will be resolved in our favor due to the inherent uncertainties involved in settlement initiatives and court and tax proceedings. We believe that we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

In 2011 and 2012, Kronos received notices of re-assessment from the Canadian federal and provincial tax authorities related to the years 2002 through 2004. Kronos objects to the re-assessments and believes the position is without merit. Accordingly, the re-assessments are being appealed. If the full amount of the proposed adjustment were ultimately to be assessed against Kronos the cash tax liability would be approximately $15.7 million. Kronos believes that it has adequate accruals for this matter.

We accrue interest and penalties on our uncertain tax positions as a component of our provision for income taxes. The amount of interest and penalties we accrued during 2011, 2012 and 2013 was not material.

At December 31, 2011, 2012, and 2013, the amount of our uncertain tax positions (exclusive of the effect of interest and penalties) was $16.8 million, and there was no change in such amount during the past three years. We currently estimate that our unrecognized tax position will not change materially during the next twelve months. If our uncertain tax positions were recognized, a benefit of $15.2 million would affect our effective income tax rate in each of 2011, 2012 and 2013.

We file income tax returns in various U.S. federal, state and local jurisdictions. Prior to 2012, we also filed income tax returns in various non-U.S. jurisdictions, principally in Canada and Taiwan. Our U.S. income tax returns prior to 2010 are generally considered closed to examination by applicable tax authorities.