Note 12 - Income taxes:

	Three months ended June 30,						Six months ended June 30,
	2013			2014			2013			2014
	(In millions)
Expected tax expense (benefit) at U.S. federal statutory income tax rate of 35%	$	(7.7	)	$	1.9		$	(12.8	)	$	3.7
Incremental U.S. tax and rate differences on equity in earnings		-			(2.3	)		(7.4	)		(3.3	)
Nontaxable income		(.5	)		-			(.7	)		(.3	)
U.S. state income taxes and other, net		.2			.3			.2			.7
Total	$	(8.0	)	$	(.1	)	$	(20.7	)	$	.8

	Three months ended June 30,						Six months ended June 30,
	2013			2014			2013			2014
	(In millions)
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$	(8.0	)	$	(.1	)	$	(20.7	)	$	.8
Other comprehensive income (loss):
Marketable securities		(11.9	)		(12.4	)		6.4			(57.5	)
Currency translation		(.6	)		(.4	)		(2.3	)		(.7	)
Pension plans		.3			.3			.7			.6
OPEB plans		-			(.1	)		(.1	)		(.2	)
Total	$	(19.0	)	$	(12.7	)	$	(16.0	)	$	(57.0	)

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 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 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 objected to the re-assessments and believed the position was without merit. In the second quarter of 2014, the Appeals Division of the Canadian Revenue Authority ruled in Kronos’ favor and reversed in their entirety such notices of reassessment. As a result, Kronos recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of its reserve for uncertain tax positions in the second quarter of 2014 related to the completion of this Canadian income tax audit. Also during the second quarter of 2014, Kronos recognized a non-cash income tax benefit of $3.1 million related to the release of a portion of its reserve for uncertain tax positions in conjunction with the completion of an audit of its U.S. income tax return for 2009.

Our 2014 provision for income taxes includes a first quarter $.4 million provision which is a correction of amounts that should have been recognized in the fourth quarter of 2012 and is not material to any current or prior periods.

We currently estimate that our unrecognized tax benefits will decrease by approximately $4.6 million during the next twelve months due to the expiration of certain statutes of limitation.