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
	2012			2013			2014
	(In millions)
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35%	$	27.0		$	(33.8	)	$	12.1
Incremental U.S. tax and rate differences on equity in earnings		(7.4	)		(7.4	)		(7.4	)
Nondeductible goodwill impairment		2.2			-			-
U.S. state income taxes and other, net		(1.9	)		(.7	)		.3
Income tax expense (benefit)	$	19.9		$	(41.9	)	$	5.0

	Years ended December 31
	2012			2013			2014
	(In millions)
Components of income tax expense (benefit):
Currently payable (receivable):	$	(15.0	)	$	-		$	.8
Deferred income taxes (benefit)		34.9			(41.9	)		4.2
Income tax expense (benefit)	$	19.9		$	(41.9	)	$	5.0

	Years ended December 31
	2012			2013			2014
	(In millions)
Comprehensive provision for income taxes (benefit) allocable to:
Income (loss) from continuing operations	$	19.9		$	(41.9	)	$	5.0
Discontinued operations		9.1			-			-
Other comprehensive income (loss):
Marketable securities		(43.6	)		26.2			(57.6	)
Currency translation		3.0			.7			(11.0	)
Pension plans		(3.7	)		5.3			(10.0	)
OPEB plans		(.2	)		.2			(.5	)

Total	$	(15.5	)	$	(9.5	)	$	(74.1	)

The components of the net deferred tax liability at December 31, 2013 and 2014 are summarized in the following table.

	Years ended December 31
	2013						2014
	Assets			Liabilities			Assets			Liabilities
	(In millions)
Tax effect of temporary differences related to:
Inventories	$	.9		$	-		$	.8		$	-
Marketable securities		-			(88.1	)		-			(31.9	)
Property and equipment		-			(4.1	)		-			(4.6	)
Accrued OPEB costs		1.3			-			1.4			-
Accrued pension costs		1.7			-			4.4			-
Accrued environmental liabilities		40.1			-			38.9			-
Other accrued liabilities and deductible differences		2.5			-			2.6			-
Other taxable differences		-			(7.7	)		-			(6.8	)
Investment in Kronos Worldwide, Inc.		-			(106.5	)		-			(90.1	)
Tax loss and tax credit carryforwards		1.8			-			2.2			-
Adjusted gross deferred tax assets (liabilities)		48.3			(206.4	)		50.3			(133.4	)
Netting of items by tax jurisdiction		(44.5	)		44.5			(45.7	)		45.7
		3.8			(161.9	)		4.6			(87.7	)
Less net current deferred tax asset		3.8			-			4.6			-

Net noncurrent deferred tax liability	$	-		$	(161.9	)	$	-		$	(87.7	)

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 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.

At December 31, 2012, 2013, and 2014, 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 benefits will decrease by approximately $4.6 million during the next twelve months due to the expiration of certain statutes of limitation. If our uncertain tax positions were recognized, a benefit of $15.2 million would affect our effective income tax rate in each of 2012, 2013 and 2014. 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 2012, 2013 and 2014 was not material.

We file income tax returns in various U.S. federal, state and local jurisdictions. Our U.S. income tax returns prior to 2011 are generally considered closed to examination by applicable tax authorities.