Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income taxes

Note 11 – Income taxes:

	Three months ended
	March 31,
	2015			2016
	(In millions)
Expected tax expense (benefit), at U.S. federal statutory   income tax rate of 35%	$	3.1		$	(1.1	)
Rate differences on equity in earnings (losses) of Kronos		(1.5	)		.3
Adjustment to the reserve for uncertain tax positions, net		(3.0	)		-
Nontaxable income		(.1	)		(.2	)
U.S. state income taxes and other, net		.1			.2
Income tax benefit	$	(1.4	)	$	(.8	)
Comprehensive provision for income taxes (benefit) allocable to:
Net loss	$	(1.4	)	$	(.8	)
Other comprehensive income (loss):
Marketable securities		(1.0	)		(.8	)
Currency translation		(7.0	)		1.5
Interest rate swap		-			(.3	)
Pension plans		.4			.4
OPEB plans		(.1	)		(.1	)
Total	$	(9.1	)	$	(.1	)

In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings (losses) 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 $5.3 million in the first quarter of 2015 and 2016.  The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings (losses) of Kronos represents the benefit associated with such non-taxability of the dividends we receive from Kronos, as it relates to the amount of deferred income taxes we recognize on our undistributed equity in earnings (losses) of Kronos.

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 the first quarter of 2015, we recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions due to the expiration of the applicable statute of limitations. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months.