Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income from continuing operations before income tax expense

Income from continuing operations before income tax expense consists of the following:



	Year Ended December 31,
	2014		2013		2012
	(In millions)
United States	$	53.1	$	48.4	$	39.1
Outside the United States	18.7		11.9		15.4
	$	71.8	$	60.3	$	54.5

Income Taxes

Income taxes consisted of the following:



	Year Ended December 31,
	2014			2013			2012
	(In millions)
Current expense:
Federal	$	17.4		$	16.0		$	7.5
State	0.8			1.5			0.8
Foreign	6.2			4.2			4.4
	24.4			21.7			12.7
Deferred expense (benefit):
Federal	1.0			1.2			7.5
State	(0.8		)	(2.6		)	(0.2		)
Foreign	0.3			(0.9		)	0.3
	0.5			(2.3		)	7.6
Income tax expense	$	24.9		$	19.4		$	20.3

Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates

The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows:



	Year Ended December 31,
Rate Reconciliation	2014			2013			2012
	(In millions)
Tax at statutory rate	$	25.1		$	21.1		$	19.3
Effect of state income taxes, net	1.4			1.1			0.9
Effect of foreign operations	(0.9		)	(0.2		)	(0.1		)
Valuation allowance	(1.1		)	(1.6		)	(0.2		)
Non-deductible items	1.8			0.7			0.6
Manufacturer's deduction	(1.4		)	(1.4		)	(0.6		)
Other, net	—			(0.3		)	0.4
Total	$	24.9		$	19.4		$	20.3

Significant components of the Company's net deferred tax assets and liabilities

Significant components of the Company’s net deferred tax assets and liabilities are as follows:



	Year Ended December 31,
	2014			2013
	(In millions)
Deferred tax assets:
Postretirement benefit obligation	$	6.2		$	5.9
Inventory	13.7			13.2
Net operating loss and credit carryforwards	6.3			3.8
Goodwill	1.0			0.5
Warranty reserve	2.5			2.1
Compensation	6.0			4.3
Other	11.5			10.7
Total deferred tax assets	47.2			40.5
Deferred tax liabilities:
Depreciation and amortization	13.2			11.7
Pension	23.3			26.4
Goodwill	2.7			2.7
Intangible assets	14.5			15.4
Other	1.4			1.8
Total deferred tax liabilities	55.1			58.0
Net deferred tax liabilities prior to valuation allowances	(7.9		)	(17.5		)
Valuation allowances	(7.1		)	(2.6		)
Net deferred tax liability	$	(15.0	)	$	(20.1	)

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2014			2013			2012
	(In millions)
Unrecognized Tax Benefit — January 1,	$	5.9		$	6.1		$	6.0
Gross Increases — Tax Positions in Prior Period	0.8			0.4			0.1
Gross Decreases — Tax Positions in Prior Period	(0.2		)	(0.6		)	—
Gross Increases — Tax Positions in Current Period	—			—			0.1
Lapse of Statute of Limitations	—			—			(0.1		)
Unrecognized Tax Benefit — December 31,	$	6.5		$	5.9		$	6.1