Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

from continuing operations before income taxes and noncontrolling interest consisted of the following:



	Years ended December 31
In millions	2015			2014		2013
Federal ⁽¹⁾	$	(23.7	)	$	13.3	$	328.7
International	97.8			771.0		365.8
Income from continuing operations before income taxes and noncontrolling interest	$	74.1		$	784.3	$	694.5


(1)	As a result of the Redomicile, "Federal" reflects income from continuing operations before income taxes and noncontrolling interest for the U.K. in 2015 and 2014 and for Switzerland in 2013.

The provision for income taxes consisted of the following:



	Years ended December 31
In millions	2015		2014			2013
Currently payable
Federal ⁽¹⁾	$	—	$	(0.4	)	$	17.4
International ⁽²⁾	136.1		175.7			105.6
Total current taxes	136.1		175.3			123.0
Deferred
Federal ⁽¹⁾	0.9		2.2			18.9
International ⁽²⁾	2.1		(0.2		)	35.1
Total deferred taxes	3.0		2.0			54.0
Total provision for income taxes	$	139.1	$	177.3		$	177.0


(1)	As a result of the Redomicile, "Federal" represents U.K. taxes for 2015 and 2014 and Swiss taxes for 2013.


(2)	As a result of the Redomicile, "International" represents non-U.K. taxes for 2015 and 2014 and non-Swiss taxes for 2013

Reconciliations of the federal statutory income tax rate to our effective tax rate were as follows:



	Years ended December 31
Percentages	2015		2014		2013
Federal statutory income tax rate ⁽¹⁾	20.3		21.0		7.8
Tax effect of international operations ⁽²⁾	(74.5	)	(4.9	)	10.4
Change in valuation allowances	81.6		3.4		5.7
Withholding taxes	7.3		2.3		1.1
Interest limitations	8.8		0.8		0.5
Non-deductible transaction costs	3.4		—		—
Non-deductible goodwill impairment	140.8		—		—
Effective tax rate	187.7		22.6		25.5


(1)	The statutory rate for 2015 and 2014 reflects the U.K. statutory rate of 20.25 percent and 21 percent, respectively. For 2013, the statutory rate reflects the Swiss statutory rate of 7.8 percent.


(2)	The tax effect of international operations for 2015 and 2014 consists of non-U.K. jurisdictions. For 2013, the tax effect of international operations consists of non-Swiss jurisdictions.

Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:



	Years ended December 31
In millions	2015			2014			2013
Beginning balance	$	62.1		$	60.8		$	53.4
Gross increases for tax positions in prior periods	5.2			2.3			12.2
Gross decreases for tax positions in prior periods	(3.4		)	(0.5		)	(0.6		)
Gross increases based on tax positions related to the current year	6.2			1.8			2.7
Gross decreases related to settlements with taxing authorities	(1.9		)	(0.1		)	(5.1		)
Reductions due to statute expiration	(1.5		)	(1.2		)	(1.8		)
Gross decreases due to currency fluctuations	(3.4		)	(1.0		)	—
Gross increases due to acquisitions	6.6			—			—
Ending balance	$	69.9		$	62.1		$	60.8

Deferred taxes were recorded in the Consolidated Balance Sheets as follows:



	December 31
In millions	2015		2014
Other current assets	$	96.7	$	139.4
Other non-current assets	62.8		87.9
Deferred tax liabilities	844.2		528.3
Net deferred tax liabilities	$	684.7	$	301.0

The tax effects of the major items recorded as deferred tax assets and liabilities were as follows:



	December 31
In millions	2015		2014
Deferred tax assets
Accrued liabilities and reserves	$	168.7	$	200.3
Pension and other post-retirement benefits	53.2		68.4
Employee compensation & benefits	102.7		100.0
Tax loss and credit carryforwards	392.8		291.9
Total deferred tax assets	717.4		660.6
Valuation allowance	362.5		235.8
Deferred tax assets, net of valuation allowance	354.9		424.8
Deferred tax liabilities
Property, plant and equipment	58.1		51.6
Goodwill and other intangibles	942.4		645.6
Other liabilities	39.1		28.6
Total deferred tax liabilities	1,039.6		725.8
Net deferred tax liabilities	$	684.7	$	301.0