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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) resulting from temporary differences in the recognition of income and expense for tax and financial reporting purposes at December 31 consisted of the following:



	2013			2012
Deferred tax assets:
Accrued expenses and reserves	$	274.2		$	279.3
Pension and postretirement benefits	132.0			195.6
Asset revaluations	37.4			39.4
Capitalized expenses	199.4			131.8
Intangible assets	—			142.3
Share-based compensation	63.7			62.2
Restructuring initiatives	23.9			26.4
Postemployment benefits	8.1			14.0
Tax loss carryforwards	756.1			648.0
Foreign tax credit carryforwards	585.4			356.0
Minimum tax and business credit carryforwards	53.2			47.5
All other	52.6			65.9
Valuation allowance	(783.4		)	(627.4		)
Total deferred tax assets	1,402.6			1,381.0
Deferred tax liabilities:
Depreciation and amortization	(55.9		)	(44.3		)
Unremitted foreign earnings	(142.8		)	(224.8		)
Prepaid expenses	(16.6		)	(10.0		)
Capitalized interest	(9.4		)	(10.2		)
All other	(33.7		)	(24.6		)
Total deferred tax liabilities	(258.4		)	(313.9		)
Net deferred tax assets	$	1,144.2		$	1,067.1

Deferred Tax Assets (Liabilities) Classification

Deferred tax assets (liabilities) at December 31 were classified as follows:



	2013			2012
Deferred tax assets:
Prepaid expenses and other	$	233.6		$	273.5
Other assets	944.7			826.9
Total deferred tax assets	1,178.3			1,100.4
Deferred tax liabilities:
Income taxes	(1.1		)	(6.1		)
Long-term income taxes	(33.0		)	(27.2		)
Total deferred tax liabilities	(34.1		)	(33.3		)
Net deferred tax assets	$	1,144.2		$	1,067.1

Income from Continuing Operations before Taxes

Income from continuing operations, before taxes for the years ended December 31 was as follows:



	2013			2012			2011
United States	$	(500.8	)	$	(227.7	)	$	(156.9	)
Foreign	663.4			656.4			1,137.0
Total	$	162.6		$	428.7		$	980.1

Provision for Income Taxes

The provision for income taxes for the years ended December 31 was as follows:



	2013			2012			2011
Federal:
Current	$	76.6		$	38.8		$	41.7
Deferred	(212.5		)	(111.5		)	(95.0		)
	(135.9		)	(72.7		)	(53.3		)
Foreign:
Current	216.3			267.5			368.5
Deferred	90.5			143.6			(9.0		)
	306.8			411.1			359.5
State and other:
Current	(.7		)	1.2			(1.5		)
Deferred	(6.6		)	(4.2		)	(0.2		)
	(7.3		)	(3.0		)	(1.7		)
Total	$	163.6		$	335.4		$	304.5

Effective Tax Rate

The effective tax rate for the years ended December 31 was as follows:



	2013		2012		2011
Statutory federal rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of federal tax benefit	(2.1	)	(.5	)	.2
Taxes on foreign income, including translation	(22.0	)	(2.0	)	(3.3	)
Audit settlements, statute expirations and amended returns	(6.9	)	(2.1	)	(3.3	)
Additional tax on unremitted prior year foreign earnings	—		39.3		—
Venezuela devaluation and highly inflationary accounting	28.2		—		—
FCPA accrual	19.2		—		—
China goodwill impairment	8.4		3.6		—
Reserves for uncertain tax positions	4.5		3.0		1.1
Net change in valuation allowances	31.4		1.5		.1
Blocked income	3.9		1.1		.9
Other	1.0		(.7	)	.4
Effective tax rate	100.6	%	78.2	%	31.1	%

Reconciliation of Beginning and Ending Amount of Unrecognized tax benefits

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




Balance at December 31, 2010	$	84.3
Additions based on tax positions related to the current year	1.2
Additions for tax positions of prior years	9.3
Reductions for tax positions of prior years	(20.0		)
Reductions due to lapse of statute of limitations	(6.7		)
Reductions due to settlements with tax authorities	(32.1		)
Balance at December 31, 2011	36.0
Additions based on tax positions related to the current year	7.4
Additions for tax positions of prior years	9.3
Reductions for tax positions of prior years	(3.7		)
Reductions due to lapse of statute of limitations	(6.4		)
Reductions due to settlements with tax authorities	(6.6		)
Balance at December 31, 2012	36.0
Additions based on tax positions related to the current year	5.3
Additions for tax positions of prior years	1.9
Reductions for tax positions of prior years	(7.8		)
Reductions due to lapse of statute of limitations	(3.1		)
Reductions due to settlements with tax authorities	(4.3		)
Balance at December 31, 2013	$	28.0

Tax Years Remaining

We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. As of December 31, 2013, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows:



Jurisdiction	Open Years
Brazil	2008-2013
China	2007-2013
Mexico	2008-2013
Poland	2008-2013
Russia	2011-2013
United States	2013

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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