Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income from operations before provision for taxes by domestic and foreign source

Income from operations before provision for taxes by domestic and foreign source is as follows:

	Year Ended December 31,
(millions of dollars)	2018		2017		2016
Income from continuing operations before income taxes and income from affiliates and joint ventures:
Domestic	$	93.1	$	96.7	$	72.9
Foreign		111.0		94.2		97.4
	$	204.1	$	190.9	$	170.3

Provision (benefit) for taxes on income

The provision (benefit) for taxes on income consists of the following:

	Year Ended December 31,
(millions of dollars)	2018			2017			2016
Domestic
Taxes currently payable
Federal	$	(3.7	)	$	46.0		$	18.7
State and local		1.4			2.4			4.4
Deferred income taxes		11.1			(78.1	)		(8.8	)
Domestic tax provision (benefit)		8.8			(29.7	)		14.3

Foreign
Taxes currently payable		21.3			21.1			23.2
Deferred income taxes		4.3			2.0			(2.2	)
Foreign tax provision		25.6			23.1			21.0
Total tax provision (benefit)	$	34.4		$	(6.6	)	$	35.3

Reconciliation of statutory federal tax rate to effective federal tax rate

The major elements contributing to the difference between the U.S. federal statutory tax rate and the consolidated effective tax rate are as follows:

	Year Ended December 31,
	2018		2017		2016
U.S. statutory rate		21.0%		35.0%		35.0%

Depletion		(3.9)%		(6.7)%		(6.6)%
Difference between tax provided on foreign earnings and the U.S. statutory rate		1.1%		(3.8)%		(6.4)%
Global Intangible Low-Tax Income (GILTI)		0.8%		0.0%		0.0%
Foreign Derived Intangible Income		(0.7)%		0.0%		0.0%
State and local taxes, net of federal tax benefit		1.9%		1.1%		1.1%
Tax credits and foreign dividends		(0.3)%		0.3%		0.6%
Change in valuation allowance		—		(1.9)%		(1.1)%
Impact of uncertain tax positions		0.5%		0.4%		0.4%
Impact of officer's non-deductible compensation		0.8%		0.8%		0.1%
Manufacturing deduction		—		(1.6)%		(2.0)%
Impact of U.S. Tax Reform		(2.2)%		(24.8)%		0.0%
Other		(2.1)%		(2.3)%		(0.4)%
Consolidated effective tax rate		16.9%		(3.5)%		20.7%

Deferred tax assets and liabilities

The Company believes that its accrued liabilities are sufficient to cover its U.S. and foreign tax contingencies. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	December 31,
(millions of dollars)	2018			2017
Deferred tax assets attributable to:
Accrued liabilities	$	22.2		$	28.6
Net operating loss carry forwards		34.4			33.2
Pension and post-retirement benefits costs		33.8			40.4
Other		28.6			22.0
Valuation allowance		(22.0	)		(21.4	)
Total deferred tax assets		97.0			102.8
Deferred tax liabilities attributable to:
Plant and equipment, principally due to differences in depreciation		182.8			161.6
Intangible assets		69.5			63.4
Other		15.2			11.6
Total deferred tax liabilities		267.5			236.6
Net deferred tax asset (liability)	$	(170.5	)	$	(133.8	)

Net deferred tax assets and net deferred tax liabilities are as follows:

	December 31,
(millions of dollars)	2018				2017
Net deferred tax asset, long-term		$	26.3			$	25.6
Net deferred tax liability, long-term			196.8				159.4
Net deferred tax asset (liability), long-term		$	(170.5	)		$	(133.8	)

The following table summarizes the activity related to our unrecognized tax benefits:

(millions of dollars)	2018		2017
Balance at beginning of the year	$	14.7	$	13.7
Increases related to current year tax positions		0.6		1.2
Increases related to new judgements		1.3		1.2
Decreases related to audit settlements and statue expirations		—		(1.4	)

Balance at the end of the year	$	16.6	$	14.7