Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

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)	2019		2018		2017
Income from continuing operations before income taxes and income from affiliates and joint ventures:
Domestic	$	46.9	$	93.1	$	96.7
Foreign		110.4		111.0		94.2
	$	157.3	$	204.1	$	190.9

Provision (Benefit) for Taxes on Income

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

	Year Ended December 31,
(millions of dollars)	2019			2018			2017
Domestic
Taxes currently payable
Federal	$	(3.3	)	$	(3.7	)	$	46.0
State and local		0.8			1.4			2.4
Deferred income taxes		(6.6	)		11.1			(78.1	)
Domestic tax provision (benefit)		(9.1	)		8.8			(29.7	)
Foreign
Taxes currently payable		26.7			21.3			21.1
Deferred income taxes		5.2			4.3			2.0
Foreign tax provision		31.9			25.6			23.1
Total tax provision (benefit)	$	22.8		$	34.4		$	(6.6	)

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,
	2019			2018			2017
U.S. statutory rate		21.0	%		21.0	%		35.0	%
Depletion		(5.0	)%		(3.9	)%		(6.7	)%
Difference between tax provided on foreign earnings and the U.S. statutory rate		3.8	%		1.1	%		(3.8	)%
Global Intangible Low-Tax Income (GILTI)		—			0.8	%		—
Foreign Derived Intangible Income		(0.8	)%		(0.7	)%		—
State and local taxes, net of federal tax benefit		0.2	%		1.9	%		1.1	%
Tax credits and foreign dividends		(0.7	)%		(0.3	)%		0.3	%
Change in valuation allowance		1.0	%		—			(1.9	)%
Impact of uncertain tax positions		(5.0	)%		0.5	%		0.4	%
Impact of officer's non-deductible compensation		0.8	%		0.8	%		0.8	%
Manufacturing deduction		—			—			(1.6	)%
Impact of U.S. Tax Reform		(1.1	)%		(2.2	)%		(24.8	)%
Other		0.3	%		(2.1	)%		(2.3	)%
Consolidated effective tax rate		14.5	%		16.9	%		(3.5	)%

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)	2019			2018
Deferred tax assets attributable to:
Accrued liabilities	$	29.7		$	22.2
Net operating loss carry forwards		33.9			34.4
Pension and post-retirement benefits costs		39.0			33.8
Other		31.4			28.6
Valuation allowance		(23.8	)		(22.0	)
Total deferred tax assets		110.2			97.0
Deferred tax liabilities attributable to:
Plant and equipment, principally due to differences in depreciation		181.3			182.8
Intangible assets		69.5			69.5
Other		17.0			15.2
Total deferred tax liabilities		267.8			267.5
Net deferred tax asset (liability)	$	(157.6	)	$	(170.5	)

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

	December 31,
(millions of dollars)	2019				2018
Net deferred tax asset, long-term		$	23.0			$	26.3
Net deferred tax liability, long-term			180.6				196.8
Net deferred tax asset (liability), long-term		$	(157.6	)		$	(170.5	)

Activity Related to Unrecognized Tax Benefits

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

(millions of dollars)	2019			2018
Balance at beginning of the year	$	16.6		$	14.7
Increases related to current year tax positions		1.5			0.6
Increases related to new judgements		0.7			1.3
Decreases related to audit settlements and statue expirations		(10.9	)		—
Balance at the end of the year	$	7.9		$	16.6