Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

	Year Ended December 31,
(millions of dollars)	2015			2014			2013
Earnings before income taxes:
U.S.	$	125.6		$	218.8		$	136.2
Non-U.S.	801.2			761.3			733.1
Total	$	926.8		$	980.1		$	869.3
Provision for income taxes:
Current:
Federal	$	32.5		$	25.7		$	27.7
State	(4.3		)	3.9			2.6
Foreign	228.3			220.8			211.1
Total current	256.5			250.4			241.4
Deferred:
Federal	31.8			66.2			(2.3		)
State	2.6			(1.2		)	(7.3		)
Foreign	(10.5		)	(22.8		)	(13.5		)
Total deferred	23.9			42.2			(23.1		)
Total provision for income taxes	$	280.4		$	292.6		$	218.3

Effective Income Tax Rate Reconciliation

	Year Ended December 31,
(millions of dollars)	2015			2014			2013
Income taxes at U.S. statutory rate of 35%	$	324.4		$	343.0		$	304.3
Increases (decreases) resulting from:
State taxes, net of federal benefit	8.2			2.6			2.3
U.S. tax on non-U.S. earnings	31.5			18.8			(2.8		)
Affiliates' earnings	(14.0		)	(16.2		)	(15.6		)
Foreign rate differential	(92.6		)	(84.1		)	(73.4		)
Tax holidays	(21.2		)	(23.6		)	(15.6		)
Withholding taxes	7.8			10.6			15.4
Tax credits	(3.2		)	(3.9		)	(6.9		)
Reserve adjustments, settlements and claims	19.4			41.0			0.5
Valuation allowance adjustments	8.3			5.5			(1.4		)
Other	11.8			(1.1		)	11.5
Provision for income taxes, as reported	$	280.4		$	292.6		$	218.3

Reconciliation of the total gross unrecognized tax benefits

(millions of dollars)	2015			2014
Balance, January 1	$	60.4		$	22.9
Additions based on tax positions related to current year	20.7			19.3
Additions for tax positions of prior years	6.7			22.5
Additions from acquisitions	53.4			—
Reductions for closure of tax audits and settlements	(10.4		)	—
Reductions for lapse in statute of limitations	(0.3		)	(1.5		)
Translation adjustment	(3.2		)	(2.8		)
Balance, December 31	$	127.3		$	60.4

Tax jurisdiction

Tax jurisdiction	Years no longer subject to audit	Tax jurisdiction	Years no longer subject to audit
U.S. Federal	2011 and prior	Hungary	2008 and prior
China	2009 and prior	Japan	2011 and prior
France	2012 and prior	Mexico	2009 and prior
Germany	2007 and prior	South Korea	2009 and prior

Deferred Tax Assets (Liabilities)

	December 31,
(millions of dollars)	2015			2014
Deferred tax assets:
Foreign tax credits	$	142.6		$	121.8
Employee compensation	34.6			33.8
Other comprehensive loss	79.7			90.3
Research and development capitalization	100.4			115.6
Net operating loss and capital loss carryforwards	81.8			59.4
Pension and other postretirement benefits	41.1			29.4
Other	125.3			87.1
Total deferred tax assets	$	605.5		$	537.4
Valuation allowance	(71.0		)	(46.4		)
Net deferred tax asset	$	534.5		$	491.0
Deferred tax liabilities:
Goodwill and intangible assets	(259.2		)	(133.1		)
Fixed assets	(115.5		)	(93.4		)
Other	(66.4		)	(40.0		)
Total deferred tax liabilities	$	(441.1	)	$	(266.5	)
Net deferred taxes	$	93.4		$	224.5