Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

	Year Ended December 31,
(millions of dollars)	2016			2015			2014
Earnings before income taxes:
U.S.	$	(724.7	)	$	125.6		$	218.8
Non-U.S.	915.2			801.2			761.3
Total	$	190.5		$	926.8		$	980.1
Provision for income taxes:
Current:
Federal	$	37.4		$	32.5		$	25.7
State	6.1			(4.3		)	3.9
Foreign	251.7			228.3			220.8
Total current	295.2			256.5			250.4
Deferred:
Federal	(239.8		)	31.8			66.2
State	(13.2		)	2.6			(1.2		)
Foreign	(11.9		)	(10.5		)	(22.8		)
Total deferred	(264.9		)	23.9			42.2
Total provision for income taxes	$	30.3		$	280.4		$	292.6

Effective Income Tax Rate Reconciliation

	Year Ended December 31,
(millions of dollars)	2016			2015			2014
Income taxes at U.S. statutory rate of 35%	$	66.7		$	324.4		$	343.0
Increases (decreases) resulting from:
State taxes, net of federal benefit	(10.6		)	8.2			2.6
U.S. tax on non-U.S. earnings	40.7			31.5			18.8
Affiliates' earnings	(15.0		)	(14.0		)	(16.2		)
Foreign rate differentials	(93.3		)	(92.6		)	(84.1		)
Tax holidays	(25.5		)	(21.2		)	(23.6		)
Withholding taxes	13.3			7.8			10.6
Tax credits	(3.2		)	(3.2		)	(3.9		)
Reserve adjustments, settlements and claims	11.6			19.4			41.0
Valuation allowance adjustments	(2.7		)	8.3			5.5
Non-deductible transaction costs	8.3			8.1			5.4
Provision to return and other one-time tax adjustments	0.3			(5.1		)	(8.8		)
Impact of transactions	16.3			11.6			—
Currency	10.0			0.1			(0.2		)
Other foreign taxes	12.9			9.0			7.4
Partnership income	3.4			3.1			(0.3		)
Other	(2.9		)	(15.0		)	(4.6		)
Provision for income taxes, as reported	$	30.3		$	280.4		$	292.6

Reconciliation of the total gross unrecognized tax benefits

(millions of dollars)	2016			2015
Balance, January 1	$	127.3		$	60.4
Additions based on tax positions related to current year	16.1			20.7
Additions for tax positions of prior years	1.6			6.7
Additions from acquisitions	—			53.4
Reductions for closure of tax audits and settlements	(45.7		)	(10.4		)
Reductions for lapse in statute of limitations	(5.0		)	(0.3		)
Translation adjustment	(3.2		)	(3.2		)
Balance, December 31	$	91.1		$	127.3

Tax jurisdiction

Tax jurisdiction	Years no longer subject to audit	Tax jurisdiction	Years no longer subject to audit
U.S. Federal	2012 and prior	Japan	2015 and prior
China	2010 and prior	Mexico	2010 and prior
France	2013 and prior	Poland	2011 and prior
Germany	2007 and prior	South Korea	2010 and prior
Hungary	2008 and prior

Deferred Tax Assets (Liabilities)

	December 31,
(millions of dollars)	2016			2015
Deferred tax assets:
Foreign tax credits	$	139.5		$	142.6
Employee compensation	41.3			34.6
Other comprehensive loss	66.3			79.7
Research and development capitalization	145.1			100.4
Net operating loss and capital loss carryforwards	71.5			81.8
Pension and other postretirement benefits	38.8			41.1
Asbestos-related	263.0			—
Other	128.9			125.3
Total deferred tax assets	$	894.4		$	605.5
Valuation allowance	(71.2		)	(71.0		)
Net deferred tax asset	$	823.2		$	534.5
Deferred tax liabilities:
Goodwill and intangible assets	(251.3		)	(259.2		)
Fixed assets	(147.1		)	(115.5		)
Other	(55.0		)	(66.4		)
Total deferred tax liabilities	$	(453.4	)	$	(441.1	)
Net deferred taxes	$	369.8		$	93.4