Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

	Year Ended December 31,
(millions of dollars)	2017			2016			2015
Earnings before income taxes:
U.S.	$	203.0		$	(724.7	)	$	125.6
Non-U.S.	860.6			915.2			801.2
Total	$	1,063.6		$	190.5		$	926.8
Provision for income taxes:
Current:
Federal	$	36.4		$	37.4		$	32.5
State	4.6			6.1			(4.3		)
Foreign	247.4			251.7			228.3
Total current	288.4			295.2			256.5
Deferred:
Federal	323.7			(239.8		)	31.8
State	2.1			(13.2		)	2.6
Foreign	(33.9		)	(11.9		)	(10.5		)
Total deferred	291.9			(264.9		)	23.9
Total provision for income taxes	$	580.3		$	30.3		$	280.4

Effective Income Tax Rate Reconciliation

	Year Ended December 31,
(millions of dollars)	2017			2016			2015
Income taxes at U.S. statutory rate of 35%	$	372.3		$	66.7		$	324.4
Increases (decreases) resulting from:
State taxes, net of federal benefit	2.3			(10.6		)	8.2
U.S. tax on non-U.S. earnings	226.0			40.7			31.5
Affiliates' earnings	(17.9		)	(15.0		)	(14.0		)
Foreign rate differentials	(100.2		)	(93.3		)	(92.6		)
Tax holidays	(31.0		)	(25.5		)	(21.2		)
Withholding taxes	24.9			13.3			7.8
Tax credits	(24.2		)	(3.2		)	(3.2		)
Reserve adjustments, settlements and claims	8.0			11.6			19.4
Valuation allowance adjustments	12.2			(2.7		)	8.3
Non-deductible transaction costs	10.9			8.3			8.1
Provision to return and other one-time tax adjustments	(1.9		)	0.3			(5.1		)
Impact of transactions	4.0			16.3			11.6
Currency	0.7			10.0			0.1
Other foreign taxes	8.1			12.9			9.0
Partnership income	3.3			3.4			3.1
Revaluation of U.S. deferred taxes	63.7			—			—
Other	19.1			(2.9		)	(15.0		)
Provision for income taxes, as reported	$	580.3		$	30.3		$	280.4

Reconciliation of the total gross unrecognized tax benefits

(millions of dollars)	2017			2016
Balance, January 1	$	91.1		$	127.3
Additions based on tax positions related to current year	16.8			16.1
Additions/(reductions) for tax positions of prior years	(2.4		)	1.6
Reductions for closure of tax audits and settlements	(19.9		)	(45.7		)
Reductions for lapse in statute of limitations	(0.8		)	(5.0		)
Translation adjustment	7.2			(3.2		)
Balance, December 31	$	92.0		$	91.1

Tax jurisdiction

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

Deferred Tax Assets (Liabilities)

	December 31,
(millions of dollars)	2017			2016
Deferred tax assets:
Foreign tax credits	$	—		$	139.5
Employee compensation	26.4			41.3
Other comprehensive loss	54.5			66.3
Research and development capitalization	76.4			145.1
Net operating loss and capital loss carryforwards	74.6			71.5
Pension and other postretirement benefits	19.1			38.8
Asbestos-related	167.1			263.0
Other	146.6			128.9
Total deferred tax assets	$	564.7		$	894.4
Valuation allowance	(95.9		)	(71.2		)
Net deferred tax asset	$	468.8		$	823.2
Deferred tax liabilities:
Goodwill and intangible assets	(193.9		)	(251.3		)
Fixed assets	(104.6		)	(147.1		)
Unremitted foreign earnings	(98.5		)	(38.5		)
Other	(12.0		)	(16.5		)
Total deferred tax liabilities	$	(409.0	)	$	(453.4	)
Net deferred taxes	$	59.8		$	369.8