Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2015

Taxes on Income

Schedule of amount of earnings before income taxes

	Years Ended December 31,
($ in millions)	2015		2014		2013
U.S.	$	46.4	$	279.7	$	242.9
Foreign	299.1		365.9		340.7
	$	345.5	$	645.6	$	583.6

Schedule of provision for income tax expense

	Years Ended December 31,
($ in millions)	2015			2014			2013
Current
U.S.	$	26.1		$	50.8		$	47.2
State and local	7.0			17.7			3.6
Foreign	75.7			69.5			100.4
Total current	108.8			138.0			151.2
Deferred
U.S.	(37.9		)	8.9			28.5
State and local	(4.1		)	(1.1		)	(0.7		)
Foreign	(19.8		)	4.1			(29.4		)
Total deferred (a)	(61.8		)	11.9			(1.6		)
Tax provision	$	47.0		$	149.9		$	149.6

(a) Amounts do not include tax benefits related to discontinued operations of $(0.2) million in 2013.

Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings

	Years Ended December 31,
($ in millions)	2015			2014			2013
Statutory U.S. federal income tax	$	120.9		$	226.0		$	204.3
Increase (decrease) due to:
Foreign tax rate differences	(50.7		)	(57.3		)	(45.5		)
U.S. state and local taxes, net	1.8			6.9			1.6
U.S. taxes on foreign earnings, net of tax credits	1.7			11.8			26.4
U.S. manufacturing deduction	(3.8		)	(6.8		)	(4.3		)
U.S. research and development tax credits	(14.8		)	(8.5		)	(17.9		)
Uncertain tax positions, including interest	(3.6		)	(7.9		)	(3.4		)
Company and trust-owned life insurance	(2.2		)	(4.9		)	(6.3		)
Other, net	(2.3		)	(9.4		)	(5.3		)
Provision for taxes	$	47.0		$	149.9		$	149.6
Effective tax rate expressed as a percentage of pretax earnings	13.6		%	23.2		%	25.6		%

Schedule of significant components of deferred tax assets and liabilities

	December 31,
($ in millions)	2015			2014
Deferred tax assets:
Deferred compensation	$	109.6		$	105.7
Accrued employee benefits	113.0			128.1
Plant closure costs	3.1			3.4
Accrued pensions	177.3			175.5
Inventory and other reserves	21.2			19.4
Net operating losses, foreign tax credits and other tax attributes	105.0			108.8
Unrealized losses on currency exchange and derivative transactions	57.1			24.4
Transaction costs	33.9			—
Other	32.4			26.2
Total deferred tax assets	652.6			591.5
Valuation allowance	(90.3		)	(92.4		)
Net deferred tax assets	562.3			499.1
Deferred tax liabilities:
Property, plant and equipment	(267.2		)	(242.4		)
Goodwill and other intangible assets	(155.2		)	(141.1		)
Other	(17.3		)	(30.2		)
Total deferred tax liabilities	(439.7		)	(413.7		)
Net deferred tax asset (liability)	$	122.6		$	85.4

Schedule of net deferred tax asset (liability) included in consolidated balance sheets

	December 31,
($ in millions)	2015			2014
Deferred taxes and other current assets	$	96.3		$	54.9
Intangibles and other assets, net	59.6			66.5
Other current liabilities	(3.1		)	(3.6		)
Deferred taxes and other liabilities	(30.2		)	(32.4		)
Net deferred tax asset	$	122.6		$	85.4

Roll forward of unrecognized tax benefits related to uncertain income tax positions

($ in millions)	2015			2014			2013
Balance at January 1	$	65.5		$	78.3		$	76.6
Additions based on tax positions related to the current year	1.0			1.4			1.7
Additions for tax positions of prior years	2.2			7.7			5.5
Reductions for settlements	(8.4		)	—			(7.2		)
Reductions due to lapse of statute of limitations	(5.7		)	(16.5		)	(0.2		)
Effect of foreign currency exchange rates	(4.1		)	(5.4		)	1.9
Balance at December 31	$	50.5		$	65.5		$	78.3