Income before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. As the Company has elected to treat certain foreign subsidiaries as branches for U.S. income tax purposes, pretax income attributable to the United States shown below may differ from the pretax income reported in the Company’s annual U.S. Federal income tax return.

(Loss) income from continuing operations before income taxes:



	2015			2014		2013
United States	$	(307.7	)	$	39.5	$	189.4
Non-United States	118.1			164.5		100.7
(Loss) income from continuing operations before income taxes	$	(189.6	)	$	204.0	$	290.1

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



	2015			2014			2013
Current:
Federal	$	26.8		$	61.1		$	96.8
State and local	5.4			2.8			11.5
Foreign	16.3			44.1			39.3
	$	48.5		$	108.0		$	147.6
Deferred:
Federal	$	(146.1	)	$	(46.9	)	$	(35.7	)
State and local	(13.1		)	(4.4		)	1.8
Foreign	(10.9		)	(2.0		)	0.9
	$	(170.1	)	$	(53.3	)	$	(33.0	)
United States and foreign tax (benefit) expense on (loss) income	$	(121.6	)	$	54.7		$	114.6

The Company made net income tax payments of $83.3 million, $111.6 million and $98.9 million in 2015, 2014 and 2013, respectively.

The following table is the reconciliation between the (benefit) provision for income taxes and the amount computed by applying the U.S. Federal income tax rate of 35% to income before taxes:



	2015			2014			2013
Income tax at the U.S. federal statutory rate	$	(66.4	)	$	71.4		$	101.5
Adjustments:
State and local income taxes, net of federal tax benefit	(4.9		)	(0.3		)	8.4
Tax on foreign remittances and U.S. tax on foreign income	13.8			19.6			41.0
Tax expense related to undistributed earnings of foreign subsidiaries	—			(8.7		)	8.7
Foreign losses without current tax benefits	5.3			4.3			9.5
Foreign earnings taxed at different rates including tax holidays	(11.0		)	(15.7		)	(3.9		)
U.S. domestic manufacturing deduction	(4.5		)	(6.6		)	(8.8		)
U.S. foreign tax credit	(22.4		)	(15.1		)	(25.9		)
U.S. research tax credit	(1.1		)	(1.0		)	(3.2		)
Accruals and settlements related to tax audits	(5.9		)	12.8			(10.8		)
Reversal of valuation allowance	(34.7		)	—			—
Deferred taxes related to branch operations	11.6			—			—
Other items, net	(1.4		)	(6.0		)	(1.9		)
(Benefit) provision for income taxes	$	(121.6	)	$	54.7		$	114.6
Effective income tax rate	64.1		%	26.8		%	39.5		%

In connection with various investment arrangements, the Company has been granted a “holiday” from income taxes for one affiliate in Asia for 2015, 2014 and 2013. These agreements began to expire at the end of 2010, with full expiration in 2018. In total, the agreements reduced income tax expense by $1.3 million in 2015, $1.3 million in 2014 and $0.7 million in 2013. These savings resulted in an increase to earnings per diluted share of approximately $0.01 in 2015, approximately $0.01 in 2014 and approximately $0.01 in 2013.

Income tax expense includes U.S. and international income taxes. At December 31, 2015 and December 31, 2014, the total amount of earnings planned to be reinvested outside of the U.S. were approximately $547.6 million and $486.7 million, respectively. The Company has determined that U.S. earnings are sufficient to cover U.S. cash needs for operations and foreign earnings will be reinvested outside the U.S. The Company intends to continue to make substantial investments to support the ongoing development and growth of our international operations. It is not practicable to calculate the deferred taxes that could be associated with the earnings indefinitely reinvested outside the U.S.; however, foreign tax credits would be available to reduce federal income taxes in the event of distribution.

The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2015 and 2014 was as follows:



	2015			2014
Deferred tax assets:
Accrued postretirement benefits cost	$	72.3		$	91.4
Accrued pension cost	36.3			16.3
Other employee benefit accruals	10.9			16.9
Tax loss and credit carryforwards	100.3			117.9
Other, net	40.0			60.0
Valuation allowances	(83.7		)	(145.4		)
	$	176.1		$	157.1
Deferred tax liabilities - principally depreciation and amortization	(113.8		)	(100.3		)
Net deferred tax assets	$	62.3		$	56.8

The Company has a U.S. foreign tax credit carryforward of $2.0 million that will begin to expire in 2023, and U.S. state and local credit carryforwards of $0.8 million, portions of which will expire in 2016. The Company also has U.S. state and local loss carryforwards with tax benefits totaling $1.5 million, portions of which will expire at the end of 2016. In addition, the Company has loss carryforwards in various non-U.S. jurisdictions with tax benefits totaling $95.9 million having various expiration dates, as well as tax credit carryforwards of $0.1 million. The Company has provided valuation allowances of $68.9 million against certain of these carryforwards. The majority of the non-U.S. loss carryforwards represent local country net operating losses for branches of the Company or entities treated as branches of the Company under U.S. tax law. Tax benefits have been recorded for these losses in the United States. The related local country net operating loss carryforwards are offset fully by valuation allowances. In addition to loss and credit carryforwards, the Company has provided valuation allowances of $14.8 million against other deferred tax assets.

As of December 31, 2015, the Company had $50.4 million of total gross unrecognized tax benefits. Included in this amount was $38.0 million of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2015, the Company anticipates a decrease in its unrecognized tax positions of approximately $35.0 million to $40.0 million during the next 12 months. The anticipated decrease is primarily due to settlements with tax authorities and the expiration of various statutes of limitation. As of December 31, 2015, the Company had accrued $12.2 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense.

As of December 31, 2014, the Company had $57.5 million of total gross unrecognized tax benefits. Included in this amount was $47.3 million of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2014, the Company had accrued $16.5 million of interest and penalties related to uncertain tax positions.

As of December 31, 2013, the Company had $49.5 million of total gross unrecognized tax benefits. Included in this amount was $35.8 million of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2013, the Company had accrued $9.8 million of interest and penalties related to uncertain tax positions.

The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013:



	2015			2014			2013
Beginning balance, January 1	$	57.5		$	49.5		$	112.6
Tax positions related to the current year:
Additions	6.5			0.7			9.3
Tax positions related to prior years:
Additions	5.0			14.7			6.9
Reductions	(4.0		)	(3.5		)	(1.4		)
Settlements with tax authorities	(14.6		)	(3.0		)	(77.9		)
Lapses in statutes of limitation	—			(0.9		)	—
Ending balance, December 31	$	50.4		$	57.5		$	49.5

During 2015, gross unrecognized tax benefits decreased primarily due to settlements with tax authorities related to various prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. These decreases were partially offset by accruals related to prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations.

During 2014, gross unrecognized tax benefits decreased primarily due to net reductions related to various current year and prior year tax matters, including settlement of tax matters with government authorities and taxes related to the Company’s international operations. These decreases were partially offset by additions related to prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations.

During 2013, gross unrecognized tax benefits decreased primarily due to net reductions related to various current year and prior year tax matters, including settlement of tax matters with government authorities and taxes related to the Company’s international operations. These decreases were partially offset by additions related to prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations.

As of December 31, 2015, the Company was subject to examination by the IRS for tax years 2012 to the present. The Company was also subject to tax examination in various U.S. state and local tax jurisdictions for tax years 2006 to the present, as well as various foreign tax jurisdictions, including China, France, Germany, Italy, Mexico and India for tax years 2002 to the present. The current portion of the Company’s unrecognized tax benefits was presented on the Consolidated Balance Sheets within income taxes payable, and the non-current portion was presented as a component of other non-current liabilities.