Note 14 - Income Taxes

The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior year tax liabilities, are recorded during the period(s) in which they occur.



	Three Months Ended March 31,
	2016			2015
Provision (benefit) for income taxes	$	27.6		$	(21.3	)
Effective tax rate	30.5		%	13.6		%

In accordance with ASC Topic 740, "Income Taxes," the effective tax rate in the first quarter of 2016 was computed based on an expected annual effective tax rate, excluding discrete items. Discrete tax items are recorded in the period in which they occur. The effective tax rate of 30.5% in the first quarter of 2016 was lower than the U.S. federal statutory rate of 35% primarily due to tax benefits related to foreign tax credits, earnings in certain foreign jurisdictions where the effective tax rate is less than 35% and other U.S. tax benefits, such as the Research and Experimentation credit and the U.S. manufacturing deduction. These factors were partially offset by U.S. taxation of foreign earnings, losses at certain foreign subsidiaries where no tax benefit could be recorded, U.S. state and local taxes and the impact of certain discrete tax items during the period.

The effective tax rate in the first quarter of 2015 was computed based on the expected annual effective tax rate, excluding discrete items. At that time, the Company expected pretax income for the year with an estimated effective tax rate of 15.3% (i.e., tax expense) excluding discrete items. The expected effective tax rate of 15.3% was lower than the U.S. federal statutory rate of 35% primarily due to lower U.S. earnings due to pension settlement charges, earnings in certain foreign jurisdictions where the effective tax rate is less than 35%, tax benefits related to foreign tax credits, U.S. state and local taxes and the U.S. manufacturing deduction. These factors were partially offset by U.S. taxation of foreign earnings, and losses at certain foreign subsidiaries where no tax benefit could be recorded. As the first quarter of 2015 resulted in a pretax loss, a tax benefit was recorded at the expected annual effective tax rate plus the impact of discrete tax items during the period, which resulted in an effective tax rate for the first quarter of 2015 of 13.6%.