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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes: Our Provision for income taxes from continuing operations consisted of the following (in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |
Federal | $ | 106.0 |  |  | $ | 101.0 |  |  | $ | 84.3 |
State | 14.5 |  |  | 13.1 |  |  | 10.1 |
Foreign | 9.7 |  |  | 3.6 |  |  | 9.6 |
Total current | 130.2 |  |  | 117.7 |  |  | 104.0 |
Deferred: |  |  |  |  |
Federal | (4.5 | ) |  | (21.4 | ) |  | 2.3 |
State | (1.2 | ) |  | (0.6 | ) |  | 1.0 |
Foreign | (0.4 | ) |  | (0.3 | ) |  | 2.2 |
Total deferred | (6.1 | ) |  | (22.3 | ) |  | 5.5 |
Total provision for income taxes | $ | 124.1 |  |  | $ | 95.4 |  |  | $ | 109.5 |
Income from continuing operations before income taxes was comprised of the following (in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Domestic | $ | 374.8 |  |  | $ | 276.7 |  |  | $ | 283.7 |
Foreign | 27.9 |  |  | 5.9 |  |  | 33.9 |
Total | $ | 402.7 |  |  | $ | 282.6 |  |  | $ | 317.6 |
The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Provision at the U.S. statutory rate of 35% | $ | 141.0 |  |  | $ | 98.9 |  |  | $ | 111.2 |
Increase (reduction) in tax expense resulting from: |  |  |  |  |
State income tax, net of federal income tax benefit | 12.8 |  |  | 8.0 |  |  | 8.8 |
Other permanent items | 4.2 |  |  | (9.1 | ) |  | (8.2 | )
Tax credits, net of unrecognized tax benefits | (27.9 | ) |  | (0.7 | ) |  | — |
Change in unrecognized tax benefits | (0.3 | ) |  | (0.9 | ) |  | 0.2 |
Change in valuation allowance | (4.3 | ) |  | (0.6 | ) |  | 0.2 |
Foreign taxes at rates other than 35% and miscellaneous other | (1.4 | ) |  | (0.2 | ) |  | (2.7 | )
Total provision for income taxes | $ | 124.1 |  |  | $ | 95.4 |  |  | $ | 109.5 |
Deferred income taxes reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their financial reporting basis and depending on the classification of the asset or liability generating the deferred tax. The deferred tax provision for the periods shown represents the effect of changes in the amounts of temporary differences during those periods. Deferred tax assets (liabilities) were comprised of the following (in millions):
| As of December 31,
| 2016 |  | 2015
Gross deferred tax assets: |  |  |
Warranties | $ | 36.3 |  |  | $ | 33.7 |
Loss carryforwards (foreign, U.S. and state) | 19.8 |  |  | 20.0 |
Post-retirement and pension benefits | 33.9 |  |  | 47.7 |
Inventory reserves | 9.6 |  |  | 9.0 |
Receivables allowance | 4.5 |  |  | 4.1 |
Compensation liabilities | 20.6 |  |  | 19.3 |
Deferred income | 1.5 |  |  | 1.6 |
Insurance liabilities | 6.5 |  |  | 6.3 |
Legal reserves | 12.0 |  |  | 10.9 |
Hedges | — |  |  | 5.3 |
State credits, net of federal effect | 18.4 |  |  | 8.3 |
Other | 5.4 |  |  | 7.1 |
Total deferred tax assets | 168.5 |  |  | 173.3 |
Valuation allowance | (17.1 | ) |  | (19.9 | )
Total deferred tax assets, net of valuation allowance | 151.4 |  |  | 153.4 |
Gross deferred tax liabilities: |  |  |
Depreciation | (3.3 | ) |  | (2.5 | )
Hedges | (3.2 | ) |  | — |
Intangibles | (4.9 | ) |  | (2.2 | )
Other | (3.3 | ) |  | (3.0 | )
Total deferred tax liabilities | (14.7 | ) |  | (7.7 | )
Net deferred tax assets | $ | 136.7 |  |  | $ | 145.7 |
As of December 31, 2016 and 2015, we had $1.6 million and $ 2.6 million in tax-effected state net operating loss carryforwards, respectively, and $16.8 million and $16.1 million in tax-effected foreign net operating loss carryforwards, respectively. The state and foreign net operating loss carryforwards began expiring in 2014. The deferred tax asset valuation allowance relates primarily to the operating loss carryforwards in various states in the U.S., European and Asian tax jurisdictions. The remainder of the valuation allowance relates to state tax credits which began to expire in 2014. In assessing whether a deferred tax asset will be realized, we consider whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. We consider the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2016. To realize the net deferred tax asset, we will need to generate future foreign taxable income of approximately $62.7 million during the periods in which those temporary differences become deductible. We do not need to generate additional U.S. federal income as we have sufficient carryback capacity to fully realize the federal deferred tax asset. U.S. taxable income for the years ended December 31, 2016 and 2015 was $315.0 million and $225.7 million, respectively. No provision was made for income taxes which may become payable upon distribution of our foreign subsidiaries' earnings. These earnings were approximately $107.7 million as of December 31, 2016. It is not practicable to estimate the amount of tax that might be payable because our intent is to permanently reinvest these earnings or to repatriate earnings when it is tax effective to do so. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
Balance as of December 31, 2014 | $ | 1.6 |
Increases related to prior year tax positions | 0.5 |
Decreases related to prior year tax positions | (1.2 | )
Increases related to current year tax positions | — |
Settlement | (0.4 | )
Balance as of December 31, 2015 | 0.5 |
Increases related to prior year tax positions | 1.0 |
Decreases related to prior year tax positions | — |
Increases related to current year tax positions | 1.4 |
Settlement | (0.5 | )
Balance as of December 31, 2016 | $ | 2.4 |
Included in the balance of unrecognized tax benefits as of December 31, 2016 are potential benefits of $2.4 million that, if recognized, would affect the effective tax rate on income from continuing operations. We are currently under examination for our U.S. federal income taxes for 2016 and 2015 and are subject to examination by numerous other taxing authorities in the U.S. and in jurisdictions such as Australia, Belgium, France, Canada, and Germany. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years before 2011. Since January 1, 2016, numerous states, including Delaware, North Carolina and the District of Columbia have enacted legislation effective for tax years beginning on or after January 1, 2016, including changes to rates and apportionment methods. The impact of these changes is immaterial. In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). The Update requires that all deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. We adopted this Update retrospectively in the 2015 financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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