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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The income tax provision (benefit) was as follows:



(in millions)	2013			2012			2011
Continuing operations:
Current:
Federal	$	(127.5	)	$	82.3		$	40.3
State	(10.2		)	8.7			7.5
Foreign	7.9			9.0			12.5
Total	(129.8		)	100.0			60.3
Deferred:
Federal	62.7			(27.6		)	48.4
State	4.6			0.1			2.4
Foreign	(1.1		)	(0.1		)	(0.7		)
Total	66.2			(27.6		)	50.1
Income tax provision (benefit) from continuing operations	$	(63.6	)	$	72.4		$	110.4
Income tax provision from discontinued operations	$	161.4		$	3.8		$	5.9
Total company income tax provision	$	97.8		$	76.2		$	116.3

Schedule of effective income tax rate reconciliation

The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit) from continuing operations:



	Income Tax Provision
(in millions)	2013			2012			2011
Taxes computed at the federal rate	$	(54.2	)	$	81.3		$	112.7
State and local income taxes, net of federal tax benefit	(11.8		)	0.6			3.8
Tax reserve adjustments	(10.2		)	(0.4		)	(1.7		)
Repatriation of foreign earnings	9.4			1.3			3.1
Valuation allowance	9.1			2.2			1.2
Adjustment to prior years’ taxes	(5.3		)	1.4			1.2
Foreign earnings taxed at different rate	(2.5		)	(10.2		)	(8.4		)
Manufacturing deduction	—			(7.1		)	(3.3		)
Other	1.9			3.3			1.8
Income tax provision	$	(63.6	)	$	72.4		$	110.4

Schedule of income before income tax

Income (loss) from continuing operations before income taxes for the Company’s U.S. and non-U.S. operations was as follows:



(in millions)	2013			2012		2011
U.S.	$	(180.0	)	$	178.4	$	265.5
Non-U.S.	25.2			53.9		56.6
Income (loss) from continuing operations before income taxes	$	(154.8	)	$	232.3	$	322.1

Schedule of income taxes paid

Income taxes paid and amounts received as refunds were as follows:



(in millions)	2013			2012			2011
Income taxes paid	$	21.4		$	101.7		$	49.2
Income tax refunds received	(18.3		)	(15.8		)	(41.0		)
Income taxes paid, net	$	3.1		$	85.9		$	8.2

Schedule of deferred tax assets and liabilities

The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2013 and 2012 were as follows:



(in millions)	2013			2012
Deferred income tax assets
Pensions	$	115.7		$	247.1
Postretirement benefits other than pensions	182.9			210.4
State net operating loss tax carryovers	32.2			35.9
Federal and state tax credits	42.0			39.9
Deferred compensation and other benefit plans	29.4			28.1
Self insurance reserves	10.1			10.4
Other items	79.5			64.3
Gross deferred income tax assets	491.8			636.1
Valuation allowance for deferred tax assets	(33.9		)	(24.8		)
Total deferred income tax assets	457.9			611.3
Deferred income tax liabilities
Bases of property, plant and equipment	488.1			400.2
Inventory valuation	66.5			77.1
Bases of amortizable intangible assets	67.1			70.5
Other items	46.3			16.0
Total deferred tax liabilities	668.0			563.8
Net deferred tax asset (liability)	$	(210.1	)	$	47.5

Schedule of changes in unrecognized income tax benefits

The changes in the liability for unrecognized income tax benefits for the years ended December 31, 2013, 2012 and 2011 were as follows:



(in millions)	2013			2012			2011
Balance at beginning of year	$	29.2		$	29.7		$	17.1
Increases in prior period tax positions	0.1			0.2			1.3
Decreases in prior period tax positions	(5.8		)	(0.3		)	(1.3		)
Increases in current period tax positions	60.4			1.2			0.1
Uncertain tax positions assumed in Ladish acquisition	—			—			14.5
Expiration of the statute of limitations	(0.7		)	(2.0		)	(1.8		)
Settlements	(8.6		)	(0.4		)	(0.7		)
Interest and penalties, net	(1.8		)	0.8			0.5
Balance at end of year	$	72.8		$	29.2		$	29.7

Summary of income tax examinations

A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows:



Jurisdiction		Earliest Year Open to Examination
U.S. Federal		2013
States:
Alabama		2011
Illinois		2010
North Carolina		2010
Oregon		2010
Pennsylvania		2010
Foreign:
China		2009
Germany		2011
Poland		2009
United Kingdom		2011

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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