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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Components of Provision for Income Taxes | The components of the provision (benefit) for income taxes consisted of the following:
Years ended December 31 (dollars in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 148.0 |  |  | $ | 71.6 |  |  | $ | 82.9 |
State |  |  | 9.4 |  |  |  | 14.5 |  |  |  | 13.9 |
International |  |  | 43.8 |  |  |  | 34.9 |  |  |  | 23.6 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 23.5 |  |  |  | 11.0 |  |  |  | (4.2 | )
State |  |  | 5.8 |  |  |  | 5.2 |  |  |  | 2.2 |
International |  |  | (6.2 | ) |  |  | (1.2 | ) |  |  | 1.2 |
|  | $ | 224.3 |  |  | $ | 136.0 |  |  | $ | 119.6 |
Difference Between Provision for Income Taxes and U.S. Federal Statutory Rate | The provision for income taxes differs from the U.S. federal statutory rate due to the following items:
Years ended December 31 |  | 2017 |  |  | 2016 |  |  | 2015 |
Provision at U.S. federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State taxes, net of federal benefit |  |  | 1.9 |  |  |  | 2.8 |  |  |  | 2.6 |
International income tax rate differential - China |  |  | (6.5 | ) |  |  | (6.2 | ) |  |  | (6.8 | )
International income tax rate differential - other |  |  | 0.1 |  |  |  | 0.3 |  |  |  | 0.2 |
U.S. manufacturing credit |  |  | (1.4 | ) |  |  | (1.5 | ) |  |  | (1.3 | )
Research tax credits |  |  | (0.3 | ) |  |  | (0.3 | ) |  |  | (0.3 | )
Excess tax benefit on stock compensation |  |  | (2.2 | ) |  |  | (1.1 | ) |  |  | — |
Other |  |  | 0.8 |  |  |  | 0.4 |  |  |  | 0.3 |
|  |  | 27.4 | % |  |  | 29.4 | % |  |  | 29.7 | %
U.S. Tax Cuts & Jobs Act (U.S. Tax Reform) |  |  | 15.7 |  |  |  | — |  |  |  | — |
|  |  | 43.1 | % |  |  | 29.4 | % |  |  | 29.7 | %
Components of Earnings Before Income Taxes | Components of earnings before income taxes were as follows:
Years ended December 31 (dollars in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. |  | $ | 329.9 |  |  | $ | 300.9 |  |  | $ | 255.7 |
International |  |  | 190.9 |  |  |  | 161.6 |  |  |  | 146.8 |
|  | $ | 520.8 |  |  | $ | 462.5 |  |  | $ | 402.5 |
Tax Effects of Temporary Differences of Assets and Liabilities | The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows:
December 31 (dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | 2017 |  |  | 2016 |
|  | Assets |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
Employee benefits |  | $ | 30.4 |  |  | $ | — |  |  | $ | 67.5 |  |  | $ | — |
Product liability and warranties |  |  | 43.4 |  |  |  | — |  |  |  | 67.1 |  |  |  | — |
Inventories |  |  | — |  |  |  | 2.0 |  |  |  | — |  |  |  | 3.4 |
Accounts receivable |  |  | 16.5 |  |  |  | — |  |  |  | 14.9 |  |  |  | — |
Property, plant and equipment |  |  | — |  |  |  | 31.1 |  |  |  | — |  |  |  | 34.3 |
Intangibles |  |  | — |  |  |  | 54.3 |  |  |  | — |  |  |  | 77.4 |
Environmental liabilities |  |  | 2.4 |  |  |  | — |  |  |  | 2.9 |  |  |  | — |
Undistributed foreign earnings |  |  | — |  |  |  | 38.6 |  |  |  | — |  |  |  | 42.3 |
Tax loss and credit carryovers |  |  | 19.8 |  |  |  | — |  |  |  | 18.2 |  |  |  | — |
All other |  |  | 5.5 |  |  |  | — |  |  |  | 4.3 |  |  |  | — |
Valuation allowance |  |  | (15.0 | ) |  |  | — |  |  |  | (13.1 | ) |  |  | — |
|  | $ | 103.0 |  |  | $ | 126.0 |  |  | $ | 161.8 |  |  | $ | 157.4 |
Net asset |  |  |  |  |  | $ | 23.0 |  |  | $ | 4.4 |  |  |  |  |
Reconciliation of Tax Loss Carryovers, Credit Carryovers and Valuation Allowances | A reconciliation of the beginning and ending amounts of tax loss carryovers, credit carryovers and valuation allowances is as follows:
December 31 (dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | Net Operating Losses and Tax Credits |  |  | Valuation Allowances |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Beginning balance |  | $ | 18.2 |  |  | $ | 14.6 |  |  | $ | 13.1 |  |  | $ | 11.0 |
Additions |  |  | 1.6 |  |  |  | 3.7 |  |  |  | 1.9 |  |  |  | 2.1 |
Reductions |  |  | — |  |  |  | (0.1 | ) |  |  | — |  |  |  | — |
Ending balance |  | $ | 19.8 |  |  | $ | 18.2 |  |  | $ | 15.0 |  |  | $ | 13.1 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized benefits is as follows:
(Dollars in millions) |  | 2017 |  |  | 2016 |
Balance at January 1 |  | $ | 4.2 |  |  | $ | 2.6 |
Additions for tax positions of prior years |  |  | 2.0 |  |  |  | 1.6 |
Balance at December 31 |  | $ | 6.2 |  |  | $ | 4.2 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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