Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Loss Income Before Income Taxes and Noncontrolling Interests

The components of income (loss) before income taxes and noncontrolling interests were as follows:



(In millions)	2013		2012		2011
Domestic operations	$	276.9	$	95.0	$	(73.1	)
Foreign operations		68.0		59.0		29.5
Income (loss) before income taxes and noncontrolling interests	$	344.9	$	154.0	$	(43.6	)

Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations

A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision (benefit) reported was as follows:



(In millions)	2013			2012			2011
Income tax expense (benefit) computed at federal statutory income tax rate	$	120.7		$	53.9		$	(15.3	)
Other income taxes, net of federal tax benefit		8.0			3.8			(1.8	)
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(10.2	)		(7.0	)		(5.3	)
Tax effect on foreign dividends		—			12.4			10.2
Tax benefit on income attributable to domestic production activities		(5.8	)		(2.2	)		(2.6	)
Net adjustments for uncertain tax positions		2.0			(11.0	)		(9.7	)
Net effect of rate changes on deferred taxes		(3.0	)		(0.2	)		(2.9	)
Prior period items		—			(3.9	)		—
Valuation allowance increase (decrease)		2.1			(8.9	)		16.8
Miscellaneous other, net		0.2			(2.6	)		1.6
Income tax expense (benefit) as reported	$	114.0		$	34.3		$	(9.0	)
Effective income tax rate		33.1	%		22.3	%		20.6	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (UTBs) was as follows:


(In millions)	2013			2012			2011
Unrecognized tax benefits — beginning of year	$	20.8		$	35.4		$	38.8
Gross additions — current year tax positions		4.4			2.8			2.3
Gross additions — prior year tax positions		0.7			0.6			7.2
Gross additions — purchase accounting adjustments		1.6			—			—
Gross reductions — prior year tax positions		(3.2	)		(13.5	)		(12.0	)
Gross reductions — settlements with taxing authorities		(0.6	)		(4.0	)		(0.4	)
Impact of change in foreign exchange rates		—			—			(0.5	)
Impact due to expiration of statutes of limitations		—			(0.5	)		—
Unrecognized tax benefits — end of year	$	23.7		$	20.8		$	35.4

Income Taxes

Income taxes in 2013, 2012 and 2011 were as follows:



(In millions)	2013			2012			2011
Current
Federal	$	102.8		$	17.6		$	26.0
Foreign		12.8			13.1			8.9
State and other		11.2			4.1			16.9
Deferred
Federal, state and other		(13.0	)		4.8			(66.8	)
Foreign		0.2			(5.3	)		6.0
Total income tax expense (benefit)	$	114.0		$	34.3		$	(9.0	)

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2013 and 2012 were as follows:



(In millions)	2013			2012
Deferred tax assets:
Compensation and benefits	$	36.8		$	32.8
Defined benefit plans		44.2			84.3
Capitalized inventories		13.1			13.8
Accounts receivable		6.8			6.9
Other accrued expenses		17.7			18.0
Net operating loss and other tax carryforwards		25.5			32.7
Valuation allowance		(20.7	)		(19.2	)
Miscellaneous		14.7			10.7
Total deferred tax assets		138.1			180.0
Deferred tax liabilities:
LIFO inventories		(12.5	)		(12.5	)
Fixed assets		(63.4	)		(69.4	)
Identifiable intangible assets		(252.9	)		(253.6	)
Miscellaneous		(8.1	)		(12.3	)
Total deferred tax liabilities		(336.9	)		(347.8	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2013 and 2012 as follows:



(In millions)	2013			2012
Other current assets	$	46.2		$	55.6
Other current liabilities		(0.6	)		(1.2	)
Other assets		1.4			1.8
Deferred income taxes		(245.8	)		(224.0	)
Net deferred tax liability	$	(198.8	)	$	(167.8	)