Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of Loss Income Before Income Taxes and Noncontrolling Interests

The components of income from continuing operations before income taxes and noncontrolling interests were as follows:



(In millions)	2014		2013		2012
Domestic operations	$	301.4	$	243.8	$	77.0
Foreign operations		90.5		66.7		58.2
Income before income taxes and noncontrolling interests	$	391.9	$	310.5	$	135.2

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 reported was as follows:



(In millions)	2014			2013			2012
Income tax expense computed at federal statutory income tax rate	$	137.2		$	108.7		$	47.3
Other income taxes, net of federal tax benefit		7.2			7.0			3.0
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(13.4	)		(10.1	)		(7.1	)
Tax effect on foreign dividends		—			—			12.4
Tax benefit on income attributable to domestic production activities		(7.6	)		(5.2	)		(2.1	)
Net adjustments for uncertain tax positions		4.7			3.0			(11.1	)
Net effect of rate changes on deferred taxes		(0.7	)		(1.6	)		(0.3	)
Prior period items		—			—			(3.2	)
Valuation allowance (decrease) increase		(4.1	)		2.1			(8.9	)
Miscellaneous other, net		(5.0	)		(2.4	)		(3.1	)
Income tax expense as reported	$	118.3		$	101.5		$	26.9
Effective income tax rate		30.2	%		32.7	%		19.9	%

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)	2014			2013			2012
Unrecognized tax benefits — beginning of year	$	23.7		$	20.8		$	35.4
Gross additions — current year tax positions		8.7			4.4			2.8
Gross additions — prior year tax positions		2.2			0.7			0.6
Gross (reductions)/additions — purchase accounting adjustments		(1.1	)		1.6			—
Gross reductions — prior year tax positions		(2.5	)		(3.2	)		(13.5	)
Gross reductions — settlements with taxing authorities		—			(0.6	)		(4.0	)
Impact due to expiration of statutes of limitations		—			—			(0.5	)
Unrecognized tax benefits — end of year	$	31.0		$	23.7		$	20.8

Income Taxes

Income taxes in 2014, 2013 and 2012 were as follows:



(In millions)	2014		2013			2012
Current
Federal	$	86.9	$	96.3		$	16.7
Foreign		12.3		12.5			12.8
State and other		12.0		11.1			1.8
Deferred
Federal, state and other		2.7		(20.2	)		1.5
Foreign		4.4		1.8			(5.9	)
Total income tax expense	$	118.3	$	101.5		$	26.9

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2014 and 2013 were as follows:



(In millions)	2014			2013
Deferred tax assets:
Compensation and benefits	$	32.5		$	32.8
Defined benefit plans		83.9			40.8
Capitalized inventories		10.9			10.8
Accounts receivable		7.5			6.3
Other accrued expenses		17.2			12.9
Net operating loss and other tax carryforwards		15.8			24.4
Valuation allowance		(12.0	)		(19.8	)
Miscellaneous		3.7			14.3
Total deferred tax assets		159.5			122.5
Deferred tax liabilities:
LIFO inventories		(9.3	)		(9.1	)
Fixed assets		(60.6	)		(55.1	)
Identifiable intangible assets		(205.0	)		(208.4	)
Miscellaneous		(1.7	)		(7.2	)
Total deferred tax liabilities		(276.6	)		(279.8	)
Net deferred tax liability	$	(117.1	)	$	(157.3	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2014 and 2013 as follows:



(In millions)	2014			2013
Other current assets	$	33.8		$	40.0
Other current liabilities		(2.4	)		(0.5	)
Other assets		2.1			0.6
Deferred income taxes		(150.6	)		(197.4	)
Net deferred tax liability	$	(117.1	)	$	(157.3	)