XML 45 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9 - INCOME TAXES Income (Loss) from Continuing Operations Before Income Taxes and Equity Loss from Ventures includes the following components:
|  | (In Millions)
|  | 2015 |  | 2014 |  | 2013
United States |  | $ | 314.2 |  |  | $ | (447.5 | ) |  | $ | 840.8 |
Foreign |  | (1.1 | ) |  | 427.8 |  |  | 350.1 |
|  | $ | 313.1 |  |  | $ | (19.7 | ) |  | $ | 1,190.9 |
The components of the provision (benefit) for income taxes on continuing operations consist of the following:
|  | (In Millions)
|  | 2015 |  | 2014 |  | 2013
Current provision (benefit): |  |  |  |  |  |
United States federal |  | $ | 8.2 |  |  | $ | (125.2 | ) |  | $ | 110.4 |
United States state & local |  | 0.3 |  |  | (0.6 | ) |  | 4.0 |
Foreign |  | 0.9 |  |  | 11.7 |  |  | 94.8 |
|  | 9.4 |  |  | (114.1 | ) |  | 209.2 |
Deferred provision (benefit): |  |  |  |  |  |
United States federal |  | 165.8 |  |  | 20.4 |  |  | 35.0 |
United States state & local |  | — |  |  | (24.9 | ) |  | 3.0 |
Foreign |  | (5.9 | ) |  | 32.6 |  |  | (9.6 | )
|  | 159.9 |  |  | 28.1 |  |  | 28.4 |
Total provision on income (loss) from continuing operations |  | $ | 169.3 |  |  | $ | (86.0 | ) |  | $ | 237.6 |
Reconciliation of our income tax attributable to continuing operations computed at the U.S. federal statutory rate is as follows:
|  | (In Millions)
|  | 2015 |  | 2014 |  | 2013
Tax at U.S. statutory rate of 35 percent |  | $ | 109.6 |  |  | 35.0 | % |  | $ | (6.9 | ) |  | 35.0 | % |  | $ | 416.8 |  |  | 35.0 | %
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |  |
Non-taxable income related to noncontrolling interests |  | (3.0 | ) |  | (1.0 | ) |  | (9.4 | ) |  | 47.7 |  |  | (5.4 | ) |  | (0.5 | )
Impact of tax law change |  | — |  |  | — |  |  | 13.0 |  |  | (66.0 | ) |  | — |  |  | — |
Percentage depletion in excess of cost depletion |  | (34.9 | ) |  | (11.1 | ) |  | (87.9 | ) |  | 446.2 |  |  | (97.6 | ) |  | (8.2 | )
Impact of foreign operations |  | (53.9 | ) |  | (17.2 | ) |  | 51.4 |  |  | (260.9 | ) |  | (48.7 | ) |  | (4.1 | )
Income not subject to tax |  | — |  |  | — |  |  | (27.7 | ) |  | 140.6 |  |  | (84.7 | ) |  | (7.1 | )
Goodwill impairment |  | — |  |  | — |  |  | 22.7 |  |  | (115.2 | ) |  | — |  |  | — |
State taxes, net |  | 0.2 |  |  | 0.1 |  |  | (25.4 | ) |  | 128.9 |  |  | 5.6 |  |  | 0.5 |
Settlement of financial guaranty |  | — |  |  | — |  |  | (347.1 | ) |  | 1,761.9 |  |  | — |  |  | — |
Valuation allowance - current year |  | (104.6 | ) |  | (33.4 | ) |  | 318.3 |  |  | (1,615.7 | ) |  | 53.2 |  |  | 4.5 |
Valuation allowance on tax benefits - prior |  | 165.8 |  |  | 52.9 |  |  | 15.2 |  |  | (77.2 | ) |  | — |  |  | — |
Tax uncertainties |  | 84.1 |  |  | 26.9 |  |  | — |  |  | — |  |  | 12.5 |  |  | 1.1 |
Prior year adjustment in current year |  | 5.9 |  |  | 1.9 |  |  | (6.3 | ) |  | 32.1 |  |  | 4.9 |  |  | 0.4 |
Other items — net |  | 0.1 |  |  | — |  |  | 4.1 |  |  | (20.9 | ) |  | (19.0 | ) |  | (1.6 | )
Income tax (benefit) expense |  | $ | 169.3 |  |  | 54.1 | % |  | $ | (86.0 | ) |  | 436.5 | % |  | $ | 237.6 |  |  | 20.0 | %
The components of income taxes for other than continuing operations consisted of the following:
|  | (In Millions)
|  | 2015 |  | 2014 |  | 2013
Other comprehensive (income) loss: |  |  |  |  |  |
Pension/OPEB liability |  | $ | — |  |  | $ | 37.1 |  |  | $ | 83.2 |
Mark-to-market adjustments |  | 0.3 |  |  | 3.6 |  |  | 1.8 |
Other |  | 5.9 |  |  | 0.2 |  |  | (9.8 | )
Total |  | $ | 6.2 |  |  | $ | 40.9 |  |  | $ | 75.2 |
Paid in capital — stock based compensation |  | $ | — |  |  | $ | (4.8 | ) |  | $ | 3.5 |
Discontinued Operations |  | $ | (6.0 | ) |  | $ | (1,216.0 | ) |  | $ | (184.5 | )
Significant components of our deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows:
|  | (In Millions)
|  | 2015 |  | 2014
Deferred tax assets: |  |  |  |
Pensions |  | $ | 106.6 |  |  | $ | 99.5 |
Postretirement benefits other than pensions |  | 36.5 |  |  | 50.4 |
Alternative minimum tax credit carryforwards |  | 218.7 |  |  | 219.1 |
Investments in ventures |  | 4.9 |  |  | — |
Asset retirement obligations |  | 5.3 |  |  | 29.4 |
Operating loss carryforwards |  | 2,791.6 |  |  | 679.0 |
Product inventories |  | 57.2 |  |  | 25.6 |
Property, plant and equipment and mineral rights |  | 189.8 |  |  | 337.8 |
State and local |  | 59.9 |  |  | 41.9 |
Lease liabilities |  | 18.3 |  |  | 14.1 |
Other liabilities |  | 148.9 |  |  | 95.6 |
Total deferred tax assets before valuation allowance |  | 3,637.7 |  |  | 1,592.4 |
Deferred tax asset valuation allowance |  | (3,372.5 | ) |  | (1,152.3 | )
Net deferred tax assets |  | 265.2 |  |  | 440.1 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment and mineral rights |  | (35.5 | ) |  | — |
Investment in ventures |  | (206.6 | ) |  | (198.0 | )
Intangible assets |  | (1.5 | ) |  | (7.3 | )
Product inventories |  | (2.5 | ) |  | (3.1 | )
Other assets |  | (19.1 | ) |  | (65.9 | )
Total deferred tax liabilities |  | (265.2 | ) |  | (274.3 | )
Net deferred tax assets (liabilities) |  | $ | — |  |  | $ | 165.8 |
Following is a summary of the deferred tax amounts as reported in the Statements of Consolidated Financial Position:
|  | (In Millions)
|  | 2015 |  | 2014
Deferred tax assets: |  |  |  |
United States |  | $ | — |  |  | $ | 165.8 |
Foreign |  | — |  |  | 9.7 |
Total deferred tax assets |  | — |  |  | 175.5 |
Deferred tax liabilities: |  |  |  |
United States |  | — |  |  | — |
Foreign |  | — |  |  | 9.7 |
Total deferred tax liabilities |  | — |  |  | 9.7 |
Net deferred tax assets (liabilities) |  | $ | — |  |  | $ | 165.8 |
At December 31, 2015 and 2014, we had $218.7 million and $219.1 million, respectively, of gross deferred tax assets related to U.S. alternative minimum tax credits that can be carried forward indefinitely. We had gross domestic (including states) and foreign net operating loss carryforwards, inclusive of discontinued operations, of $3.9 billion, and $11.1 billion, respectively, at December 31, 2015. We had gross domestic and foreign net operating loss carryforwards at December 31, 2014 of $1.9 billion and $4.5 billion, respectively. The U.S. Federal net operating losses will begin to expire in 2035 and state net operating losses will begin to expire in 2019. The foreign net operating losses will begin to expire in 2022. We had foreign tax credit carryforwards of $5.8 million at December 31, 2015 and $5.8 million at December 31, 2014. The foreign tax credit carryforwards will begin to expire in 2020. Additionally, there is a net operating loss carryforward, inclusive of discontinued operations, of $1.6 billion for Alternative Minimum Tax. No benefit has been recorded in the financials for this attribute as ASC 740, Income Taxes, does not allow for the recording of deferred taxes under alternative taxing systems. We recorded a $2.2 billion net increase in the valuation allowance of certain deferred tax assets where management believes that realization of the related deferred tax assets is not more likely than not. Of this amount, a $165.8 million increase was recorded through continuing operations and relates to domestic deferred tax assets recorded in prior years for which future utilization is currently uncertain. A $111.5 million decrease, also recorded through continuing operations, relates to the reversal of deferred tax assets due to current year operating activities. The remainder of the $2.2 billion increase relates primarily to foreign deferred tax assets that were generated through discontinued operations in which it is more likely than not that the assets will not be realized. At December 31, 2015 and 2014, we had no cumulative undistributed earnings of foreign subsidiaries included in consolidated retained earnings. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of earnings. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | (In Millions)
|  | 2015 |  | 2014 |  | 2013
Unrecognized tax benefits balance as of January 1 |  | $ | 72.6 |  |  | $ | 71.8 |  |  | $ | 53.5 |
Increases for tax positions in prior years |  | 6.7 |  |  | — |  |  | 13.0 |
Increases for tax positions in current year |  | 78.5 |  |  | 5.9 |  |  | 5.3 |
Increase due to foreign exchange |  | — |  |  | (0.2 | ) |  | — |
Settlements |  | (1.1 | ) |  | — |  |  | — |
Lapses in statutes of limitations |  | (0.5 | ) |  | (3.7 | ) |  | — |
Other |  | — |  |  | (1.2 | ) |  | — |
Unrecognized tax benefits balance as of December 31 |  | $ | 156.2 |  |  | $ | 72.6 |  |  | $ | 71.8 |
At December 31, 2015 and 2014, we had $156.2 million and $72.6 million, respectively, of unrecognized tax benefits recorded. Of this amount, $21.5 million and $23.2 million were recorded in Other liabilities and $134.7 million and $49.4 million were recorded as Other non-current assets in the Statements of Consolidated Financial Position for both years. If the $156.2 million were recognized, only $21.5 million would impact the effective tax rate. We do not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. At December 31, 2015 and 2014, we had $2.1 million and $1.6 million, respectively, of accrued interest and penalties related to the unrecognized tax benefits recorded in Other liabilities in the Statements of Consolidated Financial Position. On July 18, 2013, the FASB issued Accounting Standards Update No. 2013-11. Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions except where the deferred tax asset or other carryforward are not available for use. The adoption of the pronouncement does not have an impact in the presentation of our financial statement. Tax years that remain subject to examination are years 2010 and forward for the U.S. and 2011 and forward for Australia.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration