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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income (loss) from continuing operations before income taxes consists of the following:
| Year ended December 31,
Dollar amounts in millions | 2016 |  | 2015 |  | 2014
Domestic | $ | 98.4 |  |  | $ | (8.7 | ) |  | $ | (66.4 | )
Foreign | 71.7 |  |  | (80.0 | ) |  | (34.2 | )
Total | $ | 170.1 |  |  | $ | (88.7 | ) |  | $ | (100.6 | )
The following presents the components of LP’s income tax provision (benefit) from continuing operations.
| Year ended December 31,
Dollar amounts in millions | 2016 |  | 2015 |  | 2014
Current tax provision (benefit): |  |  |  |  |
U.S. federal | $ | 60.4 |  |  | $ | (2.4 | ) |  | $ | (5.0 | )
State and local | 4.4 |  |  | (0.5 | ) |  | 0.3 |
Foreign | 10.4 |  |  | 2.6 |  |  | 1.6 |
Net current tax provision (benefit) | 75.2 |  |  | (0.3 | ) |  | (3.1 | )
Deferred tax provision (benefit): |  |  |  |  |
U.S. federal | (48.1 | ) |  | (1.1 | ) |  | (19.5 | )
State and local | 1.2 |  |  | (1.8 | ) |  | (1.2 | )
Foreign | 11.7 |  |  | (26.6 | ) |  | (13.3 | )
Net valuation allowance increase (decrease) | (20.2 | ) |  | 27.1 |  |  | 9.9 |
Net deferred tax benefit | (55.4 | ) |  | (2.4 | ) |  | (24.1 | )
Total income tax provision (benefit) | $ | 19.8 |  |  | $ | (2.7 | ) |  | $ | (27.2 | )
LP received income tax refunds during 2016, 2015 and 2014 of $0.8 million, $0.1 million and $1.6 million and paid cash taxes of $8.7 million, $16 million and $3.7 million. Included in the Consolidated Balance Sheet at December 31, 2016 and 2015 are income tax receivables of $1.7 million and $2.0 million and income taxes payable of $31.3 million and $0.0 million. The tax effects of significant temporary differences creating deferred tax (assets) and liabilities at December 31 were as follows:
| December 31,
Dollar amounts in millions | 2016 |  | 2015
Property, plant and equipment | $ | 164.2 |  |  | $ | 165.2 |
Timber and timberlands | 11.6 |  |  | 12.0 |
Inventories | (6.9 | ) |  | (7.7 | )
Accrued liabilities | (83.9 | ) |  | (79.7 | )
Benefit of capital loss and NOL carryovers | (83.4 | ) |  | (137.3 | )
Benefit of tax credit carryovers | (3.7 | ) |  | (21.0 | )
Installment sale gain deferral | 8.0 |  |  | 128.5 |
Market value write down of ARS | (8.8 | ) |  | (8.8 | )
Other | (11.6 | ) |  | (12.6 | )
Valuation allowance | 37.9 |  |  | 56.1 |
Net deferred tax liabilities | $ | 23.4 |  |  | $ | 94.7 |
Balance sheet classification |  |  |
Long-term deferred tax asset | (4.3 | ) |  | (4.8 | )
Long-term deferred tax liability | 27.7 |  |  | 99.5 |
| $ | 23.4 |  |  | $ | 94.7 |
The benefit relating to capital loss, net operating loss (NOL) and credit carryovers included in the above table at December 31, 2016 consists of:
Dollar amounts in millions | Expiration Beginning in | Benefit Amount | Valuation Allowance
State NOL carryovers | 2017 | 22.8 |  | (8.4 | )
State capital loss carryover | 2017 | 0.1 |  | (0.1 | )
State credit carryovers | 2017 | 0.7 |  | (0.5 | )
Canadian NOL carryovers | 2029 | 52.9 |  | (12.5 | )
Canadian capital loss carryovers | Indefinitely | 7.1 |  | (7.1 | )
Canadian credit carryovers | 2017 | 3.0 |  | (3.0 | )
Brazilian NOL carryovers | Indefinitely | 0.5 |  | (0.5 | )
|  | $ | 87.1 |  | $ | (32.1 | )
LP periodically reviews the need for valuation allowances against deferred tax assets and recognizes these deferred tax assets to the extent that their realization is more likely than not. As part of our review, we consider all positive and negative evidence, including earnings history, the future reversal of deferred tax liabilities, and the relevant expirations of carryforwards. LP believes that the valuation allowances provided are appropriate. If future years’ earnings differ from the estimates used to establish these valuation allowances or other objective positive or negative evidence arises, LP may be required to record an adjustment resulting in an impact on tax expense (benefit) for that period. At December 31, 2015, as a result of certain realization requirements of ASC 718 Compensation -- Stock Compensation, the table of deferred tax assets and liabilities shown above does not include $16.9 million of deferred tax assets that arose directly from tax deductions related to amounts of equity compensation that are greater than the compensation recognized for financial reporting. As of January 1, 2016, LP adopted ASU No. 2016-09, "Improvements to Employee Share-based Payment Accounting" and the aforementioned amount was recorded to retained earnings as an adjustment to beginning balance based upon the adoption of the new standard. U.S. taxes have not been provided on approximately $75.9 million of undistributed earnings of LP’s foreign subsidiaries, which under existing law are not subject to U.S. tax until distributed as dividends. These earnings have been, and are intended to be, indefinitely reinvested in LP’s foreign operations. Determination of the amount of any unrecognized income tax liability on this temporary difference is not practical because of the complexities of the hypothetical calculation. Furthermore, any taxes paid to the foreign governments on these earnings may be used, in whole or in part, as credits against the U.S. tax on any dividends distributed from such earnings. The following table summarizes the differences between the statutory U.S. federal and effective income tax rates on continuing operations:
| Year ended December 31,
| 2016 |  | 2015 |  | 2014
U.S. federal tax rate | 35 | % |  | (35 | )% |  | (35 | )%
State and local income taxes | 2 |  |  | (2 | ) |  | (2 | )
Effect of foreign tax rates | (5 | ) |  | 13 |  |  | 5 |
Effect of foreign exchange on functional currencies | 2 |  |  | (8 | ) |  | (6 | )
Tax credits | (12 | ) |  | — |  |  | — |
Capital gain - timber | (15 | ) |  | — |  |  | — |
Stock-based compensation | (2 | ) |  | — |  |  | — |
Domestic manufacturing deduction | (2 | ) |  | — |  |  | — |
Valuation allowance | (12 | ) |  | 31 |  |  | 10 |
Uncertain tax positions | 21 |  |  | (4 | ) |  | 1 |
Other, net | — |  |  | 2 |  |  | — |
Effective tax rate (%) | 12 | % |  | (3 | )% |  | (27 | )%
LP and its domestic subsidiaries are subject to U.S. federal income tax as well as income taxes of multiple state jurisdictions. Its foreign subsidiaries are subject to income tax in Canada, Chile, Peru and Brazil. In June 2015, LP finalized its settlement agreement with the U.S. Internal Revenue Service (IRS) regarding its examination of tax years 2007-2009. U.S. tax years are now closed through 2012, and no examinations are currently in progress. LP remains subject to U.S. federal examinations of tax years 2013 to 2015 as well as state and local tax examination for the tax years 2007-2015. In 2016, Canada completed its examination of tax years 2012 and 2013; tax years 2014 and 2015 are subject to examination. Quebec provincial audits have been effectively settled through 2012. Chilean returns for the 2010 - 2013 tax years have been audited and various issues are currently being appealed in the Chilean courts. Brazilian returns for years 2009 to 2015 are subject to audit but no examinations are currently in progress. In accordance with the accounting for uncertain tax positions, the following is a tabular reconciliation of the total amount of unrecognized tax benefits at the beginning and end of the years presented:
| December 31,
Dollar amounts in millions | 2016 |  | 2015 |  | 2014
Beginning balance | $ | 4.1 |  |  | $ | 42.2 |  |  | $ | 48.9 |
Increases: |  |  |  |  |
Tax positions taken in current year | 26.9 |  |  | — |  |  | 0.1 |
Tax positions taken in prior years | 10.4 |  |  | 0.9 |  |  | 1.3 |
Decreases: |  |  |  |  |
Tax positions taken in current year | — |  |  | — |  |  | — |
Tax positions taken in prior years | — |  |  | (0.5 | ) |  | (8.1 | )
Settlements during the year | — |  |  | (34.7 | ) |  | — |
Lapse of statute in current year | (1.6 | ) |  | (3.8 | ) |  | — |
Ending balance | $ | 39.8 |  |  | $ | 4.1 |  |  | $ | 42.2 |
Included in the above balances at December 31, 2016 and 2015 is $39.8 million and $3.7 million of tax benefits that, if recognized, would affect LP’s effective tax rate. LP accrued interest of $3.0 million and paid interest of $0.0 million during 2016 and accrued interest of $0.2 million and paid interest of $4.8 million during 2015. In total, LP has recognized a liability of $3.0 million and $0.1 million for accrued interest related to its uncertain tax positions as of December 31, 2016 and 2015. The $34.7 million settlement amount in the above table is the result of LP's 2015 agreement with the Internal Revenue Service regarding their examination of tax years 2007-2009.

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- 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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