Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows:


(in millions)	Interest and Penalties			Unrecognized Tax Benefits			Total
Opening balance at January 1, 2011	$	0.3		$	8.3		$	8.6
Additions related to tax positions taken in the current period		0.0			5.2			5.2
Additions for tax positions of prior periods		0.2			0.5			0.7
Reductions for tax positions of prior periods		(0.1	)		(1.8	)		(1.9	)

Closing balance at December 31, 2011		0.4			12.2			12.6
Current		(0.3	)		(2.9	)		(3.2	)

Non-current	$	0.1		$	9.3		$	9.4

Opening balance at January 1, 2012	$	0.4		$	12.2		$	12.6
Additions related to tax positions taken in the current period		0.0			0.2			0.2
Additions for tax positions of prior periods		0.2			0.0			0.2
Reductions due to lapsed statutes of limitations		0.0			(0.2	)		(0.2	)

Closing balance at December 31, 2012		0.6			12.2			12.8
Current		(0.3	)		(2.7	)		(3.0	)

Non-current	$	0.3		$	9.5		$	9.8

Opening balance at January 1, 2013	$	0.6		$	12.2		$	12.8
Additions for tax positions of prior periods		0.6			0.2			0.8
Reductions due to lapsed statutes of limitations		(0.1	)		(0.5	)		(0.6	)

Closing balance at December 31, 2013		1.1			11.9			13.0
Current		(0.6	)		(6.2	)		(6.8	)

Non-current	$	0.5		$	5.7		$	6.2

The sources of income before income taxes were as follows:

The components of income tax charges are summarized as follows:

The effective tax rate varies from the U.S. federal statutory rate because of the factors indicated below:


	2013			2012			2011
Statutory rate		35.0	%		35.0	%		35.0	%
Foreign income inclusions		6.1			48.9			20.5
Impairment of Octane Additives segment goodwill		0.5			0.5			1.3
Foreign tax credits		(1.9	)		(38.3	)		(25.8	)
Pension (credit)/charge		(0.3	)		(0.3	)		(9.7	)
Foreign tax rate differential		(14.6	)		(16.4	)		(19.1	)
Permanent tax adjustments		(2.5	)		(0.2	)		0.3
Amortization		1.1			0.5			0.7
Tax (credit)/charge from previous years		(2.9	)		(0.6	)		(1.9	)
Net charge/(credit) from unrecognized tax benefits		0.2			0.3			7.7
United Kingdom income tax rate reduction		0.9			(0.6	)		(4.8	)
Other items and adjustments, net		(5.4	)		(0.5	)		2.0

		16.2	%		28.3	%		6.2	%

Details of deferred tax assets and liabilities are analyzed as follows:


(in millions)	2013			2012
Deferred tax assets:
Foreign tax credits	$	4.5		$	5.5
Accrued expenses		3.4			4.6
Stock options		5.2			5.5
Excess of tax over book basis in property, plant and equipment		0.9			1.1
Net operating loss carry forwards		0.3			0.3
Pension liabilities		6.5			9.2
Other intangible assets		1.0			0.0
Other		3.9			4.7

Valuation allowance		0.0			0.0

Deferred tax liabilities:
Goodwill amortization		(7.2	)		(6.9	)
Other intangible assets		(0.3	)		(0.9	)
Excess of book over tax basis in tax deductible goodwill		(0.2	)		0.0
Excess of book over tax basis in intangible assets		(7.5	)		0.0
Other		(2.9	)		(3.2	)

Total net deferred tax asset	$	7.6		$	19.9

Deferred taxes are included within the consolidated balance sheets as follows:
Deferred tax assets	$	17.3		$	23.7
Deferred tax liabilities		(9.7	)		(3.8	)

	$	7.6		$	19.9

Current portion of deferred tax assets	$	8.7		$	11.0
Deferred tax assets, net of current portion		8.6			12.7
Current portion of deferred tax liabilities		(0.2	)		(0.2	)
Deferred tax liabilities, net of current portion		(9.5	)		(3.6	)

	$	7.6		$	19.9

Details of the deferred tax asset valuation allowance are as follows:


(in millions)	2013		2012			2011
At January 1	$	0.0	$	(7.5	)	$	(10.8	)
Change in foreign tax credits		0.0		7.5			3.3

At December 31	$	0.0	$	0.0		$	(7.5	)