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Income Tax Matters | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax Matters | Income Tax Matters Tax Benefit (Provision). (Loss) income before income taxes by geographic area was as follows (in millions of dollars):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Domestic | $ | (373.6 | ) |  | $ | 102.1 |  |  | $ | 138.9 |
Foreign | 1.8 |  |  | 5.0 |  |  | 4.3 |
(Loss) income before income taxes | $ | (371.8 | ) |  | $ | 107.1 |  |  | $ | 143.2 |
Income taxes are classified as either domestic or foreign, based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. Income tax benefit (provision) consisted of (in millions of dollars):
| Federal |  | Foreign |  | State |  | Total
2015 |  |  |  |  |  |  |
Current | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 0.4 |  |  | $ | 3.2 |
Deferred | 93.2 |  |  | (1.2 | ) |  | 1.8 |  |  | $ | 93.8 |
Benefit applied to increase Additional paid in capital/ Other comprehensive income | 33.5 |  |  | 0.4 |  |  | 4.3 |  |  | $ | 38.2 |
Income tax benefit | $ | 127.4 |  |  | $ | 1.3 |  |  | $ | 6.5 |  |  | $ | 135.2 |
2014 |  |  |  |  |  |  |
Current | $ | (1.0 | ) |  | $ | 1.0 |  |  | $ | (0.6 | ) |  | $ | (0.6 | )
Deferred | 6.4 |  |  | 0.3 |  |  | 5.1 |  |  | $ | 11.8 |
Expense applied to decrease Additional paid in capital/Other comprehensive income | (41.6 | ) |  | (0.5 | ) |  | (4.4 | ) |  | $ | (46.5 | )
Income tax (provision) benefit | $ | (36.2 | ) |  | $ | 0.8 |  |  | $ | 0.1 |  |  | $ | (35.3 | )
2013 |  |  |  |  |  |  |
Current | $ | 1.1 |  |  | $ | 16.2 |  |  | $ | (0.2 | ) |  | $ | 17.1 |
Deferred | (49.7 | ) |  | (0.5 | ) |  | (6.7 | ) |  | $ | (56.9 | )
Benefit (expense) applied to increase (decrease) Additional paid in capital/ Other comprehensive income | 1.3 |  |  | (0.1 | ) |  | 0.2 |  |  | $ | 1.4 |
Income tax (provision) benefit | $ | (47.3 | ) |  | $ | 15.6 |  |  | $ | (6.7 | ) |  | $ | (38.4 | )
A reconciliation between the benefit from (provision for) income taxes and the amount computed by applying the federal statutory income tax rate to (loss) income before income taxes is as follows (in millions of dollars):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Amount of federal income tax benefit (provision) based on the statutory rate | $ | 130.1 |  |  | $ | (37.5 | ) |  | $ | (50.1 | )
(Increase) decrease in federal valuation allowances | (0.6 | ) |  | — |  |  | 0.1 |
Non-deductible compensation expense | (0.2 | ) |  | (0.1 | ) |  | (0.3 | )
Non-deductible expense | (0.3 | ) |  | (0.3 | ) |  | (0.9 | )
State income tax benefit (provision), net of federal benefit 1 | 4.2 |  |  | — |  |  | (4.4 | )
Foreign income tax benefit | 0.1 |  |  | 0.3 |  |  | — |
Expiration of statute of limitations | 1.7 |  |  | 2.3 |  |  | 4.6 |
Settlement with taxing authorities | — |  |  | — |  |  | 4.4 |
Advance pricing agreement | (0.2 | ) |  | — |  |  | 2.9 |
Competent Authority settlement | 0.4 |  |  | — |  |  | 5.3 |
Income tax benefit (provision) | $ | 135.2 |  |  | $ | (35.3 | ) |  | $ | (38.4 | )
___________________________
1. | The State income tax benefit was $10.3 million in 2015, but was offset by a $3.1 million increase due to state tax rate and state law changes enacted during the current year and a $3.0 million increase relating to the expiration of certain current and future state net operating losses. State income taxes were $2.3 million in 2014, but were offset by a $1.6 million decrease due to lower tax rates in various states and a $0.7 million in the valuation allowance relating to certain state net operating losses. State income taxes of $4.4 million in 2013 included a $1.2 million increase in the valuation allowance relating to certain unused state net operating losses expected to expire.
Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars):
| Year Ended December 31,
| 2015 |  | 2014
Deferred income tax assets: |  |  |
Loss and credit carryforwards | $ | 255.7 |  |  | $ | 275.4 |
VEBAs (see Note 6) | 25.9 |  |  | 5.1 |
Other assets | 38.7 |  |  | 37.8 |
Inventories | — |  |  | 18.7 |
Valuation allowances | (21.2 | ) |  | (19.2 | )
Total deferred income tax assets | 299.1 |  |  | 317.8 |
Deferred income tax liabilities: |  |  |
Property, plant and equipment | (79.6 | ) |  | (74.1 | )
VEBAs (see Note 6) | — |  |  | (120.6 | )
Inventories | (9.4 | ) |  | (6.7 | )
Total deferred income tax liabilities | (89.0 | ) |  | (201.4 | )
Net deferred income tax assets 1 | $ | 210.1 |  |  | $ | 116.4 |
__________________________
1. | Of the total net deferred income tax assets of $210.1 million, $49.6 million was included in Prepaid expenses and other current assets, $162.6 million was presented as Deferred tax assets, net and $2.1 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2015. Of the total net deferred income tax assets of $116.4 million, $86.4 million was included in Prepaid expenses and other current assets and $30.9 million was presented as Deferred tax assets, net and $0.9 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2014.
Tax Attributes. At December 31, 2015, we had $564.4 million of net operating loss ("NOL") carryforwards available to reduce future cash payments for income taxes in the United States. Of the $564.4 million of NOL carryforwards at December 31, 2015, $1.7 million represents excess tax benefits related to the vesting of employee restricted stock, which will result in an increase in equity if and when such excess tax benefits are ultimately realized. The NOL carryforwards expire periodically through 2030. We also had $29.5 million of AMT credit carryforwards with an indefinite life, available to offset regular federal income tax requirements. To preserve the NOL carryforwards available to us, our certificate of incorporation includes certain restrictions on the transfer of our common stock. These transfer restrictions will expire in accordance with their terms on July 6, 2016. In assessing the realizability of deferred tax assets, management considers whether it is "more likely than not" that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of our deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, we have a valuation allowance against our deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. The increase (decrease) in the valuation allowance was $2.0 million, $(0.7) million and $1.2 million in 2015, 2014 and 2013, respectively. The increase in the valuation allowance in 2015 was primarily due to unutilized state NOL carryforwards and Federal Separate Return Limitation Year (SRLY) losses that were expected to expire. The decrease in the valuation allowance for 2014 was primarily due to the projected utilization of state NOL carryforwards. The increase in the valuation allowance in 2013 was primarily due to unutilized state NOL carryforwards that were expected to expire. Other. We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our tax returns for certain past years are still subject to examination by taxing authorities and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars):
|  | Year Ended December 31,
|  | 2015 |  | 2014 |  | 2013
Gross unrecognized tax benefits at beginning of period |  | $ | 2.2 |  |  | $ | 3.8 |  |  | $ | 15.7 |
Gross increases for tax positions of prior years |  | 0.1 |  |  | — |  |  | — |
Gross decreases for tax positions of prior years |  | — |  |  | — |  |  | (7.6 | )
Gross decrease for tax positions relating to lapse of a statute of limitation |  | (0.6 | ) |  | (1.4 | ) |  | (3.3 | )
Foreign currency translation |  | — |  |  | (0.2 | ) |  | (1.0 | )
Gross unrecognized tax benefits at end of period |  | $ | 1.7 |  |  | $ | 2.2 |  |  | $ | 3.8 |
If and when the $1.7 million, $2.2 million and $3.8 million of gross unrecognized tax benefits at December 31, 2015, December 31, 2014 and December 31, 2013, respectively, are recognized, $0.6 million, $1.1 million and $2.7 million will be reflected, respectively, in our income tax provision and thus affect the effective tax rate in future periods. The change in gross unrecognized tax benefits during 2015 was due to the expiration of statutes. The change during 2014 was due to the expiration of statutes and foreign currency fluctuations. The change during 2013 was primarily due to the expiration of statutes, settlements with taxing authorities, foreign currency fluctuations and change in tax positions. In addition, we recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We had $0.2 million and $1.4 million accrued for interest and penalties at December 31, 2015 and December 31, 2014, respectively. Of these amounts, none were recorded as current liabilities and included in Other accrued liabilities on the Consolidated Balance Sheets at December 31, 2015 and December 31, 2014. We recognized a decrease in interest and penalty of $1.2 million, $0.9 million and $5.2 million in our tax provision in 2015, 2014 and 2013, respectively. In connection with the gross unrecognized tax benefits (including interest and penalties) denominated in foreign currency, we incurred a foreign currency translation adjustment. During 2015, 2014 and 2013, the foreign currency impact on such liabilities resulted in $0.1 million, $0.3 million and $0.7 million currency translation adjustments, respectively, which increased Other comprehensive income. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.

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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=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
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