Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Taxes and Comprehensive Provision for Income Taxes Allocation

	Years ended December 31,
	2014			2015			2016
	(In millions)
Pre-tax income (loss):
U.S.	$	59.2		$	5.5		$	11.5
Non-U.S.		74.5			(36.3	)		49.7
Total	$	133.7		$	(30.8	)	$	61.2

Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35%	$	46.8		$	(10.8	)	$	21.4
Non-U.S. tax rates		(4.2	)		.5			(4.3	)
Incremental net tax (benefit) on earnings and losses of non-U.S. companies		(3.7	)		(8.7	)		2.2
Valuation allowance		-			159.0			(2.2	)
U.S. - Canada APA		-			-			(3.4	)
Adjustment to the reserve for uncertain tax positions, net		(5.1	)		.7			2.4
Nondeductible expenses		1.9			2.1			1.5
U.S. state income taxes and other, net		(1.2	)		-			.3
Provision for income taxes	$	34.5		$	142.8		$	17.9

Components of income tax expense:
Currently payable:
U.S. federal and state	$	1.9		$	.3		$	-
Non-U.S.		15.2			3.3			9.5
		17.1			3.6			9.5

Deferred income taxes (benefit):
U.S. federal and state		10.0			(6.4	)		4.3
Non-U.S.		7.4			145.6			4.1
		17.4			139.2			8.4
Provision for income taxes	$	34.5		$	142.8		$	17.9

	Years ended December 31,
	2014			2015			2016
	(In millions)
Comprehensive provision for income taxes (benefit) allocable to:
Net income	$	34.5		$	142.8		$	17.9
Other comprehensive income (loss):
Currency translation		(16.9	)		-			-
Marketable securities		(6.7	)		1.1			1.3
Pension plans		(30.1	)		1.5			(.8	)
OPEB plans		(.4	)		(.1	)		(.2	)
Interest rate swap		-			(1.3	)		.2
Total	$	(19.6	)	$	144.0		$	18.4

Components of Net Deferred Income Taxes

The components of our net deferred income taxes at December 31, 2015 and 2016 are summarized in the following table.

	December 31,
	2015						2016
	Assets			Liabilities			Assets			Liabilities
	(In millions)
Tax effect of temporary differences related to:
Inventories	$	3.2		$	(3.5	)	$	3.7		$	(3.7	)
Property and equipment		-			(59.3	)		-			(58.1	)
Accrued OPEB costs		2.0			-			2.0			-
Accrued pension cost		39.4			-			48.3			-
Currency revaluation on intercompany debt		18.6			-			24.0			-
Other accrued liabilities and deductible differences		19.4			-			12.6			-
Other taxable differences		-			(.5	)		-			(.4	)
Tax on unremitted earnings of non-U.S. subsidiaries		-			(1.9	)		-			(2.9	)
Tax loss and tax credit carryforwards		157.4			-			145.5			-
Valuation allowance		(168.9	)		-			(173.4	)		-
Adjusted gross deferred tax assets (liabilities)		71.1			(65.2	)		62.7			(65.1	)
Netting by tax jurisdiction		(57.1	)		57.1			(54.6	)		54.6
Net noncurrent deferred tax asset (liability)	$	14.0		$	(8.1	)	$	8.1		$	(10.5	)

Changes in Amount of Uncertain Tax Positions

The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties discussed above) during 2014, 2015 and 2016:

	Years ended December 31,
	2014			2015			2016
	(In millions)
Changes in unrecognized tax benefits:
Unrecognized tax benefits at beginning of year	$	15.9		$	10.4		$	9.7
Net increase (decrease):
Tax positions taken in prior periods		(5.4	)		(.3	)		(.1	)
Tax positions taken in current period		1.1			1.1			2.5
Lapse due to applicable statute of limitations		-			(.2	)		(.2	)
Settlements with taxing authorities		-			-			(2.3	)
Change in currency exchange rates		(1.2	)		(1.3	)		.3
Unrecognized tax benefits at end of year	$	10.4		$	9.7		$	9.9