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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components ($ in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
United States | $ | 27.7 |  |  | $ | 41.6 |  |  | $ | 31.0 |
Foreign | 65.7 |  |  | 63.9 |  |  | 77.2 |
Total | $ | 93.4 |  |  | $ | 105.5 |  |  | $ | 108.2 |
An analysis of the provision (benefit) for income taxes from continuing operations follows ($ in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
Current income taxes: |  |  |  |  |
U.S. federal | $ | 14.3 |  |  | $ | 13.0 |  |  | $ | 6.6 |
U.S. state | 0.1 |  |  | 1.1 |  |  | 0.6 |
Foreign | 17.2 |  |  | 14.2 |  |  | 10.0 |
| 31.6 |  |  | 28.3 |  |  | 17.2 |
Deferred income taxes: |  |  |  |  |
U.S. federal | (2.7 | ) |  | (5.8 | ) |  | 3.0 |
U.S. state | (4.0 | ) |  | 0.1 |  |  | (0.8 | )
Foreign | (9.5 | ) |  | (1.0 | ) |  | 1.1 |
| (16.2 | ) |  | (6.7 | ) |  | 3.3 |
Total | $ | 15.4 |  |  | $ | 21.6 |  |  | $ | 20.5 |
A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions):
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Tax provision at U.S. statutory rate | $ | 32.6 |  |  | 35.0 | % |  | $ | 36.9 |  |  | 35.0 | % |  | $ | 37.9 |  |  | 35.0 | %
Foreign income tax rate differential | (9.0 | ) |  | (9.6 | ) |  | (16.2 | ) |  | (15.4 | ) |  | (15.4 | ) |  | (14.2 | )
State income tax, net of federal benefit | (2.5 | ) |  | (2.7 | ) |  | 1.1 |  |  | 1.1 |  |  | (0.1 | ) |  | (0.1 | )
Domestic production deduction | (0.9 | ) |  | (1.0 | ) |  | (1.5 | ) |  | (1.4 | ) |  | (1.0 | ) |  | (0.9 | )
Remeasurement of deferred taxes for tax law change | (7.0 | ) |  | (7.5 | ) |  | — |  |  | — |  |  | — |  |  | — |
Adjustments to valuation allowances | 3.5 |  |  | 3.7 |  |  | 1.4 |  |  | 1.3 |  |  | 0.4 |  |  | 0.4 |
Other, net | (1.3 | ) |  | (1.4 | ) |  | (0.1 | ) |  | (0.1 | ) |  | (1.3 | ) |  | (1.3 | )
Provision for income taxes | $ | 15.4 |  |  | 16.5 | % |  | $ | 21.6 |  |  | 20.5 | % |  | $ | 20.5 |  |  | 18.9 | %
The Company considers the undistributed earnings of certain foreign subsidiaries to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes has been made thereon. Upon distribution of those earnings in the form of dividends, loans to the U.S. parent, or otherwise, the Company could be liable for both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to foreign tax authorities. Determination of the amount of unrecognized deferred U.S. tax liability is not practicable because of the complexities associated with this hypothetical calculation. Net deferred income tax assets (liabilities) were comprised of the following ($ in millions):
| December 31,
| 2016 |  | 2015
Deferred Tax Assets |  |  |
Receivable allowances | $ | 0.2 |  |  | $ | 3.4 |
Reserves and accruals | 3.9 |  |  | 3.9 |
Inventory and other assets | 2.3 |  |  | 1.7 |
Postretirement and other employee benefits | 20.0 |  |  | 20.6 |
Derivatives | — |  |  | 5.5 |
Net operating loss and tax credit carryforwards | 104.8 |  |  | 25.9 |
Investment in subsidiaries | — |  |  | 1.0 |
Intangibles | 76.6 |  |  | — |
Other | 0.1 |  |  | 0.8 |
| 207.9 |  |  | 62.8 |
Less: Valuation allowance | (194.8 | ) |  | (33.8 | )
Net deferred income tax assets | $ | 13.1 |  |  | $ | 29.0 |
Deferred Tax Liabilities |  |  |
Net fixed assets | $ | (34.4 | ) |  | $ | (72.7 | )
Investment in subsidiaries | (4.1 | ) |  | — |
Other | (0.7 | ) |  | (1.5 | )
Net deferred income tax liabilities | $ | (39.2 | ) |  | $ | (74.2 | )
Total net deferred income tax liabilities | $ | (26.1 | ) |  | $ | (45.2 | )
As of December 31, 2016 the Company had approximately $95.1 million of tax effected operating loss carryforwards available to reduce future taxable income in various jurisdictions which will expire on various dates as follows:
| 2016
2017-2018 | $ | 4.1 |
2023-2034 | 0.1 |
2017-2034 | 9.3 |
Indefinite | 81.6 |
| 95.1 |
In addition, the Company has $8.6 million and $1.1 million of foreign and state tax credits that will expire between 2017 - 2026 and 2017 - 2027, respectively. The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards for certain entities. The valuation allowance on deferred tax assets as of December 31, 2016, in Luxembourg, the Philippines and Spain total $169.0 million, $15.4 million and $9.3 million respectively, fully reserving the net deferred tax asset balances in these locations. We believe that it is more likely than not that the benefit from certain state tax attributes will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.1 million on the related deferred tax assets. The Company's assumptions, judgments and estimates relative to the valuation of these net deferred tax assets take into account available positive and negative evidence of realizability, including recent financial performance, the ability to realize benefits of restructuring and other recent actions, projections of the amount and category of future taxable income and tax planning strategies. Actual future operating results and the underlying amount and category of income in future periods could differ from the Company's current assumptions, judgments and estimates. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets. The following table summarizes the activity related to the Company's unrecognized tax benefits related to income taxes ($ in millions):
| December 31,
| 2016 |  | 2015 |  | 2014
Uncertain tax position balance at beginning of year | $ | 0.9 |  |  | $ | 1.8 |  |  | $ | 1.8 |
Increases related to current year tax positions | 2.0 |  |  | — |  |  | — |
Decrease related to expiration of statute of limitations | (0.5 | ) |  | (0.9 | ) |  | — |
Uncertain tax position balance at end of year | $ | 2.4 |  |  | $ | 0.9 |  |  | $ | 1.8 |
The liability for unrecognized tax benefits included $0.4 million as of December 31, 2016 that if recognized would impact the Company's effective tax rate. We believe that it is reasonably possible that a decrease of up to approximately $2.1 million in unrecognized tax benefits may be recognized by the end of 2017 as a result of a lapse of the statute of limitations and other regulatory filings. The Company's policy with respect to penalties and interest in connection with income tax assessments or related to unrecognized tax benefits is to classify penalties as provision for income taxes and interest as interest expense in its Consolidated Statements of Income. There were no material income tax penalties or interest accrued during the years ended December 31, 2016, 2015 and 2014. The Company files income tax returns in the U.S. Federal and several state jurisdictions as well as in many foreign jurisdictions. With certain exceptions, the Company is no longer subject to U.S. Federal, state and local, or foreign income tax examinations for years before 2013.

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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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