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Income Taxes | 6 Months Ended
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Jun. 30, 2014
Income Taxes | Note 13—Income taxes:
| Three months ended June 30, |  |  | Six months ended June 30, |
| 2013 |  |  | 2014 |  |  |  | 2013 |  |  |  | 2014 |
| (In millions) |
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% | $ | (26.5 | ) |  | $ | 8.9 |  |  | $ | (51.0 | ) |  | $ | 11.8 |
Incremental benefit on earnings of non-U.S. and non-tax group companies |  | (3.3 | ) |  |  | (1.1 | ) |  |  | (4.7 | ) |  |  | (1.2 | )
Non-U.S. tax rates |  | 2.9 |  |  |  | (1.0 | ) |  |  | 2.5 |  |  |  | (1.7 | )
Adjustment to the reserve for uncertain tax positions, net |  | (.3 | ) |  |  | (5.9 | ) |  |  | 1.7 |  |  |  | (5.6 | )
Nondeductible expenses |  | .1 |  |  |  | .9 |  |  |  | 2.6 |  |  |  | 1.2 |
U.S. state income taxes and other, net |  | (.2 | ) |  |  | (.3 | ) |  |  | (.2 | ) |  |  | .8 |
Income tax expense (benefit) | $ | (27.3 | ) |  | $ | 1.5 |  |  | $ | (49.1 | ) |  | $ | 5.3 |
| Three months ended June 30, |  |  | Six months ended June 30, |
| 2013 |  |  | 2014 |  |  |  | 2013 |  |  |  | 2014 |
| (In millions) |
Comprehensive provision for income taxes (benefit) allocable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) | $ | (27.3 | ) |  | $ | 1.5 |  |  | $ | (49.1 | ) |  | $ | 5.3 |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities |  | (2.4 | ) |  |  | (2.4 | ) |  |  | 1.2 |  |  |  | (11.2 | )
Currency translation |  | 2.5 |  |  |  | (.9 | ) |  |  | (1.3 | ) |  |  | (1.6 | )
Pension plans |  | 1.2 |  |  |  | .9 |  |  |  | 2.4 |  |  |  | 1.9 |
OPEB plans |  | (.1 | ) |  |  | (.2 | ) |  |  | (.3 | ) |  |  | (.4 | )
Total | $ | (26.1 | ) |  | $ | (1.1 | ) |  | $ | (47.1 | ) |  | $ | (6.0 | )
Tax authorities are examining certain of our U.S. and non-U.S. tax returns and have or may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, we cannot guarantee that these matters will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We currently estimate that our unrecognized tax benefits may change by $8.8 million during the next twelve months related to certain adjustments to our prior year returns and the expiration of certain statutes of limitations. In 2011 and 2012, Kronos received notices of re-assessment from the Canadian federal and provincial tax authorities related to the years 2002 through 2004. We objected to the re-assessments and believed the position was without merit. Accordingly, we appealed the re-assessments and in connection with such appeal we were required to post letters of credit aggregating Cdn. $7.9 million (see Note 10). In the second quarter of 2014, the Appeals Division of the Canadian Revenue Authority ruled in our favor and reversed in their entirety such notices of re-assessment. As a result, we recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions in the second quarter of 2014 related to the completion of this Canadian income tax audit. In addition, related letters of credit aggregating Cdn. $7.6 million have been cancelled (see Note 10), and we anticipate the remaining Cdn. $.3 million will be cancelled by year end. Also during the second quarter of 2014, we recognized a non-cash income tax benefit of $3.1 million related to the release of a portion of our reserve for uncertain tax positions in conjunction with the completion of an audit of our U.S. income tax return for 2009. Our provision for income taxes in the first quarter of 2014 includes a $1.0 million provision ($.9 million, net of noncontrolling interest) which is a correction of amounts that should have been recognized in the fourth quarter of 2012, and is not material to any current or prior periods.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 Reference 6: 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 + Details
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