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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes consisted of the following:
|  |  | Years ended December 31, |
| In millions |  | 2019 |  | 2018 |  | 2017 |
| U.K. |  | $ | 8.0 |  |  | $ | 26.2 |  |  | $ | (3.0 | ) |
| International(1) |  | 1.8 |  |  | 4.3 |  |  | 22.9 |  |
| Income before income taxes |  | $ | 9.8 |  |  | $ | 30.5 |  |  | $ | 19.9 |  |
(1) "International" reflects non-U.K. income before income taxes. The provision for income taxes consisted of the following:
|  |  | Years ended December 31, |
| In millions |  | 2019 |  | 2018 |  | 2017 |
| Currently payable |  |  |  |  |  |  |
| U.K. |  | $ | 0.7 |  |  | $ | 0.2 |  |  | $ | (0.2 | ) |
| International(1) |  | 2.8 |  |  | 5.1 |  |  | 6.2 |  |
| Total current taxes |  | $ | 3.5 |  |  | $ | 5.3 |  |  | $ | 6.0 |  |
| Deferred |  |  |  |  |  |  |
| U.K. |  | $ | 3.7 |  |  | $ | 3.4 |  |  | $ | (0.1 | ) |
| International(1) |  | (0.5 | ) |  | (3.2 | ) |  | (2.6 | ) |
| Total deferred taxes |  | $ | 3.2 |  |  | $ | 0.2 |  |  | $ | (2.7 | ) |
| Total provision for income taxes |  | $ | 6.7 |  |  | $ | 5.5 |  |  | $ | 3.3 |  |
(1) "International" reflects non-U.K. income taxes. Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable to the Company, among other factors, give rise to permanent differences between the statutory tax rate applicable in the U.K. and the effective tax rate presented in the consolidated income statement, which in 2019, 2018 and 2017 were as follows:
|  | Years ended December 31, |
| In millions | 2019 |  | 2018 |  | 2017 |
| Income before income taxes | $ | 9.8 |  |  | $ | 30.5 |  |  | $ | 19.9 |  |
| Provision for income taxes at the U.K. statutory tax rate (2019: 19%, 2018:19%, 2017: 19.25%) | 1.9 |  |  | 5.8 |  |  | 3.8 |  |
| Effect of: |  |  |  |  |  |
| Non-deductible expenses | 2.7 |  |  | 0.1 |  |  | 0.8 |  |
| Movement in valuation allowances | 1.2 |  |  | — |  |  | (0.9 | ) |
| Differences in income tax rates in countries where the Company operates(1) | 1.0 |  |  | 0.3 |  |  | 2.2 |  |
| Effect of U.S. tax reform | — |  |  | — |  |  | (4.0 | ) |
| Effect of changes in tax rates (excluding U.S. tax reform) (2) | (0.1 | ) |  | 0.2 |  |  | 1.1 |  |
| Movement in uncertain tax positions | 0.4 |  |  | 0.1 |  |  | 0.9 |  |
| Other | (0.4 | ) |  | (1.0 | ) |  | (0.6 | ) |
| Total provision for income taxes | $ | 6.7 |  |  | $ | 5.5 |  |  | $ | 3.3 |  |
(1) Refers mainly to the effects of the differences between the statutory income tax rate in the U.K. against the applicable income tax rates of each country where the Company operates. (2) The U.K. corporation tax rate decreased from 20% to 19% with effect from April 1, 2017. A further reduction in the U.K. corporation tax rate is expected to 17% from April 1, 2020. 12. Income Taxes (continued) The US tax reform included complex tax provisions, and it is understood that the Department of Treasury and IRS may offer additional guidance about their application and effect. The Company does not expect to have to book any further related adjustments, however we will review any updates in interpretations and information as they become available. The Company is below the size thresholds for application of the base erosion and anti-avoidance tax (BEAT). The Company does not have material global intangible low-taxed income (GILTI) or foreign derived intangible income (FDII), and is not currently subject to any material restriction under the net interest expense limitation. Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:
|  | Years ended December 31, |
| In millions | 2019 |  | 2018 |  | 2017 |
| Beginning balance | $ | 3.2 |  |  | $ | 2.8 |  |  | $ | 1.9 |  |
| Gross increases based on tax positions related to the current year | 0.6 |  |  | 1.4 |  |  | 1.0 |  |
| Reductions due to expiry of statute of limitations | (0.6 | ) |  | (1.0 | ) |  | (0.1 | ) |
| Ending balance | $ | 3.2 |  |  | $ | 3.2 |  |  | $ | 2.8 |  |
| Non-current | $ | 3.2 |  |  | $ | 3.2 |  |  | $ | 2.8 |  |
The Company's unrecognized tax benefits relate to the pricing of its various inter-company transactions. Because the transfer pricing calculation is often multifaceted, taking into account economics, finance, industry practice, and functional analysis, a company's transfer pricing position often sits at a particular point along a wide continuum of possible pricing outcomes. The inherent subjectivity in pricing inter-company balances gives rise to measurement uncertainty. Management has considered the valuation uncertainty in determining the measurement of the uncertain tax position. There are no current tax audit examinations. Management estimates that it is reasonably possible that approximately $0.2 million of our gross unrecognized tax benefits ($0.1 million of our net unrecognized tax benefits) may be recognized by the end of 2020 as a result of a lapse of the statute of limitations. At December 31, 2019, 2018 and 2017, there were $0.7 million, $0.7 million, and $0.6 million of unrecognized tax benefits respectively, that if recognized would affect the annual effective tax rate. The Company recognizes interest accrued and penalties relating to unrecognized tax benefits in the income tax line. During the years ended December 31, 2019, 2018 and 2017, the Company recognized approximately $nil, $nil and $nil respectively, in interest and penalties. The following is a summary of the tax years open by major tax jurisdiction:
| Jurisdiction |  | Years open |
| U.K. |  | 2018 - 2019 |
| U.S. Federal |  | 2016 - 2019 |
| U.S. State and local |  | 2016 - 2019 |
| France |  | 2016 - 2019 |
| Germany |  | 2015 - 2019 |
| China |  | 2016 - 2019 |
| Canada |  | 2015 - 2019 |
12. Income Taxes (continued) Taxes have not been provided on undistributed earnings of subsidiaries where it is our intention to reinvest these earnings permanently or to repatriate the earnings only when it is tax efficient to do so. The amount of unremitted earnings at December 31, 2019, was approximately $47.2 million (at December 31, 2018: $62.4 million, at December 31, 2017: $59.0 million). If these earnings were remitted, it is estimated that the additional income tax arising would be approximately $0.7 million (at December 31, 2018: $0.6 million, at December 31, 2017: $0.3 million). Deferred taxes were recorded in the Consolidated Balance Sheets as follows:
|  | December 31, |
| In millions | 2019 |  |  | 2018 |  |
| Deferred tax assets | $ | 15.8 |  |  | $ | 18.6 |  |
| Deferred tax liabilities | (2.5 | ) |  | (3.5 | ) |
| Net deferred tax assets | $ | 13.3 |  |  | $ | 15.1 |  |
The tax effects of the major items recorded in deferred tax assets and liabilities were as follows:
|  | December 31, |
| In millions | 2019 |  |  | 2018 |  |
| Deferred tax assets |  |  |  |
| Pension benefits | $ | 5.8 |  |  | $ | 7.7 |  |
| Tax loss and credit carry forwards | 23.8 |  |  | 20.7 |  |
| Other | 3.5 |  |  | 5.2 |  |
| Total deferred tax assets | 33.1 |  |  | 33.6 |  |
| Valuation allowances | (16.2 | ) |  | (15.0 | ) |
| Deferred tax assets, net of valuation allowances | $ | 16.9 |  |  | $ | 18.6 |  |
| Deferred tax liabilities |  |  |  |
| Property, plant and equipment | $ | 3.6 |  |  | $ | 3.5 |  |
| Total deferred tax liabilities | $ | 3.6 |  |  | $ | 3.5 |  |
| Net deferred tax assets | $ | 13.3 |  |  | $ | 15.1 |  |
Deferred tax liabilities and assets represent the tax effect of temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by the relevant jurisdiction's tax laws and regulations. Deferred tax assets and liabilities from the same tax jurisdiction have been netted, resulting in assets and liabilities being recorded under the deferred taxation captions on the consolidated balance sheet. 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 and carryforwards become deductible or creditable. Management considers the scheduled reversal of existing taxable temporary differences, projected future taxable income, and tax-planning strategies in making this assessment. 12. Income Taxes (continued) At December 31, 2019, the Company had carried forward tax losses and tax credits of $94.9 million (U.K.: $32.8 million, non-U.K.: $62.1 million). Carried forward tax losses and tax credits for 2018 were $81.0 million (U.K.: $38.8 million, non-U.K.: $42.2 million) and for 2017 were $92.7 million (U.K.: $43.4 million, non-U.K.: $49.3 million). To the extent that these losses are not already recognized as deferred income taxes assets, and are available to offset against future taxable profits, it is expected that the future effective tax rate would be below the standard rate in the country where the profits are offset. A valuation allowance of $14.9 million (2018: $15.0 million, 2017: $15.0 million) exists for deferred tax benefits related to the tax loss and tax credit carry forwards and other benefits that may not be realized. The apportionment of the valuation allowance between the U.K. and non-U.K. jurisdictions is U.K.: $2.8 million, non-U.K.: $12.1 million (2018: U.K.: $4.1 million, non-U.K.: $10.9 million; 2017: U.K.: $4.6 million, non-U.K.: $10.4 million). The non-U.K. valuation allowances relate predominantly to tax losses in France, Germany and Canada. Of the carried forward tax losses and tax credits as at December 31, 2019, $26.4 million expire between 2023 and 2034 and $68.5 million are available for indefinite carry-forward.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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