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v2.4.1.9

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Summary of earnings from continuing operations | Earnings from continuing operations are summarized below:
(in millions) |  | 2014 |  | 2013 |  | 2012
Earnings (loss) from continuing operations before income taxes: |  |  |  |  |  |  |  |  |
Domestic |  | $ | 32.6 |  |  | $ | 90.1 |  |  | $ | 94.1 |
Foreign |  | 136.8 |  |  | 135.1 |  |  | 52.8 |
Total |  | $ | 169.4 |  |  | $ | 225.2 |  |  | $ | 146.9 |
Schedule of the provision for taxes on earnings (loss) from continuing operations | Income tax expense (benefit) from continuing operations is summarized as follows:
(in millions) |  | 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |  |  |  |  |
Federal and state |  | $ | (12.0 | ) |  | $ | 24.1 |  |  | $ | 29.2 |
Foreign |  | 26.8 |  |  | 25.4 |  |  | 17.3 |
Total current |  | $ | 14.8 |  |  | $ | 49.5 |  |  | $ | 46.5 |
Deferred: |  |  |  |  |  |  |  |  |
Federal and state |  | $ | 4.5 |  |  | $ | (15.2 | ) |  | $ | (5.2 | )
Foreign |  | (10.7 | ) |  | 1.8 |  |  | (3.3 | )
Total deferred |  | $ | (6.2 | ) |  | $ | (13.4 | ) |  | $ | (8.5 | )
Provision for taxes on earnings |  | $ | 8.6 |  |  | $ | 36.1 |  |  | $ | 38.0 |
Reconciliation of the federal statutory income tax rate to the company's effective income tax rate for continuing operations | The federal statutory income tax rate is reconciled to the company’s effective income tax rate for continuing operations for the years ended December 31, 2014, 2013 and 2012 as follows, which excludes the impact of discontinued operations which had an effective tax rate of 6.9% for 2014:
|  | 2014 |  | 2013 |  | 2012
Federal income tax at statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income provision (benefit) |  | (0.4 | ) |  | (0.5 | ) |  | 0.3 |
Manufacturing & research incentives |  | (2.7 | ) |  | (3.3 | ) |  | (3.5 | )
Taxes on foreign income which differ from the U.S. statutory rate |  | (14.4 | ) |  | (9.3 | ) |  | (7.7 | )
Adjustments for unrecognized tax benefits |  | (1.4 | ) |  | (5.4 | ) |  | (6.7 | )
Adjustments for valuation allowances |  | 26.8 |  |  | (1.0 | ) |  | 9.2 |
Capital loss generation |  | (45.7 | ) |  | — |  |  | — |
Change in assertion over permanently reinvested foreign earnings |  | 3.2 |  |  | — |  |  | — |
Other items |  | 4.7 |  |  | 0.5 |  |  | (0.7 | )
Effective tax rate |  | 5.1 | % |  | 16.0 | % |  | 25.9 | %
Schedules of deferred tax assets (liabilities) | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items:
(in millions) |  | 2014 |  | 2013
Current deferred tax assets (liabilities): |  |  |  |  |  |
Inventories |  | $ | 29.5 |  |  | $ | 32.3 |
Accounts receivable |  | (5.6 | ) |  | (2.1 | )
Product warranty reserves |  | 19.0 |  |  | 20.0 |
Product liability reserves |  | 8.3 |  |  | 7.9 |
Deferred revenue, current portion |  | 7.7 |  |  | 0.6 |
Deferred employee benefits |  | 13.3 |  |  | 16.6 |
Other reserves and allowances |  | 5.7 |  |  | 16.1 |
Less valuation allowance |  | (12.2 | ) |  | (3.6 | )
Net deferred tax assets, current |  | $ | 65.7 |  |  | $ | 87.8 |
Non-current deferred tax assets (liabilities): |  |  |  |
Property, plant and equipment |  | $ | (28.2 | ) |  | $ | (32.6 | )
Intangible assets |  | (281.8 | ) |  | (296.3 | )
Deferred employee benefits |  | 87.7 |  |  | 67.1 |
Product warranty reserves |  | 5.2 |  |  | 4.2 |
Tax credits |  | 1.0 |  |  | 2.3 |
Loss carryforwards |  | 199.0 |  |  | 192.7 |
Deferred revenue |  | 4.0 |  |  | 5.9 |
Other |  | (0.7 | ) |  | (2.4 | )
Total non-current deferred tax liabilities |  | (13.8 | ) |  | (59.1 | )
Less valuation allowance |  | (156.0 | ) |  | (146.2 | )
Net deferred tax liabilities, non-current |  | $ | (169.8 | ) |  | $ | (205.3 | )
The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2014 and December 31, 2013 as follows:
(in millions) |  | 2014 |  | 2013
Current income tax asset |  | $ | 71.3 |  |  | $ | 89.9 |
Long-term income tax assets, included in other non-current assets |  | 16.4 |  |  | 9.0 |
Current deferred income tax liability, included in accounts payable and accrued expenses |  | (5.6 | ) |  | (2.1 | )
Long-term deferred income tax liability |  | (186.2 | ) |  | (214.3 | )
Net deferred income tax liability |  | $ | (104.1 | ) |  | $ | (117.5 | )
Schedule of open tax years for which the company could be subject to income tax examination | The following table provides the open tax years for which the company could be subject to income tax examination by the tax authorities in its major jurisdictions:
Jurisdiction |  | Open Years
U.S. Federal |  | 2012 — 2014
Wisconsin |  | 2009 — 2014
China |  | 2007 — 2014
France |  | 2013 — 2014
Germany |  | 2006 — 2014
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows:
(in millions) |  | 2014 |  | 2013 |  | 2012
Balance at beginning of year |  | $ | 35.9 |  |  | $ | 47.3 |  |  | $ | 56.3 |
Additions based on tax positions related to the current year |  | 15.5 |  |  | 2.0 |  |  | 1.8 |
Additions for tax positions of prior years |  | 0.1 |  |  | 3.7 |  |  | 3.6 |
Reductions for tax positions of prior years |  | (2.7 | ) |  | (8.1 | ) |  | (11.9 | )
Reductions based on settlements with taxing authorities |  | (7.3 | ) |  | (3.6 | ) |  | (1.1 | )
Reductions for lapse of statute |  | (8.2 | ) |  | (5.4 | ) |  | (1.4 | )
Balance at end of year |  | $ | 33.3 |  |  | $ | 35.9 |  |  | $ | 47.3 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: 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 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + 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 + Details
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