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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2013
Total Income Before Income Taxes and Provision for Income Taxes | Following is the total income before income taxes and the provision for income taxes for the three years ended December 31, 2013.
Year ended December 31 (millions) |  |  | 2013 |  |  |  | 2012 |  |  |  | 2011 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 28.4 |  |  | $ | 32.5 |  |  | $ | (20.4 | )
Foreign |  |  | 191.0 |  |  |  | 221.6 |  |  |  | 226.4 |
Total income before income taxes |  | $ | 219.4 |  |  | $ | 254.1 |  |  | $ | 206.0 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 8.0 |  |  | $ | 3.6 |  |  | $ | 2.8 |
Foreign |  |  | 63.0 |  |  |  | 66.5 |  |  |  | 43.8 |
State and local |  |  | (.2 | ) |  |  | – |  |  |  | .2 |
Total |  |  | 70.8 |  |  |  | 70.1 |  |  |  | 46.8 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Foreign |  |  | 28.5 |  |  |  | 27.2 |  |  |  | 18.0 |
Total provision for income taxes |  | $ | 99.3 |  |  | $ | 97.3 |  |  | $ | 64.8 |
Reconciliation of the Provision for Income Taxes | Following is a reconciliation of the provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported:
Year ended December 31 (millions) |  |  | 2013 |  |  |  | 2012 |  |  |  | 2011 |
United States statutory income tax provision |  | $ | 76.8 |  |  | $ | 88.9 |  |  | $ | 72.1 |
Income and losses for which no provision or benefit has been recognized |  |  | 13.5 |  |  |  | 7.0 |  |  |  | 21.8 |
Foreign rate differential and other foreign tax expense |  |  | (23.0 | ) |  |  | (32.2 | ) |  |  | (16.8 | )
Income tax withholdings |  |  | 15.4 |  |  |  | 20.3 |  |  |  | 16.7 |
Permanent items |  |  | 4.0 |  |  |  | 4.0 |  |  |  | 4.2 |
Enacted rate changes |  |  | 8.9 |  |  |  | 9.0 |  |  |  | 8.4 |
Change in uncertain tax positions |  |  | 4.4 |  |  |  | 4.5 |  |  |  | 6.1 |
Change in valuation allowances due to changes in judgment |  |  | (.5 | ) |  |  | – |  |  |  | (15.2 | )
Income tax credits, U.S. |  |  | – |  |  |  | (4.0 | ) |  |  | (4.2 | )
Tax audit matters |  |  | – |  |  |  | – |  |  |  | (28.3 | )
Other |  |  | (.2 | ) |  |  | (.2 | ) |  |  | – |
Provision for income taxes |  | $ | 99.3 |  |  | $ | 97.3 |  |  | $ | 64.8 |
Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2013 and 2012 were as follows:
December 31 (millions) |  |  | 2013 |  |  |  | 2012 |
Deferred tax assets |  |  |  |  |  |  |  |
Tax loss carryforwards |  | $ | 888.8 |  |  | $ | 914.9 |
Postretirement benefits |  |  | 566.3 |  |  |  | 905.4 |
Foreign tax credit carryforwards |  |  | 252.4 |  |  |  | 564.3 |
Capitalized research and development |  |  | 89.7 |  |  |  | 149.6 |
Other tax credit carryforwards |  |  | 88.9 |  |  |  | 116.8 |
Deferred revenue |  |  | 86.4 |  |  |  | 76.1 |
Employee benefits and compensation |  |  | 42.4 |  |  |  | 55.9 |
Purchased capitalized software |  |  | 41.3 |  |  |  | 43.7 |
Depreciation |  |  | 31.6 |  |  |  | 34.8 |
Capitalized costs |  |  | 16.5 |  |  |  | 16.5 |
Warranty, bad debts and other reserves |  |  | 14.6 |  |  |  | 15.1 |
Other |  |  | 26.8 |  |  |  | 30.0 |
|  |  | 2,145.7 |  |  |  | 2,923.1 |
Valuation allowance |  |  | (1,998.8 | ) |  |  | (2,731.8 | )
Total deferred tax assets |  | $ | 146.9 |  |  | $ | 191.3 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Other |  | $ | 33.0 |  |  | $ | 25.6 |
Total deferred tax liabilities |  | $ | 33.0 |  |  | $ | 25.6 |
Net deferred tax assets |  | $ | 113.9 |  |  | $ | 165.7 |
Reconciliation of Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year ended December 31 (millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Balance at January 1 |  | $ | 29.2 |  |  | $ | 24.3 |  |  | $ | 19.5 |
Additions based on tax positions related to the current year |  |  | (2.4 | ) |  |  | 3.5 |  |  |  | 6.0 |
Changes for tax positions of prior years |  |  | (.1 | ) |  |  | 1.4 |  |  |  | – |
Reductions as a result of a lapse of applicable statute of limitations |  |  | – |  |  |  | (.4 | ) |  |  | – |
Settlements |  |  | (.2 | ) |  |  | (.7 | ) |  |  | (1.2 | )
Changes due to foreign currency |  |  | (.2 | ) |  |  | 1.1 |  |  |  | – |
Balance at December 31 |  | $ | 26.3 |  |  | $ | 29.2 |  |  | $ | 24.3 |

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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 components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: 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 + 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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