Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.3.1.900
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Provision for Income Taxes from Continuing Operations
The provision for income taxes from continuing operations consisted of the following:  
 
Twelve Months Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
Current:
 

 
 

 
 

Federal
$
159.0

 
$
140.7

 
$
130.9

State
14.7

 
18.3

 
16.4

Foreign
56.8

 
50.8

 
51.3

 
230.5

 
209.8

 
198.6

Deferred:
 

 
 

 
 

Federal
(7.5
)
 
0.8

 
(3.7
)
State
(9.3
)
 
(0.2
)
 
2.8

Foreign
(11.9
)
 
(10.2
)
 
(8.8
)
 
(28.7
)
 
(9.6
)
 
(9.7
)
Provision for income taxes
$
201.8

 
$
200.2

 
$
188.9

Domestic and Foreign Income from Continuing Operations before Income Taxes
Domestic and foreign income from continuing operations before income taxes was as follows:
 
Twelve Months Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
U.S.
$
607.6

 
$
521.5

 
$
458.4

Foreign
29.0

 
52.7

 
72.0

 
$
636.6

 
$
574.2

 
$
530.4

Provision for Income Taxes Reconciles with U.S. Federal Statutory Rate
The provision for income taxes reconciles with the U.S. federal statutory rate, as follows:
 
Twelve Months Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
Federal statutory rate
35.0
%
 
35.0
%
 
35.0
%
 
 
 
 
 
 
Provision computed at federal statutory rate
$
222.8

 
$
201.0

 
$
185.6

State and local taxes, net of federal tax benefit
5.2

 
13.1

 
12.1

Foreign
(21.8
)
 
(7.3
)
 
(4.1
)
Valuation allowance
—

 
(2.2
)
 
(0.6
)
Tax reserves
0.9

 
0.6

 
(1.2
)
Other
(5.3
)
 
(5.0
)
 
(2.9
)
Provision for income taxes
$
201.8

 
$
200.2

 
$
188.9

 
 
 
 
 
 
Effective income tax rate
31.7
%
 
34.9
%
 
35.6
%


Components of Deferred Income Tax Assets and Liabilities
Components of the deferred income tax assets and liabilities at December 31, 2015 and 2014, were as follows:
 
December 31,
 
2015
 
2014
 
(In millions)
Deferred income tax assets:
 

 
 

Employee pension benefits
$
131.7

 
$
142.6

Net operating and capital loss carryforwards
236.1

 
136.1

Foreign tax credits
50.7

 
94.7

Employee compensation programs
70.9

 
67.1

Reserves and accrued expenses
13.9

 
6.4

Deferred revenue
3.4

 
3.3

Other
7.6

 
8.7

Gross deferred income tax assets
514.3

 
458.9

Valuation allowance
(222.9
)
 
(121.4
)
Total deferred income tax assets, net
$
291.4

 
$
337.5

 
 
 
 
Deferred income tax liabilities:
 

 
 

Goodwill and intangible assets
(332.8
)
 
(334.5
)
Pension expense
(99.3
)
 
(99.9
)
Undistributed earnings of foreign subsidiaries
(32.6
)
 
(96.1
)
Depreciation
(15.1
)
 
(13.4
)
Other
(10.8
)
 
(15.4
)
Total deferred income tax liability
(490.6
)
 
(559.3
)
Net deferred income tax liability
$
(199.2
)
 
$
(221.8
)
Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities
Our deferred income tax assets and deferred income tax liabilities at December 31, 2015 and 2014, are included in the accompanying Consolidated Balance Sheets as follows:
 
December 31,
 
2015
 
2014
 
(In millions)
Long-term deferred income tax assets, included in other assets
$
6.3

 
$
6.5

Long-term deferred income tax liabilities
(205.5
)
 
(228.3
)
Net deferred income tax liability
$
(199.2
)
 
$
(221.8
)
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
2015
 
2014
 
(In millions)
Beginning balance (January 1)
$
19.8

 
$
19.1

Increases related to prior year tax positions
5.5

 
3.0

Decreases related to prior year tax positions
(2.2
)
 
(0.4
)
Increases related to current year tax positions
4.0

 
4.4

Decreases related to settlements
(0.5
)
 
(0.6
)
Expiration of the statute of limitations for the assessment of taxes
(4.5
)
 
(5.3
)
Currency translation adjustment
(0.5
)
 
(0.4
)
Ending balance (December 31)
$
21.6

 
$
19.8