Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Contingency [Line Items]  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Income (Loss) from Continuing Operations Before Income Taxes and Equity Income (Loss) from Ventures includes the following components:
 
 
(In Millions)
 
 
2014
 
2013
 
2012
United States
 
$
(1,884.2
)
 
$
837.7

 
$
838.6

Foreign
 
(7,719.5
)
 
(348.4
)
 
(1,340.4
)
 
 
$
(9,603.7
)
 
$
489.3

 
$
(501.8
)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The components of the provision (benefit) for income taxes on continuing operations consist of the following:
 
 
(In Millions)
 
 
2014
 
2013
 
2012
Current provision (benefit):
 
 
 
 
 
 
United States federal
 
$
(159.9
)
 
$
101.3

 
$
71.1

United States state & local
 
(0.6
)
 
4.0

 
7.6

Foreign
 
17.2

 
87.9

 
50.2

 
 
(143.3
)
 
193.2

 
128.9

Deferred provision (benefit):
 
 
 
 
 
 
United States federal
 
(258.9
)
 
23.3

 
221.2

United States state & local
 
(43.0
)
 
3.0

 
1.4

Foreign
 
(856.8
)
 
(164.4
)
 
(95.6
)
 
 
(1,158.7
)
 
(138.1
)
 
127.0

Total provision on income (loss) from continuing
    operations
 
$
(1,302.0
)
 
$
55.1

 
$
255.9

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
Reconciliation of our income tax attributable to continuing operations computed at the U.S. federal statutory rate is as follows:
 
 
(In Millions)
 
 
2014
 
2013
 
2012
Tax at U.S. statutory rate of 35 percent
 
$
(3,361.3
)
 
35.0
 %
 
$
171.3

 
35.0
 %
 
$
(175.6
)
 
35.0
 %
Increase (decrease) due to:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange remeasurement
 
(4.1
)
 

 
(2.6
)
 
(0.5
)
 
62.3

 
(12.4
)
Non-taxable income related to noncontrolling interests
 
290.1

 
(3.0
)
 
(1.5
)
 
(0.3
)
 
61.0

 
(12.0
)
Impact of tax law change
 
13.0

 
(0.1
)
 

 

 
(357.1
)
 
71.2

Percentage depletion in excess of cost depletion
 
(87.9
)
 
0.9

 
(97.6
)
 
(19.9
)
 
(109.1
)
 
21.7

Impact of foreign operations
 
592.0

 
(6.2
)
 
(10.2
)
 
(2.1
)
 
65.2

 
(13.0
)
Income not subject to tax
 
(46.5
)
 
0.5

 
(106.6
)
 
(21.8
)
 
(108.0
)
 
21.5

Goodwill impairment
 
22.7

 
(0.2
)
 
20.5

 
4.2

 
202.2

 
(40.3
)
State taxes, net
 
(43.6
)
 
0.5

 
5.6

 
1.1

 
7.3

 
(1.5
)
Settlement of financial guaranty
 
(343.3
)
 
3.6

 

 

 

 

Manufacturer’s deduction
 

 

 
(7.9
)
 
(1.6
)
 
(4.7
)
 
0.9

Valuation allowance
 
1,660.6

 
(17.3
)
 
73.0

 
14.9

 
634.5

 
(126.5
)
Tax uncertainties
 
0.2

 

 
19.6

 
5.3

 
(14.8
)
 
2.9

Prior year adjustment in current year
 
(10.4
)
 
0.1

 
(11.4
)
 
(3.6
)
 
(5.7
)
 
1.1

Other items — net
 
16.5

 
(0.2
)
 
2.9

 
0.6

 
(1.6
)
 
0.4

Income tax (benefit) expense
 
$
(1,302.0
)
 
13.6
 %
 
$
55.1

 
11.3
 %
 
$
255.9

 
(51.0
)%
Income Taxes Other Than Continuing Operations Disclosure Text Block [Table Text Block]
The components of income taxes for other than continuing operations consisted of the following:
 
 
(In Millions)
 
 
2014
 
2013
 
2012
Other comprehensive (income) loss:
 
 
 
 
 
 
Pension/OPEB liability
 
$
39.8

 
$
100.0

 
$
13.8

Mark-to-market adjustments
 
3.6

 
2.0

 
1.7

Other
 
(1.1
)
 
(12.4
)
 
2.6

Total
 
$
42.3

 
$
89.6

 
$
18.1

 
 
 
 
 
 
 
Paid in capital — acquisition of noncontrolling interest
 
$

 
$
102.1

 
$

Paid in capital — stock based compensation
 
$
(4.8
)
 
$
3.5

 
$
(12.8
)
Discontinued Operations
 
$

 
$
(2.0
)
 
$
10.4

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Significant components of our deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows:
 
 
(In Millions)
 
 
2014
 
2013
Deferred tax assets:
 
 
 
 
Pensions
 
$
108.3

 
$
88.4

MRRT starting base allowance
 

 
300.3

Postretirement benefits other than pensions
 
63.0

 
58.0

Alternative minimum tax credit carryforwards
 
267.7

 
299.2

Investments in ventures
 
6.0

 

Asset retirement obligations
 
48.9

 
61.7

Operating loss carryforwards
 
1,083.5

 
524.4

Product inventories
 
32.3

 
16.4

Property, plant and equipment and mineral rights
 
901.6

 
56.0

State and local
 
41.9

 

Lease liabilities
 
14.1

 
31.9

Other liabilities
 
153.6

 
138.3

Total deferred tax assets before valuation allowance
 
2,720.9

 
1,574.6

Deferred tax asset valuation allowance
 
(2,224.5
)
 
(864.1
)
Net deferred tax assets
 
496.4

 
710.5

Deferred tax liabilities:
 

 

Property, plant and equipment and mineral rights
 
(20.0
)
 
(1,400.8
)
Investment in ventures
 
(198.0
)
 
(196.4
)
Intangible assets
 
(7.3
)
 
(33.5
)
Income tax uncertainties
 
(49.5
)
 
(48.5
)
Product inventories
 
(16.6
)
 
(12.8
)
Other assets
 
(80.2
)
 
(93.0
)
Total deferred tax liabilities
 
(371.6
)
 
(1,785.0
)
Net deferred tax assets (liabilities)
 
$
124.8

 
$
(1,074.5
)
Deferred Tax Assets and Liabilities by Location [Table Text Block]
The deferred tax amounts are classified in the Statements of Consolidated Financial Position as current or long-term consistently with the underlying asset or liability that generates the basis difference between financial reporting and tax. Following is a summary:
 
 
(In Millions)
 
 
2014
 
2013
Deferred tax assets:
 
 
 
 
United States
 
$
165.9

 
$
7.2

Foreign
 
 
 
 
Current
 
2.2

 
29.4

Long-term
 
12.0

 
41.5

Total deferred tax assets
 
180.1

 
78.1

Deferred tax liabilities:
 
 
 
 
United States
 

 
175.3

Foreign
 
 
 
 
Current
 
4.0

 
6.1

Long-term
 
51.3

 
971.2

Total deferred tax liabilities
 
55.3

 
1,152.6

Net deferred tax assets (liabilities)
 
$
124.8

 
$
(1,074.5
)
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
 
 
(In Millions)
 
 
2014
 
2013
 
2012
Unrecognized tax benefits balance as of January 1
 
$
74.4

 
$
55.5

 
$
102.1

Increases for tax positions in prior years
 
3.4

 
13.6

 
2.7

Increases for tax positions in current year
 
2.5

 
5.3

 
11.1

Increase due to foreign exchange
 
(0.2
)
 

 

Settlements
 
(0.5
)
 

 
(60.4
)
Lapses in statutes of limitations
 
(3.7
)
 

 

Other
 
(1.2
)
 

 

Unrecognized tax benefits balance as of December 31
 
$
74.7

 
$
74.4

 
$
55.5