Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Earnings Before Income Tax Provision

The components of earnings before income tax provision were as follows:

	Year Ended December 31,
(In millions)	2019		2018		2017
Domestic	$	126.7	$	255.1	$	192.1
Foreign	243.6		202.7		201.2
Total	$	370.3	$	457.8	$	393.3

Components of Income Tax Provision (Benefit)

The components of our income tax provision (benefit) were as follows:

	Year Ended December 31,
(In millions)	2019			2018			2017
Current tax expense:
Federal	$	62.3		$	228.2		$	79.6
State and local	4.6			9.8			14.3
Foreign	64.1			59.8			106.0
Total current expense	$	131.0		$	297.8		$	199.9
Deferred tax (benefit) expense:
Federal	$	(19.0	)	$	56.8		$	130.1
State and local	4.0			(21.2		)	5.3
Foreign	(39.4		)	(25.9		)	(4.8		)
Total deferred tax (benefit) expense	(54.4		)	9.7			130.6
Total income tax provision	$	76.6		$	307.5		$	330.5

Components of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consist of the following:

	December 31,
(In millions)	2019			2018
Accruals not yet deductible for tax purposes	$	17.4		$	17.5
Net operating loss carryforwards	245.9			265.5
Foreign, federal and state credits	8.4			10.4
Employee benefit items	79.5			77.0
Capitalized expenses	32.2			8.9
Intangibles	21.8			—
Derivatives and other	47.7			38.0
Sub-total deferred tax assets	452.9			417.3
Valuation allowance	(197.6		)	(218.4		)
Total deferred tax assets	$	255.3		$	198.9
Depreciation and amortization	$	(37.0	)	$	(26.8	)
Unremitted foreign earnings	(10.0		)	—
Intangible assets	—			(21.7		)
Other	(0.4		)	(0.4		)
Total deferred tax liabilities	(47.4		)	(48.9		)
Net deferred tax assets	$	207.9		$	150.0

Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (21% in 2019-2018 and 35% in 2017) to income before provision for income taxes, is as follows (dollars in millions):

	Year Ended December 31,
	2019					2018					2017
Computed expected tax	$	77.8		21.0	%	$	96.1		21.0	%	$	137.7		35.0	%
State income taxes, net of federal tax benefit	6.7			1.8	%	8.4			1.8	%	7.6			1.9	%
Foreign earnings taxed at different rates	10.5			2.8	%	8.3			1.8	%	(22.3		)	(5.7	)%
U.S. tax on foreign earnings	29.0			7.8	%	13.5			2.9	%	72.3			18.4	%
Tax credits	(50.1		)	(13.5	)%	(20.7		)	(4.5	)%	(16.8		)	(4.3	)%
Unremitted foreign earnings	10.0			2.7	%	—			—	%	—			—	%
Reorganization and divestitures	(47.2		)	(12.7	)%	—			—	%	75.9			19.3	%
Withholding tax	4.8			1.3	%	21.7			4.7	%	7.4			1.9	%
Net change in valuation allowance	(7.6		)	(2.1	)%	(39.8		)	(8.7	)%	(2.0		)	(0.5	)%
Net change in unrecognized tax benefits	36.0			9.7	%	95.0			20.8	%	33.4			8.5	%
Tax Cuts and Jobs Act	—			—	%	117.6			25.7	%	41.1			10.5	%
Deferred tax adjustments	—			—	%	—			—	%	14.1			3.6	%
Other	6.7			1.9	%	7.4			1.7	%	(17.9		)	(4.6	)%
Income tax expense and rate	$	76.6		20.7	%	$	307.5		67.2	%	$	330.5		84.0	%

Unrecognized Tax Benefits and the Effect on Effective Income Tax Rate

We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized:

 

	Year Ended December 31,
(in millions)	2019			2018			2017
Beginning balance of unrecognized tax benefits	$	356.4		$	214.3		$	162.6
Additions for tax positions of current year	3.4			106.0			7.3
Additions for tax positions of prior years	47.9			59.5			49.3
Reductions for tax positions of prior years	(16.0		)	(7.0		)	(4.3		)
Reductions for lapses of statutes of limitation and settlements	(1.4		)	(16.4		)	(0.6		)
Ending balance of unrecognized tax benefits	$	390.3		$	356.4		$	214.3