Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Domestic	$	328.2	$	126.7	$	255.1
Foreign	298.0		243.6		202.7
Total	$	626.2	$	370.3	$	457.8

Components of Income Tax Provision

The components of our income tax provision were as follows:

	Year Ended December 31,
(In millions)	2020		2019		2018
Current tax expense:
Federal	$	(14.2)	$	62.3	$	228.2
State and local	5.6		4.6		9.8
Foreign	69.9		64.1		59.8
Total current expense	$	61.3	$	131.0	$	297.8
Deferred tax expense (benefit):
Federal	$	59.4	$	(19.0)	$	56.8
State and local	11.8		4.0		(21.2)
Foreign	9.6		(39.4)		(25.9)
Total deferred tax expense (benefit)	80.8		(54.4)		9.7
Total income tax provision	$	142.1	$	76.6	$	307.5

Components of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consist of the following:

	December 31,
(In millions)	2020		2019
Accruals not yet deductible for tax purposes	$	16.0	$	17.4
Net operating loss carryforwards	252.1		245.9
Foreign, federal and state credits	6.5		8.4
Employee benefit items	78.7		79.5
Capitalized expenses	6.2		32.2
Intangibles	24.9		21.8
Derivatives and other	59.8		47.7
Sub-total deferred tax assets	444.2		452.9
Valuation allowance	(207.1)		(197.6)
Total deferred tax assets	$	237.1	$	255.3
Depreciation and amortization	$	(66.0)	$	(37.0)
Unremitted foreign earnings	(11.0)		(10.0)
Intangible assets	—		—
Other	(4.0)		(0.4)
Total deferred tax liabilities	(81.0)		(47.4)
Net deferred tax assets	$	156.1	$	207.9

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%, to income before provision for income taxes, is as follows:

	Year Ended December 31,
	2020				2019				2018
Computed expected tax	$	131.5	21.0	%	$	77.8	21.0	%	$	96.1	21.0	%
State income taxes, net of federal tax benefit	13.4		2.1	%	6.7		1.8	%	8.4		1.8	%
Foreign earnings taxed at different rates	10.5		1.7	%	10.5		2.8	%	8.3		1.8	%
U.S. tax on foreign earnings	24.0		3.8	%	29.0		7.8	%	13.5		2.9	%
Tax credits	(27.8)		(4.4)	%	(50.1)		(13.5)	%	(20.7)		(4.5)	%
Unremitted foreign earnings	2.5		0.4	%	10.0		2.7	%	—		—	%
Reorganization and divestitures	0.4		0.1	%	(47.2)		(12.7)	%	—		—	%
Withholding tax	4.2		0.7	%	4.8		1.3	%	21.7		4.7	%
Net change in valuation allowance	(5.2)		(0.8)	%	(7.6)		(2.1)	%	(39.8)		(8.7)	%
Net change in unrecognized tax benefits	(1.1)		(0.2)	%	36.0		9.7	%	95.0		20.8	%
Tax Cuts and Jobs Act and associated Tax Regulations	(22.4)		(3.6)	%	—		—	%	117.6		25.7	%
Other	12.1		1.9	%	6.7		1.9	%	7.4		1.7	%
Income tax expense and rate	$	142.1	22.7	%	$	76.6	20.7	%	$	307.5	67.2	%

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)	2020		2019		2018
Beginning balance of unrecognized tax benefits	$	390.3	$	356.4	$	214.3
Additions for tax positions of current year	2.7		3.4		106.0
Additions for tax positions of prior years	8.3		47.9		59.5
Reductions for tax positions of prior years	(18.2)		(16.0)		(7.0)
Reductions for lapses of statutes of limitation and settlements	(3.5)		(1.4)		(16.4)
Ending balance of unrecognized tax benefits	$	379.6	$	390.3	$	356.4