
		Year Ended December 31,
(in millions)		2020		2019	2018
U.S. federal:
	Current	$	16.4	38.2	39.8
	Noncurrent	—		0.7	35.7
	Deferred	3.8		(12.9)	(20.1)
		$	20.2	26.0	55.4
State and Local:
	Current	$	12.5	15.1	12.5
	Noncurrent	—		—	7.5
	Deferred	0.2		(7.0)	(5.0)
		$	12.7	8.1	15.0
International:
	Current	$	103.7	156.9	145.3
	Deferred	(29.7)		(31.3)	(1.4)
		$	74.0	125.6	143.9
Total		$	106.9	159.7	214.3

Our income taxes in 2018 and 2019 were impacted by tax legislation enacted in the United States in December 2017, commonly known as the Tax Cuts and Jobs Act ("the Act"), and by interpretive regulatory guidance afterward. The Act brought significant changes to the U.S. corporate income tax system, including a transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system, including a "transition tax" payable over an eight year period for those foreign earnings not previously taxed in the U.S.

With respect to the Base Erosion Anti-Abuse Tax and Global Intangible Low-Taxed Income Tax, we treat any associated income tax as a period cost such that we will record an expense provision for any year we are subject to the taxes. Accordingly, the estimated impact of these taxes was included in our Provision for income taxes in 2020, 2019 and 2018.


		Year Ended December 31,
($ in millions)		2020				2019				2018
Income tax expense at statutory rates		$	111.2	21.0	%	$	146.5	21.0	%	$	148.3	21.0	%
	Increase (reduction) in income taxes from:
	State and local income taxes, net of federal income tax benefit	9.4		1.8		8.9		1.3		2.8		0.4
	Amortization of goodwill and other intangibles	(3.3)		(0.6)		(3.7)		(0.5)		(3.4)		(0.5)
	Nondeductible expenses	11.2		2.1		18.9		2.7		14.6		2.1
	International earnings taxed at various rates	(20.5)		(3.9)		(8.7)		(1.3)		(21.1)		(3.0)
	Valuation allowances	4.3		0.8		7.2		1.0		12.4		1.8

	Transition tax and deferred tax due to the Act	—		—		(4.3)		(0.6)		47.0		6.7
	Other, net	(5.4)		(1.0)		(5.1)		(0.7)		13.7		1.9
Total		$	106.9	20.2	%	$	159.7	22.9	%	$	214.3	30.4	%

With respect to international earnings taxed at varying rates, we have operations which constitute a taxable income presence in 92 countries or other taxable jurisdictions outside of the U.S. which are treated as such by the U.S. Internal Revenue Code. Of those countries or other taxable jurisdictions, 66 had income tax rates lower than the combined U.S. federal and state income tax rate in 2020.

In defining "very low tax rate jurisdictions", we consider effective tax rates which applied in 2020 based upon income levels and including national and municipal, state or provincial taxes also based upon income levels, which may cause those effective rates to differ from the maximum national statutory rates for the jurisdictions. We consider jurisdictions with a tax rate of 25% or lower to be very low tax rate jurisdictions, based upon our historical practice. Effective January 1, 2018, the U.S. federal income tax rate was reduced to 21%. However, factoring in the impact of state income taxes, we do not consider the U.S. to be a very low tax rate jurisdiction. With respect to very low tax rate jurisdictions in which we operate, income from Hong Kong (16.5%), Singapore (17%), the United Kingdom (19%) and Saudi Arabia (20%) represent the most significant components of the international earnings line item in the effective tax rate reconciliation above. In the aggregate, these very low rate jurisdictions were the primary driver of the difference between the actual income tax provision for international earnings and the equivalent provision at the U.S. federal and state statutory rate in 2020.


	December 31,
(in millions)	2020		2019
Deferred tax assets attributable to:
Accrued expenses	$	344.3	268.3
U.S. federal and state loss and credit carryovers	17.9		26.5
Allowances for uncollectible accounts	21.1		20.2
International loss carryovers	163.4		141.5

Pension liabilities	25.0		20.3
Other	13.1		15.6
Deferred tax assets	584.8		492.4
Less: valuation allowances	(71.4)		(70.4)
Net deferred tax assets	$	513.4	422.0

Deferred tax liabilities attributable to:
Property and equipment	$	14.8	11.5
Intangible assets	296.8		244.8
Income deferred for tax purposes	10.1		12.9
Investment in real estate ventures	14.1		3.9
Other	1.1		9.5
Deferred tax liabilities	$	336.9	282.6
Net deferred taxes	$	176.5	139.4

We have not provided a deferred tax liability on the unremitted foreign earnings of international subsidiaries because it is our intent to permanently reinvest such earnings outside of the U.S. If repatriation of all such earnings were to occur, we would incur withholding taxes, dividend distribution taxes, and potentially an amount of gain taxation which is not presently determinable.

As of December 31, 2020, we had an available U.S. federal net operating loss carryover of $4.1 million from an acquired company, for which we have established a full valuation allowance due to significant statutory limitations on its usage, and which began to expire in 2020. We have U.S. state net operating loss carryovers with a tax effect of $17.1 million, which expire at various dates through 2040, and international net operating loss carryovers of $750.5 million, which generally do not have expiration dates. The change in deferred tax balances for net operating loss carryovers from 2019 to 2020 included increases from current year losses and decreases from current year estimated utilization.

As of December 31, 2020, we believe it is more-likely-than-not the net deferred tax assets of $176.5 million will be realized based upon our estimates of future income and the consideration of net operating losses, earnings trends and tax planning strategies. Valuation allowances have been provided with regard to the tax benefit of certain international net operating loss carryovers, for which we have concluded recognition is not yet appropriate. In 2020, we reduced valuation allowances by $10.5 million on some jurisdictions' net operating losses due to the utilization or expiration of those losses, and we increased valuation allowances by $7.4 million for other jurisdictions based upon circumstances that caused us to establish or continue to provide valuation allowances on current or prior year losses in addition to those provided in prior years. The balance of the movement in valuation allowances comparing December 31, 2020 to December 31, 2019 was attributable to the effect of changes in foreign currency exchange rates.

As of December 31, 2020, our net current receivable for income tax was $20.6 million, consisting of a current receivable of $221.5 million and current payable of $200.9 million, and our net noncurrent liability was $163.6 million, entirely a noncurrent payable. As of December 31, 2019, our net current receivable for income tax was $4.4 million, consisting of a current receivable of $235.3 million and a current payable of $230.9 million, and our net noncurrent liability was $152.2 million, entirely a noncurrent payable.

We file income tax returns in the U.S. (including 46 states, 25 cities, the District of Columbia and Puerto Rico), the United Kingdom (including England, Scotland and Wales), Australia, Germany, The People's Republic of China (including Hong Kong and Macau), France, Japan, Singapore, India, the Netherlands, Spain and 78 other countries. Generally, the Company's open tax years include those from 2016 to the present, although reviews of taxing authorities for more recent years have been completed or are in process in a number of jurisdictions.

As of December 31, 2020, we were under examination in Germany, Nigeria, Turkey, China, India, Indonesia, Malaysia, the Philippines and Thailand; in the U.S., we were under examination in the states of Colorado, Massachusetts and Minnesota, and in New York City.


(in millions)	2020		2019
Balance as of January 1	$	78.2	62.7
Additions based on tax positions related to the current year	2.8		1.4
(Decrease) increase related to tax positions of prior years	(5.0)		24.3
Settlements with taxing authorities	(0.7)		(10.2)
Balance as of December 31	$	75.3	78.2

We believe it is reasonably possible that matters for which we have recorded $18.7 million of unrecognized tax benefits as of December 31, 2020, will be resolved during 2021. The recognition of tax benefits, and other changes to the amounts of our unrecognized tax benefits, may occur as the result of ongoing operations, the outcomes of audits or other examinations by tax authorities, or the passing of statutes of limitations. We do not expect changes to our unrecognized tax benefits to have a significant impact on net income, the financial position, or the cash flows of JLL. We do not believe we have material tax positions for which the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility.

We recognize interest accrued and penalties, if any, related to income taxes as a component of income tax expense. During the year ended December 31, 2020, we recognized no interest expense or penalties and during the years 2019 and 2018, we recognized $0.1 million and $1.6 million, respectively, in interest expense and no penalties. We had approximately $0.6 million and $1.8 million of accrued interest related to income taxes as of December 31, 2020 and 2019, respectively.