Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of domestic and foreign components of income before taxes

        The domestic and foreign components of income before taxes are as follows for the years ended December 31, (in millions):

	2014			2013			2012
Domestic	$	(83.2	)	$	(42.4	)	$	(11.6	)
Foreign		184.5			167.0			149.9
	$	101.3		$	124.6		$	138.3

Components of income tax provision

        The components of the income tax provision are as follows for the years ended December 31, (in millions):

	2014			2013			2012
Current income tax (benefit) expense:
Federal	$	(1.1	)	$	0.2		$	1.4
State		0.4			0.2			0.9
Foreign		50.8			35.0			69.5
Total current income tax expense		50.1			35.4			71.8
Deferred income tax (benefit):
Federal		0.7			(1.8	)		1.2
State		(0.1	)		(0.6	)		—
Foreign		(9.0	)		9.8			(12.9	)
Total deferred income tax (benefit)		(8.4	)		7.4			(11.7	)
Income tax provision	$	41.7		$	42.8		$	60.1

Schedule of significant components due to which income tax (benefit) provision differs from the tax provision computed at the U.S federal statutory rate

        The income tax (benefit) provision differs from the tax provision computed at the U.S federal statutory rate due to the following significant components for the years ended December 31:

	2014			2013			2012
Statutory tax rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		(12.1	)		(10.2	)		(7.2	)
Permanent differences		9.6			12.0			18.7
Tax contingencies		(0.9	)		(1.1	)		3.0
Change in tax rates		(1.6	)		0.1			(0.7	)
Withholding taxes		0.6			0.1			0.3
State income taxes, net of federal benefits		0.2			0.1			0.3
Purchase accounting		0.7			0.8			0.9
Tax credits		(4.3	)		(8.6	)		(9.5	)
Other		(1.2	)		0.6			0.1
Change in valuation allowance for unbenefitted losses		15.2			5.5			2.6
Effective tax rate		41.2	%		34.3	%		43.5	%

Schedule of tax effect of temporary items that give rise to significant portions of deferred tax assets and liabilities

        The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities are as follows as of December 31, (in millions):

	2014			2013
Deferred tax assets:
Accounts receivable	$	1.0		$	2.7
Accrued expenses		0.8			3.1
Compensation		21.0			10.7
Investments		0.6			0.5
Deferred revenue		3.9			4.1
Net operating loss carryforwards		30.3			11.4
Capital loss carryforwards		—			0.8
Foreign tax and other tax credit carryforwards		21.8			18.8
Unrealized currency gain/loss		0.2			4.5
Warranty reserve		1.1			2.0
Other		5.7			3.6
Gross deferred tax assets		86.4			62.2
Less valuation allowance		(57.4	)		(42.4	)
Total deferred tax assets		29.0			19.8
Deferred tax liabilities:
Accounts receivable		2.9			0.4
Fixed assets		1.9			2.1
Foreign statutory reserves		4.5			—
Investments		0.1			0.2
Inventory		0.3			0.9
Intangibles		13.1			7.4
Accrued expenses		—			15.5
Unrealized currency gain/loss		—			4.2
Total deferred tax liabilities		22.8			30.7
Net deferred tax asset (liability)	$	6.2		$	(10.9	)

Tabular reconciliation of beginning and ending amount of unrecognized tax benefits

A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

Gross unrecognized tax benefits at December 31, 2011	$	34.6
Gross increases—tax positions in prior periods		5.9
Gross decreases—tax positions in prior periods		(2.2	)
Gross increases—current period tax positions		12.0
Settlements		(4.6	)
Lapse of statutes		(3.6	)
Gross unrecognized tax benefits at December 31, 2012		42.1
Gross decreases—tax positions in prior periods		(0.5	)
Gross increases—current period tax positions		0.7
Settlements		(7.1	)
Lapse of statutes		(2.5	)
Gross unrecognized tax benefits at December 31, 2013		32.7
Gross decreases—tax positions in prior periods		(3.1	)
Gross increases—current period tax positions		0.9
Settlements		(0.6	)
Lapse of statutes		(2.9	)
Gross unrecognized tax benefits at December 31, 2014	$	27.0