Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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):

	2015		2014			2013
Domestic	$	31.6	$	(83.2	)	$	(42.4	)
Foreign		96.4		184.5			167.0
	$	128.0	$	101.3		$	124.6

Components of income tax provision

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

	2015			2014			2013
Current income tax (benefit) expense:
Federal	$	5.7		$	(1.1	)	$	0.2
State		1.3			0.4			0.2
Foreign		50.0			50.8			35.0
Total current income tax expense		57.0			50.1			35.4
Deferred income tax (benefit) expense:
Federal		(31.1	)		0.7			(1.8	)
State		(2.4	)		(0.1	)		(0.6	)
Foreign		(0.4	)		(9.0	)		9.8
Total deferred income tax (benefit) expense		(33.9	)		(8.4	)		7.4
Income tax provision	$	23.1		$	41.7		$	42.8

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 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,:

	2015			2014			2013
Statutory tax rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		(3.6	)		(12.1	)		(10.2	)
Permanent differences		(2.0	)		9.6			12.0
Tax contingencies		2.3			(0.9	)		(1.1	)
Change in tax rates		1.3			(1.6	)		0.1
Withholding taxes		8.1			0.6			0.1
State income taxes, net of federal benefits		(0.9	)		0.2			0.1
Purchase accounting		0.8			0.7			0.8
Tax credits		(1.1	)		(4.3	)		(8.6	)
Other		(2.7	)		(1.2	)		0.6
Change in valuation allowance for unbenefited losses		(19.2	)		15.2			5.5
Effective tax rate		18.0	%		41.2	%		34.3	%

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):

	2015			2014
Deferred tax assets:
Accounts receivable	$	2.0		$	1.0
Accrued expenses		4.7			0.8
Compensation		30.1			21.0
Investments		1.4			0.6
Deferred revenue		0.2			3.9
Net operating loss carryforwards		16.0			30.3
Fixed assets		0.8			—
Inventory		2.9			—
Foreign tax and other tax credit carryforwards		32.3			21.8
Unrealized currency gain/loss		6.1			0.2
Warranty reserve		—			1.1
Other		7.5			5.7
Gross deferred tax assets		104.0			86.4
Less valuation allowance		(37.2	)		(57.4	)
Total deferred tax assets		66.8			29.0
Deferred tax liabilities:
Accounts receivable		0.6			2.9
Fixed assets		—			1.9
Foreign statutory reserves		5.3			4.5
Investments		—			0.1
Inventory		—			0.3
Intangibles		9.4			13.1
Accrued expenses		8.0			—
Total deferred tax liabilities		23.3			22.8
Net deferred tax assets	$	43.5		$	6.2

Tabular reconciliation of the 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, 2012	$	61.1
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		51.7
Gross decreases—tax positions in prior periods		(6.4	)
Gross decreases—current period tax positions		(0.3	)
Settlements		(0.6	)
Lapse of statutes		(4.4	)
Gross unrecognized tax benefits at December 31, 2014		40.0
Gross decreases—tax positions in prior periods		(1.5	)
Gross increases—current period tax positions		0.4
Settlements		(2.7	)
Lapse of statutes		(3.0	)
Gross unrecognized tax benefits at December 31, 2015	$	33.2