Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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):

	2016		2015		2014
Domestic	$	18.4	$	31.6	$	(83.2	)
Foreign		159.2		96.4		184.5
	$	177.6	$	128.0	$	101.3

Components of income tax provision

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

	2016			2015			2014
Current income tax (benefit) expense:
Federal	$	(2.4	)	$	5.7		$	(1.1	)
State		0.3			1.3			0.4
Foreign		59.8			50.0			50.8
Total current income tax expense		57.7			57.0			50.1
Deferred income tax (benefit) expense:
Federal		3.1			(31.1	)		0.7
State		(5.3	)		(2.4	)		(0.1	)
Foreign		(32.4	)		(0.4	)		(9.0	)
Total deferred income tax (benefit) expense		(34.6	)		(33.9	)		(8.4	)
Income tax provision	$	23.1		$	23.1		$	41.7

Schedule of significant components due to which income tax 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:

	2016			2015			2014
Statutory tax rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		(11.6	)		(3.6	)		(12.1	)
Permanent differences		8.2			(2.0	)		9.6
Tax contingencies		(3.0	)		2.3			(0.9	)
Change in tax rates		0.2			1.3			(1.6	)
Withholding taxes		1.3			8.1			0.6
State income taxes, net of federal benefits		(2.9	)		(0.9	)		0.2
Purchase accounting		1.6			0.8			0.7
Tax credits		(3.0	)		(1.1	)		(4.3	)
Other		4.3			(2.7	)		(1.2	)
Change in valuation allowance for unbenefitted losses		(17.1	)		(19.2	)		15.2
Effective tax rate		13.0	%		18.0	%		41.2	%

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 as of December 31, 2016 and 2015 are as follows (in millions):

	2016			2015
Deferred tax assets:
Accounts receivable	$	2.9		$	2.0
Accrued expenses		4.6			4.7
Compensation		30.6			30.1
Investments		—			1.4
Deferred revenue		2.0			0.2
Net operating loss carryforwards		14.1			16.0
Fixed assets		0.8			0.8
Inventory		3.2			2.9
Foreign tax and other tax credit carryforwards		17.2			32.3
Unrealized currency gain/loss		3.0			6.1
Other		—			7.5
Gross deferred tax assets		78.4			104.0
Less valuation allowance		(0.5	)		(37.2	)
Total deferred tax assets		77.9			66.8
Deferred tax liabilities:
Accounts receivable		—			0.6
Foreign statutory reserves		1.1			5.3
Intangibles		7.2			9.4
Accrued expenses		1.2			8.0
Other		2.0			—
Total deferred tax liabilities		11.5			23.3
Net deferred tax assets	$	66.4		$	43.5

Schedule of changes in the valuation allowance for deferred tax assets

Changes in the valuation allowance for deferred tax assets during the years ended December 31, 2016, 2015 and 2014 were as follows:

Balance at December 31, 2013	$	42.4
Increases recorded to income tax provision		15.0
Balance at December 31, 2014	$	57.4
Decreases recorded as a benefit to income tax provision		(20.2	)
Balance at December 31, 2015	$	37.2
Decreases recorded as a benefit to income tax provision		(36.7	)
Balance at December 31, 2016	$	0.5

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, 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
Gross decreases—tax positions in prior periods		(4.8	)
Gross increases—current period tax positions		0.9
Settlements		(21.3	)
Lapse of statutes		(1.8	)
Gross unrecognized tax benefits at December 31, 2016	$	6.2