Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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):

	2017			2016		2015
Domestic	$	(14.0	)	$	18.4	$	31.6
Foreign		211.8			159.2		96.4
	$	197.8		$	177.6	$	128.0

Components of income tax provision

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

	2017			2016			2015
Current income tax (benefit) expense:
Federal	$	32.2		$	(2.4	)	$	5.7
State		2.0			0.3			1.3
Foreign		42.7			59.8			50.0
Total current income tax expense		76.9			57.7			57.0
Deferred income tax (benefit) expense:
Federal		35.5			3.1			(31.1	)
State		(0.4	)		(5.3	)		(2.4	)
Foreign		5.5			(32.4	)		(0.4	)
Total deferred income tax (benefit) expense		40.6			(34.6	)		(33.9	)
Income tax provision	$	117.5		$	23.1		$	23.1

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:

	2017			2016			2015
Statutory tax rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		(11.7	)		(11.6	)		(3.6	)
Permanent differences		(0.5	)		8.2			(2.0	)
Mandatory Repatriation		27.0			—			—
Tax contingencies		(1.3	)		(3.0	)		2.3
Change in tax rates		0.9			0.2			1.3
Withholding taxes		2.2			1.3			8.1
Permanent Reinvestment Assertion Accrual		7.8			—			—
State income taxes, net of federal benefits		1.3			(2.9	)		(0.9	)
Purchase accounting		0.5			1.6			0.8
Tax credits		(0.3	)		(3.0	)		(1.1	)
Other		(1.2	)		4.3			(2.7	)
Change in valuation allowance for unbenefitted losses		(0.3	)		(17.1	)		(19.2	)
Effective tax rate		59.4	%		13.0	%		18.0	%

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, 2017 and 2016 are as follows (in millions):

	2017		2016
Deferred tax assets:
Accounts receivable	$	3.9	$	2.9
Accrued expenses		6.7		4.6
Compensation		27.9		30.6
Deferred revenue		0.4		2.0
Net operating loss carryforwards		19.1		14.1
Fixed assets		—		0.8
Inventory		2.8		3.2
Foreign tax and other tax credit carryforwards		5.9		17.2
Unrealized currency gain/loss		3.2		3.0
Gross deferred tax assets		69.9		78.4
Less valuation allowance		—		(0.5	)
Total deferred tax assets		69.9		77.9
Deferred tax liabilities:
Fixed assets		0.3		—
Foreign statutory reserves		0.9		1.1
Intangibles		13.0		7.2
Accrued expenses		0.6		1.2
Accrued Withholding Tax		16.1		2.0
Other		6.4		—
Total deferred tax liabilities		37.3		11.5
Net deferred tax assets	$	32.6	$	66.4

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, 2017, 2016 and 2015 were as follows:

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
Decreases recorded as a benefit to income tax provision		(0.5	)
Balance at December 31, 2017	$	—

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, 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
Lapse of statutes		(1.8	)
Gross unrecognized tax benefits at December 31, 2017	$	4.4