Income Taxes

6 Months Ended

Jun. 30, 2019

Income Taxes

Income Taxes

7. Income Taxes

Effective Income Tax Rate

Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate was as follows:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2019		2018		2019		2018
U.S. corporate income tax rate	21	%	21	%	21	%	21	%
Dividends received deduction	(4)		(3)		(5)		(3)
Tax credits	(3)		(3)		(2)		(3)
Impact of equity method presentation	(1)		(1)		(1)		(1)
Impact of the Tax Cuts and Jobs Act	—		(4)		—		(3)
State income taxes	—		1		1		1
Other	—		—		—		(1)
Effective income tax rate	13	%	11	%	14	%	11	%

Unrecognized Tax Benefits

Our changes in unrecognized tax benefits were as follows:

	For the six months ended		For the year ended
	June 30, 2019		December 31, 2018
	(in millions)
Balance at beginning of period	$	42.1	$	194.1
Additions based on tax positions related to the current year		23.2		0.8
Additions for tax positions of prior years		—		43.7
Reductions for tax positions related to the current year		(2.2)		(10.6)
Reductions for tax positions of prior years		(0.5)		(23.2)
Settlements		—		(162.7)
Balance at end of period	$	62.6	$	42.1

Deferred tax liabilities are recognized for taxes payable on the unremitted earnings from foreign operations of our subsidiaries, except where it is our intention to indefinitely reinvest a portion or all of these undistributed earnings. During the second quarter of 2019, foreign undistributed earnings of $250.0 million previously indefinitely reinvested were repatriated from the United Kingdom. No applicable taxes were recorded with the distribution nor any further changes to our repatriation and reinvestment plans.