Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Loss Income Before Income Taxes and Noncontrolling Interests

The components of income from continuing operations before income taxes and noncontrolling interests were as follows:

(In millions)	2017		2016		2015
Domestic operations	$	554.7	$	513.8	$	387.7
Foreign operations		80.1		68.3		72.2
Income before income taxes and noncontrolling interests	$	634.8	$	582.1	$	459.9

Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations

A reconciliation of income taxes at the 35% federal statutory income tax rate to the income tax provision reported was as follows:

(In millions)	2017			2016			2015
Income tax expense computed at federal statutory income tax rate	$	222.2		$	203.7		$	161.0
Other income taxes, net of federal tax benefit		13.4			12.6			9.4
Foreign taxes at a different rate than U.S. federal statutory income tax rate		(8.3	)		(7.6	)		(8.7	)
Tax benefit on income attributable to domestic production activities		(10.9	)		(13.0	)		(12.5	)
Net adjustments for uncertain tax positions		11.6			13.2			4.7
Share-based compensation (ASU 2016-09)		(23.9	)		(27.8	)		—
Tax Act impact		(25.7	)		—			—
Deferred tax impact of state tax rate changes		(2.0	)		(1.1	)		0.2
Valuation allowance increase (decrease)		(5.2	)		(2.1	)		0.8
Miscellaneous other, net		(11.7	)		(8.2	)		(1.5	)
Income tax expense as reported	$	159.5		$	169.7		$	153.4
Effective income tax rate		25.1	%		29.2	%		33.4	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) was as follows:

(In millions)	2017			2016			2015
Unrecognized tax benefits — beginning of year	$	58.2		$	38.2		$	31.0
Gross additions — current year tax positions		31.0			10.7			4.6
Gross additions — prior year tax positions		10.9			10.4			8.3
Gross additions (reductions) — purchase accounting adjustments		4.0			9.7			0.1
Gross reductions — prior year tax positions		(9.4	)		(9.8	)		(2.1	)
Gross reductions — settlements with taxing authorities		(7.2	)		(1.0	)		(3.6	)
Impact of change in foreign exchange rates		(0.0	)		(0.0	)		(0.1	)
Unrecognized tax benefits — end of year	$	87.5		$	58.2		$	38.2

Income Taxes

Income taxes in 2017, 2016 and 2015 were as follows:

(In millions)	2017			2016			2015
Current
Federal	$	133.1		$	150.4		$	130.6
Foreign		22.4			22.3			19.7
State and other		22.8			22.9			16.1
Deferred
Federal, state and other		(27.2	)		(23.9	)		(11.3	)
Foreign		8.4			(2.0	)		(1.7	)
Total income tax expense	$	159.5		$	169.7		$	153.4

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2017 and 2016 were as follows:

(In millions)	2017			2016
Deferred tax assets:
Compensation and benefits	$	22.1		$	56.1
Defined benefit plans		43.7			82.5
Capitalized inventories		11.1			13.6
Accounts receivable		7.8			10.3
Other accrued expenses		45.6			41.4
Net operating loss and other tax carryforwards		25.6			39.7
Valuation allowance		(11.0	)		(16.4	)
Miscellaneous		3.7			2.5
Total deferred tax assets		148.6			229.7
Deferred tax liabilities:
LIFO inventories		(4.2	)		(6.7	)
Fixed assets		(44.5	)		(57.1	)
Intangible assets		(232.0	)		(210.4	)
Investment in partnership		(9.2	)		(109.3	)
Miscellaneous		(16.1	)		(0.2	)
Total deferred tax liabilities		(306.0	)		(383.7	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2017 and 2016 as follows:

(In millions)	2017			2016
Other assets	$	9.4		$	9.5
Deferred income taxes		(166.8	)		(163.5	)
Net deferred tax liability	$	(157.4	)	$	(154.0	)