XML 81 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of income before income tax and components of Income tax expense (benefit)
Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions):
 
Year Ended
 
Six Months Ended
 
Year Ended
 
December 31,
2017
 
December 31,
2016
 
December 31,
2015
 
June 27,
2015
Pre-tax income (loss):
 
 
 
 
 
 
 
Ireland
$
(454.0
)
 
$
(3,624.1
)
 
$
(310.2
)
 
$
(792.8
)
Other
734.1

 
(1,224.2
)
 
319.1

 
1,053.1

Total pre-tax income (loss)
280.1

 
(4,848.3
)
 
8.9

 
260.3

(Benefit) provision for income taxes:
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
Ireland
(8.1
)
 
0.3

 
1.6

 
(2.2
)
United States - federal
96.4

 
93.0

 
58.9

 
77.2

United States - state
4.0

 
0.7

 
3.0

 
6.8

Other foreign
46.1

 
26.7

 
53.0

 
67.4

Subtotal
138.4

 
120.7

 
116.5

 
149.2

Deferred (credit):
 
 
 
 
 
 
 
Ireland
13.1

 
(549.4
)
 
(23.1
)
 
11.1

United States - federal
6.8

 
(7.6
)
 
(34.4
)
 
(19.9
)
United States - state
1.0

 
(5.1
)
 
(3.3
)
 
(0.8
)
Other foreign
1.2

 
(394.1
)
 
(89.3
)
 
(15.4
)
Subtotal
22.1

 
(956.2
)
 
(150.1
)
 
(25.0
)
Total (benefit) provision for income taxes
$
160.5

 
$
(835.5
)
 
$
(33.6
)
 
$
124.2
Schedule of effective income tax rate reconciliation
A reconciliation of the provision based on the Federal statutory income tax rate to our effective income tax rate is as follows:
 
Year Ended
 
Six Months Ended
 
Year Ended
 
December 31,
2017
 
December 31,
2016
 
December 31,
2015
 
June 27,
2015
 
 
 
 
 
 
 
 
Provision at statutory rate
12.5
 %
 
12.5
 %
 
12.5
 %
 
12.5
 %
Ireland tax on non-trading differences
(47.7
)
 
(0.4
)
 
(207.4
)
 
(9.9
)
Expenses not deductible for tax purposes/deductions not expensed for book, net
63.4

 
(0.7
)
 
394.0

 
14.7

Goodwill impairment not deductible for tax purposes
—

 
(2.8
)
 
—

 
—

U.S. Operations:
 
 
 
 
 
 
 
State income taxes, net of federal benefit
(1.4
)
 
0.1

 
38.4

 
(1.0
)
Research and development credit
(0.6
)
 
—

 
(13.2
)
 
(0.7
)
Other
(5.8
)
 
0.4

 
112.3

 
4.8

Tax Law Change - US
5.4

 
—

 
—

 
—

Tax Law Change - Belgium
(3.2
)
 
—

 
—

 
—

Other foreign differences (earnings taxed at other than applicable statutory rate)
(22.7
)
 
3.3

 
(647.2
)
 
(16.1
)
Intangible impairment differences
(3.0
)
 
4.8

 
(397.6
)
 
—

Worldwide operations:
 
 
 
 
 
 
 
Valuation allowance changes
17.8

 
0.8

 
249.3

 
25.7

     Change in unrecognized taxes
25.3

 
(0.8
)
 
82.7

 
17.7

Withholding taxes
17.3

 
—

 
—

 
—

Effective income tax rate
57.3
 %
 
17.2
 %
 
(376.2
)%
 
47.7
 %
    
Schedule of deferred tax assets and liabilities
The components of our net deferred income tax asset (liability) were as follows:
    
 
December 31,
2017
 
December 31,
2016
 
December 31,
2015
Deferred income tax asset (liability):
 
 
 
 
 
Depreciation and amortization
$
(457.8
)
 
$
(765.2
)
 
$
(1,550.6
)
Inventory basis differences
21.3

 
27.4

 
22.8

Accrued liabilities
87.9

 
68.5

 
50.8

Allowance for doubtful accounts
1.5

 
1.7

 
1.3

Research and development
58.9

 
61.7

 
63.7

Loss and credit carryforwards
292.5

 
292.4

 
244.2

Share-based compensation
16.2

 
18.1

 
20.6

Foreign tax credit
—

 
10.6

 
10.6

Federal benefit of unrecognized tax positions
17.0

 
24.3

 
22.8

Interest carryforwards
30.5

 
435.3

 
334.6

Other, net
28.2

 
3.0

 
14.7

Subtotal
$
96.2

 
$
177.8

 
$
(764.5
)
Valuation allowance
(407.7
)
 
(495.6
)
 
(536.8
)
Net deferred income tax asset (liability):
$
(311.5
)
 
$
(317.8
)
 
$
(1,301.3
)

The above amounts are classified on the Consolidated Balance Sheets as follows (in millions):
 
December 31,
2017
 
December 31,
2016
 
December 31,
2015
Assets
$
10.4

 
$
72.1

 
$
71.4

Liabilities
(321.9
)
 
(389.9
)
 
(1,372.7
)
Net deferred income tax (liability) asset
$
(311.5
)
 
$
(317.8
)
 
$
(1,301.3
)
Summary of operating loss carryforwards
At December 31, 2017, we had gross carryforwards as follows:
 
December 31, 2017
 
Gross
Carryforwards(1)
 
Gross Valuation Allowances
U.S. state net operating losses
$
248.5

 
$
203.6

Worldwide federal net operating losses excluding U.S. states
$
1,389.0

 
$
861.6

Worldwide federal capital losses
$
22.0

 
$
22.0

U.S. federal credits
$
82.6

 
$
82.6

U.S. state credits
$
71.9

 
$
71.9

Interest carryforwards
$
478.8

 
$
127.0



(1) Utilization of such carryforwards within the applicable statutory periods is uncertain.
Summary of income tax contingencies
The following table summarizes the activity related to amounts recorded for uncertain tax positions, excluding interest and penalties (in millions):
 
Unrecognized
Tax Benefits
Balance at June 27, 2015
$
324.0

Additions:
 
Positions related to the current year
22.9

Reductions:
 
Positions related to prior years
(43.5
)
Settlements with taxing authorities
(15.3
)
Balance at December 31, 2015
288.1

Additions:
 
Positions related to the current year
45.5

Positions related to prior years
8.6

Reductions:
 
Settlements with taxing authorities
(2.4
)
Lapse of statutes of limitation
(5.3
)
Balance at December 31, 2016
334.5

Additions:
 
Positions related to the current year
55.0

Positions related to prior years
76.6

Reductions:
 
Settlements with taxing authorities
(11.1
)
Lapse of statutes of limitation
(0.1
)
Decrease in prior year positions
(35.2
)
Balance at December 31, 2017
$
419.7