Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

The following table presents components of income (loss) from continuing operations before taxes for the years ended December 31:



	2017			2016			2015
Domestic	$	(208.5	)	$	(215.2	)	$	(56.6	)
Foreign	32.8			(23.1		)	102.4
Total	$	(175.7	)	$	(238.3	)	$	45.8

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax (benefit) expense for the years ended December 31:



	2017			2016			2015
Current
U.S. federal	$	(4.4	)	$	(67.2	)	$	(2.0	)
Foreign	72.9			54.0			38.2
State and local	1.7			(10.6		)	(0.6		)
Total current	70.2			(23.8		)	35.6
Deferred
U.S. federal	7.6			3.6			(38.3		)
Foreign	(44.9		)	(50.2		)	(11.1		)
State and local	(3.1		)	2.8			0.1
Total deferred	(40.4		)	(43.8		)	(49.3		)
Income tax (benefit) expense	$	29.8		$	(67.6	)	$	(13.7	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax (benefit) expense attributable to income (loss) from continuing operations before taxes differed from the amounts computed by applying the U.S. federal income tax rate of 35 percent to pre-tax income (loss) from continuing operations. The following table presents these differences for the years ended December 31:



	2017			2016			2015
Statutory tax (benefit) expense	$	(61.5	)	$	(83.4	)	$	16.0
Brazil non-taxable incentive	(3.9		)	(5.8		)	(4.2		)
Valuation allowance	10.5			14.9			(0.7		)
Foreign tax rate differential	(31.5		)	(10.0		)	(19.4		)
Foreign subsidiary earnings	14.4			13.7			(9.1		)
Accrual adjustments	4.1			1.1			1.5
U.S. tax reform - rate impact on deferred tax balance	45.1			—			—
U.S. tax reform - deemed repatriation tax	36.6			—			—
Business tax credits	(0.6		)	(0.7		)	(1.4		)
Non-deductible (non-taxable) items	17.9			2.3			4.2
Other	(1.3		)	0.3			(0.6		)
Income tax (benefit) expense	$	29.8		$	(67.6	)	$	(13.7	)

Summary of Income Tax Contingencies

Details of the unrecognized tax benefits are as follows:



	2017			2016
Balance at January 1	$	43.2		$	13.1
Acquired uncertain tax positions	—			28.5
Increases related to prior year tax positions, net	6.1			6.3
Increases related to current year tax positions	7.5			2.5
Settlements	(1.8		)	(3.4		)
Reductions due to lapse of applicable statute of limitations	(6.6		)	(3.8		)
Balance at December 31	$	48.4		$	43.2

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities at December 31 are as follows:



	2017			2016
Deferred tax assets
Accrued expenses	$	43.0		$	74.5
Warranty accrual	13.5			19.7
Deferred compensation	10.6			16.2
Allowances for doubtful accounts	3.8			10.3
Inventories	14.4			26.1
Deferred revenue	38.1			19.1
Pensions, post-retirement and other benefits	82.6			92.3
Tax credits	81.9			52.1
Net operating loss carryforwards	125.9			88.4
Capital loss carryforwards	2.6			1.8
State deferred taxes	17.4			17.1
Other	0.8			0.5
	434.6			418.1
Valuation allowance	(105.6		)	(87.8		)
Net deferred tax assets	$	329.0		$	330.3

Deferred tax liabilities
Property, plant and equipment, net	$	1.2		$	39.7
Goodwill and intangible assets	302.8			271.5
Partnership interest	—			3.7
Undistributed earnings	16.0			6.5
Other	2.3			—
Net deferred tax liabilities	322.3			321.4
Net deferred tax asset	$	6.7		$	8.9

Schedule of Deferred Income Taxes by Balance Sheet Account

Deferred income taxes reported in the consolidated balance sheets as of December 31 are as follows:



	2017			2016
Deferred income taxes - assets	$	293.8		$	309.5
Deferred income taxes - liabilities	(287.1		)	(300.6		)
Net deferred tax asset	$	6.7		$	8.9