Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

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



	2018			2017			2016
Domestic	$	(300.9	)	$	(212.6	)	$	(219.2	)
Foreign	(214.7		)	20.7			(29.5		)
Total	$	(515.6	)	$	(191.9	)	$	(248.7	)

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:



	2018			2017			2016
Current
U.S. federal	$	0.8		$	(5.9	)	$	(68.6	)
Foreign	49.0			72.9			54.0
State and local	1.9			1.7			(10.6		)
Total current	51.7			68.7			(25.2		)
Deferred
U.S. federal	4.6			7.6			3.6
Foreign	(19.8		)	(44.9		)	(50.2		)
State and local	0.7			(3.1		)	2.8
Total deferred	(14.5		)	(40.4		)	(43.8		)
Income tax expense (benefit)	$	37.2		$	28.3		$	(69.0	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) attributable to loss from continuing operations before taxes differed from the amounts computed by applying the U.S. federal income tax rate of 21 percent to pre-tax loss from continuing operations for year ended December 31, 2018 as a result of the Tax Act. The applicable U.S. federal rate of 35 percent to pre-tax loss from continuing operations was used for the years ended December 31, 2017 and 2016. The following table presents these differences for the years ended December 31:



	2018			2017			2016
Statutory tax benefit	$	(108.3	)	$	(67.2	)	$	(87.0	)
Brazil non-taxable incentive	(3.8		)	(3.9		)	(5.8		)
Valuation allowances	80.6			10.5			14.9
Goodwill impairment	41.8			—			—
Foreign tax rate differential	(33.7		)	(31.5		)	(10.0		)
Foreign subsidiary earnings	4.9			14.4			13.7
Accrual adjustments	3.1			4.1			1.1
Tax Act - rate impact on deferred tax balance	(2.5		)	45.1			—
Tax Act - deemed repatriation tax	32.6			36.6			—
Business tax credits	(1.1		)	(0.6		)	(0.7		)
Non-deductible (non-taxable) items	18.9			22.1			4.5
Other	4.7			(1.3		)	0.3
Income tax expense (benefit)	$	37.2		$	28.3		$	(69.0	)

Summary of Income Tax Contingencies

Details of the unrecognized tax benefits are as follows:



	2018			2017
Balance at January 1	$	48.4		$	43.2
Increases (decreases) related to prior year tax positions, net	(1.5		)	6.1
Increases related to current year tax positions	4.8			7.5
Settlements	(1.5		)	(1.8		)
Reductions due to lapse of applicable statute of limitations	(0.7		)	(6.6		)
Balance at December 31	$	49.5		$	48.4

Schedule of Deferred Tax Assets and Liabilities

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



	2018			2017
Deferred tax assets
Accrued expenses	$	64.0		$	43.0
Warranty accrual	6.7			13.5
Deferred compensation	9.6			10.6
Allowances for doubtful accounts	3.2			3.8
Inventories	23.9			14.4
Deferred revenue	28.6			38.1
Pensions, post-retirement and other benefits	76.9			82.6
Tax credits	74.1			81.9
Net operating loss carryforwards (NOL's)	160.0			125.9
Capital loss carryforwards	2.6			2.6
State deferred taxes	19.8			17.4
Other	—			0.8
	469.4			434.6
Valuation allowances	(175.4		)	(105.6		)
Net deferred tax assets	$	294.0		$	329.0

Deferred tax liabilities
Property, plant and equipment, net	$	3.5		$	1.2
Goodwill and intangible assets	245.9			302.8
Undistributed earnings	20.6			16.0
Other	1.7			2.3
Net deferred tax liabilities	271.7			322.3
Net deferred tax asset	$	22.3		$	6.7

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:



	2018			2017
Deferred income taxes - assets	$	243.9		$	293.8
Deferred income taxes - liabilities	(221.6		)	(287.1		)
Net deferred tax asset	$	22.3		$	6.7