Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Before Income Taxes

Income before income taxes for the three years ended December 31, 2013 was (in millions):

	2013		2012		2011
Domestic	$	629.4	$	683.5	$	581.0
International	1,031.5		976.1		968.0
	$	1,660.9	$	1,659.6	$	1,549.0

Income Tax Expense

Income tax expense (benefit) for the three years ended December 31, 2013 was (in millions):

	2013			2012			2011
Current:
Federal	$	246.3		$	163.3		$	158.6
State and local	30.6			40.1			14.4
International	336.5			298.3			239.5
	613.4			501.7			412.5
Deferred:
Federal	0.3			41.7			83.6
State and local	(3.6		)	4.7			4.9
International	(44.9		)	(21.0		)	4.8
	(48.2		)	25.4			93.3
	$	565.2		$	527.1		$	505.8

Reconciliation from the Statutory U.S. Federal Income Tax Rate to Effective Tax Rate

The reconciliation from the statutory U.S. federal income tax rate to our effective tax rate is:

	2013		2012		2011
Statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	1.0		1.7		0.8
Reduction of tax on unremitted foreign earnings due to     legal reorganization	—		(1.3	)	—
Remeasurement gain Clemenger Group, tax rate differential	—		—		(2.6	)
International tax rate differentials	(3.0	)	(3.3	)	(1.4	)
Other	1.0		(0.3	)	0.9
Effective tax rate	34.0	%	31.8	%	32.7	%

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities at December 31, 2013 and 2012 were (in millions):

	2013			2012
Deferred tax assets:
Compensation and severance	$	269.8		$	283.0
Tax loss and credit carryforwards	149.1			176.1
Basis differences from acquisitions	28.7			20.7
Basis differences from short-term assets and liabilities	28.2			31.8
Other	53.2			44.2
Deferred tax assets	529.0			555.8
Valuation allowance	(56.8		)	(47.8		)
Net deferred tax assets	$	472.2		$	508.0
Deferred tax liabilities:
Goodwill and intangible assets	$	673.3		$	635.2
Financial instruments	421.8			508.7
Unremitted foreign earnings	114.5			124.7
Basis differences from investments	(5.7		)	12.2
Deferred tax liabilities	$	1,203.9		$	1,280.8
Net deferred tax assets (liabilities)	$	(731.7	)	$	(772.8	)

Net Deferred Tax Assets and (Liabilities) as Classified in the Balance Sheet

Our net deferred tax assets and liabilities at December 31, 2013 and 2012, were classified as follows (in millions):

	2013			2012
Other current assets - Deferred taxes	$	100.9		$	160.2
Long-term deferred tax liabilities	(832.6		)	(933.0		)
	$	(731.7	)	$	(772.8	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of our unrecognized tax benefits at December 31, 2013 and 2012 is (in millions):

	2013			2012
Balance January 1	$	188.6		$	157.8
Additions:
Current year tax positions	5.1			17.1
Prior year tax positions	0.4			27.3
Reduction of prior year tax positions	(31.4		)	(7.9		)
Settlements	(24.6		)	(0.2		)
Lapse of statute of limitations	(0.2		)	(6.0		)
Foreign currency translation	(0.1		)	0.5
Balance December 31	$	137.8		$	188.6