Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Income Before Income Taxes

Income before income taxes for the three years ended December 31, 2014 was (in millions):

	2014		2013		2012
Domestic	$	739.9	$	629.4	$	683.5
International	1,070.1		1,031.5		976.1
	$	1,810.0	$	1,660.9	$	1,659.6

Income Tax Expense

Income tax expense (benefit) for the three years ended December 31, 2014 was (in millions):

	2014			2013			2012
Current:
Federal	$	356.1		$	246.3		$	163.3
State and local	38.1			30.6			40.1
International	344.8			336.5			298.3
	739.0			613.4			501.7
Deferred:
Federal	(106.4		)	0.3			41.7
State and local	(2.3		)	(3.6		)	4.7
International	(37.2		)	(44.9		)	(21.0		)
	(145.9		)	(48.2		)	25.4
	$	593.1		$	565.2		$	527.1

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:

	2014		2013		2012
Statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	1.3		1.0		1.7
Reduction of tax on unremitted foreign earnings due to     legal reorganization	—		—		(1.3	)
International tax rate differentials	(3.3	)	(3.0	)	(3.3	)
Other	(0.2	)	1.0		(0.3	)
Effective tax rate	32.8	%	34.0	%	31.8	%

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities at December 31, 2014 and 2013 were (in millions):

	2014			2013
Deferred tax assets:
Compensation and severance	$	311.9		$	269.8
Tax loss and credit carryforwards	95.6			149.1
Basis differences from acquisitions	38.0			28.7
Basis differences from short-term assets and liabilities	27.8			28.2
Other	33.0			53.2
Deferred tax assets	506.3			529.0
Valuation allowance	(34.1		)	(56.8		)
Net deferred tax assets	$	472.2		$	472.2
Deferred tax liabilities:
Goodwill and intangible assets	$	706.1		$	673.3
Financial instruments	263.1			421.8
Unremitted foreign earnings	51.1			114.5
Basis differences from investments	(4.2		)	(5.7		)
Deferred tax liabilities	$	1,016.1		$	1,203.9
Net deferred tax assets (liabilities)	$	(543.9	)	$	(731.7	)

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

Our net deferred tax assets and (liabilities) at December 31, 2014 and 2013, were classified as follows (in millions):

	2014			2013
Other current assets - deferred taxes	$	110.8		$	100.9
Long-term deferred tax liabilities	(654.7		)	(832.6		)
	$	(543.9	)	$	(731.7	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of our unrecognized tax benefits at December 31, 2014 and 2013 is (in millions):

	2014			2013
January 1	$	137.8		$	188.6
Additions:
Current year tax positions	6.0			5.1
Prior year tax positions	1.0			0.4
Reduction of prior year tax positions	0.5			(31.4		)
Settlements	(0.8		)	(24.6		)
Lapse of statute of limitations	(2.9		)	(0.2		)
Foreign currency translation	(1.8		)	(0.1		)
December 31	$	139.8		$	137.8