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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income before income taxes for the three years ended December 31, 2016 was (in millions):

Income tax expense (benefit) for the three years ended December 31, 2016 was (in millions):

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



	2016		2015		2014
Statutory U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	0.9		1.5		1.3
International tax rate differentials	(4.0	)	(3.7	)	(3.3	)
Other	0.7		—		(0.2	)
Effective tax rate	32.6	%	32.8	%	32.8	%

The components of deferred tax assets and liabilities at December 31, 2016 and 2015 were (in millions):



	2016			2015
Deferred tax assets:
Compensation	$	307.5		$	293.8
Tax loss and credit carryforwards	88.5			113.3
Basis differences from acquisitions	24.3			37.1
Basis differences from short-term assets and liabilities	36.2			27.2
Other	18.7			26.9
Deferred tax assets	475.2			498.3
Valuation allowance	(3.0		)	(35.3		)
Net deferred tax assets	$	472.2		$	463.0
Deferred tax liabilities:
Goodwill and intangible assets	$	802.7		$	729.5
Financial instruments	132.3			197.3
Unremitted foreign earnings	15.9			9.9
Basis differences from investments	1.8			(4.6		)
Deferred tax liabilities	$	952.7		$	932.1

Net deferred tax liabilities	$	480.5		$	469.1

A reconciliation of our unrecognized tax benefits at December 31, 2016 and 2015 is (in millions):



	2016			2015
January 1	$	113.0		$	139.8
Additions:
Current year tax positions	20.0			5.8
Prior year tax positions	6.5			0.2
Reduction of prior year tax positions	(21.9		)	(25.1		)
Settlements	(0.7		)	(6.0		)
Foreign currency translation	—			(1.7		)
December 31	$	116.9		$	113.0