Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income before income taxes for the three years ended December 31, 2017 was (in millions):

Income tax expense (benefit) for the three years ended December 31, 2017 was (in millions):

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



	2017		2016		2015
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		0.9		1.5
Effect of Tax Act	5.6		—		—
International tax rate differentials	(3.8	)	(4.0	)	(3.7	)
Other	(1.2	)	0.7		—
Effective tax rate	36.9	%	32.6	%	32.8	%

The components of deferred tax assets and liabilities at December 31, 2017 and 2016 were (in millions):



	2017			2016
Deferred tax assets:
Compensation	$	173.7		$	307.5
Tax loss and credit carryforwards	40.3			88.5
Basis differences from acquisitions	18.0			24.3
Basis differences from short-term assets and liabilities	39.5			36.2
Other	17.8			18.7
Deferred tax assets	289.3			475.2
Valuation allowance	(3.3		)	(3.0		)
Net deferred tax assets	$	286.0		$	472.2
Deferred tax liabilities:
Goodwill and intangible assets	$	562.2		$	802.7
Unremitted foreign earnings	94.9			15.9
Financial instruments	41.4			132.3
Basis differences from investments	9.8			1.8
Deferred tax liabilities	$	708.3		$	952.7

Long-term deferred tax assets	$	61.3		$	—

Long-term deferred tax liabilities	$	483.6		$	480.5

A reconciliation of our unrecognized tax benefits at December 31, 2017 and 2016 is (in millions):



	2017			2016
January 1	$	116.9		$	113.0
Additions:
Current year tax positions	67.1			20.0
Prior year tax positions	5.5			6.5
Reduction of prior year tax positions	(16.5		)	(21.9		)
Settlements	—			(0.7		)
Foreign currency translation	0.7			—
December 31	$	173.7		$	116.9