Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income before income taxes for the three years ended December 31, 2018 was (in millions):

Income tax expense (benefit) for the three years ended December 31, 2018 was (in millions):

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



	2018		2017		2016
Statutory U.S. federal income tax rate	21.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	1.5		1.3		0.9
Effect of Tax Act	1.6		5.6		—
International tax rate differentials	1.1		(3.8	)	(4.0	)
Other	0.4		(1.2	)	0.7
Effective tax rate	25.6	%	36.9	%	32.6	%

The components of deferred tax assets and liabilities at December 31, 2018 and 2017 were (in millions):



	2018			2017
Deferred tax assets:
Compensation	$	209.7		$	173.7
Tax loss and credit carryforwards	38.1			40.3
Basis differences from acquisitions	13.9			18.0
Basis differences from short-term assets and liabilities	35.7			39.5
Other	10.8			17.8
Deferred tax assets	308.2			289.3
Valuation allowance	(3.0		)	(3.3		)
Net deferred tax assets	$	305.2		$	286.0
Deferred tax liabilities:
Goodwill and intangible assets	$	577.5		$	562.2
Unremitted foreign earnings	69.2			94.9
Basis differences from investments	9.6			9.8
Financial instruments	0.8			41.4
Deferred tax liabilities	$	657.1		$	708.3

Long-term deferred tax assets	$	61.8		$	61.3

Long-term deferred tax liabilities	$	413.7		$	483.6

A reconciliation of our unrecognized tax benefits at December 31, 2018 and 2017 is (in millions):



	2018			2017
January 1	$	173.7		$	116.9
Additions:
Current year tax positions	30.1			67.1
Prior year tax positions	5.2			5.5
Reduction of prior year tax positions	(25.4		)	(16.5		)
Foreign currency translation	(0.8		)	0.7
December 31	$	182.8		$	173.7