Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Income Before Income Taxes

The components of income before income taxes were (in millions):

	Year Ended December 31,
	2019		2018		2017
Domestic	$	913.1	$	643.7	$	832.4
International	1,025.2		1,280.6		1,052.5
	$	1,938.3	$	1,924.3	$	1,884.9

Income Tax Expense

Income tax expense (benefit) was (in millions):

	Year Ended December 31,
	2019		2018		2017
Current:
U.S. federal	$	180.2	$	273.8	$	458.8
U.S. state and local	33.9		35.5		36.5
International	306.9		305.2		280.2
	521.0		614.5		775.5
Deferred:
U.S. federal	19.1		(104.2)		(205.5)
U.S. state and local	(22.5)		2.8		11.1
International	(13.2)		(20.4)		115.1
	(16.6)		(121.8)		(79.3)
	$	504.4	$	492.7	$	696.2

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:

	2019		2018		2017
Statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
U.S. state and local income taxes, net of U.S. federal income tax benefit	0.5		1.6		1.3
Effect of Tax Act	—		1.5		5.6
International tax rate differentials	4.5		3.8		(3.8)
Other	—		(2.3)		(1.2)
Effective tax rate	26.0	%	25.6	%	36.9	%

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities and balance sheet classification were (in millions):

	December 31,
	2019		2018
Deferred tax assets:
Compensation	$	210.9	$	209.7
Tax loss and credit carryforwards	60.6		38.1
Basis differences from acquisitions	22.9		13.9
Basis differences from short-term assets and liabilities	42.2		35.7
Other	4.6		10.8
Deferred tax assets	341.2		308.2
Valuation allowance	(7.6)		(3.0)
Net deferred tax assets	$	333.6	$	305.2
Deferred tax liabilities:
Goodwill and intangible assets	$	598.0	$	577.5
Unremitted foreign earnings	69.0		69.2
Basis differences from investments	9.0		9.6
Financial instruments	0.9		0.8
Deferred tax liabilities	$	676.9	$	657.1
Long-term deferred tax assets	$	64.8	$	61.8
Long-term deferred tax liabilities	$	408.1	$	413.7

Reconciliation of Unrecognized Tax Benefits

A reconciliation of our unrecognized tax benefits is (in millions):

	December 31,
	2019		2018
January 1	$	182.8	$	173.7
Additions:
Current year tax positions	12.3		30.1
Prior year tax positions	29.4		5.2
Reduction of prior year tax positions	(13.1)		(25.4)
Settlements	(5.0)		—
Foreign currency translation	0.4		(0.8)
December 31	$	206.8	$	182.8