Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Income Before Income Taxes

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

	Year Ended December 31,
	2020		2019		2018
Domestic	$	711.1	$	913.1	$	643.7
International	698.2		1,025.2		1,280.6
	$	1,409.3	$	1,938.3	$	1,924.3

Income Tax Expense

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

	Year Ended December 31,
	2020		2019		2018
Current:
U.S. federal	$	172.2	$	180.2	$	273.8
U.S. state and local	39.5		33.9		35.5
International	189.1		306.9		305.2
	400.8		521.0		614.5
Deferred:
U.S. federal	(17.4)		19.1		(104.2)
U.S. state and local	(6.1)		(22.5)		2.8
International	4.4		(13.2)		(20.4)
	(19.1)		(16.6)		(121.8)
	$	381.7	$	504.4	$	492.7

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:

	2020		2019		2018
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
U.S. state and local income taxes, net of U.S. federal income tax benefit	2.2		0.5		1.6
Effect of Tax Act	—		—		1.5
Impact of foreign operations	3.4		4.5		3.8
Other	0.5		—		(2.3)
Effective tax rate	27.1	%	26.0	%	25.6	%

Components of Deferred Tax Assets and Liabilities

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

	December 31,
	2020		2019
Deferred tax assets:
Compensation	$	236.5	$	210.9
Tax loss and credit carryforwards	67.0		60.6
Basis differences from acquisitions	20.8		22.9
Basis differences from short-term assets and liabilities	34.4		42.2
Other	(5.8)		4.6
Deferred tax assets	352.9		341.2
Valuation allowance	(15.9)		(7.6)
Net deferred tax assets	$	337.0	$	333.6
Deferred tax liabilities:
Goodwill and intangible assets	$	611.1	$	598.0
Unremitted foreign earnings	91.9		69.0
Basis differences from investments	(1.1)		9.0
Financial instruments	0.8		0.9
Deferred tax liabilities	$	702.7	$	676.9
Long-term deferred tax assets	$	77.8	$	64.8
Long-term deferred tax liabilities	$	443.5	$	408.1

Reconciliation of Unrecognized Tax Benefits

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

	December 31,
	2020		2019
January 1	$	206.8	$	182.8
Additions:
Current year tax positions	3.9		12.3
Prior year tax positions	2.8		29.4
Reduction of prior year tax positions	(26.1)		(13.1)
Settlements	(2.5)		(5.0)
Foreign currency translation	(2.0)		0.4
December 31	$	182.9	$	206.8