INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Income before income taxes

(millions)	2018		2017		2016
United States		$728.3		$847.3		$655.7
International		1,076.3		915.1		993.7
Total		$1,804.6		$1,762.4		$1,649.4

Provision (benefit) for income taxes

(millions)	2018		2017		2016
Federal and state		$103.5		$241.8		$224.2
International		175.7		355.1		269.7
Total current		279.2		596.9		493.9
Federal and state		51.8		(331.4)		(49.6)
International		33.3		(21.7)		(41.4)
Total deferred		85.1		(353.1)		(91.0)
Provision for income taxes		$364.3		$243.8		$402.9

Net deferred tax assets and deferred tax liabilities

December 31 (millions)	2018		2017
Deferred tax assets
Other accrued liabilities		$130.9		$122.8
Loss carryforwards		217.2		67.3
Share-based compensation		60.5		58.9
Pension and other comprehensive income		145.8		195.2
Other, net		68.5		132.7
Valuation allowance		(184.4)		(21.3)
Total		438.5		555.6
Deferred tax liabilities
Property, plant and equipment basis differences		(268.5)		(178.4)
Intangible assets		(783.3)		(844.0)
Other, net		(46.2)		(63.2)
Total		(1,098.0)		(1,085.6)
Net deferred tax liabilities balance		$(659.5)		$(530.0)

Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate

	2018		2017		2016
Statutory U.S. rate	21.0	%	35.0	%	35.0	%
One-time transition tax	3.7		9.1		-
State income taxes, net of federal benefit	1.2		0.4		0.9
Foreign operations	(13.5)		(7.4)		(8.0)
Domestic manufacturing deduction	-		(2.2)		(2.0)
R&D credit	(1.0)		(1.0)		(1.1)
Change in valuation allowance	9.1		0.2		(0.7)
Audit settlements and refunds	(0.8)		(0.1)		(0.2)
Excess stock benefits	(1.6)		(2.3)		-
Change in federal tax rate (deferred taxes)	(0.6)		(18.2)		-
Prior year adjustments	2.5		-		-
Worthless stock deduction	-		-		0.4
Other, net	0.2		0.3		0.1
Effective income tax rate	20.2	%	13.8	%	24.4	%

Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits

(millions)	2018		2017		2016
Balance at beginning of year		$61.5		$75.9		$74.6
Additions based on tax positions related to the current year		3.0		3.2		8.8
Additions for tax positions of prior years		2.0		-		2.1
Reductions for tax positions of prior years		(8.7)		(4.9)		(1.0)
Reductions for tax positions due to statute of limitations		(5.8)		(14.0)		(5.5)
Settlements		(0.8)		(10.8)		(2.0)
Assumed in connection with acquisitions		-		10.0		-
Foreign currency translation		(1.5)		2.1		(1.1)
Balance at end of year		$49.7		$61.5		$75.9