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INCOME TAXES INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consisted of the following:


(In millions)	2019		2018		2017
Domestic	$	55.5	$	54.7	$	47.1
Foreign	61.3		65.7		57.5
	$	116.8	$	120.4	$	104.6

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision/(benefit) from continuing operations consisted of the following:


(In millions)	2019		2018		2017
Current:
Federal	$	6.9	$	4.6	$	29.7
Foreign	15.1		14.3		10.2
State	1.4		1.2		1.1
Total current	23.4		20.1		41.0
Deferred:
Federal	(0.6)		3.6		(10.7)
Foreign	(2.5)		(2.6)		(4.5)
State	0.5		(6.2)		0.2
Total deferred	$	(2.6)	$	(5.2)	$	(15.0)
	$	20.8	$	14.9	$	26.0

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:


	2019		2018		2017
U.S. Federal statutory rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal benefit	1.1		1.1		1.0
Foreign operations	(1.0)		(3.5)		(10.2)
R&D tax credits	(0.8)		(0.7)		(0.9)
Uncertain tax position adjustments	(0.6)		(0.5)		(0.5)
Deferred tax adjustments - restructuring and rate adjustments	—		—		(1.2)
Valuation allowance on state and foreign deferred tax	0.4		(2.4)		(1.2)
Purchase of noncontrolling interest	—		—		(2.3)
Share-based compensation	(0.8)		(1.3)		(1.9)
Realized foreign currency loss	(0.4)		(0.1)		(1.5)
Other items	0.9		0.9		(1.3)
Impact of the Tax Act
Transition tax	—		0.5		18.1
Deferred tax effects	—		(0.3)		(8.3)
Foreign Derived Intangible Income	(2.0)		(2.3)		—
Effective tax rate	17.8	%	12.4	%	24.8	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows:


(In millions)	2019		2018
Deferred tax assets:
Accrued expenses and reserves	$	10.1	$	9.4
Compensation and employee benefits	17.7		16.2
Net operating losses, tax credit carryforwards, and other	18.8		18.1
Lease liability	7.0		—
Valuation allowance on state and foreign deferred tax	(6.4)		(6.8)
Total deferred tax assets	47.2		36.9
Deferred tax liabilities:
Accelerated depreciation on fixed assets	11.9		12.2
Amortization of intangibles	46.5		45.0
Right-of-Use asset, net	7.0		—
Other items	0.2		—
Total deferred tax liabilities	65.6		57.2
Net deferred tax liabilities	$	(18.4)	$	(20.3)

Summary of Operating Loss Carryforwards

The Company has foreign income tax net operating loss (“NOL”) and credit carryforwards of $12.0 million and state income tax NOL and credit carryforwards of $6.8 million, which will expire on various dates as follows:


(In millions)
2020-2024	$	2.6
2025-2029	4.2
2030-2034	1.9
2035-2039	0.6
Unlimited	9.5
	$	18.8

Schedule of Unrecognized Tax Benefits Rollforward

As of the beginning of fiscal year 2019, the Company had gross unrecognized tax benefits of $1.1 million, excluding accrued interest and penalties. The unrecognized tax benefits increased due to uncertain tax positions identified in the current year based on evaluations made during 2019. The Company had gross unrecognized tax benefits, excluding accrued interest and penalties, of $0.4 million as of December 31, 2019.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2019, 2018, and 2017 (excluding interest and penalties) is as follows:


(In millions)	2019		2018		2017
Beginning balance	$	1.1	$	1.3	$	1.3
Additions for tax positions of the current year	—		—		0.4
Additions for tax positions of prior years	—		0.3		0.2
Reductions for tax positions of prior years	(0.4)		—		—
Statute expirations	(0.3)		(0.5)		(0.6)
Settlements	—		—		—
Ending balance	$	0.4	$	1.1	$	1.3