Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Selected Data with Respect to the Company's Income Tax Provision

The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions):



	2019			2018		2017
Income before income taxes:
United States	$	406.7		$	360.8	$	354.7
International	113.8			106.2		88.4
TOTAL INCOME BEFORE INCOME TAXES	$	520.5		$	467.0	$	443.1
Provision for income taxes — current:
Federal	$	65.0		$	12.3	$	164.1
State	16.6			21.8		15.3
International	25.4			17.8		28.1
Total provision — current	107.0			51.9		207.5
Provision for income taxes — deferred:
Federal	8.6			35.0		(10.4		)
State	0.5			9.4		(0.9		)
International	(3.0		)	4.6		(3.0		)
Total provision — deferred	6.1			49.0		(14.3		)
TOTAL PROVISION FOR INCOME TAXES	$	113.1		$	100.9	$	193.2

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions):



	2019			2018
Deferred tax assets:
Inventories	$	10.1		$	6.2
Right-of-use assets	24.8			—
Income tax credits	26.9			24.5
Accrued liabilities	37.8			35.9
Pension	53.4			49.6
Post retirement and post employment benefits	6.0			6.6
Stock-based compensation	9.7			13.1
Loss Carryforwards	21.3			22.2
Miscellaneous other	11.9			8.8
Gross deferred tax assets	201.9			166.9
Valuation allowance	(29.0		)	(21.8		)
Total deferred tax assets, net of valuation allowance	172.9			145.1
Deferred tax liabilities:
Liability on undistributed foreign earnings	(8.6		)	(10.9		)
Goodwill and Intangibles	(212.3		)	(206.4		)
Lease liabilities	(24.2		)	—
Property, plant, and equipment	(48.4		)	(41.4		)
Total deferred tax liabilities	(293.5		)	(258.7		)
TOTAL NET DEFERRED TAX LIABILITY	$	(120.6	)	$	(113.6	)
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Non-current tax assets (included in Other long-term assets)	6.2			6.4
Non-current tax liabilities (included in Other Non-Current Liabilities)	(126.8		)	(120.0		)
TOTAL NET DEFERRED TAX LIABILITY	$	(120.6	)	$	(113.6	)

Summary of Income Tax Examinations

The following tax years, by major jurisdiction, are still subject to examination by taxing authorities:



Jurisdiction	Open Years
United States	2016-2019
UK	2018-2019
Puerto Rico	2015-2019
Canada	2015-2019

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):



	2019			2018			2017
Unrecognized tax benefits at beginning of year	$	38.9		$	29.5		$	20.2
Additions based on tax positions relating to the current year	7.0			3.8			13.6
Reductions based on expiration of statute of limitations	(5.2		)	(1.7		)	(1.4		)
Additions to tax positions relating to previous years	1.6			7.4			1.0
Settlements	(0.4		)	(0.1		)	(3.9		)
TOTAL UNRECOGNIZED TAX BENEFITS	$	41.9		$	38.9		$	29.5

Schedule of Effective Income Tax Rate Reconciliation

The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows:



	2019		2018		2017
Federal statutory income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal benefit	2.8		4.5		1.2
Foreign income taxes	(0.7	)	(1.1	)	(3.1	)
Federal R&D Credit	(1.2	)	(1.0	)	(1.0	)
TCJA and related	—		(1.3	)	12.8
Other, net	(0.2	)	(0.5	)	(1.3	)
CONSOLIDATED EFFECTIVE INCOME TAX RATE	21.7	%	21.6	%	43.6	%