Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income from continuing operations before income taxes consisted of the following:



	Years ended December 31
In millions	2017			2016			2015
Federal ⁽¹⁾	$	(32.8	)	$	(25.6	)	$	(21.8	)
International ⁽²⁾	522.0			586.6			534.3
Income from continuing operations before income taxes	$	489.2		$	561.0		$	512.5


(1)	"Federal" reflects United Kingdom ("U.K.") income from continuing operations before income taxes.


(2)	"International" reflects non-U.K. income from continuing operations before income taxes.

The provision for income taxes consisted of the following:



	Years ended December 31
In millions	2017			2016			2015
Currently payable
Federal ⁽¹⁾	$	0.5		$	(0.1	)	$	—
International ⁽²⁾	183.8			125.6			117.7
Total current taxes	184.3			125.5			117.7
Deferred
Federal ⁽¹⁾	—			(0.4		)	1.2
International ⁽²⁾	(175.1		)	(15.7		)	(3.5		)
Total deferred taxes	(175.1		)	(16.1		)	(2.3		)
Total provision for income taxes	$	9.2		$	109.4		$	115.4


(1)	"Federal" represents U.K. taxes.


(2)	"International" represents non-U.K. taxes.

Reconciliations of the federal statutory income tax rate to our effective tax rate were as follows:



	Years ended December 31
Percentages	2017		2016		2015
Federal statutory income tax rate ⁽¹⁾	19.3		20.0		20.3
Tax effect of international operations ⁽²⁾	(11.3	)	(11.8	)	(6.5	)
Change in valuation allowances	8.0		9.7		6.9
Withholding taxes	0.4		0.9		0.6
Interest limitations	0.6		0.6		0.7
Non-deductible transaction costs	0.7		0.1		0.5
Excess tax benefits on stock-based compensation	(1.7	)	—		—
Tax effect of U.S. tax reform	(17.3	)	—		—
Tax effect of early extinguishment of debt	3.2		—		—
Effective tax rate	1.9		19.5		22.5


(1)	The statutory rate for 2017, 2016 and 2015 reflects the U.K. statutory rate of 19.3%, 20.0% and 20.3%, respectively.


(2)	The tax effect of international operations consists of non-U.K. jurisdictions.

Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:



	Years ended December 31
In millions	2017			2016			2015
Beginning balance	$	71.1		$	45.6		$	40.3
Gross increases for tax positions in prior periods	5.3			27.4			4.7
Gross decreases for tax positions in prior periods	(5.0		)	(4.8		)	(1.5		)
Gross increases based on tax positions related to the current year	1.8			2.0			1.3
Gross decreases related to settlements with taxing authorities	(35.7		)	(3.4		)	(1.9		)
Reductions due to statute expiration	(2.2		)	(0.8		)	(1.4		)
Gross (decreases) increases due to currency fluctuations	1.3			(0.2		)	(2.5		)
Gross increases due to acquisitions	—			5.3			6.6
Ending balance	$	36.6		$	71.1		$	45.6

Deferred taxes were recorded in the Consolidated Balance Sheets as follows:



	December 31
In millions	2017		2016
Other non-current assets	43.0		39.0
Deferred tax liabilities	394.8		609.5
Net deferred tax liabilities	$	351.8	$	570.5

The tax effects of the major items recorded as deferred tax assets and liabilities were as follows:



	December 31
In millions	2017		2016
Deferred tax assets
Accrued liabilities and reserves	$	55.2	$	83.2
Pension and other post-retirement compensation and benefits	53.8		48.9
Employee compensation and benefits	43.5		76.6
Tax loss and credit carryforwards	811.7		391.0
Total deferred tax assets	964.2		599.7
Valuation allowance	792.4		380.8
Deferred tax assets, net of valuation allowance	171.8		218.9
Deferred tax liabilities
Property, plant and equipment	16.5		23.6
Goodwill and other intangibles	484.7		733.7
Other liabilities	22.4		32.1
Total deferred tax liabilities	523.6		789.4
Net deferred tax liabilities	$	351.8	$	570.5