Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income (loss) before income taxes and noncontrolling interest

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

	Years ended December 31
In millions	2018			2017			2016
Federal (1)	$	(24.6	)	$	(34.1	)	$	(25.6	)
International (2)	404.4			206.9			246.5
Income from continuing operations before income taxes	$	379.8		$	172.8		$	220.9

⁽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.

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended December 31
In millions	2018			2017			2016
Currently payable (receivable)
Federal (1)	$	(0.1	)	$	—		$	—
International (2)	62.3			76.7			41.5
Total current taxes	62.2			76.7			41.5
Deferred
Federal (1)	—			—			—
International (2)	(4.1		)	(18.0		)	1.2
Total deferred taxes	(4.1		)	(18.0		)	1.2
Total provision for income taxes	$	58.1		$	58.7		$	42.7

⁽¹⁾  “Federal” represents U.K. taxes.

⁽²⁾  “International” represents non-U.K. taxes.

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

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

	Years ended December 31
Percentages	2018		2017		2016
U.K. federal statutory income tax rate	19.0	%	19.3	%	20.0	%
Tax effect of international operations (1)	(12.0	)	(20.8	)	(26.5	)
Change in valuation allowances	7.9		27.6		22.1
Withholding taxes	0.3		0.4		1.8
Interest limitations	1.8		1.7		1.5
Excess tax benefits on stock-based compensation	(1.7	)	(4.5	)	—
Tax effect of U.S. tax reform	(0.9	)	1.3		—
Tax effect of early extinguishment of debt	0.9		9.0		—
Other	—		—		0.4
Effective tax rate	15.3	%	34.0	%	19.3	%

⁽¹⁾  The tax effect of international operations consists of non-U.K. jurisdictions.

Reconciliations of Gross Unrecognized Tax Benefits

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

	Years ended December 31
In millions	2018			2017			2016
Beginning balance	$	13.8		$	46.3		$	25.0
Gross increases for tax positions in prior periods	44.0			4.7			26.9
Gross decreases for tax positions in prior periods	(4.4		)	(3.4		)	(2.2		)
Gross increases based on tax positions related to the current year	0.9			0.7			0.8
Gross decreases related to settlements with taxing authorities	(1.8		)	(33.6		)	(3.4		)
Reductions due to statute expiration	(1.1		)	(0.9		)	(0.8		)
Ending balance	$	51.4		$	13.8		$	46.3

W

Deferred Taxes

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

	December 31
In millions	2018		2017
Other non-current assets	$	26.2	$	29.0
Deferred tax liabilities	105.9		108.6
Net deferred tax liabilities	$	79.7	$	79.6

T

Tax Effects of Major Items Recorded as Deferred Tax Assets and Liabilities

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

	December 31
In millions	2018		2017
Deferred tax assets
Accrued liabilities and reserves	$	42.9	$	43.9
Pension and other post-retirement compensation and benefits	25.2		35.7
Employee compensation and benefits	21.8		39.2
Tax loss and credit carryforwards	724.7		670.5
Other assets	4.4		—
Total deferred tax assets	819.0		789.3
Valuation allowance	711.9		656.2
Deferred tax assets, net of valuation allowance	107.1		133.1
Deferred tax liabilities
Property, plant and equipment	7.1		3.7
Goodwill and other intangibles	179.7		190.6
Other liabilities	—		18.4
Total deferred tax liabilities	186.8		212.7
Net deferred tax liabilities	$	79.7	$	79.6

In