XML 27 R43.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes
The components of income (loss) before income taxes for the years ended December 31, (in millions):
 
 
2019
 
2018
 
2017
Domestic
 
$
(1,248.7
)
 
$
(8,099.1
)
 
$
(104.9
)
Foreign
 
397.1

 
107.4

 
1,024.2

Total
 
$
(851.6
)
 
$
(7,991.7
)
 
$
919.3
Schedule of Provision for Income Taxes
The provision for income taxes consists of the following for the years ended December 31, (in millions):
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
8.6

 
$
121.4

 
$
272.1

State
10.6

 
31.0

 
21.4

Foreign
42.0

 
203.5

 
168.5

Total current
61.2

 
355.9

 
462.0

Deferred:
 
 
 
 
 
Federal
(354.5
)
 
(1,035.3
)
 
(1,733.3
)
State
(63.2
)
 
(283.3
)
 
28.5

Foreign
(650.2
)
 
(266.7
)
 
(77.0
)
Total deferred
(1,067.9
)
 
(1,585.3
)
 
(1,781.8
)
Total income tax benefit
(1,006.7
)
 
(1,229.4
)
 
(1,319.8
)
Total income tax provision - discontinued operations
31.0

 
129.5

 
195.2

Total income tax benefit - continuing operations
$
(1,037.7
)
 
$
(1,358.9
)
 
$
(1,515.0
)
Reconciliation of U.S. Statutory Rate to Effective Income Tax Rate on Continuing Basis
A reconciliation of the U.S. statutory rate to the effective income tax rate on a continuing basis is as follows for the years ended December 31:
 
2019
 
2018
 
2017
Statutory rate
21.0
 %
 
21.0
 %
 
35.0
 %
 
 
 
 
 
 
State income taxes, net of federal income tax effect
3.8

 
2.4

 
1.1

U.S. foreign inclusions and foreign tax credit
(1.6
)
 
2.1

 
2.0

Foreign rate differential
4.9

 
0.4

 
(18.5
)
Change in uncertain tax positions
5.9

 
0.2

 
(3.0
)
Change in valuation allowance reserve
(5.9
)
 
0.8

 
(4.6
)
Foreign statutory tax rate change
—

 
—

 
(1.7
)
Impairment
(3.3
)
 
(9.7
)
 
1.8

Sale of businesses
—

 
—

 
(8.1
)
Capital loss
25.4

 
—

 
—

Reversal of outside basis difference
0.4

 
—

 
(6.7
)
U.S. Tax Reform, impact of change in tax rate and other
—

 
—

 
(174.4
)
U.S. Tax Reform, federal income tax on mandatory deemed repatriation
—

 
0.2

 
19.3

Non-deductible compensation
(1.6
)
 
(0.1
)
 
0.9

Return to provision
2.2

 
(0.1
)
 
(9.2
)
Other taxes
1.6

 
0.1

 
2.5

Outbound transfer of U.S. assets (1)
68.3

 
—

 
—

Other
0.8

 
(0.3
)
 
(1.2
)
Effective rate
121.9
 %
 
17.0
 %
 
(164.8
)%
Schedule of Components of Net Deferred Tax Assets
The net deferred tax amounts have been classified in the balance sheet at December 31, (in millions):
 
 
2019
 
2018
Noncurrent deferred tax assets
 
$
775.5

 
$
183.3

Noncurrent deferred tax liabilities
 
(624.9
)
 
(1,090.0
)
Total
 
$
150.6

 
$
(906.7
)

Deferred tax assets (liabilities) consist of the following at December 31, (in millions):
 
2019
 
2018
Deferred tax assets:
 
 
 
Accruals
$
124.4

 
$
139.1

Inventory
28.8

 
32.5

Pension and other postretirement benefits
78.5

 
81.7

Net operating losses
341.6

 
339.9

Foreign tax credits
155.9

 
133.3

Capital loss carryforward
211.8

 
15.2

Operating lease liabilities
172.3

 
—

Other
157.2

 
132.6

Total gross deferred tax assets
1,270.5

 
874.3

Less: valuation allowance
(270.5
)
 
(195.0
)
Net deferred tax assets after valuation allowance
1,000.0

 
679.3

Deferred tax liabilities:
 
 
 
Accelerated depreciation
(79.7
)
 
(92.2
)
Amortizable intangibles
(517.7
)
 
(1,419.2
)
Outside basis differences
(40.6
)
 
(25.7
)
Operating lease assets
(158.1
)
 
—

Other
(53.3
)
 
(48.9
)
Total gross deferred tax liabilities
(849.4
)
 
(1,586.0
)
Net deferred tax assets (liabilities)
$
150.6

 
$
(906.7
)
Summary of Changes in Gross Unrecognized Tax Benefits
The following table summarizes the changes in gross unrecognized tax benefits periods indicated are as follows (in millions):
 
2019
 
2018
 
2017
Unrecognized tax benefits, January 1,
$
463.0

 
$
385.3

 
$
379.0

Increases (decreases):
 
 
 
 
 
Increases in tax positions for prior years
35.3

 
35.9

 
26.0

Decreases in tax positions for prior years
(30.9
)
 
(20.6
)
 
(12.3
)
Increase in tax positions for the current period
83.5

 
115.0

 
34.5

Purchase accounting adjustments (See Footnote 1 and Footnote 8)
(8.8
)
 
—

 
—

Currency translation adjustments
0.4

 
—

 
—

Settlements with taxing authorities
(1.7
)
 
(6.2
)
 
—

Lapse of statute of limitations
(66.4
)
 
(46.4
)
 
(41.9
)
Unrecognized tax benefits, December 31,
$
474.4

 
$
463.0

 
$
385.3