Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Consolidated Income Before Provision for Income Taxes and Equity in Net Income of Affiliates and Components of Provision for Income Taxes

A summary of consolidated income before provision for income taxes and equity in net income of affiliates and the components of provision for income taxes is shown below (in millions):

For the year ended December 31,	2020		2019		2018
Consolidated income before provision for income taxes and equity in net income of affiliates:
Domestic	$	(145.0)	$	317.4	$	726.2
Foreign	444.3		636.2		812.2
	$	299.3	$	953.6	$	1,538.4
Domestic (benefit) provision for income taxes:
Current provision	$	29.0	$	24.2	$	35.0
Deferred (benefit) provision	(106.2)		(52.6)		91.5
Total domestic (benefit) provision	$	(77.2)	$	(28.4)	$	126.5
Foreign provision for income taxes:
Current provision	$	149.6	$	160.1	$	190.2
Deferred (benefit) provision	21.5		14.4		(4.8)
Total foreign provision	$	171.1	$	174.5	$	185.4
Provision for income taxes	$	93.9	$	146.1	$	311.9

Summary of Difference Between Provision for Income Taxes Calculated at United States Federal Statutory Income Tax Rate and Consolidated Provision for Income Taxes

A summary of the differences between the provision for income taxes calculated at the United States federal statutory income tax rate of 21% and the consolidated provision for income taxes is shown below (in millions):

For the year ended December 31,	2020		2019		2018
Consolidated income before provision for income taxes and equity in net income of affiliates multiplied by the United States federal statutory income tax rate	$	62.9	$	200.2	$	323.1
Differences in income taxes on foreign earnings, losses and remittances	20.7		14.1		53.4
Valuation allowance adjustments	47.7		1.2		(38.8)
Research and development and other tax credits	(11.8)		(40.8)		(9.9)
FDII deduction	(14.6)		(29.3)		(27.6)
U.S. tax impact of foreign earnings (1)	(21.1)		9.7		7.2
Tax audits and assessments	8.9		0.4		6.9
Change in the tax status of certain affiliates	—		(18.1)		—
Transition tax on accumulated foreign earnings	—		—		(15.1)
U.S. tax rate change and other tax reform items	—		—		9.8
Other	1.2		8.7		2.9
Provision for income taxes	$	93.9	$	146.1	$	311.9

(1)    Reflects the impact on the domestic provision for income taxes related to foreign source income including foreign branch earnings net of the applicable foreign tax credits in the general, foreign branch, GILTI and passive separate limitation categories. This amount includes the U.S. tax impact of apportioning U.S. expenses against the GILTI and foreign branch baskets in calculating the foreign tax credit limitation resulting in no tax benefit for these expenses due to the Company’s excess foreign tax credit position in the GILTI basket for 2020, 2019 and 2018 and foreign branch basket for 2018. In 2020, as a result of the change in the foreign branch basket limitation, the Company recognized tax benefits of $15.5 million related to the U.S. deferred tax effect of the foreign branches.

Summary of Components of Net Deferred Income Tax Asset

A summary of the components of the net deferred income tax asset is shown below (in millions):

December 31,	2020		2019
Deferred income tax assets (liabilities):
Tax loss carryforwards	$	423.9	$	419.7
Tax credit carryforwards	280.6		294.0
Retirement benefit plans	82.9		59.1
Accrued liabilities	177.9		136.1
Self-insurance reserves	7.1		5.8
Current asset basis differences	43.3		43.7
Long-term asset basis differences	(36.5)		(65.4)
Deferred compensation	22.6		27.2
Recoverable customer engineering, development and tooling	67.1		(10.5)
Undistributed earnings of foreign subsidiaries	(71.7)		(76.7)
Derivative instruments and hedging activities	(5.2)		(5.2)
Other	(8.9)		(5.8)
Net deferred income tax asset before valuation allowance	983.1		822.0
Valuation allowance	(397.7)		(344.8)
Net deferred income tax asset	$	585.4	$	477.2

Classification of Net Deferred Income Tax Asset

The classification of the net deferred income tax asset is shown below (in millions):

December 31,	2020		2019
Long-term deferred income tax assets	$	670.2	$	563.8
Long-term deferred income tax liabilities	(84.8)		(86.6)
Net deferred income tax asset	$	585.4	$	477.2

Summary of Changes in Gross Unrecognized Tax Benefits

A summary of the changes in gross unrecognized tax benefits is shown below (in millions):

For the year ended December 31,	2020		2019		2018
Balance at beginning of period	$	31.6	$	36.7	$	33.2
Additions (reductions) based on tax positions related to current year	4.9		(0.3)		7.9
Additions based on tax positions related to prior years	3.6		2.0		0.1
Settlements	(1.2)		(3.7)		—
Statute expirations	(4.7)		(2.8)		(2.7)
Foreign currency translation	2.2		(0.3)		(1.8)
Balance at end of period	$	36.4	$	31.6	$	36.7