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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

United States and International Components of Income Before Income Taxes

The U.S. and International components of income before income taxes consisted of the following for the years ended December 31, 2017, 2016 and 2015:

In millions
	2017			2016			2015
United States	$	(9.6	)	$	381.1		$	378.8
Foreign		(98.3	)		(53.0	)		32.1
Total income before income taxes	$	(107.9	)	$	328.1		$	410.9

Significant Components of Income Tax Expense

Significant components of our income tax expense for the years ended December 31, 2017, 2016 and 2015 are as follows:

In millions
	2017			2016			2015
Current
United States - federal	$	107.0		$	102.0		$	105.9
United States - state and local		10.0			11.6			15.6
Foreign		7.1			10.6			16.5
		124.1			124.2			138.0
Deferred
United States - federal		(256.1	)		19.1			23.8
United States - state and local		(9.8	)		(2.5	)		2.5
Foreign		(9.1	)		(20.6	)		(21.4	)
		(275.0	)		(4.0	)		4.9
Total (benefit) provision	$	(150.9	)	$	120.2		$	142.9

Reconciliation of Income Tax Provision Computed at Federal Statutory Rate to Effective Tax Rate

A reconciliation of the income tax provision computed at the federal statutory rate to the effective tax rate for the years ended December 31, 2017, 2016 and 2015 are as follows:

	2017			2016			2015
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Effect of:
State and local taxes, net of federal tax effect		3.9	%		1.5	%		3.1	%
Foreign tax rates		(2.7	)%		2.1	%		(0.4	)%
Permanent - other items		(2.1	)%		0.8	%		0.4	%
Permanent - goodwill impairment		(12.0	)%		-			-
U.S. Tax Reform Act		120.3	%		-			-
Valuation allowance		(4.6	)%		2.1	%		-
Stock-based compensation		(0.6	)%		(1.8	)%		-
Other		2.7	%		(3.1	)%		(3.3	)%
Effective tax rate		139.9	%		36.6	%		34.8	%

Deferred Tax Liabilities and Assets

Our deferred tax liabilities and assets at December 31, 2017 and 2016 were as follows:

In millions
	2017			2016
Deferred tax liabilities:
Property, plant and equipment	$	(56.4	)	$	(78.5	)
Goodwill and intangibles		(490.0	)		(690.4	)
Other		(17.2	)		(7.9	)
Total deferred tax liabilities		(563.6	)		(776.8	)
Deferred tax assets:
Accrued liabilities		141.2			93.7
Net operating tax loss carry-forwards		38.3			38.3
Other		38.6			17.9
Less: valuation allowance		(16.1	)		(15.4	)
Total deferred tax assets		202.0			134.5
Net deferred tax liabilities	$	(361.6	)	$	(642.3	)

Summary of Net Tax (Benefit) of Recognized Related to Tax Act

The net tax (benefit) of recognized related to the Tax Act is as follows:

In millions
Remeasurment of net deferred tax liabilities due to enacted rate reduction	$	167.7
Section 965 transition tax on foreign earnings		(24.3	)
Foreign withholding taxes on such earnings		(13.6	)
Net tax benefit from the Tax Act	$	129.8

Summary of Aggregate Changes in Unrecognized Tax benefits

The following table summarizes the aggregate changes in unrecognized tax benefits during the years ended December 31, 2017 and 2016:

In millions
Unrecognized tax positions as of January 1, 2016	$	24.9
Gross increases - tax positions in prior periods		0.8
Gross increases - current period tax positions		2.9
Settlement		(0.2	)
Lapse of statute of limitations		(1.7	)
Unrecognized tax positions as of December 31, 2016		26.7
Gross increases - tax positions in prior periods		0.7
Gross increases - current period tax positions		5.1
Settlement		(0.5	)
Lapse of statute of limitations		(4.6	)
Unrecognized tax positions as of December 31, 2017	$	27.4