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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

United States and International Components of (Loss) Income before Income Taxes (Benefit) Expense

The U.S. and International components of (loss) income before income taxes (benefit) expense consisted of the following for the years ended December 31, 2018, 2017, and 2016:

In millions
	2018			2017			2016
United States	$	(189.1	)	$	(9.6	)	$	381.1
Foreign		(86.3	)		(98.3	)		(53.0	)
Total (loss) income before income taxes	$	(275.4	)	$	(107.9	)	$	328.1

Significant Components of Income Tax Benefit (Expense)

Significant components of our income tax benefit (expense) for the years ended December 31, 2018, 2017, and 2016 are as follows:

In millions
	2018			2017			2016
Current
United States – federal	$	-		$	(107.0	)	$	(102.0	)
United States - state and local		(0.4	)		(10.0	)		(11.6	)
Foreign		(8.5	)		(7.1	)		(10.6	)
		(8.9	)		(124.1	)		(124.2	)
Deferred
United States – federal		24.4			256.1			(19.1	)
United States - state and local		11.2			9.8			2.5
Foreign		3.1			9.1			20.6
		38.7			275.0			4.0
Total benefit (expense)	$	29.8		$	150.9		$	(120.2	)

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, 2018, 2017, and 2016 are as follows:

	2018			2017			2016
Federal statutory income tax rate		21.0	%		35.0	%		35.0	%
Effect of:
State and local taxes, net of federal tax effect		4.2	%		3.9	%		1.5	%
Foreign tax rates		4.2	%		(2.7	%)		2.1	%
Permanent - other items		0.5	%		(2.1	%)		0.8	%
Permanent - goodwill impairment		(9.1	%)		(12.0	%)		-
U.S. Tax Reform Act		(3.2	%)		120.3	%		-
Valuation allowance		(7.5	%)		(4.6	%)		2.1	%
Stock-based compensation		1.2	%		(0.6	%)		(1.8	%)
Other		(0.5	%)		2.7	%		(3.1	%)
Effective tax rate		10.8	%		139.9	%		36.6	%

Deferred Tax Liabilities and Assets

Our deferred tax liabilities and assets at December 31, 2018 and 2017 were as follows:

In millions
	2018			2017
Deferred tax liabilities:
Property, plant and equipment	$	(68.9	)	$	(56.4	)
Goodwill and intangibles		(395.1	)		(490.0	)
Other		(22.7	)		(17.2	)
Total deferred tax liabilities		(486.7	)		(563.6	)
Deferred tax assets:
Accrued liabilities		84.4			141.2
Net operating tax loss carry-forwards		88.9			38.3
Sec 163j carry-forward		13.4			-
Other		39.9			38.6
Less: valuation allowance		(35.3	)		(16.1	)
Total deferred tax assets		191.3			202.0
Net deferred tax liabilities	$	(295.4	)	$	(361.6	)

Summary of Net Tax Benefit Recognized Related to Tax Act

The net tax benefit recognized during the year ended December 31, 2017, related to the Tax Act was as follows:

In millions
Remeasurement 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, 2018 and 2017:

In millions
Unrecognized tax positions as of January 1, 2017	$	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
Gross increases - tax positions in prior periods		1.1
Gross increases - current period tax positions		43.5
Settlement		(2.0	)
Lapse of statute of limitations		(5.3	)
Unrecognized tax positions as of December 31, 2018	$	64.7