Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Earnings before income taxes for the years ended December 31, 2018, 2017 and 2016 consisted of the following components:



	2018		2017		2016
United States	$	924.2	$	783.6	$	721.0
Other	274.2		251.1		219.6
	$	1,198.4	$	1,034.7	$	940.6

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense for the years ended December 31, 2018, 2017 and 2016 were as follows:



	2018			2017			2016
Current:
Federal	$	155.4		$	316.0		$	239.2
State	56.2			29.8			21.8
Foreign	105.1			89.9			54.9
Deferred:
Federal	(24.2		)	(358.3		)	(26.8		)
State	(25.8		)	(3.7		)	0.2
Foreign	(12.7		)	(10.8		)	(7.3		)
	$	254.0		$	62.9		$	282.0

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations between the statutory federal income tax rate and the effective income tax rate for the years ended December 31, 2018, 2017 and 2016 were as follows:



	2018		2017		2016
Federal statutory rate	21.0	%	35.0	%	35.0	%
Foreign rate differential	0.3		(2.6	)	(3.2	)
R&D tax credits	(0.9	)	(0.8	)	(0.7	)
State taxes, net of federal benefit	2.4		1.9		1.9
Section 199 deduction	—		(1.3	)	(1.5	)
Stock-based compensation	(3.1	)	(3.9	)	(1.6	)
Tax Cuts and Jobs Act of 2017 - enactment date and measurement period adjustments	(1.2	)	(20.8	)	—
Global intangible low taxed income (GILTI) inclusion	1.1		—		—
Foreign-derived intangible income (FDII) deduction	(1.2	)	—		—
Tax on planned remittances of foreign earnings	1.3		—		—
Other, net	1.5		(1.4	)	0.1
	21.2	%	6.1	%	30.0	%

Schedule of Deferred Tax Assets and Liabilities

Components of the deferred tax assets and liabilities at December 31 were as follows:



	2018			2017
Deferred tax assets:
Reserves and accrued expenses	$	156.5		$	121.5
Inventories	4.5			5.1
Net operating loss carryforwards	67.9			71.8
R&D credits	6.1			9.6
Valuation allowance	(26.4		)	(25.7		)
Outside basis difference on investments held for sale	2.7			—
Total deferred tax assets	$	211.3		$	182.3
Deferred tax liabilities:
Reserves and accrued expenses	$	14.3		$	39.6
Amortizable intangible assets	1,043.0			935.9
Plant and equipment	6.6			5.7
Accrued tax on unremitted foreign earnings	16.3			—
Outside basis difference on investments held for sale	10.0			—
Total deferred tax liabilities	$	1,090.2		$	981.2

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	2018			2017			2016
Beginning balance	$	52.2		$	38.7		$	26.1
Additions for tax positions of prior periods	2.4			24.8			3.5
Additions for tax positions of the current period	6.9			4.2			9.0
Additions due to acquisitions	4.4			—			5.1
Reductions for tax positions of prior periods	(0.4		)	(11.2		)	(1.2		)
Reductions attributable to settlements with taxing authorities	—			(1.5		)	(0.6		)
Reductions attributable to lapses of applicable statute of limitations	(1.9		)	(2.8		)	(3.2		)
Ending balance	$	63.6		$	52.2		$	38.7