Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2013

Components of Provision for Income Taxes Attributable to Continuing Operations

The components of the provision for income taxes attributable to continuing operations for 2013, 2012 and 2011 are as follows:

(in millions)	2013			2012			2011
Current income tax expense:
U.S. federal	$	63.1		$	52.9		$	1.4
Foreign		86.2			67.3			86.4
State and local		9.1			7.7			5.0
Total		158.4			127.9			92.8
Deferred income tax expense (benefit):
U.S. federal		7.9			26.8			55.5
Foreign		(15.8	)		(2.6	)		(25.3	)
State, local and other, net of federal tax benefit		(2.8	)		(4.5	)		2.7
Total		(10.7	)		19.7			32.9
Total income tax provision	$	147.7		$	147.6		$	125.7

Difference between Federal Statutory Income Tax Rate and Reported Income Tax Rate

The difference between the federal statutory income tax rate and the Company’s reported income tax rate as a percentage of income from operations for 2013, 2012 and 2011 is reconciled as follows:

	2013			2012			2011
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in rates resulting from:
State and local taxes, net		1.2			0.7			1.6
Foreign rate differences		(2.8	)		(2.8	)		(3.1	)
Non-deductible compensation		3.4			0.5			1.0
Foreign earnings not permanently reinvested		1.1			2.3			3.4
Tax settlements and related adjustments		1.0			0.6			—
Goodwill impairment		—			—			3.4
Valuation allowance		1.5			0.4			(2.3	)
Venezuela devaluation and inflationary adjustments and tax exempt income		2.2			(1.6	)		(1.5	)
Foreign dividends		1.3			1.2			1.3
Non-deductible transaction costs		0.5			0.2			—
Other		(2.3	)		1.2			(0.8	)
Reported income tax rate		42.1	%		37.7	%		38.0	%

Deferred Tax Assets Liabilities

Deferred tax assets (liabilities) at December 31, 2013 and 2012 are comprised of the following:

(in millions)	2013			2012
Intangibles	$	(826.9	)	$	(389.4	)
Goodwill		(135.8	)		(121.1	)
Financial reporting amount of a subsidiary in excess of tax basis		(70.4	)		(70.8	)
Foreign earnings not permanently reinvested		(48.4	)		(47.3	)
Property and equipment		(8.8	)		(6.2	)
Other		(0.4	)		(6.5	)
Gross deferred tax liabilities		(1,090.7	)		(641.3	)
Net operating loss		47.8			40.1
Accounts receivable allowances		15.0			12.0
Inventory valuation		58.8			53.8
Pension and postretirement		20.0			35.6
Stock-based compensation		23.6			21.6
Other compensation and benefits		13.0			19.0
Operating reserves		66.3			59.2
Other		13.8			49.1
Gross deferred tax assets		258.3			290.4
Valuation allowance		(34.2	)		(28.1	)
Net deferred tax liability	$	(866.6	)	$	(379.0	)

Activity Related to Unrecognized Tax Benefit

The following table sets forth the details and the activity related to unrecognized tax benefit as of and for the years ended December 31, 2013 and 2012:

(in millions)	2013			2012
Unrecognized tax benefits, January 1,	$	68.3		$	52.6
Increases (decreases):
Acquisitions		3.5			0.6
Tax positions taken during the current period		27.6			16.3
Tax positions taken during a prior period		(2.7	)		—
Settlements with taxing authorities		(7.7	)		(3.8	)
Other		(0.1	)		1.8
Unrecognized tax benefits, December 31,	$	88.9		$	68.3