Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2014

Components of Provision for Income Taxes Attributable to Continuing Operations

The components of the provision for income taxes attributable to continuing operations for 2014, 2013 and 2012 are as follows:

(in millions)	2014			2013			2012
Current income tax expense:
U.S. federal	$	87.1		$	63.1		$	52.9
Foreign		86.0			86.2			67.3
State and local		10.7			9.1			7.7
Total		183.8			158.4			127.9
Deferred income tax expense (benefit):
U.S. federal		(47.4	)		7.9			26.8
Foreign		(14.0	)		(15.8	)		(2.6	)
State, local and other, net of federal tax benefit		7.9			(2.8	)		(4.5	)
Total		(53.5	)		(10.7	)		19.7
Total income tax provision	$	130.3		$	147.7		$	147.6

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 2014, 2013 and 2012 is reconciled as follows:

	2014			2013			2012
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in rates resulting from:
State and local taxes, net		3.0			1.2			0.7
Foreign rate differences		(5.7	)		(2.8	)		(2.8	)
Non-deductible compensation		0.4			3.4			0.5
Foreign earnings not permanently reinvested		(9.7	)		1.1			2.3
Tax settlements and related adjustments		2.2			0.1			1.5
Valuation allowance		2.6			1.5			0.4
Venezuela devaluation and inflationary adjustments and tax exempt income		9.0			2.2			(1.6	)
Foreign dividends		0.5			1.3			1.2
Non-deductible transaction costs		0.5			0.5			0.2
Other		(2.8	)		(1.4	)		0.3
Reported income tax rate		35.0	%		42.1	%		37.7	%

Deferred Tax Assets Liabilities

Deferred tax assets (liabilities) at December 31, 2014 and 2013 are comprised of the following:

(in millions)	2014			2013
Intangibles	$	(906.4	)	$	(826.9	)
Goodwill		(159.7	)		(135.8	)
Financial reporting amount of a subsidiary in excess of tax basis		(70.4	)		(70.4	)
Foreign earnings not permanently reinvested		(5.6	)		(48.4	)
Property and equipment		(11.5	)		(8.8	)
Convertible debt		(110.4	)		(41.9	)
Other		(9.0	)		(0.4	)
Gross deferred tax liabilities		(1,273.0	)		(1,132.6	)
Net operating loss		50.9			47.8
Accounts receivable allowances		13.8			15.0
Inventory valuation		58.9			58.8
Pension and postretirement		17.0			20.0
Stock-based compensation		12.6			23.6
Other compensation and benefits		21.3			13.0
Operating reserves		55.4			66.3
Other		38.1			55.7
Gross deferred tax assets		268.0			300.2
Valuation allowance		(40.8	)		(34.2	)
Net deferred tax liability	$	(1,045.8	)	$	(866.6	)

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, 2014 and 2013:

(in millions)	2014			2013
Unrecognized tax benefits, January 1,	$	88.9		$	68.3
Increases (decreases):
Acquisitions		5.2			3.5
Tax positions taken during the current period		48.1			27.6
Tax positions taken during a prior period		3.7			(2.7	)
Settlements with taxing authorities		(0.5	)		(7.7	)
Other		(0.1	)		(0.1	)
Unrecognized tax benefits, December 31,	$	145.3		$	88.9