Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2015

Components of Provision for Income Taxes Attributable to Continuing Operations

The components of the provision for income taxes attributable to continuing operations for 2015, 2014 and 2013 are as follows:

(in millions)	2015			2014			2013
Current income tax expense:
U.S. federal	$	111.3		$	87.1		$	63.1
Foreign		62.0			86.0			86.2
State and local		18.5			10.7			9.1
Total		191.8			183.8			158.4
Deferred income tax expense (benefit):
U.S. federal		(57.8	)		(47.4	)		7.9
Foreign		(2.8	)		(14.0	)		(15.8	)
State, local and other, net of federal tax benefit		3.9			7.9			(2.8	)
Total		(56.7	)		(53.5	)		(10.7	)
Total income tax provision	$	135.1		$	130.3		$	147.7

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 2015, 2014 and 2013 is reconciled as follows:

	2015			2014			2013
Federal statutory tax rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in rates resulting from:
State and local taxes, net		5.0			3.0			1.2
Foreign rate differences		(7.0	)		(5.7	)		(2.8	)
Non-deductible compensation		2.0			0.4			3.4
Foreign earnings not permanently reinvested		1.7			(9.7	)		1.1
Tax settlements and related adjustments		0.5			2.2			0.1
Goodwill impairments		11.0			—			—
Valuation allowance		(0.7	)		2.6			1.5
Venezuela devaluation and inflationary adjustments and tax exempt income		—			9.0			2.2
Foreign dividends		0.9			0.5			1.3
Non-deductible transaction costs		1.1			0.5			0.5
Domestic production activity deduction		(3.2	)		(1.3	)		(0.4	)
Other		1.7			(1.5	)		(1.0	)
Reported income tax rate		48.0	%		35.0	%		42.1	%

Deferred Tax Assets Liabilities

Deferred tax assets (liabilities) at December 31, 2015 and 2014 are comprised of the following:

(in millions)	2015			2014
Intangibles	$	(1,476.9	)	$	(906.4	)
Goodwill		(169.3	)		(159.7	)
Financial reporting amount of a subsidiary in excess of tax basis		(71.2	)		(70.4	)
Foreign earnings not permanently reinvested		(6.9	)		(5.6	)
Property and equipment		(78.7	)		(11.5	)
Convertible debt		(97.1	)		(110.4	)
Other		(0.7	)		(9.0	)
Gross deferred tax liabilities		(1,900.8	)		(1,273.0	)
Net operating loss		66.4			50.9
Accounts receivable allowances		23.1			13.8
Inventory valuation		54.9			58.9
Pension and postretirement		49.5			17.0
Stock-based compensation		39.4			12.6
Other compensation and benefits		26.9			21.3
Operating reserves		52.7			55.4
Other		47.1			38.1
Gross deferred tax assets		360.0			268.0
Valuation allowance		(37.7	)		(40.8	)
Net deferred tax liability	$	(1,578.5	)	$	(1,045.8	)

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, 2015 and 2014:

(in millions)	2015			2014
Unrecognized tax benefits, January 1,	$	145.3		$	88.9
Increases (decreases):
Acquisitions		7.7			5.2
Tax positions taken during the current period		77.9			48.1
Tax positions taken during a prior period		(12.5	)		3.7
Settlements with taxing authorities		(8.7	)		(0.5	)
Other		(0.7	)		(0.1	)
Unrecognized tax benefits, December 31,	$	209.0		$	145.3