Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Earnings (Loss) Before Income Tax Provision

The components of earnings before income tax provision were as follows:



	Year Ended December 31,
(In millions)	2017		2016		2015
Domestic	$	192.1	$	175.9	$	115.8
Foreign	201.2		212.0		175.6
Total	$	393.3	$	387.9	$	291.4

Schedule of Recognition of Excess Tax Benefits in Provision for Income Taxes

The components of our income tax provision (benefit) were as follows:



	Year Ended December 31,
(In millions)	2017			2016			2015
Current tax expense:
Federal	$	79.6		$	57.6		$	44.7
State and local	14.3			1.2			8.4
Foreign	106.0			67.3			49.0
Total current expense	$	199.9		$	126.1		$	102.1
Deferred tax expense (benefit):
Federal	$	130.1		$	(15.8	)	$	10.7
State and local	5.3			3.6			10.9
Foreign	(4.8		)	(18.3		)	8.9
Total deferred tax expense (benefit)	130.6			(30.5		)	30.5
Total income tax provision	$	330.5		$	95.6		$	132.6

Components of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consist of the following:



	December 31,
(In millions)	2017			2016
Restructuring reserves	$	2.7		$	6.6
Accruals not yet deductible for tax purposes	10.7			8.4
Net operating loss carryforwards	199.4			188.4
Foreign, federal and state credits	69.2			51.5
Employee benefit items	69.6			132.1
Capitalized expenses	10.8			45.7
Derivatives and other	23.7			—
Sub-total deferred tax assets	386.1			432.7
Valuation allowance	(189.2		)	(167.7		)
Total deferred tax assets	$	196.9		$	265.0

Depreciation and amortization	$	(13.9	)	$	(24.7	)
Unremitted foreign earnings	(9.0		)	(22.2		)
Intangibles	(26.3		)	(23.6		)
Other	—			(2.2		)
Total deferred tax liabilities	(49.2		)	(72.7		)
Net deferred tax assets	$	147.7		$	192.3

Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35%) to income before provision for income taxes, is as follows (dollars in millions):



	Year Ended December 31,
	2017					2016					2015
Computed expected tax	$	137.7		35.0	%	$	135.9		35.0	%	$	102.0		35.0	%
State income taxes, net of federal tax benefit	7.6			1.9	%	4.8			1.2	%	12.5			4.3	%
Foreign earnings taxed at lower rates	(22.3		)	(5.7	)%	(22.4		)	(5.8	)%	(22.6		)	(7.8	)%
U.S. tax on foreign earnings	72.3			18.4	%	10.7			2.8	%	(0.5		)	(0.2	)%
Foreign tax credits	(12.1		)	(3.1	)%	(30.3		)	(7.8	)%	(5.3		)	(1.8	)%
Unremitted foreign earnings	—			—	%	(9.4		)	(2.4	)%	(86.0		)	(29.5	)%
Reorganization and divestitures	75.9			19.3	%	—			—	%	67.9			23.3	%
Net change in valuation allowance	(2.0		)	(0.5	)%	(47.8		)	(12.3	)%	47.8			16.4	%
Net change in unrecognized tax benefits	33.4			8.5	%	16.0			4.1	%	75.3			25.8	%
U.S. Tax Reform	41.1			10.4	%	—			—	%	—			—	%
Deferred tax adjustments	14.1			3.6	%	47.1			12.1	%	(75.6		)	(25.9	)%
Other	(15.2		)	(3.8	)%	(9.0		)	(2.3	)%	17.1			5.9	%
Income tax expense and rate	$	330.5		84.0	%	$	95.6		24.6	%	$	132.6		45.5	%

Unrecognized Tax Benefits and Effect on Effective Income Tax Rate

We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized (in millions):



	Year Ended December 31,
	2017			2016			2015
Beginning balance of unrecognized tax benefits	$	162.6		$	131.3		$	18.9
Additions for tax positions of current year	7.3			11.1			1.2
Additions for tax positions of prior years	49.3			23.4			111.8
Reductions for tax positions of prior years	(4.3		)	(1.4		)	(0.6		)
Reductions for lapses of statutes of limitation and settlements	(0.6		)	(1.8		)	—
Ending balance of unrecognized tax benefits	$	214.3		$	162.6		$	131.3