Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule Of Income Before Provision For Income Taxes

Income before provision for income taxes for the years ended December 31, 2019, 2018, and 2017, consisted of the following (in millions):


	Years Ended December 31,
	2019		2018		2017
U.S.	$	1,053.7	$	852.7	$	774.7
Foreign	448.5		426.8		330.1
Total income before provision for income taxes	$	1,502.2	$	1,279.5	$	1,104.8

Schedule Of Provision For Income Taxes

The provision for income taxes for the years ended December 31, 2019, 2018, and 2017, consisted of the following (in millions):


	Years Ended December 31,
	2019		2018		2017
Current
Federal	$	82.0	$	89.5	$	352.1
State	26.5		21.1		13.0
Foreign	18.0		9.9		8.7
	$	126.5	$	120.5	$	373.8
Deferred
Federal	$	8.5	$	(4.1)	$	62.8
State	3.2		(0.3)		(0.3)
Foreign	(17.8)		38.4		(2.4)
	$	(6.1)	$	34.0	$	60.1
Total income tax expense	$	120.4	$	154.5	$	433.9

Schedule Of Income Tax Difference From The Statutory Rate

Income tax expense differs from amounts computed by applying the statutory federal income rate of 21% for the years ended December 31, 2019, and 2018, and 35% for the year ended December 31, 2017, as a result of the following (in millions):


	Years Ended December 31,
	2019		2018		2017
Federal tax at statutory rate	$	315.5	$	268.7	$	386.7
Increase (reduction) in tax resulting from:
State taxes, net of federal benefits	29.7		20.8		16.0
Foreign rate differential	(56.2)		(44.7)		(115.7)
U.S. tax on foreign earnings	55.0		43.7		8.4
Research and development credit	(32.7)		(25.2)		(15.3)
Share-based compensation not benefited	13.5		9.9		10.8
Domestic production activities deduction	—		—		(7.9)
Reversal of unrecognized tax benefits	(8.4)		(5.2)		(62.4)

Tax Cuts and Jobs Act impact	—		0.5		317.8
Excess tax benefits related to share-based compensation arrangements	(146.5)		(116.2)		(102.8)
Deferred tax remeasurement due to Swiss Tax Reform	(51.3)		—		—
Other	1.8		2.2		(1.7)
Total income tax expense	$	120.4	$	154.5	$	433.9

Schedule Of Deferred Tax Assets

Deferred income taxes reflect tax carry forwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions):


	December 31,
	2019		2018
Deferred tax assets:
Share-based compensation expense	$	95.6	$	87.2
Expenses deducted in later years for tax purposes	42.0		29.1
Intangible assets	362.3		351.9
Research and other credits	56.1		40.1
Other	10.4		9.0
Gross deferred tax assets	$	566.4	$	517.3
Valuation allowance	(57.2)		(42.3)
Deferred tax assets	$	509.2	$	475.0
Deferred tax liabilities:
Fixed assets	$	(75.3)	$	(42.2)
Intangible assets	(8.3)		(7.5)
Other	—		(0.1)
Deferred tax liabilities	$	(83.6)	$	(49.8)
Net deferred tax assets	$	425.6	$	425.2