Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

The following table provides details of income taxes (in millions, except percentages):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Income before income taxes	$	118.1		$	152.0		$	240.4		$	344.3
Income tax provision (benefit)	$	18.8		$	(71.8	)	$	63.8		$	(30.4	)
Effective tax rate (benefit)	15.9		%	(47.2		)%	26.5		%	(8.8		)%

The Company’s effective tax rate differs from the statutory rate of 21%, primarily due to the tax impact of state taxes, geographic mix of earnings including foreign-derived intangible income deductions and global intangible low-taxed income, research and development (“R&D") tax credits, tax audit settlements, nondeductible compensation, international realignments, and transfer pricing adjustments.

The Company's effective tax rate during the three and nine months ended September 30, 2019 reflects a benefit of discrete items, including the recognition of $8.3 million in previously unrecognized tax benefits, including interest, due to a lapse in statutes of limitations partially offset by the impact of an international realignment including the write-down of certain deferred tax assets and the inability to fully benefit certain discrete charges recorded in prior quarters.

The Company’s effective tax rate during the three and nine months ended September 30, 2018 included a $67.6 million in previously unrecognized tax benefits, including interest, due to a lapse in statutes of limitations and a $33.2 million benefit as a result of filing a change in accounting method for the tax recognition of deferred product revenue.

As of September 30, 2019, the total amount of gross unrecognized tax benefits was $174.9 million, of which $171.9 million, if recognized, would affect the effective tax rate.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of unrecognized tax benefits could decrease by up to $32.6 million within the next twelve months due to lapses of applicable statutes of limitations and the completion of tax review cycles in various tax jurisdictions.