Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of income tax provision (benefits) from continuing operations

Our Provision for income taxes from continuing operations consisted of the following (in millions):



	For the Years Ended December 31,
	2018		2017			2016
Current:
Federal	$	59.5	$	86.1		$	106.0
State	17.8		12.5			14.5
Foreign	4.6		15.0			9.7
Total current	81.9		113.6			130.2
Deferred:
Federal	23.2		43.8			(4.5		)
State	1.0		0.9			(1.2		)
Foreign	1.5		(1.4		)	(0.4		)
Total deferred	25.7		43.3			(6.1		)
Total provision for income taxes	$	107.6	$	156.9		$	124.1

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):



	For the Years Ended December 31,
	2018		2017		2016
Interest expense, net of capitalized interest	$	39.1	$	32.1	$	28.1
Interest income	0.8		1.5		1.1
Interest expense, net	$	38.3	$	30.6	$	27.0

Income from continuing operations before income taxes

Income from continuing operations before income taxes was comprised of the following (in millions):



	For the Years Ended December 31,
	2018		2017		2016
Domestic	$	428.7	$	402.5	$	374.8
Foreign	39.2		61.5		27.9
Total	$	467.9	$	464.0	$	402.7

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes

The difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):



	For the Years Ended December 31,
	2018			2017			2016
Provision at the U.S. statutory rate of 21% (35% for 2017, 2016)	$	98.3		$	162.4		$	141.0
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	15.5			9.2			12.8
Domestic manufacturing deduction	—			(9.6		)	(9.2		)
Tax credits, net of unrecognized tax benefits	(2.5		)	(8.6		)	(27.9		)
Change in unrecognized tax benefits	0.4			(0.1		)	(0.3		)
Change in valuation allowance	5.0			6.4			(4.3		)
Foreign taxes at rates other than U.S. statutory rate	(3.2		)	(9.0		)	(1.3		)
Deemed inclusions	3.9			0.3			16.9
Change in rates from the Tax Act & other law changes	1.9			31.8			(0.6		)
Excess tax benefits from stock-based compensation	(10.5		)	(23.6		)	—
Miscellaneous other	(1.2		)	(2.3		)	(3.0		)
Total provision for income taxes	$	107.6		$	156.9		$	124.1

Summary of deferred tax assets (liabilities)

Deferred tax assets (liabilities) were comprised of the following (in millions):



	As of December 31,
	2018			2017
Gross deferred tax assets:
Warranties	$	27.8		$	27.3
Loss carryforwards (foreign, U.S. and state)	23.1			21.0
Post-retirement and pension benefits	21.3			23.3
Inventory reserves	9.3			7.5
Receivables allowance	3.4			3.5
Compensation liabilities	7.9			11.1
Insurance liabilities	2.9			5.1
Legal reserves	7.4			7.6
Tax credits, net of federal effect	11.0			21.3
Other	8.1			8.2
Total deferred tax assets	122.2			135.9
Valuation allowance	(25.4		)	(24.9		)
Total deferred tax assets, net of valuation allowance	96.8			111.0
Gross deferred tax liabilities:
Depreciation	(22.1		)	(5.9		)
Intangibles	(5.4		)	(4.9		)
Other	(2.3		)	(5.8		)
Total deferred tax liabilities	(29.8		)	(16.6		)
Net deferred tax assets	$	67.0		$	94.4