INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Earnings Before Taxes and Income Taxes Paid

The components of earnings before income taxes and the income taxes paid consisted of the following (in millions):

For the Years Ended December 31,	2013		2012		2011
United States operations	$	400.7	$	409.9	$	485.7
Foreign operations		580.4		580.2		493.2
Total	$	981.1	$	990.1	$	978.9

The provision for income taxes consisted of (in millions):

Current:
Federal	$	199.0		$	179.8		$	148.4
State		20.6			13.8			14.3
Foreign		128.5			108.4			75.9
		348.1			302.0			238.6
Deferred:
Federal		(87.7	)		(58.8	)		(2.6	)
State		(8.5	)		0.7			(0.9	)
Foreign		(30.0	)		(6.7	)		(16.2	)
		(126.2	)		(64.8	)		(19.7	)
Provision for income taxes	$	221.9		$	237.2		$	218.9
Income taxes paid	$	272.3		$	227.6		$	236.4

Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate

A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows:

For the Years Ended December 31,	2013			2012			2011
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal deduction		0.8			1.0			0.7
Tax impact of foreign operations, including foreign tax credits		(12.2	)		(10.4	)		(11.0	)
Tax impact of certain significant transactions		1.6			(3.5	)		–
Tax benefit relating to U.S. manufacturer’s deduction and export sales		(1.8	)		(1.9	)		(1.6	)
R&D credit		(0.6	)		–			(0.5	)
Goodwill impairment		–			3.4			–
Other		(0.2	)		0.4			(0.2	)
Effective income tax rate		22.6	%		24.0	%		22.4	%

Components of Deferred Taxes

The components of deferred taxes consisted of the following (in millions):

As of December, 31	2013			2012
Deferred tax assets:
Inventory	$	271.1		$	225.1
Net operating loss carryover		26.4			26.8
Tax credit carryover		187.1			16.4
Capital loss carryover		7.8			4.0
Accrued liabilities		72.0			67.0
Share-based compensation		74.6			106.3
Unremitted earnings of foreign subsidiaries		25.6			172.3
Other		11.2			42.3
Total deferred tax assets		675.8			660.2
Less: Valuation allowances		(42.7	)		(41.3	)
Total deferred tax assets after valuation		633.1			618.9
Deferred tax liabilities:
Fixed assets	$	(97.7	)	$	(93.9	)
Intangible assets		(106.4	)		(140.6	)
Other		(1.2	)		(1.0	)
Total deferred tax liabilities		(205.3	)		(235.5	)
Total net deferred tax assets	$	427.8		$	383.4

Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions):

For the Years Ended December 31,	2013			2012			2011
Balance at January 1	$	285.5		$	158.4		$	168.0
Increases related to prior periods		16.5			118.7			11.4
Decreases related to prior periods		(17.3	)		(8.9	)		(49.0	)
Increases related to current period		22.5			19.1			34.4
Decreases related to settlements with taxing authorities		(2.9	)		(0.6	)		(4.8	)
Decreases related to lapse of statute of limitations		–			(1.2	)		(1.6	)
Balance at December 31	$	304.3		$	285.5		$	158.4
Amounts impacting effective tax rate, if recognized balance at December 31	$	186.3		$	159.0		$	132.7