Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Earnings Before Income Taxes

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

	For the Years Ended December 31,
	2017			2016			2015
United States operations	$	(114.0	)	$	(251.8	)	$	(246.2	)
Foreign operations		578.6			651.4			399.4
Total	$	464.6		$	399.6		$	153.2

Provision/Benefit for Income Taxes and Income Taxes Paid

The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions):

Current:
Federal	$	438.5		$	134.2		$	55.8
State		2.4			12.4			18.9
Foreign		(13.7	)		101.6			96.3
		427.2			248.2			171.0
Deferred:
Federal		(1,728.5	)		(108.5	)		(120.6	)
State		(95.5	)		2.3			(20.0	)
Foreign		48.0			(47.0	)		(23.4	)
		(1,776.0	)		(153.2	)		(164.0	)
(Benefit) provision for income taxes	$	(1,348.8	)	$	95.0		$	7.0
Income taxes paid	$	266.9		$	269.6		$	193.6

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,
	2017				2016				2015
U.S. statutory income tax rate		35.0		%		35.0		%		35.0		%
State taxes, net of federal deduction		1.8				2.0				(1.7	)
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits		(32.0	)			(11.0	)			(62.3	)
Change in valuation allowance		0.8				-				(3.7	)
Non-deductible expenses		2.7				0.9				2.4
Goodwill impairment		22.5				-				-
Tax rate change		(24.0	)			-				-
Tax impact of certain significant transactions		-				1.6				21.6
Tax benefit relating to U.S. manufacturer’s deduction		(1.7	)			(4.7	)			(6.2	)
R&D tax credit		(1.2	)			(1.9	)			(4.2	)
Share-based compensation		(2.6	)			(2.9	)			1.1
Net uncertain tax positions, including interest and penalties		(17.0	)			4.2				22.9
U.S. tax reform		(273.8	)			-				-
Other		(0.8	)			0.6				(0.3	)
Effective income tax rate		(290.3	)	%		23.8		%		4.6		%

Components of Deferred Taxes

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

	As of December 31,
	2017			2016
Deferred tax assets:
Inventory	$	246.8		$	260.3
Net operating loss carryover		165.1			181.3
Tax credit carryover		163.8			110.4
Capital loss carryover		6.9			2.3
Accrued liabilities		102.5			182.2
Share-based compensation		26.8			60.3
Accounts receivable		17.3			22.3
Other		84.9			101.9
Total deferred tax assets		814.1			921.0
Less: Valuation allowances		(140.6	)		(88.3	)
Total deferred tax assets after valuation allowances		673.5			832.7
Deferred tax liabilities:
Fixed assets	$	85.6		$	138.7
Intangible assets		1,423.0			2,343.7
Unremitted earnings of foreign subsidiaries		-			1,159.4
Other		18.2			-
Total deferred tax liabilities		1,526.8			3,641.8
Total net deferred income taxes	$	(853.3	)	$	(2,809.1	)

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,
	2017			2016			2015
Balance at January 1	$	649.3		$	591.9		$	321.7
Increases related to business combinations		70.2			70.2			247.6
Increases related to prior periods		172.8			36.7			1.3
Decreases related to prior periods		(262.2	)		(94.7	)		-
Increases related to current period		24.8			53.0			25.7
Decreases related to settlements with taxing authorities		(21.7	)		(3.2	)		(1.4	)
Decreases related to lapse of statute of limitations		(6.4	)		(4.6	)		(3.0	)
Balance at December 31	$	626.8		$	649.3		$	591.9
Amounts impacting effective tax rate, if recognized balance at December 31	$	499.6		$	511.5		$	443.7