Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

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

Current:
Federal	$	(96.1	)	$	65.5		$	(46.2	)
State		4.6			9.8			24.4
Foreign		(57.5	)		237.7			116.6
		(149.0	)		313.0			94.8
Deferred:
Federal		(24.2	)		(90.2	)		37.9
State		(11.5	)		(4.2	)		(8.8	)
Foreign		47.7			(444.3	)		(15.7	)
		12.0			(538.7	)		13.4
(Benefit) provision for income taxes	$	(137.0	)	$	(225.7	)	$	108.2
Net income taxes paid	$	147.4		$	192.5		$	237.1

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

	For the Years Ended December 31,
	2020				2019				2018
U.S. statutory income tax rate		21.0		%		21.0		%		21.0		%
State taxes, net of federal deduction		2.4				0.8				(2.5	)
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits		14.9				(10.2	)			54.3
Change in valuation allowance		1.5				1.5				(4.9	)
Non-deductible expenses		(2.0	)			0.4				1.7
Goodwill impairment		(46.1	)			-				(75.2	)
Tax rate change		3.8				0.6				(12.2	)
Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction		5.8				(4.5	)			(0.2	)
R&D tax credit		2.1				(1.2	)			6.0
Share-based compensation		0.1				(0.4	)			0.1
Net uncertain tax positions, including interest and penalties		31.4				1.9				(25.5	)
U.S. tax reform		-				0.1				(3.1	)
Switzerland tax reform and certain restructuring transactions		15.7				(34.8	)			-
Other		(0.7	)			(0.1	)			0.6
Effective income tax rate		49.9		%		(24.9	)	%		(39.9	)	%

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

	As of December 31,
	2020			2019
Deferred tax assets:
Inventory	$	297.2		$	295.6
Net operating loss carryover		511.2			514.4
Tax credit carryover		55.1			33.8
Capital loss carryover		9.0			8.3
Product liability and litigation		53.9			40.4
Accrued liabilities		86.1			101.6
Share-based compensation		30.4			28.6
Accounts receivable		19.0			24.6
Foreign currency hedges		69.0			-
Other		19.2			16.8
Total deferred tax assets		1,150.1			1,064.1
Less: Valuation allowances		(542.1	)		(546.1	)
Total deferred tax assets after valuation allowances		608.0			518.0
Deferred tax liabilities:
Fixed assets	$	119.2		$	77.6
Intangible assets		787.6			772.3
Foreign currency hedges		-			13.8
Other		39.8			23.0
Total deferred tax liabilities		946.6			886.7
Total net deferred income taxes	$	(338.6	)	$	(368.7	)

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

	For the Years Ended December 31,
	2020			2019			2018
Balance at January 1	$	741.8		$	685.5		$	626.8
Increases related to business combinations		-			-			4.5
Increases related to prior periods		75.3			24.7			34.6
Decreases related to prior periods		(158.3	)		(35.6	)		(14.4	)
Increases related to current period		3.4			133.2			41.9
Decreases related to settlements with taxing authorities		(14.6	)		(60.2	)		(3.8	)
Decreases related to lapse of statute of limitations		(28.2	)		(5.8	)		(4.1	)
Balance at December 31	$	619.4		$	741.8		$	685.5
Amounts impacting effective tax rate, if recognized balance at December 31	$	473.9		$	599.2		$	549.1