Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Pre-tax Income Attributable to Operating Segments

The following sets forth the amount of income before income taxes attributable to each of the Company’s geographies for the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
(in millions)	2019		2018		2017
Income before income taxes:
United States	$	150.9	$	59.2	$	97.2
Rest of the world	114.6		105.8		118.2
	$	265.5	$	165.0	$	215.4

Reconciliation of Statutory Tax Rate to Effective Tax Rate

The Company’s effective income tax provision differs from the amount calculated using the statutory U.S. federal income tax rate, principally due to the following:

	Year Ended December 31,
	2019					2018					2017
(dollars in millions)	Amount			Percentage of Income Before Income Taxes		Amount			Percentage of Income Before Income Taxes		Amount			Percentage of Income Before Income Taxes
Statutory U.S. federal income tax	$	55.8		21.0	%	$	34.6		21.0	%	$	75.4		35.0	%
State income taxes, net of federal benefit	8.7			3.3	%	1.8			1.1	%	(0.6		)	(0.3	)%
Foreign tax differential	2.1			0.8	%	2.5			1.5	%	(11.9		)	(5.5	)%
Change in valuation allowances	(8.6		)	(3.2	)%	(17.7		)	(10.7	)%	5.6			2.6	%
Uncertain tax positions and interest	2.4			0.9	%	33.1			20.1	%	(1.0		)	(0.5	)%
Subpart F income	11.0			4.1	%	6.6			4.0	%	2.7			1.2	%
Manufacturing deduction	—			—		—			—		(1.9		)	(0.9	)%
Remeasurement of deferred taxes	—			—		—			—		(69.7		)	(32.3	)%
Transition Tax	—			—		(6.8		)	(4.1	)%	45.9			21.3	%
Permanent and other	3.3			1.2	%	(4.5		)	(2.8	)%	(0.7		)	(0.3	)%
Effective income tax provision	$	74.7		28.1	%	$	49.6		30.1	%	$	43.8		20.3	%

Tax Provision Summary

The income tax provision consisted of the following:

	Year Ended December 31,
(in millions)	2019			2018			2017
Current provision
Federal	$	50.4		$	(14.6	)	$	73.5
State	11.9			1.1			3.1
Foreign	19.5			57.1			28.3
Total current	$	81.8		$	43.6		$	104.9
Deferred provision
Federal	$	(10.8	)	$	11.4		$	(67.7	)
State	(8.0		)	(4.5		)	7.6
Foreign	11.7			(0.9		)	(1.0		)
Total deferred	(7.1		)	6.0			(61.1		)
Total income tax provision	$	74.7		$	49.6		$	43.8

Deferred Tax Assets and Liabilities Recognized in the Consolidated Balance Sheets

The net deferred tax assets and liabilities recognized in the accompanying Consolidated Balance Sheets, determined using the income tax rate applicable to each period in which those items will reverse, consist of the following:

	December 31,
(in millions)	2019			2018
Deferred tax assets:
Stock-based compensation	$	13.9		$	12.8
Accrued expenses and other	129.7			49.1
Net operating losses, foreign tax credits and other tax attribute carryforwards	43.1			56.1
Inventories	8.2			6.0
Transaction costs	6.6			13.5
Property, plant and equipment	2.9			3.6
Total deferred tax assets	204.4			141.1
Valuation allowances	(30.0		)	(43.1		)
Total net deferred tax assets	$	174.4		$	98.0
Deferred tax liabilities:
Intangible assets	$	(156.4	)	$	(156.8	)
Property, plant and equipment	(36.9		)	(30.3		)
Accrued expenses and other	(69.1		)	(5.8		)
Total deferred tax liabilities	(262.4		)	(192.9		)
Net deferred tax liabilities	$	(88.0	)	$	(94.9	)

Summary of Operating Loss and Tax Credit Carryforwards

Included in the calculation of the Company’s deferred tax assets are the following gross income tax attributes available at December 31, 2019 and 2018, respectively:

(in millions)	2019		2018
State net operating losses (“SNOLs”)	$	165.7	$	355.7
U.S. federal foreign tax credits (“FTCs”)	12.2		12.2
U.S. state income tax credits ("SITCs")	5.3		8.0
Foreign net operating losses (“FNOLs”)	36.9		57.0
Charitable contribution carryover ("CCCs")	32.9		39.6
Interest limitation carryover ("ILC")	—		10.6

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)
Balance as of December 31, 2017	$	84.5
Additions based on tax positions related to 2018	2.5
Additions for tax positions of prior years	21.2
Expiration of statutes of limitations	—
Settlements of uncertain tax positions with tax authorities	(4.4		)
Balance as of December 31, 2018	$	103.8
Additions based on tax positions related to 2019	—
Additions for tax positions of prior years	0.7
Expiration of statutes of limitations	—
Settlements of uncertain tax positions with tax authorities	—
Balance as of December 31, 2019	$	104.5