Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Components of the Provisions for Income Taxes Attributable to Operations

Significant components of the provisions for income taxes attributable to operations consist of the following:



	December 31,
(in millions)	2019			2018			2017
Current
Federal	$	1.4		$	1.8		$	29.4
State	11.6			2.4			3.0
International	11.0			6.0			0.3
Total current	24.0			10.2			32.7
Deferred
Federal	1.9			7.5			(6.0		)
State	1.1			3.0			(0.6		)
International	(4.1		)	(1.9		)	9.9
Total deferred	(1.1		)	8.6			3.3
Total provision for income taxes	$	22.9		$	18.8		$	36.0

Schedule of Deferred Tax Assets and Liabilities

The Company's net deferred tax asset (liability) consists of the following:



	December 31,
(in millions)	2019			2018
Federal losses carryforward	$	8.5		$	10.7
State losses carryforward	17.4			18.1
Research and development carryforward	9.0			10.1
State research and development carryforward	5.0			5.0
Scientific research and experimental development credit carryforward	11.0			13.1
Stock compensation	7.6			7.5
Foreign NOLs	36.9			35.4
Deferred revenue	18.1			11.6
Inventory reserves	1.8			3.4
Lease liability	6.0			—
Other	7.5			4.9
Deferred tax asset	128.8			119.8
Fixed assets	(51.2		)	(46.4		)
Intangible assets	(54.5		)	(60.4		)
Right-of-use asset	(5.9		)	—
Other	(3.2		)	(0.7		)
Deferred tax liability	(114.8		)	(107.5		)
Valuation allowance	(64.5		)	(66.4		)
Net deferred tax asset (liability)	$	(50.5	)	$	(54.1	)

Reconciliation of Income Before the Provision for Income Taxes

The provision for income taxes differs from the amount of taxes determined by applying the U.S. federal statutory rate to income before the provision for income taxes as a result of the following:



	December 31,
(in millions)	2019			2018			2017
US	$	63.9		$	71.0		$	80.7
International	13.5			10.5			37.9
Earnings before taxes on income	77.4			81.5			118.6
Federal tax at statutory rates	$	16.3		$	17.1		$	41.5
State taxes, net of federal benefit	10.3			4.3			1.3
Impact of foreign operations	(6.9		)	2.8			(2.2		)
Change in valuation allowance	(1.0		)	(0.1		)	0.3
Tax credits	(3.6		)	(1.8		)	(1.9		)
Transition tax	—			(0.2		)	13.6
Change in U.S. tax rate	—			(4.5		)	(13.4		)
Stock compensation	(2.4		)	(5.8		)	(4.0		)
Other differences	—			(1.3		)	(0.7		)
Return to provision true-ups	(2.3		)	1.1			—
Transaction costs	—			5.4			—
Contingent consideration	4.7			—			—
Compensation limitation	1.3			1.1			1.3
FIN 48	1.1			0.3			0.5
GILTI, net	3.6			0.4			—
Permanent differences	1.8			—			(0.3		)
Provision for income taxes	$	22.9		$	18.8		$	36.0

Schedule of Unrecognized Tax Benefits Activity

The table below presents the gross unrecognized tax benefits activity for 2019, 2018 and 2017:



(in millions)
Gross unrecognized tax benefits at December 31, 2016	$	1.8
Increases for tax positions for prior years	—
Decreases for tax positions for prior years	—
Increases for tax positions for current year	0.5
Settlements	(0.3		)
Lapse of statute of limitations	—
Gross unrecognized tax benefits at December 31, 2017	$	2.0
Unrecognized tax benefits acquired in business combinations	6.5
Increases for tax positions for prior years	—
Decreases for tax positions for prior years	—
Increases for tax positions for current year	0.3
Settlements	—
Lapse of statute of limitations	—
Gross unrecognized tax benefits at December 31, 2018	$	8.8
Increases for tax positions for prior years	0.5
Unrecognized tax benefits acquired in business combinations	—
Decreases for tax positions for prior years	—
Increases for tax positions for current year	1.5
Settlements	(0.4		)
Lapse of statute of limitations	—
Gross unrecognized tax benefits at December 31, 2019	$	10.4