Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Benefit (Expense) Reconciliation Table

Income tax benefit (expense) attributable to our earnings (loss) from continuing operations before income taxes differs from the amounts computed using the applicable income tax rate as a result of the following factors:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
	in millions

Computed “expected” tax benefit (expense) (a)	$	(60.4)	$	218.7	$	(2,533.3)	$	143.3
Non-taxable gain associated with the U.K. JV Transaction	(66.0)		—		2,050.2		—
Non-deductible or non-taxable foreign currency exchange results	88.9		(224.3)		169.7		(166.6)
Change in valuation allowances	(19.1)		(98.6)		(107.6)		(198.2)
International rate differences (b)	(39.5)		(3.0)		(81.1)		(6.7)
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates (c)	99.3		(7.4)		75.1		(24.6)
Non-deductible or non-taxable interest and other items	(12.3)		26.4		(50.7)		(19.7)
Recognition of previously unrecognized tax benefits	—		—		20.5		188.8
Tax benefit associated with technology innovation (d)	5.7		4.9		17.2		54.4
Enacted tax law and rate changes (e)	2.5		242.3		2.1		274.0
Other, net	(1.3)		6.5		(6.3)		7.5
Total income tax benefit (expense)	$	(2.2)	$	165.5	$	(444.2)	$	252.2

_______________

(a)The statutory or “expected” tax rate is the U.K. rate of 19.0%.

(b)Amounts reflect adjustments (either a benefit or expense) to the “expected” tax benefit (expense) for statutory rates in jurisdictions in which we operate outside of the U.K.

(c)Amounts reflect the net impact of differences in the treatment of income and loss items between financial reporting and tax accounting related to investments in subsidiaries and affiliates, including the effects of foreign earnings.

(d)Amounts reflect the recognition of the innovation income tax deduction in Belgium. The amount for the nine months ended September 30, 2020 includes the one-time effect of deductions related to prior periods.

(e)On July 22, 2020, legislation was enacted in the U.K. to maintain the corporate income tax rate at 19.0%, reversing previous legislation that had reduced the U.K. rate to 17.0% from April 1, 2020. The impact of this rate change on our deferred balances was recorded during the third quarter of 2020. On June 10, 2021, legislation was enacted in the U.K. to increase the U.K. corporate income rate to 25.0% from April 1, 2023. The impact of this rate change on our deferred balances was recorded during the second quarter of 2021.