Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

(Loss) income before income taxes and non-controlling interests was as follows:



	Year Ended December 31,
($ amounts in millions)	2017			2016			2015
Domestic	$	(331.0	)	$	(229.1	)	$	(290.8	)
Foreign	42.0			181.0			61.5
Total	$	(289.0	)	$	(48.1	)	$	(229.3	)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following:



	Year Ended December 31,
($ amounts in millions)	2017			2016			2015
Current:
U.S.:
Federal	$	(1.2	)	$	0.1		$	0.7
State and local	1.0			0.4			(0.2		)
Foreign	133.4			85.5			120.1
Total current	133.2			86.0			120.6
Deferred:
U.S.:
Federal	(48.7		)	1.9			6.4
State and local	0.4			(0.2		)	(5.2		)
Foreign	(78.3		)	(59.1		)	(46.7		)
Total deferred	(126.6		)	(57.4		)	(45.5		)
Income tax expense	$	6.6		$	28.6		$	75.1

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal statutory tax rate to pre-tax loss, as a result of the following:



	Year Ended December 31,
($ amounts in millions)	2017			2016			2015
U.S. federal statutory tax rate	35.0		%	35.0		%	35.0		%

Taxes computed at U.S. statutory rate	$	(101.2	)	$	(16.8	)	$	(80.3	)
State income taxes, net of federal benefit	0.9			0.1			(3.6		)
Foreign tax on foreign operations	(3.9		)	(17.2		)	(25.3		)
U.S. tax on foreign operations	46.7			29.0			31.1
Net change in reserve	(8.1		)	(24.1		)	27.5
Change in valuation allowances	83.2			68.4			72.6
Provision for tax on undistributed foreign earnings	(1.0		)	26.8			5.0
Change of tax rate	(19.4		)	11.8			(1.0		)
Impact of transaction costs	—			(24.5		)	40.5
Settlement of Series B Convertible Preferred Stock	—			(34.3		)	—
Goodwill impairment	53.4			6.2			—
Provisional estimate of TCJA	(46.3		)	—			—
Other, net	2.3			3.2			8.6
Income tax expense	$	6.6		$	28.6		$	75.1

Effective tax rate	(2.3		)%	(59.5		)%	(32.8		)%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred income taxes at December 31, 2017 and 2016 were as follows:



	December 31,
($ amounts in millions)	2017			2016
Deferred tax assets:
Net operating losses	$	323.0		$	355.7
Tax credits	62.0			49.2
Interest carryforward	44.4			34.2
Employee benefits	40.3			56.2
Accrued liabilities	25.9			50.6
Financing activities	24.3			3.5
Goodwill	19.5			31.4
Accounts receivable	19.1			19.8
Research and development costs	10.3			15.2
Inventory	4.6			8.5
Other	20.7			24.1
Total deferred tax assets	594.1			648.4
Valuation allowance	(391.7		)	(383.3		)
Total gross deferred tax assets	202.4			265.1
Deferred tax liabilities:
Intangibles	710.4			831.9
Plant and equipment	24.8			33.9
Undistributed foreign earnings	21.9			36.8
Other	0.4			6.9
Total gross deferred tax liabilities	757.5			909.5
Net deferred tax liability	$	555.1		$	644.4

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits:



	Year Ended December 31,
($ amounts in millions)	2017			2016			2015
Unrecognized tax benefits at beginning of period	$	128.3		$	112.2		$	27.7
Additions based on current year tax positions	6.5			76.2			20.7
Additions based upon prior year tax positions (including acquired uncertain tax positions)	4.0			1.7			72.2
Reductions due to closed statutes	(6.3		)	(9.9		)	(2.9		)
Reductions for prior period positions	(38.0		)	(51.9		)	—
Reductions for settlements and payments	(4.2		)	—			(5.5		)
Total unrecognized tax benefits at end of period	$	90.3		$	128.3		$	112.2

Summary of Income Tax Examinations

At December 31, 2017, the following tax years remained subject to examination by the major tax jurisdictions indicated below:



Major Jurisdictions	Open Years
Belgium	2010	through current
Brazil	2011	through current
Canada	2012	through current
China	2011	through current
France	2011	through current
Germany	2013	through current
Japan	2012	through current
Mexico	2012	through current
Netherlands	2013	through current
South Africa	2013	through current
Taiwan	2012	through current
United Kingdom	2008 and 2015	through current
United States	2015	through current