Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income (loss) before income tax

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

	Year Ended December 31,
(dollars in millions)	2020		2019		2018
Domestic	$	(11.6)	$	(96.3)	$	(214.7)
Foreign	92.7		237.2		161.5
Total	$	81.1	$	140.9	$	(53.2)

Schedule of components of income tax expense

Income tax expense consisted of the following: 

	Year Ended December 31,
(dollars in millions)	2020		2019		2018
Current:
U.S.:
Federal	$	(0.8)	$	(4.1)	$	14.9
State and local	1.3		—		0.4
Foreign	56.8		68.5		63.2
Total current	57.3		64.4		78.5
Deferred:
U.S.:
Federal	(40.4)		33.2		(35.1)
State and local	1.1		(0.8)		(4.3)
Foreign	(13.7)		(35.5)		(15.3)
Total deferred	(53.0)		(3.1)		(54.7)
Income tax expense	$	4.3	$	61.3	$	23.8

Schedule of effective income tax rate reconciliation

Income tax expense 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,
(dollars in millions)	2020			2019			2018
U.S. federal statutory tax rate	21		%	21		%	21		%
Taxes computed at U.S. statutory rate	$	17.0		$	29.6		$	(11.2)
State income taxes, net of federal benefit	2.1			(0.6)			(3.1)
U.S. tax on foreign operations	8.9			23.7			31.2
Foreign tax on foreign operations	7.0			12.1			11.4
Change in valuation allowances	(4.2)			0.9			27.5
Tax on undistributed foreign earnings	4.3			(3.2)			7.0
Net change in reserve	8.2			(2.1)			(4.9)
Tax rate changes	(1.0)			(0.9)			8.3
Changes to U.S. tax law	(40.4)			—			(41.8)
Other, net	2.4			1.8			(0.6)
Income tax expense	$	4.3		$	61.3		$	23.8
Effective tax rate	5		%	44		%	(45)		%

Schedule of deferred tax assets and liabilities

The components of deferred income taxes at December 31, 2020 and 2019 were as follows:

	December 31,
(dollars in millions)	2020		2019
Deferred tax assets:
Net operating losses	$	150.1	$	112.7
Interest carryforward	88.4		69.3
Capital loss carryforward	53.6		66.6
Tax credits	28.8		33.8
Employee benefits	21.3		22.2
Research and development costs	21.2		18.4
Unrealized foreign exchange	—		9.9
Accrued liabilities	6.7		5.3
Other	21.7		19.8
Total deferred tax assets	391.8		358.0
Valuation allowances	(199.1)		(219.6)
Total gross deferred tax assets	192.7		138.4
Deferred tax liabilities:
Intangible assets	179.6		198.0
Property, plant and equipment	21.5		17.9
Undistributed foreign earnings	18.3		9.9
Goodwill	9.0		6.3
Total gross deferred tax liabilities	228.4		232.1
Net deferred tax liability	$	35.7	$	93.7

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,
(dollars in millions)	2020		2019		2018
Unrecognized tax benefits at beginning of period	$	71.2	$	81.4	$	90.3
Additions based upon prior year tax positions	2.7		1.4		2.7
Additions based on current year tax positions	14.5		3.2		3.1
Reductions for prior period positions	(0.2)		(7.6)		(6.9)
Reductions for settlements and payments	(1.1)		(2.1)		(4.3)
Reductions due to closed statutes	(4.6)		(5.1)		(3.5)
Total unrecognized tax benefits at end of period	$	82.5	$	71.2	$	81.4

Summary of income tax examinations

At December 31, 2020, the following tax years remained subject to examination by the major tax jurisdictions indicated below:

Major Jurisdictions	Open Years
China	2016	through current
Germany	2013	through current
Taiwan	2013	through current
United Kingdom	2008 and 2015	through current
United States	2015	through current