INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Income before income taxes

(millions)	2016		2015		2014
United States		$ 656.1		$ 733.0		$ 937.7
International		994.3		584.7		760.7
Total		$ 1,650.4		$ 1,317.7		$ 1,698.4

Provision for income taxes

(millions)	2016		2015		2014
Federal and state		$ 224.2		$ 241.4		$ 344.3
International		269.7		303.6		253.4
Total current		493.9		545.0		597.7
Federal and state		(49.2)		(185.4)		(67.7)
International		(41.4)		(59.1)		(53.8)
Total deferred		(90.6)		(244.5)		(121.5)
Provision for income taxes		$ 403.3		$ 300.5		$ 476.2

Net deferred tax assets and deferred tax liabilities

December 31 (millions)	2016		2015
Deferred tax assets
Other accrued liabilities		$ 187.4		$ 172.7
Loss carryforwards		54.8		62.4
Share-based compensation		83.1		75.2
Pension and other comprehensive income		264.7		309.0
Foreign tax credits		21.8		31.3
Other, net		111.1		78.5
Valuation allowance		(19.9)		(31.8)
Total		703.0		697.3
Deferred tax liabilities
Property, plant and equipment basis differences		(275.4)		(267.5)
Intangible assets		(1,151.4)		(1,227.7)
Unremitted foreign earnings		-		(25.8)
Other, net		(154.1)		(158.4)
Total		(1,580.9)		(1,679.4)
Net deferred tax liabilities balance		$ (877.9)		$ (982.1)

Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate

	2016		2015		2014
Statutory U.S. rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	0.9		0.4		1.6
Foreign operations	(8.0)		(8.1)		(6.1)
Domestic manufacturing deduction	(2.0)		(2.7)		(2.0)
R&D credit	(1.1)		(1.0)		(0.7)
Change in valuation allowance	(0.7)		(1.7)		(0.1)
Audit settlements and refunds	(0.2)		(0.7)		0.2
Venezuela charges	-		4.5		-
Worthless stock deduction	0.4		(3.0)		-
Other, net	0.1		0.1		0.1
Effective income tax rate	24.4	%	22.8	%	28.0	%

Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits

(millions)	2016		2015		2014
Balance at beginning of year		$ 74.6		$ 78.7		$ 98.7
Additions based on tax positions related to the current year		8.8		5.8		5.3
Additions for tax positions of prior years		2.1		0.9		5.2
Reductions for tax positions of prior years		(1.0)		(8.8)		(17.8)
Reductions for tax positions due to statute of limitations		(5.5)		(1.6)		(0.2)
Settlements		(2.0)		(4.2)		(9.0)
Assumed in connection with acquisitions		-		8.0		-
Foreign currency translation		(1.1)		(4.2)		(3.5)
Balance at end of year		$ 75.9		$ 74.6		$ 78.7