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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
Income before income taxes

(millions)

    

2019

    

2018

2017

United States

$787.1

$690.1

$818.1

International

 

944.4

897.0

741.9

Total

$1,731.5

$1,587.1

$1,560.0

Provision (benefit) for income taxes

(millions)

    

2019

    

2018

2017

Federal and state

$134.4

$105.1

$217.1

International

 

176.3

93.5

331.2

Total current

 

310.7

198.6

548.3

Federal and state

 

37.9

52.7

(328.0)

International

 

(60.0)

69.9

(30.5)

Total deferred

 

(22.1)

122.6

(358.5)

Provision for income taxes

$288.6

$321.2

$189.8

Net deferred tax assets and deferred tax liabilities

December 31 (millions)

    

2019

    

2018

Deferred tax assets

Other accrued liabilities

$127.5

$117.9

Loss carryforwards

 

 

48.0

 

195.9

Share-based compensation

 

 

55.0

 

58.3

Pension and other comprehensive income

 

 

207.4

 

145.5

Lease liability

 

 

104.8

 

-

Other, net

 

 

76.2

 

64.1

Valuation allowance

 

 

(24.5)

 

(161.5)

Total deferred tax assets

 

 

594.4

 

420.2

Deferred tax liabilities

Property, plant and equipment basis differences

 

 

(258.1)

 

(226.7)

Intangible assets

 

 

(569.9)

 

(594.2)

Lease asset

(105.2)

-

Other, net

 

 

(62.3)

 

(44.7)

Total deferred tax liabilities

 

 

(995.5)

 

(865.6)

Net deferred tax liabilities balance

$(401.1)

$(445.4)

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

    

2019

2018

2017

Statutory U.S. rate

21.0

%  

21.0

%

35.0

%

One-time transition tax

(0.2)

4.2

10.3

State income taxes, net of federal benefit

1.8

 

1.2

 

0.4

Foreign operations

5.5

 

(15.5)

 

(7.0)

Domestic manufacturing deduction

-

 

-

 

(2.3)

R&D credit

(1.0)

 

(1.0)

 

(0.9)

Change in valuation allowance

(8.2)

 

10.3

 

-

Audit settlements and refunds

(0.2)

 

(0.8)

 

(0.2)

Excess stock benefits

(2.4)

(1.7)

(2.5)

Change in federal tax rate (deferred taxes)

-

(0.7)

(20.6)

Prior year adjustments

-

2.9

-

Other, net

0.4

 

0.3

 

-

Effective income tax rate

16.7

%

20.2

%

12.2

%

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

(millions)

    

2019

    

2018

2017

Balance at beginning of year

$49.0

$60.6

$75.9

Additions based on tax positions related to the current year

    

2.1

 

3.0

 

3.2

Additions for tax positions of prior years

 

 

1.0

 

2.0

 

-

Reductions for tax positions of prior years

 

 

(18.4)

 

(8.7)

 

(4.9)

Reductions for tax positions due to statute of limitations

 

 

(5.7)

 

(5.8)

 

(14.0)

Settlements

 

 

(0.6)

 

(0.8)

 

(10.8)

Assumed in connection with acquisitions

 

 

-

 

-

 

9.1

Foreign currency translation

 

 

(0.4)

 

(1.3)

 

2.1

Balance at end of year

$27.0

$49.0

$60.6