INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

The provision from (benefit for) income taxes consisted of the following:


	Twelve Months Ended December 31,
	2020		2019		2018
	(In millions)
Current:
Federal	$	34.8	$	(5.2)	$	9.0
State	24.0		8.5		11.4
Foreign	33.7		43.7		31.5
	92.5		47.0		51.9
Deferred:
Federal	40.6		(48.2)		25.4
State	(0.1)		(11.3)		1.6
Foreign	26.0		(23.2)		(25.5)
	66.5		(82.7)		1.5
Provision from (benefit for) income taxes	$	159.0	$	(35.7)	$	53.4

Domestic and Foreign Income before Income Taxes

Domestic and foreign income (loss) before income taxes was as follows:


	Twelve Months Ended December 31,
	2020		2019		2018
	(In millions)
U.S.	$	470.3	$	(522.7)	$	354.3
Foreign	214.9		108.9		16.1
	$	685.2	$	(413.8)	$	370.4

Provision for Income Taxes Reconciles with U.S. Federal Statutory Rate

The provision from (benefit for) income taxes reconciles with the U.S. federal statutory rate, as follows:


	Twelve Months Ended December 31,
	2020			2019			2018
	(In millions)
Federal statutory rate	21.0		%	21.0		%	21.0		%

Provision computed at federal statutory rate	$	143.9		$	(86.9)		$	77.8
State and local taxes, net of federal tax benefit	17.8			(6.3)			11.2
Foreign	5.5			(2.7)			—

Federal research & development credit	(15.9)			(14.9)			(13.0)
Equity compensation	(6.0)			(3.0)			(7.5)
Tax reserves	1.4			1.2			2.4
Australia settlement	—			—			(14.1)
Legal settlement	0.1			69.1			—
Excess officer’s compensation	5.8			5.1			2.7
Valuation Allowance	7.8			—			—
Other	(1.4)			2.7			(6.1)
Provision from (benefit for) income taxes	$	159.0		$	(35.7)		$	53.4

Effective income tax rate	23.2		%	8.6		%	14.4		%

Components of Deferred Income Tax Assets and Liabilities

Components of the deferred income tax assets and liabilities at December 31, 2020 and 2019, were as follows:


	December 31,
	2020		2019
	(In millions)
Deferred income tax assets:
Net operating and capital loss carryforwards	$	286.1	$	285.1
Goodwill and intangible assets	128.0		119.1
Employee compensation programs	62.7		40.5
Foreign tax credits	17.4		16.6
Employee pension benefits	34.6		31.1
Reserves and accrued expenses	17.6		14.9
Accrued legal expense	94.9		136.3
Research and development costs	33.0		32.4
Operating lease asset	23.1		26.6
Other	11.8		18.3
Gross deferred income tax assets	709.2		720.9
Valuation allowance	(382.7)		(379.8)
Total deferred income tax assets, net	326.5		341.1

Deferred income tax liabilities:
Goodwill and intangible assets	(540.7)		(472.5)
Undistributed earnings of foreign subsidiaries	(11.3)		(8.3)
Depreciation	(19.1)		(33.6)
Operating lease liability	(23.1)		(26.6)
Accrued insurance	—		(27.5)
Prepaid expenses	(11.6)		(8.1)
Investment basis difference	(41.5)		(1.2)
Other	(2.3)		(2.1)
Total deferred income tax liability	(649.6)		(579.9)
Net deferred income tax liability	$	(323.1)	$	(238.8)

Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities

Our deferred income tax assets and deferred income tax liabilities at December 31, 2020 and 2019, are included in the accompanying Consolidated Balance Sheets as follows:


	December 31,
	2020		2019
	(In millions)

Long-term deferred income tax assets, included in other assets	$	9.2	$	9.2
Long-term deferred income tax liabilities	(332.3)		(248.0)
Net deferred income tax liability	$	(323.1)	$	(238.8)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2020		2019
	(In millions)
Beginning balance (January 1)	$	27.5	$	25.9
Increases related to prior year tax positions	12.7		2.0
Decreases related to prior year tax positions	(0.1)		(0.1)
Increases related to current year tax positions	9.1		7.2
Decreases related to settlements	(0.2)		(1.3)
Expiration of the statute of limitations for the assessment of taxes	(7.2)		(5.9)
Currency translation adjustment	(0.3)		(0.3)
Ending balance (December 31)	$	41.5	$	27.5