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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Domestic and foreign components of income (loss) from continuing operations before income taxes are shown below:


	Year Ended December 31,
(in Millions)	2019		2018		2017
Domestic	$	(227.4)	$	(234.9)	$	(201.4)
Foreign	882.4		843.3		297.2
Total	$	655.0	$	608.4	$	95.8

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes attributable to income (loss) from continuing operations consisted of:


	Year Ended December 31,
(in Millions)	2019		2018		2017
Current:
Federal ⁽¹⁾	$	(12.0)	$	25.1	$	61.9
Foreign	77.0		90.0		49.9
State	0.4		(0.4)		4.1
Total current	$	65.4	$	114.7	$	115.9
Deferred:
Federal ⁽²⁾	$	(1.2)	$	(4.4)	$	127.8
Foreign	42.7		(30.4)		(14.4)
State	4.6		(9.1)		(0.4)
Total deferred	$	46.1	$	(43.9)	$	113.0
Total	$	111.5	$	70.8	$	228.9

____________________

(1) The years ended December 31, 2018 and 2017 include the one-time impacts of the Act, primarily related to transition tax.

(2) The years ended December 31, 2018 and 2017 include the one-time impacts of the Act, primarily related to the measurement of the Company’s U.S. domestic net deferred tax assets.

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate applicable to income from continuing operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table:


	Year Ended December 31,
(in Millions)	2019		2018		2017
U.S. Federal statutory rate ⁽¹⁾	$	137.5	$	127.8	$	33.5
Impacts of Tax Cuts and Jobs Act Enactment ⁽²⁾	—		7.8		303.6
Foreign earnings subject to different tax rates ⁽³⁾	(137.7)		(154.9)		(74.5)
Capital loss on internal restructuring	—		—		(45.3)
State and local income taxes, less federal income tax benefit	(2.9)		1.4		(1.5)
Manufacturer's production deduction and miscellaneous tax credits	(3.8)		(3.7)		(8.4)
Tax on dividends, deemed dividends, and GILTI ⁽⁴⁾	46.8		45.5		10.6
Changes to unrecognized tax benefits	(5.4)		2.7		6.7
Nondeductible expenses	3.5		12.4		14.2
Change in valuation allowance ⁽⁵⁾	49.9		7.4		(29.3)
Exchange gains and losses ⁽⁶⁾	(2.1)		5.7		28.1
Other	25.7		18.7		(8.8)
Total Tax Provision	$	111.5	$	70.8	$	228.9

____________________

(1) The years ended December 31, 2019 and 2018 includes twelve months of earnings associated with the operations of the DuPont Crop Protection Business acquired November 1, 2017. See Note 5 for additional information.

(2) Includes the one-time impacts of the of the Act, primarily related to transition tax and the decrease to the U.S. tax rate, further discussed above within Note 13.

(3) The years ended December 31, 2019 and 2018 reflects the income mix associated with twelve months of foreign earnings of the DuPont Crop Protection business acquired November 1, 2017.

(4) The years ended December 31, 2019 and 2018 includes tax expense of $41.6 million and $43.8 million, respectively, associated with the global intangible low-taxed income (GILTI) provisions of the Act.

(5) The year ended December 31, 2019 includes approximately $21 million associated with our India operations, primarily related to net operating losses with limited carryforward.

(6) Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes.

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were attributable to:


	December 31,
(in Millions)	2019		2018
Reserves for discontinued operations, environmental and restructuring	$	188.3	$	148.7
Accrued pension and other postretirement benefits	2.4		2.1

Capital loss, foreign tax and other credit carryforwards	7.5		6.0
Net operating loss carryforwards	227.0		219.3
Deferred expenditures capitalized for tax	18.7		15.2
Other	163.6		143.3
Deferred tax assets	$	607.5	$	534.6
Valuation allowance, net	(303.3)		(261.4)
Deferred tax assets, net of valuation allowance	$	304.2	$	273.2
Intangibles and property, plant and equipment, net	380.0		331.2
Deferred tax liabilities	$	380.0	$	331.2
Net deferred tax assets (liabilities)	$	(75.8)	$	(58.0)

Summary of Income Tax Contingencies

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


(in Millions)	2019		2018		2017
Balance at beginning of year	$	79.1	$	84.0	$	111.6
Increases related to positions taken in the current year	4.1		11.8		9.4

Increases and decreases related to positions taken in prior years	3.4		(1.8)		(4.6)
Decreases related to lapse of statutes of limitations	(13.0)		(13.5)		(14.2)
Settlements during the current year	(2.8)		(1.4)		(0.3)
Decreases for tax positions on dispositions	(2.6)		—		(17.9)
Balance at end of year ⁽¹⁾	$	68.2	$	79.1	$	84.0

____________________

(1) At December 31, 2019, 2018, and 2017 we recognized an offsetting non-current asset of $34.0 million, $45.3 million, and $59.8 million respectively, relating to the indirect income tax benefits associated with specific uncertain tax positions presented above.