Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of effective income tax rate reconciliation

The below chart provides a reconciliation between our reported effective tax rate and the EAETR of our continuing operations:


	Three Months Ended March 31,
	2020										2019
(in Millions)	Before Tax		Tax		Effective Tax Rate %		Before Tax		Tax		Effective Tax Rate %
Continuing operations	$	248.4	$	34.7	14.0	%	$	243.9	$	36.3	14.9	%
Discrete items:

Currency remeasurement ⁽¹⁾	$	1.1	$	—			$	1.9	$	0.9
Other discrete items ⁽²⁾	49.5		2.7				46.0		3.3
Tax only discrete items ⁽³⁾	—		2.9				—		2.4
Total discrete items	$	50.6	$	5.6			$	47.9	$	6.6
Continuing operations, before discrete items	$	299.0	$	40.3			$	291.8	$	42.9
Estimated Annualized Effective Tax Rate (EAETR)					13.5	%					14.7	%

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(1)Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, which are accounted for discretely in accordance with U.S. GAAP. Certain transaction gains or losses for currency remeasurement are not taxable, while offsetting hedge gains or losses are taxable.

(2)U.S. GAAP generally requires subsidiaries for which a full valuation allowance has been provided to be excluded from the EAETR. For the three months ended March 31, 2020 and 2019, other discrete items were materially comprised of the accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided.

(3)For the three months ended March 31, 2020 and 2019, tax only discrete items are primarily comprised of the tax effect of currency remeasurement associated with foreign statutory operations, excess tax benefits associated with share-based compensation, changes in uncertain tax liabilities and related interest, and changes in tax law.