Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes, equity earnings and the impact of noncontrolling interests are listed below.



	Years ended December 31,
	2013		2012		2011
Domestic	$	255.3	$	386.9	$	428.4
Foreign	212.7		287.9		310.0
Total	$	468.0	$	674.8	$	738.4

Schedule of Components of Provision for Income Taxes

The provision for income taxes is listed below.



	Years ended December 31,
	2013			2012			2011
U.S. federal income taxes (including foreign withholding taxes):
Current	$	46.9		$	9.4		$	0.9
Deferred	25.2			118.1			92.3
	72.1			127.5			93.2
State and local income taxes:
Current	(14.7		)	17.1			12.3
Deferred	24.7			25.3			11.3
	10.0			42.4			23.6
Foreign income taxes:
Current	79.6			83.2			93.1
Deferred	19.5			(39.8		)	(19.7		)
	99.1			43.4			73.4
Total	$	181.2		$	213.3		$	190.2

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the effective income tax rate before equity earnings and the impact of noncontrolling interests as reflected in our Consolidated Statements of Operations to the U.S. federal statutory income tax rate is listed below.



	Years ended December 31,
	2013			2012			2011
U.S. federal statutory income tax rate	35.0		%	35.0		%	35.0		%

Income tax provision at U.S. federal statutory rate	$	163.8		$	236.2		$	258.4
State and local income taxes, net of federal income tax benefit	6.5			27.3			15.3
Impact of foreign operations, including withholding taxes	30.5			8.4			(21.9		)
Change in net valuation allowance ¹	3.2			(57.3		)	(32.9		)
Worthless securities deduction	(22.2		)	0.0			(23.0		)
Increases (decreases) in unrecognized tax benefits, net	0.0			24.1			(2.7		)
Other	(0.6		)	(25.4		)	(3.0		)
Provision for income taxes	$	181.2		$	213.3		$	190.2
Effective income tax rate on operations	38.7		%	31.6		%	25.8		%


¹	Reflects changes in valuation allowance that impacted the effective income tax rate for each year presented.

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are listed below.



	December 31,
	2013			2012
Postretirement/post-employment benefits	$	32.5		$	40.4
Deferred compensation	187.2			192.4
Pension costs	31.1			27.0
Basis differences in fixed assets	(4.1		)	26.9
Rent	50.7			50.2
Interest	60.7			66.9
Accruals and reserves	39.6			51.1
Allowance for doubtful accounts	10.8			9.2
Basis differences in intangible assets	(402.2		)	(364.9		)
Investments in equity securities	48.6			(5.2		)
Tax loss/tax credit carry forwards	443.6			449.7
Restructuring and other reorganization-related costs	2.6			1.2
Other	60.5			88.3
Total deferred tax assets, net	561.6			633.2
Valuation allowance	(467.3		)	(392.9		)
Net deferred tax assets	$	94.3		$	240.3

Summary of Valuation Allowance

The change in the valuation allowance is listed below.



	Years ended December 31,
	2013		2012			2011
Balance at beginning of period	$	392.9	$	489.9		$	508.1
Charged (reversed) to costs and expenses	65.2		(49.5		)	(25.1		)
Charged (reversed) to gross tax assets and other accounts	9.2		(47.5		)	6.9
Balance at end of period	$	467.3	$	392.9		$	489.9

Schedule of Unrecognized Tax Benefits Activity

The table below summarizes the activity related to our unrecognized tax benefits.



	December 31,
	2013			2012			2011
Balance at beginning of period	$	194.6		$	161.0		$	146.7
Increases as a result of tax positions taken during a prior year	8.3			28.2			5.3
Decreases as a result of tax positions taken during a prior year	(1.9		)	(6.8		)	(18.1		)
Settlements with taxing authorities	(34.9		)	(0.7		)	(5.0		)
Lapse of statutes of limitation	(10.6		)	(1.1		)	(0.2		)
Increases as a result of tax positions taken during the current year	63.7			14.0			32.3
Balance at end of period	$	219.2		$	194.6		$	161.0