Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income tax were as follows:



(in millions)	2018		2017		2016
Domestic operations	$	37.0	$	68.7	$	33.9
Foreign operations	120.9		89.4		91.2
Total	$	157.9	$	158.1	$	125.1

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 21% for 2018 and 35% for 2017 and 2016 to our effective income tax rate was as follows:



(in millions)	2018			2017			2016
Income tax at U.S. statutory rate; 21%, 35% and 35%, respectively	$	33.2		$	55.3		$	43.8
Effect of the U.S. Tax Act	3.1			(25.7		)	—
State, local and other tax, net of federal benefit	2.2			3.6			2.4
GILTI/FDII	3.7			—			—
U.S. effect of foreign dividends and withholding taxes	2.2			4.9			4.6
Realized foreign exchange net loss on intercompany loans	—			—			(9.6		)
Revaluation of previously held equity interest	—			—			(12.0		)
Foreign income taxed at a higher (lower) effective rate	0.9			(6.9		)	(4.6		)
Net Brazilian Tax Assessment impact	(4.4		)	2.2			2.8
Expiration of tax credits	—			—			10.9
Increase (decrease) in valuation allowance	5.2			(0.6		)	(9.9		)
Excess benefit from stock-based compensation	(2.5		)	(5.6		)	—
Other	7.6			(0.8		)	1.2
Income taxes as reported	$	51.2		$	26.4		$	29.6
Effective tax rate	32.4		%	16.7		%	23.7		%

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense were as follows:



(in millions)	2018		2017			2016
Current expense
Federal and other	$	2.7	$	41.1		$	0.7
Foreign	25.8		30.5			22.9
Total current income tax expense	28.5		71.6			23.6
Deferred expense
Federal and other	11.1		(47.4		)	3.5
Foreign	11.6		2.2			2.5
Total deferred income tax expense (benefit)	22.7		(45.2		)	6.0
Total income tax expense	$	51.2	$	26.4		$	29.6

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets (liabilities) were as follows:



(in millions)	2018			2017
Deferred tax assets
Compensation and benefits	$	17.2		$	18.5
Pension	46.1			49.6
Inventory	10.7			10.6
Other reserves	15.7			15.2
Accounts receivable	6.1			5.7
Foreign tax credit carryforwards	25.2			29.1
Net operating loss carryforwards	101.8			126.6
Other	9.6			5.6
Gross deferred income tax assets	232.4			260.9
Valuation allowance	(50.8		)	(45.0		)
Net deferred tax assets	181.6			215.9
Deferred tax liabilities
Depreciation	(19.3		)	(17.2		)
Unremitted non-U.S. earnings accrual	(1.4		)	—
Identifiable intangibles	(219.0		)	(237.9		)
Other	(3.0		)	—
Gross deferred tax liabilities	(242.7		)	(255.1		)
Net deferred tax liabilities	$	(61.1	)	$	(39.2	)

Schedule of Unrecognized Tax Benefits Roll Forward

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



(in millions)	2018			2017			2016
Balance at beginning of year	$	47.2		$	43.7		$	34.8
Additions for tax positions of prior years	3.1			2.9			3.0
Additions for tax positions of current year	1.5			—			—
Reductions for tax positions of prior years	(8.2		)	(0.7		)	(0.5		)
Acquisitions	5.3			1.6			—
Increase resulting from foreign currency translation	—			—			6.4
Decrease resulting from foreign currency translation	(5.2		)	(0.3		)	—
Balance at end of year	$	43.7		$	47.2		$	43.7