Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (loss) before income taxes and noncontrolling interest

Income from continuing operations before income taxes consisted of the following:

	Years ended December 31
In millions	2019			2018			2017
Federal (1)	$	(1.6	)	$	(24.6	)	$	(34.1	)
International (2)	409.1			404.4			206.9
Income from continuing operations before income taxes	$	407.5		$	379.8		$	172.8

⁽¹⁾  “Federal” reflects United Kingdom (“U.K.”) loss from continuing operations before income taxes.

⁽²⁾ 

“International” reflects non-U.K. income from continuing operations before income taxes.

Provision for Income Taxes

The provision for income taxes consisted of the following:

	Years ended December 31
In millions	2019			2018			2017
Currently payable (receivable)
Federal (1)	$	—		$	(0.1	)	$	—
International (2)	64.2			62.3			76.7
Total current taxes	64.2			62.2			76.7
Deferred
International (2)	(18.4		)	(4.1		)	(18.0		)
Total deferred taxes	(18.4		)	(4.1		)	(18.0		)
Total provision for income taxes	$	45.8		$	58.1		$	58.7

⁽¹⁾  “Federal” represents U.K. taxes.

⁽²⁾ 

“International” represents non-U.K. taxes.

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

Reconciliations of the federal statutory income tax rate to our effective tax rate were as follows:

	Years ended December 31
Percentages	2019		2018		2017
U.K. federal statutory income tax rate	19.0	%	19.0	%	19.3	%
Tax effect of international operations (1)	(8.2	)	(9.9	)	(18.7	)
Change in valuation allowances	1.1		7.9		27.6
Excess tax benefits on stock-based compensation	(0.7	)	(1.7	)	(4.5	)
Tax effect of U.S. tax reform	—		(0.9	)	1.3
Tax effect of early extinguishment of debt	—		0.9		9.0
Effective tax rate	11.2	%	15.3	%	34.0	%

⁽¹⁾ 

The tax effect of international operations consists of non-U.K. jurisdictions.

Reconciliations of Gross Unrecognized Tax Benefits

conciliations of the beginning and ending gross unrecognized tax benefits were as follows:

	Years ended December 31
In millions	2019			2018			2017
Beginning balance	$	51.4		$	13.8		$	46.3
Gross increases for tax positions in prior periods	0.4			44.0			4.7
Gross decreases for tax positions in prior periods	(0.8		)	(4.4		)	(3.4		)
Gross increases based on tax positions related to the current year	0.4			0.9			0.7
Gross decreases related to settlements with taxing authorities	(2.9		)	(1.8		)	(33.6		)
Reductions due to statute expiration	(1.1		)	(1.1		)	(0.9		)
Ending balance	$	47.4		$	51.4		$	13.8

W

Deferred Taxes

eferred taxes were recorded in the Consolidated Balance Sheets as follows:

	December 31
In millions	2019		2018
Other non-current assets	$	29.6	$	26.2
Deferred tax liabilities	104.4		105.9
Net deferred tax liabilities	$	74.8	$	79.7

Tax Effects of Major Items Recorded as Deferred Tax Assets and Liabilities

he tax effects of the major items recorded as deferred tax assets and liabilities were as follows:

	December 31
In millions	2019		2018
Deferred tax assets
Accrued liabilities and reserves	$	41.9	$	42.9
Pension and other post-retirement compensation and benefits	25.2		25.2
Employee compensation and benefits	19.6		21.8
Tax loss and credit carryforwards	712.0		724.7
Interest limitations	45.0		20.6
Total deferred tax assets	843.7		835.2
Valuation allowance	693.8		711.9
Deferred tax assets, net of valuation allowance	149.9		123.3
Deferred tax liabilities
Property, plant and equipment	8.5		7.1
Goodwill and other intangibles	200.4		179.7
Other liabilities	15.8		16.2
Total deferred tax liabilities	224.7		203.0
Net deferred tax liabilities	$	74.8	$	79.7

I