Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of income before tax from U.S. and non-U.S. operations

A summary of pre‑tax income from U.S. and non-U.S. operations for the years ended December 31 follows:

(in millions)	2017		2016			2015
Continuing operations:
U.S. domestic	$	395.2	$	319.0		$	393.8
Foreign	73.0		91.5			74.1
Total pre-tax income from continuing operations	468.2		410.5			467.9
Discontinued operations:
U.S. domestic	0.3		(1.1		)	0.1
Foreign	—		—			—
Total pre-tax income (loss) from discontinued operations	0.3		(1.1		)	0.1
Total pre-tax income	$	468.5	$	409.4		$	468.0

Summary of provision for income taxes from continuing operations

The provision for income taxes from continuing operations for the years ended December 31 follows:

(in millions)	2017			2016			2015
Current expense:
Federal and State	$	133.0		$	155.5		$	140.1
Foreign	28.4			29.2			24.0
Total current expense	161.4			184.7			164.1
Deferred expense (benefit):
Federal and State	(64.7		)	(15.5		)	(12.7		)
Foreign	6.2			(9.5		)	(3.1		)
Total deferred expense (benefit)	(58.5		)	(25.0		)	(15.8		)
Total tax expense	$	102.9		$	159.7		$	148.3

Schedule of reconciliation of taxes from continuing operations computed at the statutory rate to the tax provision

A reconciliation of the tax provision from continuing operations computed at the U.S. federal statutory rate to the actual tax provision for the years ended December 31 follows:

(in millions)	2017			2016			2015
Taxes at the 35% U.S. statutory rate	$	163.9		$	143.7		$	163.8
State and local taxes, net of federal income tax benefit	10.8			8.6			1.9
Benefit of foreign earnings taxed at lower rates	(6.7		)	(8.1		)	(7.9		)
Benefit for domestic manufacturing deduction	(10.4		)	(12.6		)	(11.5		)
Tax credits	(2.3		)	(10.7		)	—
Tax impact of impairment of goodwill	—			41.2			—
Impact of U.S. tax reform	(57.7		)	—			—
Change in investment assertion on foreign earnings	5.1			—			—
Other, net	0.2			(2.4		)	2.0
Tax expense	$	102.9		$	159.7		$	148.3
Effective income tax rate on continuing operations	22.0		%	38.9		%	31.7		%

Schedule of deferred tax assets (liabilities)

The components of deferred tax assets (liabilities) as of December 31 follows:

(in millions)	2017			2016
Deferred revenue	$	20.1		$	26.9
Warranty reserves	4.7			7.1
Inventory reserves	8.7			12.1
Allowance for doubtful accounts	3.7			4.5
Employee benefits	31.3			45.2
Foreign loss carryforwards	3.8			2.9
Federal tax credit carryovers	3.1			6.6
Deferred state tax attributes	13.6			14.6
Other, net	2.4			7.0
Gross deferred assets	91.4			126.9
Valuation allowances	(4.3		)	(1.3		)
Deferred tax assets after valuation allowances	$	87.1		$	125.6
Undistributed foreign earnings	(7.9		)	(1.7		)
Depreciation	(42.7		)	(42.4		)
Amortization	(47.3		)	(60.7		)
Acquired identifiable intangibles	(188.3		)	(134.7		)
Gross deferred liabilities	(286.2		)	(239.5		)
Net deferred tax liabilities	$	(199.1	)	$	(113.9	)

Schedule of Deferred tax assets and (liabilities) included in the balance sheet

Deferred tax assets (liabilities) included in the Consolidated Balance Sheet as of December 31 follows:

(in millions)	2017			2016
Other long-term assets	$	1.4		$	1.1
Other long-term liabilities	(200.5		)	(115.0		)
Net deferred tax liabilities	$	(199.1	)	$	(113.9	)

Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before estimated interest and penalties)

A summary of the movement in gross unrecognized tax benefits (before estimated interest and penalties) for the years ended December 31 follows:

(in millions)	2017			2016			2015
Balance as of January 1	$	24.6		$	27.7		$	23.8
Additions based on tax positions related to current year	3.0			0.6			0.9
Additions related to acquisition positions	15.8			—			3.0
Adjustments for tax positions of prior years	1.5			—			1.3
Reductions due to statute of limitations	(3.3		)	(2.1		)	(1.2		)
Reductions due to settlements	(1.7		)	(1.4		)	—
Adjustments due to foreign exchange rates	0.7			(0.2		)	(0.1		)
Balance as of December 31	$	40.6		$	24.6		$	27.7