Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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

Geographic sources of income before income taxes consists of the following:

(in millions)	2019		2018		2017
Continuing operations:
U.S. domestic	$	484.7	$	352.2	$	356.5
Foreign	110.6		93.7		72.5
Income from continuing operations before income taxes	595.3		445.9		429.0
Discontinued operations:
U.S. domestic	(1.8)		299.8		39.1
Foreign	—		0.3		0.5
Income from discontinued operations before income taxes	(1.8)		300.1		39.6
Total income before income taxes	$	593.5	$	746.0	$	468.6

Summary of provision for income taxes from continuing operations

The provision for income taxes from continuing operations consists of the following:

(in millions)	2019		2018		2017
Current provision:
Federal and State	$	105.9	$	62.0	$	116.5
Foreign	23.4		25.9		28.4
Total current provision	129.3		87.9		144.9
Deferred provision (benefit):
Federal and State	(6.9)		7.9		(62.7)
Foreign	(0.8)		(8.5)		6.2
Total deferred (benefit) provision	(7.7)		(0.6)		(56.5)
Total provision for income taxes	$	121.6	$	87.3	$	88.4

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 follows:

(in millions)	2019			2018			2017
Taxes at U.S. statutory rate	$	125.0		$	93.6		$	150.1
State and local taxes, net of federal income tax benefit	15.2			10.8			9.5
Foreign earnings taxed at different rates	0.8			1.1			(6.7)
Change in unrecognized tax benefit	(2.8)			(7.8)			0.9
Return to provision adjustments	(7.6)			(2.3)			(0.7)
Benefit for domestic manufacturing deduction	—			—			(9.7)
Tax credits	(5.2)			(3.0)			(2.3)
Impact of U.S. tax reform	—			(3.3)			(57.7)
Change in investment assertion on foreign earnings	—			—			5.1
Other, net	(3.8)			(1.8)			(0.1)
Provision for income taxes	$	121.6		$	87.3		$	88.4
Effective income tax rate on continuing operations	20.4		%	19.6		%	20.6		%

Schedule of deferred tax assets (liabilities)

(in millions)	December 31, 2019		December 31, 2018
Deferred revenue	$	22.9	$	21.1
Warranty reserves	4.6		4.6
Inventory reserves	7.6		7.6
Allowance for doubtful accounts	3.3		2.5
Employee benefits	29.8		27.6
Foreign loss carryforwards	4.4		5.1
Federal tax credit carryovers	2.4		—
Deferred state tax attributes	8.3		11.9
Lease liabilities	16.3		—
Other, net	5.0		—
Gross deferred assets	104.6		80.4
Valuation allowances	(5.3)		(1.3)
Deferred tax assets after valuation allowances	99.3		79.1
Undistributed foreign earnings	(13.6)		(11.0)
Property, plant and equipment	(55.8)		(47.2)
Intangibles	(219.0)		(172.5)
Right of use assets	(15.0)		—
Other, net	—		(0.4)
Gross deferred liabilities	(303.4)		(231.1)
Net deferred tax liabilities	$	(204.1)	$	(152.0)

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

Deferred tax assets and liabilities included in the Consolidated Balance Sheet follows:

(in millions)	December 31, 2019		December 31, 2018
Other long-term assets	$	3.6	$	2.6
Other long-term liabilities	(207.7)		(154.6)
Net deferred tax liabilities	$	(204.1)	$	(152.0)

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) follows:

(in millions)	2019		2018		2017
Balance as of January 1	$	27.3	$	37.4	$	24.6
Additions based on tax positions related to current year	0.3		3.3		3.0
Additions related to acquired uncertain tax positions	11.6		—		12.6
Adjustments for tax positions of prior years	2.0		—		1.5
Reductions due to statute of limitations	(5.0)		(12.0)		(3.3)
Reductions due to settlements	(0.1)		(1.2)		(1.7)
Adjustments due to foreign exchange rates	(0.2)		(0.2)		0.7
Balance as of December 31	$	35.9	$	27.3	$	37.4