Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

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

(in millions)	2016		2015		2014
Continuing operations
U.S. domestic	$	319.0	$	393.8	$	318.9
Foreign		91.5		74.1		57.2
Total pre-tax income from continuing operations		410.5		467.9		376.1
Discontinued operations
U.S. domestic		(1.1)		0.1		(3.2)
Foreign		-		-		1.1
Total pre-tax income (loss) from discontinued operations		(1.1)		0.1		(2.1)
Total pre-tax income	$	409.4	$	468.0	$	374.0

Summary of provision for income taxes from continuing operations

(in millions)	2016		2015		2014
Current expense
Federal and State	$	155.5	$	140.1	$	118.4
Foreign		29.2		24.0		16.1
Total current expense		184.7		164.1		134.5
Deferred expense (benefit)
Federal and State		(15.5)		(12.7)		(8.5)
Foreign		(9.5)		(3.1)		(1.6)
Total deferred expense (benefit)		(25.0)		(15.8)		(10.1)
Total tax expense	$	159.7	$	148.3	$	124.4

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

(in millions)	2016		2015		2014
Taxes at the 35% U.S. statutory rate	$	143.7	$	163.8	$	131.6
State and local taxes, net of federal income tax benefit		8.6		1.9		7.4
Benefit of foreign earnings taxed at lower rates		(8.1)		(7.9)		(5.2)
Benefit for domestic manufacturing deduction		(12.6)		(11.5)		(8.7)
Tax credits		(10.7)		-		-
Tax impact of impairment of goodwill		41.2		-		-
Other, net		(2.4)		2.0		(0.7)
Tax expense	$	159.7	$	148.3	$	124.4
Effective income tax rate on continuing operations		38.9%		31.7%		33.1%

Schedule of deferred tax assets (liabilities)

(in millions)	2016		2015
Deferred revenue	$	26.9	$	25.3
Warranty reserves		7.1		5.6
Inventory reserves		12.1		10.9
Allowance for doubtful accounts		4.5		4.6
Employee benefits		45.2		41.5
Foreign loss carryforwards		2.9		1.9
Federal tax credit carryovers		6.6		-
Deferred state tax attributes		14.6		16.2
Other, net		5.3		(1.4)
Gross deferred assets		125.2		104.6
Valuation allowances		(1.3)		(4.3)
Deferred tax assets after valuation allowances	$	123.9	$	100.3
Depreciation		(42.4)		(46.5)
Amortization		(60.7)		(55.1)
Acquired identifiable intangibles		(134.7)		(142.4)
Gross deferred liabilities		(237.8)		(244.0)
Net deferred tax liabilities	$	(113.9)	$	(143.7)

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

(in millions)	2016		2015
Other long-term assets	$	1.1	$	0.3
Other long-term liabilities		(115.0)		(144.0)
Net deferred tax liabilities	$	(113.9)	$	(143.7)

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

(in millions)	2016		2015		2014
Balance at January 1	$	27.7	$	23.8	$	10.2
Additions based on tax positions related to current year		0.6		0.9		1.8
Additions related to purchase accounting		-		3.0		13.6
Adjustments for tax positions of prior years		-		1.3		(0.1)
Reductions due to statute of limitations		(2.1)		(1.2)		(1.2)
Reductions due to settlements		(1.4)		-		(0.4)
Adjustments due to foreign exchange rates		(0.2)		(0.1)		(0.1)
Balance at December 31	$	24.6	$	27.7	$	23.8