INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The components of income (loss) before income taxes were as follows:

The components of the provision (benefit) for income taxes from operations were as follows:

The reconciliation of the U.S. federal statutory tax rate to the effective rate were as follows:


	Year Ended December 31,
	2019		2018		2017

Statutory U.S. federal income tax rate	21.0	%	21.0	%	35.0	%
Effect of:
State income taxes, net of federal benefit	0.7		(0.2)		(0.1)
Federal benefit of R&D and foreign tax credits	(2.0)		1.0		2.8
Tax effect of international operations	0.4		1.8		3.6
Global Intangible Low Taxed Income (GILTI)	3.7		(1.1)		—
Net effect of tax audit activity	0.4		(1.0)		(0.6)
Tax effect of enacted statutory rate changes on Non-U.S. jurisdictions	0.1		0.3		(0.2)
Federal tax on unremitted earnings of certain foreign subsidiaries	0.1		(0.1)		—
Valuation allowance adjustments	(1.3)		(5.7)		(0.7)
U.S. tax reform - net impacts	—		0.4		(1.2)
Tax effect of impairment of goodwill and intangibles	(0.2)		(22.1)		(37.4)
Other	0.9		0.2		2.1

Effective income tax rate on operations	23.8	%	(5.5	%)	3.3	%

The tax effect of significant temporary differences giving rise to deferred tax assets and liabilities were as follows:


	Year Ended December 31,
	2019						2018
(in millions)	Deferred Tax Asset		Deferred Tax Liability		Deferred Tax Asset		Deferred Tax Liability

Commission and bonus accrual	$	10.6	$	—	$	4.5	$	—
Employee benefit accruals	55.9		—		56.8		—
Inventory	15.3		—		13.9		—
Identifiable intangible assets	—		630.7		—		686.0
Insurance premium accruals	3.0		—		3.2		—
Miscellaneous accruals	21.3		—		19.2		—
Other	—		2.2		3.0		—
Unrealized losses included in AOCI	46.0		—		24.4		—
Property, plant and equipment	—		49.6		—		56.1
Lease right-of-use asset	—		38.8		—		—
Lease right-of-use liability	39.7		—		—		—
Product warranty accruals	1.5		—		1.5		—
Foreign tax credit and R&D carryforward	73.5		—		78.8		—
Restructuring and other cost accruals	3.8		—		3.1		—
Sales and marketing accrual	6.2		—		5.3		—
Taxes on unremitted earnings of foreign subsidiaries	—		3.5		—		3.2
Tax loss carryforwards and other tax attributes	268.6		—		285.8		—
Subtotal	$	545.4	$	724.8	$	499.5	$	745.3
Valuation allowances	(288.0)		—		(288.4)		—
Total	$	257.4	$	724.8	$	211.1	$	745.3

Deferred tax assets and liabilities are included in the following Consolidated Balance Sheets line items at December 31 were as follows:

The activity recorded for unrecognized tax benefits were as follows:


(in millions)	2019		2018		2017

Unrecognized tax benefits at beginning of period	$	27.8	$	21.0	$	10.8
Gross change for prior period positions	(0.4)		7.5		8.6
Gross change for current year positions	0.3		0.3		0.3
Decrease due to settlements and payments	(3.9)		(0.3)		—
Decrease due to statute expirations	—		(0.1)		—
Increase due to effect of foreign currency translation	—		—		1.3
Decrease due to effect from foreign currency translation	(0.3)		(0.6)		—

Unrecognized tax benefits at end of period	$	23.5	$	27.8	$	21.0