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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Before Income Taxes and Provision for Income Taxes

The Company's income before income taxes and the applicable provision for income taxes are as follows:


	Year Ended December 31,
	2019		2018
Loss from continuing operations before income taxes:
United States	$	(293.0)	$	(298.5)
Foreign	128.0		6.6
	$	(165.0)	$	(291.9)
Provision for income taxes:
United States federal	$	(23.2)	$	(27.2)
State and local	7.0		(3.6)
Foreign	16.4		33.0
	$	0.2	$	2.2
Current:
United States federal	$	5.8	$	(8.9)
State and local	(1.8)		(0.8)
Foreign	26.0		10.2
	$	30.0	$	0.5
Deferred:
United States federal	$	(29.0)	$	(18.3)
State and local	8.8		(2.8)
Foreign	(9.6)		22.8
	$	(29.8)	$	1.7





Total provision for income taxes	$	0.2	$	2.2

Reconciliation of Statutory Federal Income Tax Rate

The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table:


	Year Ended December 31,
	2019		2018
Computed income tax benefit	$	(34.6)	$	(61.3)
State and local taxes, net of U.S. federal income tax benefit	(3.3)		(2.9)
Foreign rate differential and other foreign adjustments	(5.4)		(9.3)
Net establishment of valuation allowance	19.1		75.0
Net release of uncertain tax positions	0.7		(4.3)
Foreign dividends and earnings taxable in the U.S.	23.2		12.8
Impairment for which there is no tax benefit	—		4.3

Impact of the Tax Act	—		(7.7)
Other	0.5		(4.4)
Total provision for income taxes	$	0.2	$	2.2

Deferred Tax Assets and Liabilities

The Company's deferred tax assets and liabilities at December 31, 2019 and 2018 were comprised of the following:


	December 31,
	2019		2018
Deferred tax assets:
Inventories	$	19.8	$	23.6
Net operating loss carryforwards - U.S.^(a)	165.5		160.8
Net operating loss carryforwards - foreign	55.0		69.7
Disallowed Interest Carryover - U.S.	63.1		42.8
Employee benefits	64.3		53.6

Sales-related reserves	20.4		21.1
Lease liability	20.3		—
Foreign currency translation adjustment	—		1.1
Other	55.5		50.4
Total gross deferred tax assets	463.9		423.1
Less valuation allowance ^(b)	(163.3)		(165.7)
Total deferred tax assets, net of valuation allowance	$	300.6	$	257.4
Deferred tax liabilities:
Plant, equipment and other assets	$	(43.9)	$	(32.6)
Intangibles	(73.3)		(81.5)
Other	(8.1)		(12.1)
Total gross deferred tax liabilities	(125.3)		(126.2)
Net deferred tax assets	$	175.3	$	131.2

^(a) Net operating loss carryforwards - U.S. for Products Corporation as of December 31, 2019 and December 31, 2018 were $146.1 million and $143.8 million, respectively.

(b) The change in the valuation allowance for 2019 from 2018 includes activity of $19.1 million primarily related to valuation allowances for the limitation on the deductibility of interest, offset by write-offs of prior year valuation allowances.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of the unrecognized tax benefits is provided in the following table:


	Tax		Interest and Penalties		Total
Balance at January 1, 2018	$	75.9	$	9.0	$	84.9
Increase based on tax positions taken in a prior year	2.8		5.4		8.2
Decrease based on tax positions taken in a prior year	(15.5)		(3.8)		(19.3)
Increase based on tax positions taken in the current year	6.5		0.2		6.7
Decrease resulting from the lapse of statutes of limitations	(4.8)		(1.0)		(5.8)
Balance at December 31, 2018	$	64.9	$	9.8	$	74.7
Increase based on tax positions taken in a prior year	0.3		3.4		3.7
Decrease based on tax positions taken in a prior year	(2.2)		(0.3)		(2.5)
Increase based on tax positions taken in the current year	7.1		—		7.1
Decrease resulting from the lapse of statutes of limitations	(3.8)		(1.2)		(5.0)
Balance at December 31, 2019	$	66.3	$	11.7	$	78.0