Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

	Year Ended December 31,
(millions of dollars)	2018			2017			2016
Earnings before income taxes:
U.S.	$	220.0		$	203.0		$	27.5
Non-U.S.	975.9			860.6			915.2
Total	$	1,195.9		$	1,063.6		$	942.7
Provision for income taxes:
Current:
Federal	$	17.1		$	36.4		$	37.4
State	5.4			4.6			6.1
Foreign	258.8			247.4			251.7
Total current	281.3			288.4			295.2
Deferred:
Federal	(39.6		)	323.7			23.5
State	(8.5		)	2.1			(0.8		)
Foreign	(21.9		)	(33.9		)	(11.9		)
Total deferred	(70.0		)	291.9			10.8
Total provision for income taxes	$	211.3		$	580.3		$	306.0

Effective Income Tax Rate Reconciliation

	Year Ended December 31,
(millions of dollars)	2018			2017			2016
Income taxes at U.S. statutory rate of 21% (35% for 2016 and 2017)	$	251.2		$	372.3		$	330.0
Increases (decreases) resulting from:
State taxes, net of federal benefit	5.6			2.3			1.8
U.S. tax on non-U.S. earnings	36.5			170.6			32.2
Affiliates' earnings	(10.3		)	(17.9		)	(15.0		)
Foreign rate differentials	27.5			(100.2		)	(93.3		)
Tax holidays	(28.0		)	(31.0		)	(25.5		)
Net tax on remittance of foreign earnings	(21.5		)	80.3			21.8
Tax credits	(26.0		)	(24.2		)	(3.2		)
Reserve adjustments, settlements and claims	32.5			8.0			11.6
Valuation allowance adjustments	(10.6		)	12.2			(2.7		)
Non-deductible transaction costs	2.6			10.9			8.3
Changes in accounting methods and filing positions	(29.8		)	(1.9		)	0.3
Impact of transactions	(0.1		)	4.0			16.3
Other foreign taxes	8.4			8.1			12.9
Revaluation of U.S. deferred taxes	(4.2		)	63.7			—
Impact of FDII	(15.3		)	—			—
Other	(7.2		)	23.1			10.5
Provision for income taxes, as reported	$	211.3		$	580.3		$	306.0

Reconciliation of the total gross unrecognized tax benefits

(millions of dollars)	2018			2017			2016
Balance, January 1	$	92.0		$	91.1		$	127.3
Additions based on tax positions related to current year	24.1			16.8			16.1
Additions/(reductions) for tax positions of prior years	17.7			(2.4		)	1.6
Reductions for closure of tax audits and settlements	(7.7		)	(19.9		)	(45.7		)
Reductions for lapse in statute of limitations	—			(0.8		)	(5.0		)
Translation adjustment	(5.7		)	7.2			(3.2		)
Balance, December 31	$	120.4		$	92.0		$	91.1

Tax jurisdiction

Tax jurisdiction	Years no longer subject to audit	Tax jurisdiction	Years no longer subject to audit
U.S. Federal	2014 and prior	Japan	2015 and prior
China	2012 and prior	Mexico	2012 and prior
France	2015 and prior	Poland	2013 and prior
Germany	2011 and prior	South Korea	2012 and prior
Hungary	2013 and prior

Deferred Tax Assets (Liabilities)

	December 31,
(millions of dollars)	2018			2017
Deferred tax assets:
Employee compensation	23.9			26.4
Other comprehensive loss	63.9			54.5
Research and development capitalization	91.8			76.4
Net operating loss and capital loss carryforwards	83.8			74.6
Pension and other postretirement benefits	18.8			19.1
Asbestos-related	172.7			167.1
Other	155.2			146.6
Total deferred tax assets	$	610.1		$	564.7
Valuation allowance	(86.3		)	(95.9		)
Net deferred tax asset	$	523.8		$	468.8
Deferred tax liabilities:
Goodwill and intangible assets	(183.3		)	(193.9		)
Fixed assets	(117.5		)	(104.6		)
Unremitted foreign earnings	(57.4		)	(98.5		)
Other	(19.2		)	(12.0		)
Total deferred tax liabilities	$	(377.4	)	$	(409.0	)
Net deferred taxes	$	146.4		$	59.8