Taxation (Tables)

12 Months Ended

Dec. 31, 2020

Summary of (provision) benefit for income taxes

The components of the company's income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows:


$ in millions	2020	2019	2018
Current:
Federal	125.1	102.0	38.8
State	19.7	17.0	20.5
Foreign	35.5	94.0	158.2
	180.3	213.0	217.5
Deferred:
Federal	57.6	16.6	35.5
State	5.2	4.3	10.0
Foreign	18.5	1.2	(8.0)
	81.3	22.1	37.5
Total income tax expense (benefit)	261.6	235.1	255.0

Reconciliation between statutory and effective tax rates on income from operations

A reconciliation between the statutory U.S. federal income tax rate and the effective tax rate per the Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018 is as follows:


	2020		2019		2018
Statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign statutory income tax rates	(0.5)	%	(0.8)	%	0.9	%
State taxes, net of federal tax effect	1.9	%	1.8	%	2.1	%
U.S. Tax Reform Impact	—	%	—	%	(1.3)	%
Change in valuation allowance	0.3	%	0.5	%	0.4	%
Share-based compensation	1.3	%	0.9	%	(0.2)	%
Other	1.4	%	1.9	%	(0.5)	%
Effect of (income)/loss attributable to noncontrolling interests	(0.9)	%	(1.1)	%	—	%
Effective tax rate per Consolidated Statements of Income	24.5	%	24.2	%	22.4	%

Division of income/(losses) before taxes between U.S. and foreign

The division of income before taxes between U.S. and foreign for the years ended December 31, 2020, 2019 and 2018 is as follows:


$ in millions	2020	2019	2018
U.S.	845.8	511.1	491.8
Foreign	223.3	461.8	646.3
Income before income taxes	1,069.1	972.9	1,138.1

Schedule of deferred tax recognized on balance sheet

The components of the deferred tax assets and liabilities reflected in the Consolidated Balance Sheets at December 31, 2020 and 2019 include the following:


$ in millions	2020	2019
Deferred tax assets:
Compensation and benefits	125.9	179.6
Lease obligations	44.5	65.9
Tax loss carryforwards	99.8	124.9
Investments	39.0	32.7
Accrued liabilities	97.7	4.1
Other	16.4	25.5
Total deferred tax assets	423.3	432.7
Valuation allowance	(104.5)	(126.4)
Deferred tax assets, net of valuation allowance	318.8	306.3
Deferred tax liabilities:
Goodwill and intangibles	(1,745.4)	(1,710.4)
Leased assets	(40.3)	(62.5)
Fixed assets	(27.8)	(40.0)
Other	(22.9)	(20.6)
Total deferred tax liabilities	(1,836.4)	(1,833.5)
Net deferred tax liability	(1,517.6)	(1,527.2)

Reconciliation Of Changes In Unrecognized Tax Benefits

A reconciliation of the gross unrecognized tax benefits (UTBs) balance from January 1, 2018, to December 31, 2020, is as follows:


$ in millions			Gross Unrecognized Income Tax Benefits
Balance at January 1, 2018			19.6
Additions for tax positions related to the current year			1.0
Additions for tax positions related to prior years			0.1
Reductions for tax positions related to prior years			(0.2)
Reductions related to lapse of statute of limitations			(0.5)
Balance at December 31, 2018			20.0
Additions for tax positions related to the current year			1.4
Additions for tax positions related to prior years			1.2
Additions for tax positions related to prior years of acquired entities			54.1
Reductions for tax positions related to prior years			(4.0)
Reductions related to lapse of statute of limitations			(2.8)
Balance at December 31, 2019			69.9
Additions for tax positions related to the current year			6.6
Additions for tax positions related to prior years			2.2
Reductions related to settlements			(9.9)
Reductions related to lapse of statute of limitations			(6.9)
Balance at December 31, 2020			61.9