INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

The sources of income before taxes, classified between domestic and foreign entities are as follows:



Pre-tax income	2017		2016		2015
Domestic	$	891.8	$	914.0	$	593.5
Foreign	243.1		191.5		132.5
Total pre-tax income	$	1,134.9	$	1,105.5	$	726.0

Provision for Income Tax Expense (Benefit)

The provisions (benefits) for income taxes in the accompanying consolidated statements of operations consist of the following:



	Years Ended December 31,
	2017			2016			2015
Current:
Federal	$	300.8		$	235.1		$	218.3
State	32.9			38.6			33.7
Foreign	53.0			43.9			69.4
	$	386.7		$	317.6		$	321.4
Deferred:
Federal	$	(534.3	)	$	64.4		$	(14.1	)
State	12.9			6.0			(4.2		)
Foreign	(4.4		)	(15.7		)	(15.8		)
	(525.8		)	54.7			(34.1		)
	$	(139.1	)	$	372.3		$	287.3

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rates on earnings before income taxes are reconciled to statutory U.S. income tax rates as follows:



	Years Ended December 31,
	2017		2016		2015
Statutory U.S. rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of U.S. Federal income tax effect	2.5		2.6		3.2
Foreign earnings taxed at lower rates than the statutory U.S. rate	(3.5	)	(3.1	)	(1.8	)
Restructuring and acquisition items	0.6		—		2.7
Share-based compensation	(1.7	)	(1.2	)	—
Re-measurement of deferred taxes	(35.0	)	—		—
Deferred taxes on unremitted foreign earnings	(15.8	)	—		—
Repatriation tax	5.0		—		—
Other	0.6		0.4		1.1
Effective rate	(12.3	)%	33.7	%	40.2	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:



	December 31, 2017			December 31, 2016
Deferred tax assets:
Accounts receivable	$	14.7		$	13.5
Employee compensation and benefits	113.6			160.8
Acquisition and restructuring reserves	16.8			38.5
Tax loss carryforwards	107.0			167.7
Other	26.0			44.8
	278.1			425.3
Less: valuation allowance	(42.8		)	(31.3		)
Deferred tax assets, net of valuation allowance	$	235.3		$	394.0

Deferred tax liabilities:
Deferred earnings	$	(5.1	)	$	(193.2	)
Intangible assets	(913.2		)	(1,047.4		)
Property, plant and equipment	(156.9		)	(208.8		)
Zero-coupon subordinated notes	(10.1		)	(48.5		)
Currency translation adjustment	(0.1		)	(47.0		)
Other	(27.2		)	(27.9		)
Total gross deferred tax liabilities	(1,112.6		)	(1,572.8		)
Net deferred tax liabilities	$	(877.3	)	$	(1,178.8	)

Reconciliation of Unrecognized Tax Benefits from Uncertain Tax Positions

The following table shows a reconciliation of the unrecognized income tax benefits, excluding interest and penalties, from uncertain tax positions for the years ended December 31, 2017, 2016 and 2015:



	2017			2016			2015
Balance as of January 1	$	18.4		$	24.2		$	16.7
Increase in reserve for tax positions taken in the current year	7.3			2.3			4.1
Increase in reserve as a result of acquisition	—			—			8.5
Decrease in reserve as a result of lapses in the statute of limitations	(6.2		)	(8.1		)	(5.1		)
Balance as of December 31	$	19.5		$	18.4		$	24.2