INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income from Operations before Provision for Income Taxes

	For the year ended December 31,
In millions	2019		2018		2017
Domestic	$	117.9	$	145.1	$	140.3
Foreign	328.9		222.5		211.8
Income from operations before income taxes	$	446.8	$	367.6	$	352.1

Consolidated Provision for Income Taxes

The consolidated provision for income taxes included in the Statement of Income consisted of the following:

	For the year ended December 31,
In thousands	2019		2018		2017
Current taxes
Federal	$	5.7	$	6.9	$	86.2
State	0.5		5.8		3.6
Foreign	141.4		68.5		67.4
	147.6		81.2		157.2
Deferred taxes
Federal	19.8		4.7		(22.9)
State	2.9		1.3		(1.0)
Foreign	(50.0)		(11.3)		(43.5)
	(27.3)		(5.3)		(67.4)
Total provision	$	120.3	$	75.9	$	89.8

Reconciliation of Income Tax Rate

A reconciliation of the United States federal statutory income tax rate to the effective income tax rate on operations for the years ended December 31 is provided below:

	For the year ended December 31,
In millions	2019		2018		2017
U.S. federal statutory rate	21.0	%	21.0	%	35.0	%
State taxes	0.7		1.6		0.4
Foreign	3.2		0.7		(8.3)
Research and development credit	(1.7)		(1.1)		(0.8)
Manufacturing deduction	—		—		(1.1)
France tax rate change	—		—		(6.5)
U.S. tax rate change	—		(0.6)		(7.9)
U.S. tax reform (benefit) provision	2.0		(1.4)		15.6
Transaction costs related to acquisitions	1.0		—		—
Other, net	0.7		0.4		(0.9)
Effective rate	26.9	%	20.6	%	25.5	%

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

	December 31,
In millions	2019		2018
Deferred income tax assets:
Accrued expenses and reserves	$	35.8	$	13.8
Warranty reserve	46.6		25.9
Deferred compensation/employee benefits	32.3		9.8
Right-of-use asset	63.1		—
Pension and postretirement obligations	28.1		19.5
Inventory	25.8		16.8
Net operating loss carry forwards	95.6		85.1
Other	18.8		19.2
Gross deferred income tax assets	346.1		190.1
Valuation allowance	58.0		41.7
Total deferred income tax assets	288.1		148.4
Deferred income tax liabilities:
Property, plant & equipment	42.7		35.5
Right-of-use liability	63.1		—
Intangibles	235.6		287.4
Total deferred income tax liabilities	341.4		322.9
Net deferred income tax liability	$	(53.3)	$	(174.5)

Liability for Income Taxes Associated with Uncertain Tax Positions

A reconciliation of the beginning and ending amount of the liability for income taxes associated with unrecognized tax benefits follows:

In millions	2019		2018		2017
Gross liability for unrecognized tax benefits at beginning of year	$	9.5	$	6.9	$	8.4
Gross increases - unrecognized tax benefits in prior periods	9.7		5.4		2.5
Gross decreases - audit settlement during year	—		—		(4.0)
Gross decreases - expiration of audit statute of limitations	(2.0)		(2.8)		—
Gross liability for unrecognized tax benefits at end of year	$	17.2	$	9.5	$	6.9