Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes:


	2020		2019		2018
United States	$	144.1	$	190.7	$	202.0
Non-United States	252.2		281.7		206.1
Income before income taxes	$	396.3	$	472.4	$	408.1

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following:


	2020		2019		2018
Current:
Federal	$	40.3	$	20.8	$	46.1
State and local	7.9		4.8		9.9
Foreign	78.9		81.0		68.0
	$	127.1	$	106.6	$	124.0
Deferred:
Federal	$	(19.5)	$	39.8	$	(19.9)
State and local	(1.3)		6.5		(0.7)
Foreign	(2.4)		(55.2)		(0.8)
	$	(23.2)	$	(8.9)	$	(21.4)
United States and foreign tax provision on income	$	103.9	$	97.7	$	102.6

Summary of Variation of Effective Income Tax Rate from Continuing Operations from Statutory Federal Income Tax Rate

The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. federal income tax rate of 21% to income before taxes:


	2020			2019			2018
Income tax at the U.S. federal statutory rate	$	83.2		$	99.2		$	85.7
Adjustments:
State and local income taxes, net of federal tax benefit	4.8			7.4			6.8
Tax on foreign remittances and U.S. tax on foreign income	22.5			26.4			21.1
Tax expense related to undistributed earnings of foreign subsidiaries	0.1			6.0			—
Foreign losses without current tax benefits	2.5			3.2			3.7
Foreign earnings taxed at different rates including tax holidays	11.1			12.6			11.1

U.S. foreign tax credit	(13.8)			(18.3)			(21.2)
Accruals and settlements related to tax audits	3.4			11.1			(3.8)
Valuation allowance changes	(0.7)			(44.5)			—
Deferred taxes related to branch operations	—			5.3			—
U.S. Tax Reform	—			—			(10.6)
Other tax rate change	0.8			(5.0)			(2.4)
Other items, net	(10.0)			(5.7)			12.2
Provision for income taxes	$	103.9		$	97.7		$	102.6
Effective income tax rate	26.2		%	20.7		%	25.1		%

Deferred Tax

The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2020 and 2019 was as follows:


	2020		2019
Deferred tax assets:
Accrued postretirement benefits cost	$	15.4	$	0.1
Accrued pension cost	57.4		55.1
Other employee benefit accruals	11.0		10.9
Tax loss and credit carryforwards	90.2		86.0
Other, net	46.7		46.9
Valuation allowances	(36.7)		(33.7)
	$	184.0	$	165.3
Deferred tax liabilities - principally depreciation and amortization	(255.7)		(261.6)
Net deferred tax (liabilities) assets	$	(71.7)	$	(96.3)

Components of Deferred Tax Assets and Liabilities

The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018:


	2020		2019		2018
Beginning balance, January 1	$	38.9	$	26.0	$	14.0
Tax positions related to the current year:
Additions	2.2		3.6		0.4
Tax positions related to prior years:
Additions	8.7		11.7		17.8
Reductions	(1.0)		(1.1)		(2.9)
Settlements with tax authorities	(0.3)		(1.2)		(2.2)
Lapses in statutes of limitation	(2.9)		(0.1)		(1.1)
Ending balance, December 31	$	45.6	$	38.9	$	26.0