Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.6.0.2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:  
 
Twelve Months Ended December 31,
 
2016
 
2015
 
2014
 
(In millions)
Current:
 

 
 

 
 

Federal
$
154.8

 
$
159.0

 
$
140.7

State
24.3

 
14.7

 
18.3

Foreign
67.0

 
56.8

 
50.8

 
246.1

 
230.5

 
209.8

Deferred:
 

 
 

 
 

Federal
16.5

 
(7.5
)
 
0.8

State
2.8

 
(9.3
)
 
(0.2
)
Foreign
(32.3
)
 
(11.9
)
 
(10.2
)
 
(13.0
)
 
(28.7
)
 
(9.6
)
Provision for income taxes
$
233.1

 
$
201.8

 
$
200.2

Domestic and Foreign Income before Income Taxes
Domestic and foreign income before income taxes was as follows:
 
Twelve Months Ended December 31,
 
2016
 
2015
 
2014
 
(In millions)
U.S.
$
739.6

 
$
607.6

 
$
521.5

Foreign
(11.4
)
 
29.0

 
52.7

 
$
728.2

 
$
636.6

 
$
574.2

Provision for Income Taxes Reconciles with U.S. Federal Statutory Rate
The provision for income taxes reconciles with the U.S. federal statutory rate, as follows:
 
Twelve Months Ended December 31,
 
2016
 
2015
 
2014
 
(In millions)
Federal statutory rate
35.0
%
 
35.0
%
 
35.0
%
 
 
 
 
 
 
Provision computed at federal statutory rate
$
254.9

 
$
222.8

 
$
201.0

State and local taxes, net of federal tax benefit
17.2

 
5.2

 
13.1

Foreign
(40.3
)
 
(21.8
)
 
(7.3
)
Valuation allowance
—

 
—

 
(2.2
)
Tax reserves
11.9

 
0.9

 
0.6

Other
(10.6
)
 
(5.3
)
 
(5.0
)
Provision for income taxes
$
233.1

 
$
201.8

 
$
200.2

 
 
 
 
 
 
Effective income tax rate
32.0
%
 
31.7
%
 
34.9
%


Components of Deferred Income Tax Assets and Liabilities
Components of the deferred income tax assets and liabilities at December 31, 2016 and 2015, were as follows:
 
December 31,
 
2016
 
2015
 
(In millions)
Deferred income tax assets:
 


 

Net operating and capital loss carryforwards
$
213.2


$
236.1

Goodwill and intangible assets
113.8


—

Employee compensation programs
76.6


70.9

Foreign tax credits
56.9


50.7

Employee pension benefits
45.6


32.4

Reserves and accrued expenses
18.5


13.9

Research and development costs
13.7


1.5

Other
21.0


11.2

Gross deferred income tax assets
559.3


416.7

Valuation allowance
(307.3
)

(222.9
)
Total deferred income tax assets, net
252.0


193.8







Deferred income tax liabilities:
 


 

Goodwill and intangible assets
(507.0
)

(334.4
)
Undistributed earnings of foreign subsidiaries
(30.1
)

(32.6
)
Depreciation
(22.1
)

(15.1
)
Other
(13.5
)

(10.9
)
Total deferred income tax liability
(572.7
)

(393.0
)
Net deferred income tax liability
$
(320.7
)

$
(199.2
)
Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities
Our deferred income tax assets and deferred income tax liabilities at December 31, 2016 and 2015, are included in the accompanying Consolidated Balance Sheets as follows:
 
December 31,
 
2016
 
2015
 
(In millions)
Long-term deferred income tax assets, included in other assets
$
4.7

 
$
6.3

Long-term deferred income tax liabilities
(325.4
)
 
(205.5
)
Net deferred income tax liability
$
(320.7
)
 
$
(199.2
)
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
2016
 
2015
 
(In millions)
Beginning balance (January 1)
$
21.6

 
$
19.8

Increases related to prior year tax positions
4.1

 
5.5

Decreases related to prior year tax positions
(1.0
)
 
(2.2
)
Increases related to current year tax positions
12.8

 
4.0

Decreases related to settlements
(1.0
)
 
(0.5
)
Expiration of the statute of limitations for the assessment of taxes
(3.9
)
 
(4.5
)
Currency translation adjustment
(0.1
)
 
(0.5
)
Ending balance (December 31)
$
32.5

 
$
21.6