Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:  
 
Twelve Months Ended December 31,
 
2017
 
2016
 
2015
 
(In millions)
Current:
 

 
 

 
 

Federal
$
107.8

 
$
154.8

 
$
159.0

State
13.2

 
24.3

 
14.7

Foreign
71.7

 
67.0

 
56.8

 
192.7

 
246.1

 
230.5

Deferred:
 

 
 

 
 

Federal
(19.2
)
 
16.5

 
(7.5
)
State
1.3

 
2.8

 
(9.3
)
Foreign
(26.2
)
 
(32.3
)
 
(11.9
)
 
(44.1
)
 
(13.0
)
 
(28.7
)
Provision for income taxes
$
148.6

 
$
233.1

 
$
201.8

Domestic and Foreign Income before Income Taxes
Domestic and foreign income before income taxes was as follows:
 
Twelve Months Ended December 31,
 
2017
 
2016
 
2015
 
(In millions)
U.S.
$
711.1

 
$
739.6

 
$
607.6

Foreign
35.5

 
(11.4
)
 
29.0

 
$
746.6

 
$
728.2

 
$
636.6

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,
 
2017
 
2016
 
2015
 
(In millions)
Federal statutory rate
35.0
%
 
35.0
%
 
35.0
%
 
 
 
 
 
 
Provision computed at federal statutory rate
$
261.3

 
$
254.9

 
$
222.8

State and local taxes, net of federal tax benefit
13.3

 
17.2

 
5.2

Foreign
(41.9
)
 
(40.3
)
 
(21.8
)
Tax Cuts and Jobs Act of 2017
(48.3
)
 
—

 
—

Equity compensation
(26.7
)
 
—

 
—

Tax reserves
2.5

 
11.9

 
0.9

Other
(11.6
)
 
(10.6
)
 
(5.3
)
Provision for income taxes
$
148.6

 
$
233.1

 
$
201.8

 
 
 
 
 
 
Effective income tax rate
19.9
%
 
32.0
%
 
31.7
%


Components of Deferred Income Tax Assets and Liabilities
Components of the deferred income tax assets and liabilities at December 31, 2017 and 2016, were as follows:
 
December 31,
 
2017
 
2016
 
(In millions)
Deferred income tax assets:
 


 

Net operating and capital loss carryforwards
$
279.9


$
213.2

Goodwill and intangible assets
129.3


113.8

Employee compensation programs
33.1


51.6

Foreign tax credits
17.6


56.9

Employee pension benefits
40.8


70.6

Reserves and accrued expenses
23.8


18.5

Research and development costs
26.7


13.7

Other
8.7


21.0

Gross deferred income tax assets
559.9


559.3

Valuation allowance
(401.8
)

(307.3
)
Total deferred income tax assets, net
158.1


252.0







Deferred income tax liabilities:
 


 

Goodwill and intangible assets
(387.6
)

(507.0
)
Undistributed earnings of foreign subsidiaries
(7.6
)

(30.1
)
Depreciation
(41.5
)

(22.1
)
Other
(20.6
)

(13.5
)
Total deferred income tax liability
(457.3
)

(572.7
)
Net deferred income tax liability
$
(299.2
)

$
(320.7
)
Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities
Our deferred income tax assets and deferred income tax liabilities at December 31, 2017 and 2016, are included in the accompanying Consolidated Balance Sheets as follows:
 
December 31,
 
2017
 
2016
 
(In millions)
Long-term deferred income tax assets, included in other assets
$
5.9

 
$
4.7

Long-term deferred income tax liabilities
(305.1
)
 
(325.4
)
Net deferred income tax liability
$
(299.2
)
 
$
(320.7
)
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:
 
2017
 
2016
 
(In millions)
Beginning balance (January 1)
$
32.5

 
$
21.6

Increases related to prior year tax positions
0.6

 
4.1

Decreases related to prior year tax positions
(5.6
)
 
(1.0
)
Increases related to current year tax positions
13.1

 
12.8

Decreases related to settlements
(0.3
)
 
(1.0
)
Expiration of the statute of limitations for the assessment of taxes
(5.8
)
 
(3.9
)
Currency translation adjustment
0.5

 
(0.1
)
Ending balance (December 31)
$
35.0

 
$
32.5