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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019, 2018 and 2017 were as follows:

	2019				2018				2017
Deferred tax assets:
Exit costs, environmental and other similar items	$	83.5			$	84.5			$	50.2
Employee related and benefit items	129.3				97.0				104.1
Operating lease liabilities	430.6
Other items	204.0				161.6				113.2
Total deferred tax assets	847.4				343.1				267.5
Deferred tax liabilities:
Depreciation and amortization	1,232.6				1,303.6				1,506.7
LIFO inventories	80.5				64.5				66.5
Operating lease right-of-use assets	417.8
Other items	28.1				29.5				49.7
Total deferred tax liabilities	1,759.0				1,397.6				1,622.9
Net deferred tax liabilities	$	911.6			$	1,054.5			$	1,355.4

Significant Components of the Provisions for Income Taxes

Significant components of the provisions for income taxes were as follows:

	2019				2018				2017
Current:
Federal	$	440.1			$	288.8			$	269.3
Foreign	71.1				53.2				53.5
State and local	60.4				52.4				39.3
Total current	571.6				394.4				362.1
Deferred:
Federal	(83.7		)		(102.1		)		(486.6		)
Foreign	(32.3		)		(35.3		)		(42.3		)
State and local	(15.1		)		(6.0		)		(91.8		)
Total deferred	(131.1		)		(143.4		)		(620.7		)
Total provisions (credits) for income taxes	$	440.5			$	251.0			$	(258.6	)

Significant Components of Income Before Income Taxes as Used for Income Tax Purposes

Significant components of income before income taxes as used for income tax purposes, were as follows:

	2019				2018				2017
Domestic	$	1,899.6			$	1,309.3			$	1,415.6
Foreign	82.2				50.4				53.7
	$	1,981.8			$	1,359.7			$	1,469.3

Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate

A reconciliation of the statutory federal income tax rate to the effective tax rate follows: 

	2019			2018			2017
Statutory federal income tax rate	21.0	%		21.0	%		35.0	%
Effect of:
State and local income taxes	2.3			3.2			2.1
Investment vehicles	(1.3	)		(1.2	)		(1.4	)
Domestic production activities							(3.1	)
Employee share-based payments	(3.3	)		(3.2	)		(5.9	)
Research and development credits	(1.1	)		(1.3	)		(0.9	)
Amended returns and refunds	0.1			(1.6	)		(0.9	)
Tax credit reversal	3.7
Other - net	0.8			(0.3	)		(0.4	)
Subtotal	22.2	%		16.6	%		24.5	%
Effect of:
Tax Act				1.9			(40.8	)
Subsidiary mergers							(4.2	)
Reported effective tax rate	22.2	%		18.5	%		(20.5	)%

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2019				2018				2017
Balance at beginning of year	$	89.5			$	59.0			$	32.8
Additions from the Valspar acquisition					12.4				18.9
Additions based on tax positions related to the current year	14.9				12.9				6.8
Additions for tax positions of prior years	107.9				11.0				4.0
Reductions for tax positions of prior years	(3.6		)		(2.0		)		(1.2		)
Settlements					(1.4		)		(0.3		)
Lapses of statutes of limitations	(5.7		)		(2.4		)		(2.0		)
Balance at end of year	$	203.0			$	89.5			$	59.0

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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