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v3.20.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of Earnings Before Income Taxes and Provision for Income Taxes | Significant components of earnings before income taxes and the provision for income taxes are as follows (in millions):
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Earnings before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 524.4 |  |  | $ | 388.4 |  |  | $ | 337.6 |
Foreign, principally Australia, Canada, New Zealand and the U.K. |  |  | 346.5 |  |  |  | 237.7 |  |  |  | 141.8 |
Total earnings before income taxes |  | $ | 870.9 |  |  | $ | 626.1 |  |  | $ | 479.4 |
Provision (benefit) for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 43.6 |  |  | $ | 3.8 |  |  | $ | — |
Deferred |  |  | (112.4 | ) |  |  | (142.5 | ) |  |  | (214.0 | )
|  |  | (68.8 | ) |  |  | (138.7 | ) |  |  | (214.0 | )
State and local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 36.6 |  |  |  | 11.1 |  |  |  | 15.4 |
Deferred |  |  | (19.3 | ) |  |  | (6.0 | ) |  |  | (29.0 | )
|  |  | 17.3 |  |  |  | 5.1 |  |  |  | (13.6 | )
Foreign: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 94.6 |  |  |  | 66.6 |  |  |  | 60.7 |
Deferred |  |  | (30.3 | ) |  |  | (22.7 | ) |  |  | (29.6 | )
|  |  | 64.3 |  |  |  | 43.9 |  |  |  | 31.1 |
Total provision (benefit) for income taxes |  | $ | 12.8 |  |  | $ | (89.7 | ) |  | $ | (196.5 | )
Reconciliation of Provision for Income Taxes with Federal Statutory Income Tax Rate | A reconciliation of the provision for income taxes with the U.S. federal statutory income tax rate is as follows (in millions, except percentages):
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | Amount |  |  | % of Pretax Earnings |  |  | Amount |  |  | % of Pretax Earnings |  |  | Amount |  |  | % of Pretax Earnings |
Federal statutory rate |  | $ | 182.9 |  |  |  | 21.0 |  |  | $ | 131.5 |  |  |  | 21.0 |  |  | $ | 100.7 |  |  |  | 21.0 |
State income taxes - net of Federal benefit |  |  | 22.2 |  |  |  | 2.6 |  |  |  | 4.4 |  |  |  | 0.7 |  |  |  | 8.5 |  |  |  | 1.8 |
Differences related to non U.S. operations |  |  | (2.5 | ) |  |  | (0.3 | ) |  |  | (10.1 | ) |  |  | (1.6 | ) |  |  | (14.8 | ) |  |  | (3.1 | )
Alternative energy and other tax credits |  |  | (154.3 | ) |  |  | (17.7 | ) |  |  | (196.1 | ) |  |  | (31.3 | ) |  |  | (252.9 | ) |  |  | (52.8 | )
Other permanent differences |  |  | (15.7 | ) |  |  | (1.8 | ) |  |  | (7.6 | ) |  |  | (1.2 | ) |  |  | 0.9 |  |  |  | 0.2 |
U.S. repatriation tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1.8 | ) |  |  | (0.4 | )
Stock-based compensation |  |  | (31.4 | ) |  |  | (3.6 | ) |  |  | (16.2 | ) |  |  | (2.6 | ) |  |  | (15.0 | ) |  |  | (3.1 | )
Changes in unrecognized tax benefits |  |  | - |  |  |  | - |  |  |  | 0.8 |  |  |  | 0.1 |  |  |  | (0.2 | ) |  |  | - |
Change in valuation allowance |  |  | 6.5 |  |  |  | 0.7 |  |  |  | 7.5 |  |  |  | 1.2 |  |  |  | (22.0 | ) |  |  | (4.6 | )
Change in tax rates |  |  | 5.5 |  |  |  | 0.6 |  |  |  | (3.7 | ) |  |  | (0.6 | ) |  |  | - |  |  |  | - |
Other |  |  | (0.4 | ) |  |  | - |  |  |  | (0.2 | ) |  |  | - |  |  |  | 0.1 |  |  |  | - |
Provision (benefit) for income taxes |  | $ | 12.8 |  |  | $ | 1.5 |  |  | $ | (89.7 | ) |  | $ | (14.3 | ) |  | $ | (196.5 | ) |  | $ | (41.0 | )
Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in millions):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Gross unrecognized tax benefits at January 1 |  | $ | 11.5 |  |  | $ | 10.7 |
Increases in tax positions for current year |  |  | 2.9 |  |  |  | 2.1 |
Settlements |  |  | (1.1 | ) |  |  | (0.4 | )
Lapse in statute of limitations |  |  | (1.2 | ) |  |  | (1.1 | )
Increases in tax positions for prior years |  |  | 0.2 |  |  |  | 0.6 |
Decreases in tax positions for prior years |  |  | (1.1 | ) |  |  | (0.4 | )
Gross unrecognized tax benefits at December 31 |  | $ | 11.2 |  |  | $ | 11.5 |
Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows (in millions):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Alternative minimum tax and other credit carryforwards |  | $ | 998.0 |  |  | $ | 962.1 |
Accrued and unfunded compensation and employee benefits |  |  | 239.9 |  |  |  | 156.0 |
Amortizable intangible assets |  |  | 61.3 |  |  |  | 54.3 |
Compensation expense related to stock options |  |  | 14.4 |  |  |  | 11.3 |
Accrued liabilities |  |  | 65.7 |  |  |  | 63.9 |
Accrued pension liability |  |  | 9.3 |  |  |  | 9.9 |
Investments |  |  | 1.3 |  |  |  | 0.9 |
Net operating loss carryforwards |  |  | 36.1 |  |  |  | 37.2 |
Capital loss carryforwards |  |  | 9.0 |  |  |  | 12.6 |
Lease liabilities |  |  | 96.3 |  |  |  | 65.3 |
Hedging instruments |  |  | 34.6 |  |  |  | 11.7 |
Other |  |  | 2.8 |  |  |  | 4.3 |
Total deferred tax assets |  |  | 1,568.7 |  |  |  | 1,389.5 |
Valuation allowance for deferred tax assets |  |  | (94.9 | ) |  |  | (80.5 | )
Deferred tax assets |  |  | 1,473.8 |  |  |  | 1,309.0 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Nondeductible amortizable intangible assets |  |  | 316.9 |  |  |  | 322.4 |
Investment-related partnerships |  |  | 8.5 |  |  |  | 9.1 |
Depreciable fixed assets |  |  | 32.4 |  |  |  | 22.4 |
Right-of-use assets |  |  | 92.2 |  |  |  | 62.6 |
Revenue recognition |  |  | 33.1 |  |  |  | 63.7 |
Other prepaid items |  |  | 12.0 |  |  |  | 10.6 |
Total deferred tax liabilities |  |  | 495.1 |  |  |  | 490.8 |
Net deferred tax assets |  | $ | 978.7 |  |  | $ | 818.2 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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