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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income Before Provisions for Income Taxes | The Company's income before provision for income taxes was generated from United States and international operations as follows (in millions):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
United States | $ | 266.1 |  |  | $ | 491.5 |  |  | $ | 378.2 |
International, including Puerto Rico | 495.3 |  |  | 543.4 |  |  | 359.7 |
| $ | 761.4 |  |  | $ | 1,034.9 |  |  | $ | 737.9 |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following (in millions):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Current |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |
Federal | $ | 10.9 |  |  | $ | 330.8 |  |  | $ | 153.4 |
State and local | 13.6 |  |  | 32.8 |  |  | 12.1 |
International, including Puerto Rico | 35.9 |  |  | 60.6 |  |  | 27.4 |
Current income tax expense | $ | 60.4 |  |  | $ | 424.2 |  |  | $ | 192.9 |
Deferred |  |  |  |  |  |  |  |
United States: |  |  |  |  |  |  |  |
Federal | $ | (16.1 | ) |  | $ | 39.3 |  |  | $ | (19.6 | )
State and local | (22.4 | ) |  | (3.8 | ) |  | (4.3 | )
International, including Puerto Rico | 17.3 |  |  | (8.4 | ) |  | (0.6 | )
Deferred income tax (benefit) expense | (21.2 | ) |  | 27.1 |  |  | (24.5 | )
Total income tax provision | $ | 39.2 |  |  | $ | 451.3 |  |  | $ | 168.4 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in millions):
| December 31,
| 2018 |  | 2017
Deferred tax assets |  |  |  |  |
Compensation and benefits | $ | 71.4 |  |  | $ | 53.9 |
Benefits from uncertain tax positions | 22.2 |  |  | 66.1 |
Net tax credit carryforwards | 94.4 |  |  | 78.8 |
Net operating loss carryforwards | 42.1 |  |  | 47.3 |
Accrued liabilities | 78.8 |  |  | 29.2 |
Inventories | 7.2 |  |  | 6.8 |
Cash flow and net investment hedges | — |  |  | 13.3 |
State income taxes | 0.6 |  |  | 5.8 |
Investments | 1.6 |  |  | 1.6 |
Other | 4.1 |  |  | 1.7 |
Total deferred tax assets | 322.4 |  |  | 304.5 |
Deferred tax liabilities |  |  |  |  |
Property, plant, and equipment | (24.5 | ) |  | (20.0 | )
Cash flow and net investment hedges | (4.5 | ) |  | — |
Deferred tax on foreign earnings | (0.6 | ) |  | (3.1 | )
Inventories | (3.9 | ) |  | (4.2 | )
Other intangible assets | (77.1 | ) |  | (49.5 | )
Other | (0.1 | ) |  | (0.1 | )
Total deferred tax liabilities | (110.7 | ) |  | (76.9 | )
Valuation allowance | (46.7 | ) |  | (41.6 | )
Net deferred tax assets | $ | 165.0 |  |  | $ | 186.0 |
Summary of Net Operating Loss Carryforwards | Net operating loss and capital loss carryforwards and the related carryforward periods at December 31, 2018 are summarized as follows (in millions):
| Carryforward Amount |  | Tax Benefit Amount |  | Valuation Allowance |  | Net Tax Benefit |  | Carryforward Period Ends
United States federal net operating losses | $ | 9.6 |  |  | $ | 2.0 |  |  | $ | — |  |  | $ | 2.0 |  |  | 2033-2036
United States state net operating losses | 19.1 |  |  | 1.2 |  |  | (1.2 | ) |  | — |  |  | 2019-2036
Non-United States net operating losses | 42.3 |  |  | 6.6 |  |  | (4.6 | ) |  | 2.0 |  |  | 2019-2027
Non-United States net operating losses | 180.0 |  |  | 32.3 |  |  | (17.9 | ) |  | 14.4 |  |  | Indefinite
United States capital losses | 34.2 |  |  | 0.5 |  |  | (0.5 | ) |  | — |  |  | 2022
Total | $ | 285.2 |  |  | $ | 42.6 |  |  | $ | (24.2 | ) |  | $ | 18.4 |  |  |
Summary of Tax Credit Carryforwards | The gross tax credit carryforwards and the related carryforward periods at December 31, 2018 are summarized as follows (in millions):
| Carryforward Amount |  | Valuation Allowance |  | Net Tax Benefit |  | Carryforward Period Ends
California research expenditure tax credits | $ | 106.4 |  |  | $ | — |  |  | $ | 106.4 |  |  | Indefinite
Federal research expenditure tax credits | 0.2 |  |  | — |  |  | 0.2 |  |  | Indefinite
Puerto Rico purchases credit | 20.4 |  |  | (20.4 | ) |  | — |  |  | Indefinite
Total | $ | 127.0 |  |  | $ | (20.4 | ) |  | $ | 106.6 |  |  |
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the United States federal statutory income tax rate to the Company's effective income tax rate is as follows (in millions):
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Income tax expense at U.S. federal statutory rate | $ | 159.9 |  |  | $ | 362.2 |  |  | $ | 258.3 |
Foreign income taxed at different rates | (16.2 | ) |  | (106.9 | ) |  | (88.6 | )
State and local taxes, net of federal tax benefit | 6.8 |  |  | 11.5 |  |  | 9.7 |
Tax credits, federal and state | (36.7 | ) |  | (25.8 | ) |  | (21.3 | )
(Release) build of reserve for prior years' uncertain tax positions | (35.5 | ) |  | (7.7 | ) |  | 4.6 |
U.S. tax on foreign earnings, net of credits | (12.2 | ) |  | (30.3 | ) |  | 5.1 |
Foreign-derived intangible income deduction | (6.6 | ) |  | — |  |  | — |
Deductible employee share-based compensation | (41.8 | ) |  | (48.2 | ) |  | — |
Nondeductible employee share-based compensation | 2.8 |  |  | 3.9 |  |  | 3.6 |
Impacts related to 2017 U.S. Tax Reform | 15.8 |  |  | 294.1 |  |  | — |
Other | 2.9 |  |  | (1.5 | ) |  | (3.0 | )
Income tax provision | $ | 39.2 |  |  | $ | 451.3 |  |  | $ | 168.4 |
Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions, excluding interest, penalties, and foreign exchange, is as follows (in millions):
| December 31,
| 2018 |  | 2017 |  | 2016
Uncertain gross tax positions, January 1 | $ | 225.6 |  |  | $ | 245.5 |  |  | $ | 216.1 |
Current year tax positions | 37.8 |  |  | 77.7 |  |  | 29.0 |
Increase in prior year tax positions | 13.9 |  |  | 63.7 |  |  | 2.7 |
Decrease in prior year tax positions | (78.8 | ) |  | (65.0 | ) |  | (0.9 | )
Settlements | (46.5 | ) |  | (95.3 | ) |  | (0.3 | )
Lapse of statutes of limitations | (1.3 | ) |  | (1.0 | ) |  | (1.1 | )
Uncertain gross tax positions, December 31 | $ | 150.7 |  |  | $ | 225.6 |  |  | $ | 245.5 |

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