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INCOME TAXES (Tables)

12 Months Ended

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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