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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
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,
| 2020 |  | 2019 |  | 2018
United States | $ | 151.3 |  |  | $ | 383.4 |  |  | $ | 266.1 |
International, including Puerto Rico | 765.4 |  |  | 783.1 |  |  | 495.3 |
| $ | 916.7 |  |  | $ | 1,166.5 |  |  | $ | 761.4 |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following (in millions):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Current |  |  |  |  |
United States: |  |  |  |  |
Federal | $ | 23.4 |  |  | $ | 31.3 |  |  | $ | 10.9 |
State and local | 48.2 |  |  | 48.7 |  |  | 13.6 |
International, including Puerto Rico | 73.9 |  |  | 29.1 |  |  | 35.9 |
Current income tax expense | $ | 145.5 |  |  | $ | 109.1 |  |  | $ | 60.4 |
Deferred |  |  |  |  |
United States: |  |  |  |  |
Federal | $ | 11.0 |  |  | $ | 28.3 |  |  | $ | (16.1) |
State and local | (32.9) |  |  | (18.3) |  |  | (22.4) |
International, including Puerto Rico | (30.3) |  |  | 0.5 |  |  | 17.3 |
Deferred income tax (benefit) expense | (52.2) |  |  | 10.5 |  |  | (21.2) |
Total income tax provision | $ | 93.3 |  |  | $ | 119.6 |  |  | $ | 39.2 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in millions):
| December 31,
| 2020 |  | 2019
Deferred tax assets |  |  |
Compensation and benefits | $ | 88.6 |  |  | $ | 90.1 |
Benefits from uncertain tax positions | 27.0 |  |  | 22.5 |
Net tax credit carryforwards | 125.5 |  |  | 108.4 |
Net operating loss carryforwards | 64.1 |  |  | 57.6 |
Accrued liabilities | 105.0 |  |  | 41.3 |
Inventories | 16.3 |  |  | 12.9 |
Cash flow and net investment hedges | 3.3 |  |  | — |
State income taxes | 0.5 |  |  | 0.5 |
Investments | 1.8 |  |  | 1.5 |
Lease liability obligations | 7.7 |  |  | 18.4 |
Other | 3.6 |  |  | 3.4 |
Total deferred tax assets | 443.4 |  |  | 356.6 |
Deferred tax liabilities |  |  |
Property, plant, and equipment | (53.4) |  |  | (22.6) |
Cash flow and net investment hedges | — |  |  | (6.8) |
Deferred tax on foreign earnings | (29.2) |  |  | (35.3) |
Right-of-use assets | (7.0) |  |  | (17.5) |
Other intangible assets | (76.3) |  |  | (71.0) |
Other | (3.1) |  |  | (2.2) |
Total deferred tax liabilities | (169.0) |  |  | (155.4) |
Valuation allowance | (71.6) |  |  | (65.8) |
Net deferred tax assets | $ | 202.8 |  |  | $ | 135.4 |
Summary of Net Operating Loss Carryforwards | Net operating loss and capital loss carryforwards and the related carryforward periods at December 31, 2020 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 | $ | 26.6 |  |  | $ | 5.6 |  |  | $ | — |  |  | $ | 5.6 |  |  | 2030-2037
United States federal net operating losses | 11.3 |  |  | 2.4 |  |  | — |  |  | 2.4 |  |  | Indefinite
United States state net operating losses | 33.5 |  |  | 2.1 |  |  | (2.1) |  |  | — |  |  | 2026-2039
United States state net operating losses | 1.0 |  |  | 0.1 |  |  | (0.1) |  |  | — |  |  | Indefinite
Non-United States net operating losses | 18.2 |  |  | 4.7 |  |  | (3.6) |  |  | 1.1 |  |  | 2020-2027
Non-United States net operating losses | 295.1 |  |  | 49.2 |  |  | (39.9) |  |  | 9.3 |  |  | Indefinite
United States capital losses | 34.1 |  |  | 0.2 |  |  | (0.2) |  |  | — |  |  | 2024
Total | $ | 419.8 |  |  | $ | 64.3 |  |  | $ | (45.9) |  |  | $ | 18.4 |  |  |
Summary of Tax Credit Carryforwards | The gross tax credit carryforwards and the related carryforward periods at December 31, 2020 are summarized as follows (in millions):
| Carryforward Amount |  | Valuation Allowance |  | Net Tax Benefit |  | Carryforward Period Ends
California research expenditure tax credits | $ | 145.1 |  |  | $ | — |  |  | $ | 145.1 |  |  | Indefinite
Federal research expenditure tax credits | 1.5 |  |  | — |  |  | 1.5 |  |  | 2026-2039
Puerto Rico purchases credit | 23.4 |  |  | (23.4) |  |  | — |  |  | Indefinite
Total | $ | 170.0 |  |  | $ | (23.4) |  |  | $ | 146.6 |  |  |
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,
| 2020 |  | 2019 |  | 2018
Income tax expense at U.S. federal statutory rate | $ | 192.5 |  |  | $ | 245.0 |  |  | $ | 159.9 |
Foreign income taxed at different rates | (80.5) |  |  | (75.0) |  |  | (16.2) |
State and local taxes, net of federal tax benefit | 5.0 |  |  | 11.9 |  |  | 6.8 |
Tax credits, federal and state | (43.1) |  |  | (42.9) |  |  | (36.7) |
Build (release) of reserve for prior years' uncertain tax positions | 4.2 |  |  | 5.0 |  |  | (35.5) |
U.S. tax on foreign earnings, net of credits | 1.5 |  |  | (2.9) |  |  | (12.2) |
Tax on global intangible low-taxed income | 49.2 |  |  | 32.0 |  |  | — |
Foreign-derived intangible income deduction | (2.6) |  |  | (7.2) |  |  | (6.6) |
U.S. federal deductible employee share-based compensation | (48.3) |  |  | (57.6) |  |  | (41.8) |
Nondeductible employee share-based compensation | 4.2 |  |  | 3.2 |  |  | 2.8 |
Impact related to 2017 U.S. Tax Reform | — |  |  | 2.8 |  |  | 15.8 |
Other | 11.2 |  |  | 5.3 |  |  | 2.9 |
Income tax provision | $ | 93.3 |  |  | $ | 119.6 |  |  | $ | 39.2 |
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,
| 2020 |  | 2019 |  | 2018
Uncertain gross tax positions, January 1 | $ | 203.1 |  |  | $ | 150.7 |  |  | $ | 225.6 |
Current year tax positions | 86.4 |  |  | 55.4 |  |  | 37.8 |
Increase in prior year tax positions | 6.0 |  |  | 0.8 |  |  | 13.9 |
Decrease in prior year tax positions | (10.0) |  |  | (3.8) |  |  | (78.8) |
Settlements | (3.7) |  |  | — |  |  | (46.5) |
Lapse of statutes of limitations | — |  |  | — |  |  | (1.3) |
Uncertain gross tax positions, December 31 | $ | 281.8 |  |  | $ | 203.1 |  |  | $ | 150.7 |

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