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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income (Loss) Before Income Taxes And Minority Interests | The Company's geographic sources of income (loss) before income taxes and non-controlling interest are as follows (in millions):
| Year ended December 31,
| 2020 |  | 2019 |  | 2018
United States | $ | (181.2) |  |  | $ | (308.2) |  |  | $ | (181.8) |
Foreign | 357.8 |  |  | 584.8 |  |  | 936.8 |
Income before income taxes | $ | 176.6 |  |  | $ | 276.6 |  |  | $ | 755.0 |
Provision (Benefit) For Income Taxes | The Company's provision (benefit) for income taxes is as follows (in millions):
| Year ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 0.6 |  |  | $ | 1.2 |  |  | $ | (2.0) |
State and local | 0.1 |  |  | — |  |  | (2.2) |
Foreign | 54.0 |  |  | 48.5 |  |  | 55.3 |
| 54.7 |  |  | 49.7 |  |  | 51.1 |
Deferred: |  |  |  |  |
Federal | (69.2) |  |  | (5.0) |  |  | 99.4 |
State and local | (66.4) |  |  | — |  |  | — |
Foreign | 21.1 |  |  | 18.0 |  |  | (25.4) |
| (114.5) |  |  | 13.0 |  |  | 74.0 |
Total provision (benefit) | $ | (59.8) |  |  | $ | 62.7 |  |  | $ | 125.1 |
Reconciliation Of The U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows:
|  | Year ended December 31,
|  | 2020 |  | 2019 |  | 2018 |
U.S. federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |
Increase (decrease) resulting from: |  |  |  |  |  |  |
State and local taxes, net of federal tax benefit |  | (1.4) |  |  | (2.6) |  |  | (1.0) |  |
Impact of U.S. Tax Reform and related effects (1) |  | — |  |  | — |  |  | 4.7 |  |
Impact of foreign operations |  | 7.6 |  |  | 3.8 |  |  | (1.2) |  |
Impact of U.S. tax method changes (2) |  | — |  |  | — |  |  | (6.4) |  |
Impact of the Domestication (3) |  | (35.7) |  |  | — |  |  | — |  |
Change in valuation allowance and related effects (4) |  | (24.4) |  |  | 1.8 |  |  | 0.6 |  |
Non-deductible share-based compensation costs |  | 1.7 |  |  | (0.5) |  |  | (0.5) |  |
U.S. federal R&D credit |  | (3.6) |  |  | (3.7) |  |  | (1.1) |  |
Nondeductible officer compensation |  | 1.1 |  |  | 1.5 |  |  | 0.4 |  |
Other |  | (0.1) |  |  | 1.4 |  |  | 0.1 |  |
Total |  | (33.8) | % |  | 22.7 | % |  | 16.6 | % |
(1)For the year ended December 31, 2018, this primarily included expense of (i) $31.8 million, or 4.2%, related to the recognition of deferred tax liability for undistributed prior years' earnings of the foreign subsidiaries, (ii) $1.8 million, or 0.3% related to the limitation on deductibility of prior years’ executive compensation, and (iii) $1.5 million, or 0.2% related to the impact of the mandatory repatriation tax. These adjustments were made pursuant to SAB 118. (2)For the year ended December 31, 2018, this included a one-time benefit of $48.2 million, or 6.4%, related to U.S. tax method changes made during the year that impacted the Company’s GILTI inclusion. (3)On July 6, 2020, the Company completed a simplification of its corporate structure by repatriating the economic rights of its non-U.S. IP to the United States via domestication of certain foreign subsidiaries (the "Domestication"). The Domestication more closely aligns the Company's corporate structure with its operating structure in accordance with the OECD’s BEPS conclusions and changes to U.S. and European tax laws. The impact of the Domestication, which is regarded as a change in tax status, resulted in a benefit primarily from recognizing certain deferred tax assets, net of deferred tax liabilities, of $63.0 million, or 35.7%. (4)For the year ended December 31, 2020, this included a benefit of $49.4 million, or 28.0%, for the release of a partial state valuation allowance due to an increase to forecasted domestic income as a result of the Domestication of certain foreign subsidiaries and an expense of $61.8 million, or 35.0%, primarily related to the expiration of Japan net operating losses, netted with the offsetting benefit of $61.8 million, or 35.0%, primarily for the decrease in the related valuation allowance for those same Japan net operating losses. For the year ended December 31, 2019, this included an expense of $11.2 million, or 4.0%, primarily related to the write-off of Hong Kong NOL and expiration of Japan NOL, netted with the offsetting benefit of $11.2 million, or 4.0%, primarily for the decrease in related valuation allowance for those same Hong Kong and Japan NOLs. For the year ended December 31, 2018, this included an expense of $135.2 million, or 17.9%, primarily related to the expiration of Japan NOLs, netted with the offsetting benefit of $135.2 million, or 17.9%, primarily for the decrease in the related valuation allowance for those same Japan NOLs.
Tax Effects Of Temporary Differences | The tax effects of temporary differences in the recognition of income and expense for tax and financial reporting purposes that give rise to significant portions of the net deferred tax asset (liability) are as follows (in millions):
|  | As of December 31,
|  | 2020 |  | 2019
NOL and tax credit carryforwards |  | $ | 471.6 |  |  | $ | 612.9 |
163 (j) interest expense carryforward |  | 65.7 |  |  | 49.3 |
Lease liabilities (1) |  | 32.5 |  |  | 22.1 |
ROU asset (1) |  | (32.5) |  |  | (22.1) |
Tax-deductible goodwill and amortizable intangibles |  | (38.0) |  |  | (48.6) |
Capitalization of research and development expenses |  | 90.7 |  |  | 42.7 |
Reserves and accruals |  | 68.4 |  |  | 27.5 |
Property, plant and equipment |  | (95.8) |  |  | (81.2) |
Inventories |  | 84.3 |  |  | 22.0 |
Undistributed earnings of foreign subsidiaries |  | (57.5) |  |  | (63.7) |
Share-based compensation |  | 7.7 |  |  | 10.3 |
Pension |  | 21.2 |  |  | 26.3 |
Other |  | 3.2 |  |  | 8.0 |
Deferred tax assets and liabilities before valuation allowance |  | 621.5 |  |  | 605.5 |
Valuation allowance |  | (249.9) |  |  | (357.9) |
Net deferred tax asset |  | $ | 371.6 |  |  | $ | 247.6 |
(1)The deferred tax assets and liabilities disclosure as of December 31, 2019 has been adjusted to reflect the gross deferred tax right-of-use asset and related gross deferred lease liability recognized in accordance with the New Leasing Standard.
Activity For Unrecognized Gross Tax Benefits | The activity for unrecognized gross tax benefits is as follows (in millions):
| 2020 |  | 2019 |  | 2018
Balance at beginning of year | $ | 130.0 |  |  | $ | 112.2 |  |  | $ | 114.8 |
Acquired balances | — |  |  | 15.5 |  |  | — |
Additions for tax benefits related to the current year | 11.9 |  |  | 9.4 |  |  | 7.4 |
Additions for tax benefits of prior years | 12.3 |  |  | 8.0 |  |  | 2.8 |
Reductions for tax benefits of prior years | (1.4) |  |  | (0.2) |  |  | (1.9) |
Lapse of statute | (1.3) |  |  | (8.2) |  |  | (10.9) |
Settlements | (0.5) |  |  | (6.7) |  |  | — |
Balance at end of year | $ | 151.0 |  |  | $ | 130.0 |  |  | $ | 112.2 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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