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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Pre-tax Income Attributable to Operating Segments

The following sets forth the amount of income before income taxes attributable to each of the Company’s geographies for the years ended December 31, 2018, 2017 and 2016:

	Year Ended December 31,
(in millions)	2018				2017				2016
Income before income taxes:
United States	$	59.2			$	97.2			$	179.0
Rest of the world	105.8				118.2				104.6
	$	165.0			$	215.4			$	283.6

Reconciliation of Statutory Tax Rate to Effective Tax Rate

The Company’s effective income tax provision differs from the amount calculated using the statutory U.S. federal income tax rate, principally due to the following:

	Year Ended December 31,
	2018							2017							2016
(dollars in millions)	Amount				Percentage of Income Before Income Taxes			Amount				Percentage of Income Before Income Taxes			Amount				Percentage of Income Before Income Taxes
Statutory U.S. federal income tax	$	34.6			21.0	%		$	75.4			35.0	%		$	99.3			35.0	%
State income taxes, net of federal benefit	1.8				1.1	%		(0.6		)		(0.3	)%		8.0				2.8	%
Foreign repatriation, net of foreign tax credits	—				—			—				—			(4.3		)		(1.5	)%
Foreign tax differential	2.5				1.5	%		(11.9		)		(5.5	)%		(12.0		)		(4.2	)%
Change in valuation allowances	(17.7		)		(10.7	)%		5.6				2.6	%		19.4				6.8	%
Uncertain tax positions	33.1				20.1	%		(1.0		)		(0.5	)%		(27.1		)		(9.6	)%
Subpart F income	6.6				4.0	%		2.7				1.2	%		2.0				0.7	%
Manufacturing deduction	—				—			(1.9		)		(0.9	)%		(4.2		)		(1.5	)%
Remeasurement of deferred taxes	—				—			(69.7		)		(32.3	)%		—				—
Transition Tax	(6.8		)		(4.1	)%		45.9				21.3	%		—				—
Permanent and other	(4.5		)		(2.8	)%		(0.7		)		(0.3	)%		5.2				1.9	%
Effective income tax provision	$	49.6			30.1	%		$	43.8			20.3	%		$	86.3			30.4	%

Tax Provision Summary

The income tax provision consisted of the following:

	Year Ended December 31,
(in millions)	2018				2017				2016
Current provision
Federal	$	(14.6	)		$	73.5			$	73.5
State	1.1				3.1				4.6
Foreign	57.1				28.3				39.3
Total current	$	43.6			$	104.9			$	117.4
Deferred provision
Federal	$	11.4			$	(67.7	)		$	(21.4	)
State	(4.5		)		7.6				1.6
Foreign	(0.9		)		(1.0		)		(11.3		)
Total deferred	6.0				(61.1		)		(31.1		)
Total income tax provision	$	49.6			$	43.8			$	86.3

Deferred Tax Assets and Liabilities Recognized in the Consolidated Balance Sheets

The net deferred tax assets and liabilities recognized in the accompanying Consolidated Balance Sheets, determined using the income tax rate applicable to each period, consist of the following:

	December 31,
(in millions)	2018				2017
Deferred tax assets:
Stock-based compensation	$	12.8			$	10.6
Accrued expenses and other	49.1				36.3
Net operating losses, foreign tax credits and other tax attribute carryforwards	56.1				92.9
Inventories	6.0				6.2
Transaction costs	13.5				13.4
Property, plant and equipment	3.6				2.8
Total deferred tax assets	141.1				162.2
Valuation allowances	(43.1		)		(55.1		)
Total net deferred tax assets	$	98.0			$	107.1
Deferred tax liabilities:
Intangible assets	$	(156.8	)		$	(162.1	)
Property, plant and equipment	(30.3		)		(29.5		)
Accrued expenses and other	(5.8		)		(6.4		)
Total deferred tax liabilities	(192.9		)		(198.0		)
Net deferred tax liabilities	$	(94.9	)		$	(90.9	)

Operating Loss and Tax Credit Carryforwards

The Company has the following gross income tax attributes available at December 31, 2018 and 2017, respectively:

(in millions)	2018				2017
State net operating losses (“SNOLs”)	$	355.7			$	133.9
U.S. federal foreign tax credits (“FTCs”)	12.2				12.2
U.S. state income tax credits ("SITCs")	8.0				8.1
Foreign net operating losses (“FNOLs”)	57.0				33.1
Charitable contribution carryover ("CCCs")	39.6				18.0
Interest limitation carryover ("ILC")	10.6				—

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)
Balance as of December 31, 2016	$	71.7
Additions based on tax positions related to 2017	3.9
Additions for tax positions of prior years	11.4
Expiration of statutes of limitations	—
Settlements of uncertain tax positions with tax authorities	(2.5		)
Balance as of December 31, 2017	$	84.5
Additions based on tax positions related to 2018	2.5
Additions for tax positions of prior years	21.2
Expiration of statutes of limitations	—
Settlements of uncertain tax positions with tax authorities	(4.4		)
Balance as of December 31, 2018	$	103.8

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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.

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