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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Components of income tax expense (benefit) |
| Year Ended December 31,
(millions of dollars) | 2018 |  | 2017 |  | 2016
Earnings before income taxes: |  |  |  |  |
U.S. | $ | 220.0 |  |  | $ | 203.0 |  |  | $ | 27.5 |
Non-U.S. | 975.9 |  |  | 860.6 |  |  | 915.2 |
Total | $ | 1,195.9 |  |  | $ | 1,063.6 |  |  | $ | 942.7 |
Provision for income taxes: |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Federal | $ | 17.1 |  |  | $ | 36.4 |  |  | $ | 37.4 |
State | 5.4 |  |  | 4.6 |  |  | 6.1 |
Foreign | 258.8 |  |  | 247.4 |  |  | 251.7 |
Total current | 281.3 |  |  | 288.4 |  |  | 295.2 |
Deferred: |  |  |  |  |
Federal | (39.6 | ) |  | 323.7 |  |  | 23.5 |
State | (8.5 | ) |  | 2.1 |  |  | (0.8 | )
Foreign | (21.9 | ) |  | (33.9 | ) |  | (11.9 | )
Total deferred | (70.0 | ) |  | 291.9 |  |  | 10.8 |
Total provision for income taxes | $ | 211.3 |  |  | $ | 580.3 |  |  | $ | 306.0 |
Effective Income Tax Rate Reconciliation |
| Year Ended December 31,
(millions of dollars) | 2018 |  | 2017 |  | 2016
Income taxes at U.S. statutory rate of 21% (35% for 2016 and 2017) | $ | 251.2 |  |  | $ | 372.3 |  |  | $ | 330.0 |
Increases (decreases) resulting from: |  |  |  |  |  |  |  |
State taxes, net of federal benefit | 5.6 |  |  | 2.3 |  |  | 1.8 |
U.S. tax on non-U.S. earnings | 36.5 |  |  | 170.6 |  |  | 32.2 |
Affiliates' earnings | (10.3 | ) |  | (17.9 | ) |  | (15.0 | )
Foreign rate differentials | 27.5 |  |  | (100.2 | ) |  | (93.3 | )
Tax holidays | (28.0 | ) |  | (31.0 | ) |  | (25.5 | )
Net tax on remittance of foreign earnings | (21.5 | ) |  | 80.3 |  |  | 21.8 |
Tax credits | (26.0 | ) |  | (24.2 | ) |  | (3.2 | )
Reserve adjustments, settlements and claims | 32.5 |  |  | 8.0 |  |  | 11.6 |
Valuation allowance adjustments | (10.6 | ) |  | 12.2 |  |  | (2.7 | )
Non-deductible transaction costs | 2.6 |  |  | 10.9 |  |  | 8.3 |
Changes in accounting methods and filing positions | (29.8 | ) |  | (1.9 | ) |  | 0.3 |
Impact of transactions | (0.1 | ) |  | 4.0 |  |  | 16.3 |
Other foreign taxes | 8.4 |  |  | 8.1 |  |  | 12.9 |
Revaluation of U.S. deferred taxes | (4.2 | ) |  | 63.7 |  |  | — |
Impact of FDII | (15.3 | ) |  | — |  |  | — |
Other | (7.2 | ) |  | 23.1 |  |  | 10.5 |
Provision for income taxes, as reported | $ | 211.3 |  |  | $ | 580.3 |  |  | $ | 306.0 |
Reconciliation of the total gross unrecognized tax benefits |
(millions of dollars) | 2018 |  | 2017 |  | 2016
Balance, January 1 | $ | 92.0 |  |  | $ | 91.1 |  |  | $ | 127.3 |
Additions based on tax positions related to current year | 24.1 |  |  | 16.8 |  |  | 16.1 |
Additions/(reductions) for tax positions of prior years | 17.7 |  |  | (2.4 | ) |  | 1.6 |
Reductions for closure of tax audits and settlements | (7.7 | ) |  | (19.9 | ) |  | (45.7 | )
Reductions for lapse in statute of limitations | — |  |  | (0.8 | ) |  | (5.0 | )
Translation adjustment | (5.7 | ) |  | 7.2 |  |  | (3.2 | )
Balance, December 31 | $ | 120.4 |  |  | $ | 92.0 |  |  | $ | 91.1 |
Tax jurisdiction |
Tax jurisdiction |  | Years no longer subject to audit |  | Tax jurisdiction |  | Years no longer subject to audit
U.S. Federal |  | 2014 and prior |  | Japan |  | 2015 and prior
China |  | 2012 and prior |  | Mexico |  | 2012 and prior
France |  | 2015 and prior |  | Poland |  | 2013 and prior
Germany |  | 2011 and prior |  | South Korea |  | 2012 and prior
Hungary |  | 2013 and prior |  |  |  |
Deferred Tax Assets (Liabilities) |
| December 31,
(millions of dollars) | 2018 |  | 2017
Deferred tax assets: |  |  |  |  |
Employee compensation | 23.9 |  |  | 26.4 |
Other comprehensive loss | 63.9 |  |  | 54.5 |
Research and development capitalization | 91.8 |  |  | 76.4 |
Net operating loss and capital loss carryforwards | 83.8 |  |  | 74.6 |
Pension and other postretirement benefits | 18.8 |  |  | 19.1 |
Asbestos-related | 172.7 |  |  | 167.1 |
Other | 155.2 |  |  | 146.6 |
Total deferred tax assets | $ | 610.1 |  |  | $ | 564.7 |
Valuation allowance | (86.3 | ) |  | (95.9 | )
Net deferred tax asset | $ | 523.8 |  |  | $ | 468.8 |
Deferred tax liabilities: |  |  |  |  |
Goodwill and intangible assets | (183.3 | ) |  | (193.9 | )
Fixed assets | (117.5 | ) |  | (104.6 | )
Unremitted foreign earnings | (57.4 | ) |  | (98.5 | )
Other | (19.2 | ) |  | (12.0 | )
Total deferred tax liabilities | $ | (377.4 | ) |  | $ | (409.0 | )
Net deferred taxes | $ | 146.4 |  |  | $ | 59.8 |

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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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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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