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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The sources of income before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2018, 2017 and 2016 (in millions):

	2018				2017				2016
United States	$	(126.0	)		$	(141.6	)		$	(150.0	)
Foreign	486.3				425.4				354.9
Income before income taxes and equity in net earnings of affiliates	$	360.3			$	283.8			$	204.9

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes by location of the taxing jurisdiction for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in millions):

	2018				2017				2016
Current:
United States:
Federal	$	(9.1	)		$	20.3			$	(24.3	)
State	1.2				0.6				0.2
Foreign	133.5				126.8				114.2
	125.6				147.7				90.1
Deferred:
United States:
Federal	—				0.9				21.9
State	—				—				—
Foreign	(14.7		)		(15.0		)		(19.8		)
	(14.7		)		(14.1		)		2.1
	$	110.9			$	133.6			$	92.2

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income taxes computed at the United States federal statutory income tax rate (21% for 2018 (from 35 percent to 21 percent), and 35% for 2017 and 2016) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 is as follows (in millions):

	2018				2017				2016
Provision for income taxes at United States federal statutory rate	$	75.7			$	99.3			$	71.7
State and local income taxes, net of federal income tax effects	(6.0		)		(5.7		)		(6.0		)
Taxes on foreign income which differ from the United States statutory rate	(0.3		)		(57.7		)		(44.5		)
Tax effect of permanent differences	26.7				60.6				14.4
Change in valuation allowance	24.6				(1.4		)		37.9
Change in tax contingency reserves	8.5				3.8				23.4
Research and development tax credits	(8.5		)		(5.0		)		(3.8		)
Impacts related to the 2017 Tax Act	(8.4		)		42.0				—
Other	(1.4		)		(2.3		)		(0.9		)
	$	110.9			$	133.6			$	92.2

Schedule of Deferred Tax Assets and Liabilities

The significant components of the deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows (in millions):

	2018				2017
Deferred Tax Assets:
Net operating loss carryforwards	$	74.5			$	83.4
Sales incentive discounts	58.8				60.2
Inventory valuation reserves	36.3				34.4
Pensions and postretirement health care benefits	47.6				52.2
Warranty and other reserves	98.6				92.2
Research and development tax credits	3.1				2.9
Foreign tax credits	9.7				10.4
Other	21.6				19.2
Total gross deferred tax assets	350.2				354.9
Valuation allowance	(83.9		)		(81.9		)
Total net deferred tax assets	266.3				273.0
Deferred Tax Liabilities:
Tax over book depreciation and amortization	214.3				229.1
Investment in affiliates	42.8				53.9
Other	20.6				8.3
Total deferred tax liabilities	277.7				291.3
Net deferred tax liabilities	$	(11.4	)		$	(18.3	)
Amounts recognized in Consolidated Balance Sheets:
Deferred tax assets - noncurrent	$	104.9			$	112.2
Deferred tax liabilities - noncurrent	(116.3		)		(130.5		)
	$	(11.4	)		$	(18.3	)

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as of and during the years ended December 31, 2018 and 2017 is as follows (in millions):

	2018				2017
Gross unrecognized income tax benefits	$	163.4			$	139.9
Additions for tax positions of the current year	3.8				16.4
Additions for tax positions of prior years	13.1				4.8
Reductions for tax positions of prior years for:
Changes in judgments	(1.6		)		1.4
Settlements during the year	(0.7		)		(0.4		)
Lapses of applicable statute of limitations	(4.4		)		(14.4		)
Foreign currency translation	(7.5		)		15.7
Gross unrecognized income tax benefits	$	166.1			$	163.4

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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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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.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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.

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