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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017 (in millions):

	2019				2018				2017
United States	$	(53.1	)		$	(126.0	)		$	(141.6	)
Foreign	314.2				486.3				425.4
Income before income taxes and equity in net earnings of affiliates	$	261.1			$	360.3			$	283.8

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes by location of the taxing jurisdiction for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in millions):

	2019				2018				2017
Current:
United States:
Federal	$	(6.5	)		$	(9.1	)		$	20.3
State	2.1				1.2				0.6
Foreign	170.1				133.5				126.8
	165.7				125.6				147.7
Deferred:
United States:
Federal	1.3				—				0.9
State	—				—				—
Foreign	13.8				(14.7		)		(15.0		)
	15.1				(14.7		)		(14.1		)
	$	180.8			$	110.9			$	133.6

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income taxes computed at the United States federal statutory income tax rate (21% for 2019, 21% for 2018 (from 35% to 21%), and 35% for 2017) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 is as follows (in millions):

	2019				2018				2017
Provision for income taxes at United States federal statutory rate	$	54.8			$	75.7			$	99.3
State and local income taxes, net of federal income tax effects	(2.5		)		(6.0		)		(5.7		)
Taxes on foreign income which differ from the United States statutory rate	6.7				(0.3		)		(57.7		)
Tax effect of permanent differences	63.9				26.7				60.6
Change in valuation allowance	84.6				24.6				(1.4		)
Change in tax contingency reserves	3.2				8.5				3.8
Research and development tax credits	(7.1		)		(8.5		)		(5.0		)
Impacts related to changes in tax laws	(21.8		)		(8.4		)		42.0
Other	(1.0		)		(1.4		)		(2.3		)
	$	180.8			$	110.9			$	133.6

Schedule of Deferred Tax Assets and Liabilities

The significant components of the deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows (in millions):

	2019				2018
Deferred Tax Assets:
Net operating loss carryforwards	$	72.0			$	74.5
Sales incentive discounts	61.9				58.8
Inventory valuation reserves	41.1				36.3
Pensions and postretirement health care benefits	51.6				47.6
Warranty and other reserves	128.5				98.6
Research and development tax credits	17.3				3.1
Foreign tax credits	6.4				9.7
Other	17.2				21.6
Total gross deferred tax assets	396.0				350.2
Valuation allowance	(169.1		)		(83.9		)
Total deferred tax assets	226.9				266.3
Deferred Tax Liabilities:
Tax over book depreciation and amortization	164.3				214.3
Investment in affiliates	50.3				42.8
Other	25.5				20.6
Total deferred tax liabilities	240.1				277.7
Net deferred tax liabilities	$	(13.2	)		$	(11.4	)
Amounts recognized in Consolidated Balance Sheets:
Deferred tax assets - noncurrent	$	93.8			$	104.9
Deferred tax liabilities - noncurrent	(107.0		)		(116.3		)
	$	(13.2	)		$	(11.4	)

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, 2019 and 2018 is as follows (in millions):

	2019				2018
Gross unrecognized income tax benefits at the beginning of the year	$	166.1			$	163.4
Additions for tax positions of the current year	32.8				3.8
Additions for tax positions of prior years	20.7				13.1
Reductions for tax positions of prior years for:
Changes in judgments	(4.6		)		(1.6		)
Settlements during the year	(0.7		)		(0.7		)
Lapses of applicable statute of limitations	(0.8		)		(4.4		)
Foreign currency translation	(2.8		)		(7.5		)
Gross unrecognized income tax benefits at the end of the year	$	210.7			$	166.1

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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 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 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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