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6. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

U.S. and international components of income before taxes [Table Text Block]

The U.S. and international components of income before taxes are as follows (in millions):

						Year Ended December 31,
						2020						2019						2018
U.S.						$	2,339.7					$	1,034.0					$	363.4
International						2,567.9						1,227.1						149.3
Income before taxes						$	4,907.6					$	2,261.1					$	512.7

Provision for income taxes [Table Text Block]

The provision for income taxes consists of the following (in millions):

						Year Ended December 31,
						2020						2019						2018
Current tax expense:
U.S. Federal						$	69.9					$	13.0					$	8.8
State						12.0						4.4						2.2
International						22.3						23.5						30.5
Current tax expense						104.2						40.9						41.5
Deferred tax expense:
U.S. Federal						893.5						409.7						114.0
State						54.0						24.4						6.6
International						31.5						16.1						0.3
Deferred tax expense						979.0						450.2						120.9
Non-current tax expense (benefit)						18.2						11.3						(15.4)
Provision for income taxes						$	1,101.4					$	502.4					$	147.0

Reconcilation of effective tax rate on inocme before taxes and statutory rate [Table Text Block]

The reconciliation between our effective tax rate on income before taxes and the statutory tax rate is as follows:

						Year Ended December 31,
						2020						2019						2018
U. S. statutory tax rate						21.0		%				21.0		%				21.0		%
Impact of foreign operations						(9.9)						(9.7)						(4.1)
Goodwill impairment						—						—						5.6
U.S. taxation of foreign income						10.2						10.3						15.5
U.S. tax reform						—						—						(9.6)
State taxes						1.1						1.0						1.7
Other						—						(0.4)						(1.4)
Provision for income taxes						22.4		%				22.2		%				28.7		%

Significant components of deferred tax assets and liabilities [Table Text Block]

Deferred tax assets and liabilities reflect the tax effects of losses, credits, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of deferred tax assets and liabilities are as follows (in millions):

						December 31,
						2020						2019
Deferred tax assets:
Bad debt, inventory and warranty accruals						$	29.6					$	23.9
Other post-employment benefits, vacation and other reserves						29.8						23.0
Tax credit and net operating loss carryforwards						93.5						83.7
Lease obligations						49.3						48.6
Other						44.8						26.0
Total gross deferred tax assets						247.0						205.2
Valuation allowance						(44.6)						(67.2)
Total deferred tax assets						202.4						138.0
Deferred tax liabilities:
Property and equipment						37.0						38.4
Lease assets						46.8						46.4
Investments and intangible assets						2,143.4						1,001.4
Total deferred tax liabilities						2,227.2						1,086.2
Net deferred tax liabilities						$	(2,024.8)					$	(948.2)

Tabular reconcilation of total amounts of unrecognized tax benefits [Table Text Block]

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions):

						2020						2019						2018
Unrecognized tax benefits – January 1						$	39.2					$	29.8					$	54.9
Additions to tax positions related to prior years						14.0						7.6						0.6
Reductions to tax positions related to prior years						(1.5)						(0.7)						(20.2)
Additions to tax positions related to the current year						3.4						3.0						4.6
Settlements						—						—						(6.8)
Lapse of statute of limitations						(0.6)						(0.4)						(1.1)
Currency translation						1.3						(0.1)						(2.2)
Unrecognized tax benefits – December 31						$	55.8					$	39.2					$	29.8

Summary of Valuation Allowance

The valuation allowance for deferred tax assets is as follows (in millions):

															December 31,
															2020																		2019																		2018
						Beginning balance									$			67.2															$			70.8															$			66.4
						Additions charged to expenses									—																		—																					4.4
						Deductions from reserves												(22.6)																		(3.6)																		—
						Ending balance									$			44.6															$			67.2															$			70.8

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