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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Loss Income Before Income Taxes and Noncontrolling Interests

The components of income from continuing operations before income taxes and noncontrolling interests were as follows:

(In millions)		2018				2017				2016
Domestic operations		$	456.7			$	554.7			$	513.8
Foreign operations			80.3				80.1				68.3
Income before income taxes and noncontrolling interests		$	537.0			$	634.8			$	582.1

Reconciliation of Income Taxes at Federal Statutory Income Tax Rate to Income Taxes from Continuing Operations

A reconciliation of income taxes at the 35% federal statutory income tax rate for 2016 and 2017 and 21% for 2018 to the income tax provision reported was as follows:

(In millions)		2018				2017				2016
Income tax expense computed at federal statutory income tax rate		$	112.8			$	222.2			$	203.7
Other income taxes, net of federal tax benefit			13.7				13.4				12.6
Foreign taxes at a different rate than U.S. federal statutory income tax rate			3.5				(8.3	)			(7.6	)
Tax benefit on income attributable to domestic production activities			0.0				(10.9	)			(13.0	)
Net adjustments for uncertain tax positions			4.1				11.6				13.2
Share-based compensation (ASU 2016-09)			(2.1	)			(23.9	)			(27.8	)
Tax Act impact			5.5				(25.7	)			—
Deferred tax impact of state tax rate changes			3.5				(2.0	)			(1.1	)
Valuation allowance increase (decrease)			3.0				(5.2	)			(2.1	)
Miscellaneous other, net			3.0				(11.7	)			(8.2	)
Income tax expense as reported		$	147.0			$	159.5			$	169.7
Effective income tax rate			27.4	%			25.1	%			29.2	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) was as follows:

(In millions)		2018				2017				2016
Unrecognized tax benefits — beginning of year		$	87.5			$	58.2			$	38.2
Gross additions — current year tax positions			9.1				31.0				10.7
Gross additions — prior year tax positions			9.3				10.9				10.4
Gross additions (reductions) — purchase accounting adjustments			1.0				4.0				9.7
Gross reductions — prior year tax positions			(14.5	)			(9.4	)			(9.8	)
Gross reductions — settlements with taxing authorities			(8.9	)			(7.2	)			(1.0	)
Unrecognized tax benefits — end of year		$	83.5			$	87.5			$	58.2

Income Taxes

Income taxes in 2018, 2017 and 2016 were as follows:

(In millions)		2018				2017				2016
Current
Federal		$	93.5			$	133.1			$	150.4
Foreign			26.4				22.4				22.3
State and other			24.1				22.8				22.9
Deferred
Federal, state and other			4.8				(27.2	)			(23.9	)
Foreign			(1.8	)			8.4				(2.0	)
Total income tax expense		$	147.0			$	159.5			$	169.7

Components of Net Deferred Tax Assets Liabilities

The components of net deferred tax assets (liabilities) as of December 31, 2018 and 2017 were as follows:

(In millions)		2018				2017
Deferred tax assets:
Compensation and benefits		$	31.5			$	22.1
Defined benefit plans			39.3				43.7
Capitalized inventories			16.1				11.1
Accounts receivable			5.4				7.8
Other accrued expenses			55.2				45.6
Net operating loss and other tax carryforwards			21.2				25.6
Valuation allowance			(13.3	)			(11.0	)
Miscellaneous			2.5				3.7
Total deferred tax assets			157.9				148.6
Deferred tax liabilities:
LIFO inventories			0.0				(4.2	)
Fixed assets			(60.2	)			(44.5	)
Intangible assets			(224.6	)			(232.0	)
Investment in partnership			(3.8	)			(9.2	)
Miscellaneous			(20.0	)			(16.1	)
Total deferred tax liabilities			(308.6	)			(306.0	)
Net deferred tax liability		$	(150.7	)		$	(157.4	)

In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2018 and 2017 as follows:

(In millions)		2018				2017
Other assets			11.9				9.4
Deferred income taxes			(162.6	)			(166.8	)
Net deferred tax liability		$	(150.7	)		$	(157.4	)

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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.

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