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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes was as follows:

Year Ended December 31	2017			2016			2015
Current
United States
Federal		$211.7			$35.6			($8.4	)
State	8.4			4.0			—
Non-United States	168.6			144.0			158.7
Total current	388.7			183.6			150.3
Deferred
United States
Federal	(178.2		)	69.7			92.9
State	(0.8		)	0.5			1.8
Non-United States	(17.8		)	3.8			(3.5		)
Total deferred	(196.8		)	74.0			91.2
Total provision		$191.9			$257.6			$241.5

Schedule of effective income tax rate reconciliation

A reconciliation between taxes computed at the United States federal statutory rate of 35% and the consolidated effective tax rate is as follows:

Year Ended December 31	2017			2016			2015
Income tax based on statutory rate		$258.1			$245.5			$231.2
Increase (decrease) resulting from:
Non-United States tax rate difference:
French business tax(1)	46.9			41.0			40.0
French CICE(2)	(77.1		)	—			—
Other(2)	(28.6		)	(23.5		)	(19.6		)
Repatriation of non-United States earnings(2)(3)	69.7			(10.5		)	(16.9		)
State income taxes, net of federal benefit	1.1			2.2			2.7
Change in valuation allowance	(6.9		)	(6.0		)	3.3
United States Tax Act and French tax reform(3)	(73.7		)	—			—
Other, net	2.4			8.9			0.8
Tax provision		$191.9			$257.6			$241.5

(1) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $72.1, $63.1 and $61.5 for 2017, 2016 and 2015, respectively. The amounts in the table above of $46.9, $41.0 and $40.0, respectively, represent the French business tax expense net of the French tax benefit.

(2) The French CICE is a payroll tax credit that is tax-free for French tax purposes and increases French earnings. The French tax benefits related to the CICE were $58.9 and $56.2 for 2016 and 2015, respectively. Prior to the Tax Act, this increase in French earnings resulted in a United States tax expense as these French earnings were deemed to be not permanently invested, which is included in Repatriations of non-United States earnings. Included in Other Non-United States tax rate differences are benefits of $2.4, $1.8 and $1.5 for 2017, 2016 and 2015, respectively, that relate to French earnings that are deemed to be permanently invested.

(3) Prior to the enactment of the Tax Act on December 22, 2017, we recorded $83.3 of tax expense in 2017 related to non-United States earnings that were deemed to be not permanently invested. This amount is included in the Repatriation of non-United States earnings consistent with prior years. As a result of the Tax Act, this $83.3 was reversed as we are no longer recording United States federal income tax expense on these earnings, and this tax benefit is included in the United States Tax Act and French tax reform benefit of $73.7.

Components of future income tax benefits (expense)

December 31	2017			2016
Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance		$17.3			$30.6
Employee compensation payable	20.2			26.6
Pension and postretirement benefits	49.0			60.7
Intangible assets	(103.0		)	(146.8		)
Repatriation of non-United States earnings	(5.5		)	(164.8		)
Intercompany loans denominated in foreign currencies	(13.5		)	(74.2		)
Net operating losses	104.1			92.7
Other	77.6			120.7
Valuation allowance	(77.5		)	(86.3		)
Total future tax benefits (expense)		$68.7			($140.8	)
Deferred tax asset		$101.0			$81.4
Deferred tax liability	(32.3		)	(222.2		)
Total future tax benefits (expense)		$68.7			($140.8	)

Summary of net operating loss carryforwards

The net operating loss carryforwards expire as follows:

	United States Federal and Non-United States			United States State
2018		$1.5			$3.0
2019	6.5			4.0
2020	3.3			0.2
2021	5.3			3.8
2022	3.4			—
Thereafter	25.0			187.7
No expirations	356.2			—
Total net operating loss carryforwards		$401.2			$198.7

Summary of unrecognized tax benefit activity

The following table summarizes the activity related to our unrecognized tax benefits during 2017, 2016 and 2015:

	2017			2016			2015
Gross unrecognized tax benefits, beginning of year		$23.8			$19.0			$23.0
Increases in prior year tax positions	27.1			4.1			2.3
Decreases in prior year tax positions	(1.2		)	(1.7		)	(0.5		)
Increases for current year tax positions	6.6			4.1			3.1
Expiration of statute of limitations and audit settlements	(10.2		)	(1.7		)	(8.9		)
Gross unrecognized tax benefits, end of year		$46.1			$23.8			$19.0
Potential interest and penalties	20.4			20.2			19.9
Balance, end of year		$66.5			$44.0			$38.9

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