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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of provision for income taxes | The provision for income taxes was as follows:
Year Ended December 31 | 2018 |  | 2017 |  | 2016 |
Current |  |  |
United States |  |  |
Federal |  | $17.2 |  |  | $211.7 |  |  | $35.6 |
State | 10.8 |  | 8.4 |  | 4.0 |
Non-United States | 181.9 |  | 168.6 |  | 144.0 |
Total current | 209.9 |  | 388.7 |  | 183.6 |
Deferred |  |  |
United States |  |  |
Federal | (7.5 | ) | (178.2 | ) | 69.7 |
State | 1.0 |  | (0.8 | ) | 0.5 |
Non-United States | (5.4 | ) | (17.8 | ) | 3.8 |
Total deferred | (11.9 | ) | (196.8 | ) | 74.0 |
Total provision |  | $198.0 |  |  | $191.9 |  |  | $257.6 |
Schedule of effective income tax rate reconciliation | A tax reconciliation between taxes computed at the United States federal statutory rate of 21% for 2018 and 35% for 2017 and 2016 and the consolidated effective tax rate is as follows:
Year Ended December 31 | 2018 |  | 2017 |  | 2016 |
Income tax based on statutory rate |  | $158.5 |  |  | $258.1 |  |  | $245.5 |
Increase (decrease) resulting from: |  |  |
Non-United States tax rate difference: |  |  |
French business tax(1) | 59.1 |  | 46.9 |  | 41.0 |
French CICE(2) | (39.9 | ) | (77.1 | ) | — |
Other(1)(2) | 20.0 |  | (28.6 | ) | (23.5 | )
Repatriation of non-United States earnings(2)(3) | 2.5 |  | 69.7 |  | (10.5 | )
State income taxes, net of federal benefit | 8.2 |  | 1.1 |  | 2.2 |
Change in valuation allowance | 0.7 |  | (6.9 | ) | (6.0 | )
Work Opportunity Tax Credit | (8.8 | ) | (10.5 | ) | (11.0 | )
Foreign-Derived Intangible Income deduction | (12.5 | ) | — |  | — |
United States Tax Act and French tax reform(3) | 3.2 |  | (73.7 | ) | — |
Other, net | 7.0 |  | 12.9 |  | 19.9 |
Tax provision |  | $198.0 |  |  | $191.9 |  |  | $257.6 |
(1) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $74.8, $72.1 and $63.1 for 2018, 2017 and 2016, respectively. The amounts in the table above of $59.1, $46.9 and $41.0 for 2018, 2017 and 2016, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21% for 2018 and 35% for 2017 and 2016. Included in Other Non-United States tax rate differences are a benefit of $10.1 for 2018 and an expense of $0.4 for both 2017 and 2016 related to the difference between the United States federal rate and the French tax rate applied to the respective gross amounts of the French business tax. (2) The French CICE was a payroll tax credit that was tax-free for French tax purposes and increased French earnings. The amounts in the table above of $39.9 and $77.1 for 2018 and 2017, respectively, represent the French tax benefits using the United States federal rate of 21% for 2018 and 35% for 2017. Included in Other Non-United States tax rate differences are a benefit of $25.5 for 2018 and an expense of $1.3 for 2017 related to the difference between the United States federal rate and French tax rate applied to the respective gross French CICE amounts. The French tax benefits related to the CICE were $58.9 for 2016. 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 was included in Repatriation of non-United States earnings. Included in Other Non-United States tax rate differences were benefits of $2.4 and $1.8 for 2017 and 2016, respectively, that related to French earnings that were 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 was 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 were no longer recording United States federal income tax expense on these earnings, and this tax benefit was included in the United States Tax Act and French tax reform benefit of $73.7.
Components of future income tax benefits (expense) | Temporary differences, which give rise to the deferred taxes, are as follows:
December 31 | 2018 |  | 2017 |
Future Income Tax Benefits (Expense) |  |
Accrued payroll taxes and insurance |  | $13.8 |  |  | $17.3 |
Employee compensation payable | 17.8 |  | 20.2 |
Pension and postretirement benefits | 46.9 |  | 49.0 |
Intangible assets | (102.1 | ) | (103.0 | )
Repatriation of non-United States earnings | (15.3 | ) | (5.5 | )
Loans denominated in foreign currencies | (19.6 | ) | (13.5 | )
Net operating losses | 100.5 |  | 104.1 |
Other | 97.4 |  | 77.6 |
Valuation allowance | (72.4 | ) | (77.5 | )
Total future tax benefits |  | $67.0 |  |  | $68.7 |
Deferred tax asset |  | $99.3 |  |  | $101.0 |
Deferred tax liability | (32.3 | ) | (32.3 | )
Total future tax benefits |  | $67.0 |  |  | $68.7 |
Summary of net operating loss carryforwards | December 31, 2018. The net operating loss carryforwards expire as follows:
| United States Federal and Non-United States |  | United States State |
2019 |  | $6.1 |  |  | $3.9 |
2020 | 3.1 |  | 0.2 |
2021 | 5.3 |  | 3.7 |
2022 | 4.5 |  | 4.0 |
2023 | 1.9 |  | 9.6 |
Thereafter | 22.2 |  | 153.2 |
No expirations | 367.0 |  | — |
Total net operating loss carryforwards |  | $410.1 |  |  | $174.6 |
Summary of unrecognized tax benefit activity | The following table summarizes the activity related to our unrecognized tax benefits during 2018, 2017 and 2016:
| 2018 |  | 2017 |  | 2016 |
Gross unrecognized tax benefits, beginning of year |  | $46.1 |  |  | $23.8 |  |  | $19.0 |
Increases in prior year tax positions | 11.4 |  | 27.1 |  | 4.1 |
Decreases in prior year tax positions | (1.8 | ) | (1.2 | ) | (1.7 | )
Increases for current year tax positions | 5.9 |  | 6.6 |  | 4.1 |
Expiration of statute of limitations and audit settlements | (29.4 | ) | (10.2 | ) | (1.7 | )
Gross unrecognized tax benefits, end of year |  | $32.2 |  |  | $46.1 |  |  | $23.8 |
Potential interest and penalties | 2.0 |  | 20.4 |  | 20.2 |
Balance, end of year |  | $34.2 |  |  | $66.5 |  |  | $44.0 |

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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