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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Total Income (Loss) Before Income Taxes and Provision (Benefit) for Income Taxes | Following is the total income (loss) before income taxes and the provision (benefit) for income taxes for the three years ended December 31, 2019.
Year ended December 31, |  | 2019 |  |  | 2018 |  |  | 2017 |
Income (loss) before income taxes |  |  |  |  |  |
United States |  | $ | (48.1 | ) |  | $ | (53.6 | ) |  | $ | (152.7 | )
Foreign |  | 87.8 |  |  | 196.8 |  |  | 80.6 |
Total income (loss) before income taxes |  | $ | 39.7 |  |  | $ | 143.2 |  |  | $ | (72.1 | )
Provision for income taxes |  |  |  |  |  |
Current |  |  |  |  |  |
United States |  | $ | 7.6 |  |  | $ | 4.7 |  |  | $ | (42.8 | )
Foreign |  | 41.0 |  |  | 51.4 |  |  | 33.9 |
Total |  | 48.6 |  |  | 56.1 |  |  | (8.9 | )
Deferred |  |  |  |  |  |
Foreign |  | 4.4 |  |  | 8.2 |  |  | 3.4 |
Total provision (benefit) for income taxes |  | $ | 53.0 |  |  | $ | 64.3 |  |  | $ | (5.5 | )
Reconciliation of the Provision (Benefit) for Income Taxes | Following is a reconciliation of the provision (benefit) for income taxes at the United States statutory tax rate to the provision for income taxes as reported:
Year ended December 31, |  | 2019 |  |  | 2018 |  |  | 2017 |
United States statutory income tax provision (benefit) |  | $ | 8.3 |  |  | $ | 30.1 |  |  | $ | (25.2 | )
Income and losses for which no provision or benefit has been recognized |  | 28.2 |  |  | 22.2 |  |  | 70.3 |
Foreign rate differential and other foreign tax expense |  | 3.2 |  |  | 9.5 |  |  | (11.3 | )
Income tax withholdings |  | 17.6 |  |  | 19.3 |  |  | 16.8 |
Permanent items |  | (2.5 | ) |  | (5.0 | ) |  | (3.0 | )
Enacted rate changes |  | 0.5 |  |  | (2.3 | ) |  | (0.4 | )
Change in uncertain tax positions |  | 0.2 |  |  | (1.2 | ) |  | 2.3 |
Change in valuation allowances due to changes in judgment |  | (2.3 | ) |  | (5.9 | ) |  | (4.6 | )
Income tax credits, U.S. |  | (0.2 | ) |  | (2.4 | ) |  | (50.4 | )
Provision (benefit) for income taxes |  | $ | 53.0 |  |  | $ | 64.3 |  |  | $ | (5.5 | )
Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows:
As of December 31, |  | 2019 |  |  | 2018 |
Deferred tax assets |  |  |  |
Tax loss carryforwards |  | $ | 841.1 |  |  | $ | 860.0 |
Postretirement benefits |  | 434.4 |  |  | 440.3 |
Foreign tax credit carryforwards |  | 211.5 |  |  | 221.6 |
Other tax credit carryforwards |  | 30.3 |  |  | 29.8 |
Deferred revenue |  | 42.8 |  |  | 37.1 |
Employee benefits and compensation |  | 31.2 |  |  | 31.1 |
Purchased capitalized software |  | 31.2 |  |  | 22.9 |
Depreciation |  | 28.1 |  |  | 20.1 |
Warranty, bad debts and other reserves |  | 5.9 |  |  | 4.8 |
Capitalized costs |  | 7.1 |  |  | 5.1 |
Other |  | 27.9 |  |  | 30.4 |
|  | 1,691.5 |  |  | 1,703.2 |
Valuation allowance |  | (1,524.7 | ) |  | (1,547.5 | )
Total deferred tax assets |  | $ | 166.8 |  |  | $ | 155.7 |
Deferred tax liabilities |  |  |  |
Capitalized research and development |  | $ | 44.7 |  |  | $ | 36.1 |
Other |  | 29.0 |  |  | 30.2 |
Total deferred tax liabilities |  | $ | 73.7 |  |  | $ | 66.3 |
Net deferred tax assets |  | $ | 93.1 |  |  | $ | 89.4 |
Schedule of Tax Effected Tax Loss Carryforwards | At December 31, 2019, the company has tax effected tax loss carryforwards as follows:
As of December 31, |  | 2019 |
U.S. Federal |  | $ | 348.2 |
State and local |  | 247.8 |
Foreign |  | 245.1 |
Total tax loss carryforwards |  | $ | 841.1 |
These carryforwards will expire as follows:
Year |
2020 | $ | 23.9 |
2021 | 13.5 |
2022 | 15.8 |
2023 | 13.3 |
2024 | 12.2 |
Thereafter | 762.4 |
Total | $ | 841.1 |
Schedule of Tax Credit Carryforwards | The company also has available tax credit carryforwards, which will expire as follows:
Year |
2020 | $ | 31.5 |
2021 | 35.0 |
2022 | 38.1 |
2023 | 27.0 |
2024 | 22.5 |
Thereafter | 87.7 |
Total | $ | 241.8 |
Schedule of Cash Paid for Income Taxes, Net of Refunds | Cash paid for income taxes, net of refunds, for the three years ended December 31, 2019, was as follows:
Year ended December 31, |  | 2019 |  |  | 2018 |  |  | 2017 |
Cash paid for income taxes, net of refunds |  | $ | 37.6 |  |  | $ | 39.1 |  |  | $ | 34.3 |
Reconciliation of Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year ended December 31, |  | 2019 |  |  | 2018 |  |  | 2017 |
Balance at January 1 |  | $ | 18.9 |  |  | $ | 27.9 |  |  | $ | 35.8 |
Additions based on tax positions related to the current year |  | 11.1 |  |  | 2.6 |  |  | 4.2 |
Changes for tax positions of prior years |  | (0.6 | ) |  | (6.1 | ) |  | (11.2 | )
Reductions as a result of a lapse of applicable statute of limitations |  | (2.3 | ) |  | (2.4 | ) |  | (2.7 | )
Settlements |  | (1.1 | ) |  | (1.5 | ) |  | (0.2 | )
Changes due to foreign currency |  | (0.4 | ) |  | (1.6 | ) |  | 2.0 |
Balance at December 31 |  | $ | 25.6 |  |  | $ | 18.9 |  |  | $ | 27.9 |

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