CW 2020 Annual Report

Note 11: Income Taxes The significant components of income/(loss) before income taxes and the income tax provision/(benefit) from continuing operations are as follows (in millions): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 United States $ (217.3) $ (38.6) $ (65.6) Other countries 40.7 81.4 (145.2) Income/(loss) before income tax $ (176.6) $ 42.8 $ (210.8)

Year Ended December 31, 2020

Year Ended December 31, 2019

Year Ended December 31, 2018

United States federal: Current

$

(15.2) $

17.4 $

(3.2)

Deferred

(23.2) (38.4)

(14.6)

(47.8) (51.0)

Total United States federal income taxes

2.8

United States state and local: Current

3.8 9.4

13.4

(0.2) (1.1) (1.3)

Deferred

(19.5)

Total United States state and local income taxes

13.2

(6.1)

All other countries: Current

48.7 20.4 69.1

57.9

37.1

Deferred

(12.0)

(9.8)

Total all other countries income taxes Total income tax provision/(benefit)

45.9

27.3

$

43.9 $

42.6 $

(25.0)

Differences between income tax expense reported for financial reporting purposes and tax expense computed based upon the application of the United States federal tax rate to the reported income/(loss) before income taxes are as follows (in millions): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018

Reconciliation of effective tax rate Income/(loss) before income taxes

$

(176.6) $

42.8 $

(210.8)

Taxes at the statutory rate

(37.1)

9.0

(44.9)

Adjusted for: State taxes, net of the federal benefit

(9.4)

(2.9)

(1.2)

Other permanent adjustments Foreign tax rate differential Change in valuation allowance

19.5

19.3

11.3

(6.3)

0.3

0.5

61.8

(9.7)

41.1

Impact of repatriation Uncertain tax positions Deferred tax inventory Impact of restructuring

(1.0)

12.0

(0.7)

4.4 9.8

4.3

0.7

4.5

— —

—

6.0

Other, net

2.2

(0.2)

(2.6)

Impact of US tax reform

—

—

(29.2) (25.0)

$

43.9 $

42.6 $

Income tax expense/(benefit)

84