Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Earnings (Loss) Before Income Taxes

The components of earnings (loss) from continuing operations before income taxes consisted of the following (in millions):

	For the Years Ended December 31,
	2022			2021			2020
United States operations	$	(242.4	)	$	(118.8	)	$	(387.6	)
Foreign operations		645.9			617.8			282.4
Total	$	403.5		$	499.0		$	(105.2	)

Provision/(Benefit) for Income Taxes and Income Taxes Paid

The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions):

	For the Years Ended December 31,
	2022			2021			2020
Current:
Federal	$	175.3		$	44.3		$	(58.4	)
State		16.1			7.2			2.7
Foreign		(14.7	)		104.1			(79.7	)
		176.7			155.6			(135.4	)
Deferred:
Federal		(74.8	)		(83.5	)		(12.7	)
State		1.6			(19.4	)		(10.0	)
Foreign		8.8			0.8			62.1
		(64.4	)		(102.1	)		39.4
Provision (benefit) for income taxes	$	112.3		$	53.5		$	(96.0	)
Net income taxes paid	$	326.6		$	258.4		$	142.0

Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate

A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows:

	For the Years Ended December 31,
	2022				2021				2020
U.S. statutory income tax rate		21.0		%		21.0		%		21.0		%
State taxes, net of federal deduction		3.2				(2.8	)			6.6
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits		(1.8	)			(10.3	)			37.4
Change in valuation allowance		1.1				(0.5	)			3.8
Non-deductible expenses		5.8				1.3				(4.3	)
Goodwill impairment		15.3				-				(92.0	)
Tax rate change		0.3				0.1				5.5
Tax impact of certain significant transactions		0.9				1.1				-
Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction		(2.9	)			0.4				14.2
R&D tax credit		(2.0	)			(2.2	)			4.8
Share-based compensation		1.8				(0.2	)			(1.0	)
Net uncertain tax positions, including interest and penalties		(14.6	)			2.9				56.9
Switzerland tax reform and certain restructuring transactions		-				-				40.9
Other		(0.2	)			(0.1	)			(2.5	)
Effective income tax rate		27.9		%		10.7		%		91.3		%

Components of Deferred Taxes

The components of deferred taxes consisted of the following (in millions):

	As of December 31,
	2022			2021
Deferred tax assets:
Inventory	$	187.9		$	204.2
Net operating loss carryover		476.2			454.0
Tax credit carryover		72.9			79.7
Capital loss carryover		7.8			8.6
Product liability and litigation		36.7			44.4
Accrued liabilities		99.1			101.7
Share-based compensation		36.6			30.2
Accounts receivable		25.8			14.8
Research and development		47.9			-
Other		55.5			56.9
Total deferred tax assets		1,046.4			994.5
Less: Valuation allowances		(463.2	)		(460.1	)
Total deferred tax assets after valuation allowances	$	583.2		$	534.4
Deferred tax liabilities:
Fixed assets	$	111.6		$	117.1
Intangible assets		466.8			509.7
Foreign currency items		23.0			9.5
Other		49.2			28.0
Total deferred tax liabilities		650.6			664.3
Total net deferred income taxes	$	(67.4	)	$	(129.9	)

Summary of Tax Credit Carryforwards

At December 31, 2022, net operating loss, tax credit carryovers, and capital loss carryovers are available to reduce future federal, state and foreign taxable earnings (in millions):

Expiration Period:	Net operating loss carryover		Tax credit carryover		Capital loss carryover
1-5 years	$	27.9	$	17.1	$	1.3
6-10 years		40.8		53.1		-
11+ years		282.1		1.6		-
Indefinite		125.4		1.1		6.5
		476.2		72.9		7.8
Valuation allowances	$	407.0	$	40.0	$	7.8

Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions):

	For the Years Ended December 31,
	2022			2021			2020
Balance at January 1	$	558.6		$	619.4		$	741.8
Increases related to prior periods		25.0			11.5			75.3
Decreases related to prior periods		(78.2	)		(12.7	)		(158.3	)
Increases related to current period		19.0			7.3			3.4
Decreases related to settlements with taxing authorities		(2.0	)		(65.1	)		(14.6	)
Decreases related to lapse of statute of limitations		(1.4	)		(1.8	)		(28.2	)
Balance at December 31	$	521.0		$	558.6		$	619.4
Amounts impacting effective tax rate, if recognized balance at December 31	$	360.1		$	426.4		$	473.9