Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022			2021
United States operations	$	57.0	$	(242.4	)	$	(118.8	)
Foreign operations		1,010.3		645.9			617.8
Total	$	1,067.3	$	403.5		$	499.0

Provision for Income Taxes and Income Taxes Paid

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

	For the Years Ended December 31,
	2023			2022			2021
Current:
Federal	$	0.5		$	175.3		$	44.3
State		19.5			16.1			7.2
Foreign		118.5			(14.7	)		104.1
		138.5			176.7			155.6
Deferred:
Federal		(125.2	)		(74.8	)		(83.5	)
State		(16.7	)		1.6			(19.4	)
Foreign		45.6			8.8			0.8
		(96.3	)		(64.4	)		(102.1	)
Provision for income taxes	$	42.2		$	112.3		$	53.5
Net income taxes paid	$	215.2		$	326.6		$	258.4

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,
	2023				2022				2021
U.S. statutory income tax rate		21.0		%		21.0		%		21.0		%
State taxes, net of federal deduction		0.2				3.2				(2.8	)
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits		(0.3	)			(1.8	)			(10.3	)
Change in valuation allowance		(0.2	)			1.1				(0.5	)
Non-deductible expenses		0.7				5.8				1.3
Goodwill impairment		-				15.3				-
Tax rate change		-				0.3				0.1
Tax impact of certain significant transactions		-				0.9				1.1
Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction		(0.8	)			(2.9	)			0.4
R&D tax credit		(0.6	)			(2.0	)			(2.2	)
Share-based compensation		0.1				1.8				(0.2	)
Net uncertain tax positions, including interest and penalties		(16.0	)			(14.6	)			2.9
Other		(0.1	)			(0.2	)			(0.1	)
Effective income tax rate		4.0		%		27.9		%		10.7		%

Components of Deferred Taxes

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

	As of December 31,
	2023			2022
Deferred tax assets:
Inventory	$	204.0		$	187.9
Net operating loss carryover		484.3			476.2
Tax credit carryover		81.8			72.9
Capital loss carryover		8.1			7.8
Product liability and litigation		27.9			36.7
Accrued liabilities		92.4			99.1
Share-based compensation		44.4			36.6
Accounts receivable		23.0			25.8
Research and development		103.9			47.9
Lease liability		52.6			51.6
Other		25.2			51.1
Total deferred tax assets		1,147.6			1,093.6
Less: Valuation allowances		(464.6	)		(463.2	)
Total deferred tax assets after valuation allowances	$	683.0		$	630.4
Deferred tax liabilities:
Fixed assets	$	122.2		$	111.6
Intangible assets		466.5			466.8
Foreign currency items		-			23.0
Lease asset		48.8			47.2
Other		41.2			49.2
Total deferred tax liabilities		678.7			697.8
Total net deferred income taxes	$	4.3		$	(67.4	)

Summary of Tax Credit Carryforwards

At December 31, 2023, 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	$	50.6	$	20.3	$	0.1
6-10 years		11.0		59.0		-
11+ years		281.9		1.3		-
Indefinite		140.8		1.2		8.0
		484.3		81.8		8.1
Valuation allowances	$	411.5	$	39.5	$	8.1

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,
	2023			2022			2021
Balance at January 1	$	521.0		$	558.6		$	619.4
Increases related to prior periods		68.7			25.0			11.5
Decreases related to prior periods		(206.2	)		(78.2	)		(12.7	)
Increases related to current period		8.7			19.0			7.3
Decreases related to settlements with taxing authorities		-			(2.0	)		(65.1	)
Decreases related to lapse of statute of limitations		(0.3	)		(1.4	)		(1.8	)
Balance at December 31	$	391.9		$	521.0		$	558.6
Amounts impacting effective tax rate, if recognized balance at December 31	$	251.6		$	360.1		$	426.4