Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Earnings (Loss) Before Income Taxes

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

	For the Years Ended December 31,
	2021			2020			2019
United States operations	$	(275.7	)	$	(592.9	)	$	(125.9	)
Foreign operations		694.1			318.5			1,031.7
Total	$	418.4		$	(274.4	)	$	905.8

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):

Current:
Federal	$	32.2		$	(96.1	)	$	65.5
State		10.4			4.6			9.8
Foreign		123.4			(57.5	)		237.7
		166.0			(149.0	)		313.0
Deferred:
Federal		(115.8	)		(24.2	)		(90.2	)
State		(21.6	)		(11.5	)		(4.2	)
Foreign		(12.3	)		47.7			(444.3	)
		(149.7	)		12.0			(538.7	)
Provision (benefit) for income taxes	$	16.3		$	(137.0	)	$	(225.7	)
Net income taxes paid	$	272.8		$	147.4		$	192.5

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,
	2021				2020				2019
U.S. statutory income tax rate		21.0		%		21.0		%		21.0		%
State taxes, net of federal deduction		(3.0	)			2.4				0.8
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits		(17.4	)			14.9				(10.2	)
Change in valuation allowance		(1.0	)			1.5				1.5
Non-deductible expenses		2.0				(2.0	)			0.4
Goodwill impairment		-				(46.1	)			-
Tax rate change		(0.4	)			3.8				0.6
Tax impact of certain significant transactions		1.3				-				-
Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction		0.5				5.8				(4.5	)
R&D tax credit		(2.8	)			2.1				(1.2	)
Share-based compensation		(0.6	)			0.1				(0.4	)
Net uncertain tax positions, including interest and penalties		3.8				31.4				1.9
U.S. tax reform		-				-				0.1
Switzerland tax reform and certain restructuring transactions		-				15.7				(34.8	)
Other		0.5				(0.7	)			(0.1	)
Effective income tax rate		3.9		%		49.9		%		(24.9	)	%

Components of Deferred Taxes

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

	As of December 31,
	2021			2020
Deferred tax assets:
Inventory	$	273.6		$	297.2
Net operating loss carryover		463.8			511.2
Tax credit carryover		86.6			55.1
Capital loss carryover		8.6			9.0
Product liability and litigation		45.8			53.9
Accrued liabilities		103.9			86.1
Share-based compensation		32.6			30.4
Accounts receivable		19.8			19.0
Foreign currency items		-			57.4
Other		55.4			19.2
Total deferred tax assets		1,090.1			1,138.5
Less: Valuation allowances		(470.1	)		(542.1	)
Total deferred tax assets after valuation allowances		620.0			596.4
Deferred tax liabilities:
Fixed assets	$	132.7		$	119.2
Intangible assets		687.5			787.6
Foreign currency items		3.8			-
Other		32.2			28.2
Total deferred tax liabilities		856.2			935.0
Total net deferred income taxes	$	(236.2	)	$	(338.6	)

Summary of Tax Credit Carryforwards

At December 31, 2021, the following 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	$	3.3	$	15.1	$	1.7
6-10 years		52.7		62.4		-
11+ years		279.5		1.6		-
Indefinite		128.3		7.5		6.9
		463.8		86.6		8.6
Valuation allowances	$	401.6	$	46.7	$	8.6

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,
	2021			2020			2019
Balance at January 1	$	619.4		$	741.8		$	685.5
Increases related to prior periods		11.5			75.3			24.7
Decreases related to prior periods		(12.7	)		(158.3	)		(35.6	)
Increases related to current period		7.3			3.4			133.2
Decreases related to settlements with taxing authorities		(65.1	)		(14.6	)		(60.2	)
Decreases related to lapse of statute of limitations		(1.8	)		(28.2	)		(5.8	)
Balance at December 31	$	558.6		$	619.4		$	741.8
Amounts impacting effective tax rate, if recognized balance at December 31	$	426.4		$	473.9		$	599.2