Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes by Jurisdiction

The sources of Earnings before income taxes were as follows:

(in millions)	2023		2022		2021
United States	$	364.4	$	603.2	$	537.0
Foreign	264.5		250.4		199.4
Earnings before income taxes	$	628.9	$	853.6	$	736.4

Schedule of Components of Income Tax Provision (Benefit)

The Income tax provision consisted of the following:

(in millions)	2023		2022		2021
Current tax expense:
U.S. Federal	$	88.7	$	109.8	$	84.3
State and local	17.3		20.3		11.2
Foreign	73.9		61.1		67.3
Total current	179.9		191.2		162.8
Deferred tax expense (benefit):
U.S. Federal	17.2		(24.6)		(4.9)
State and local	10.2		1.5		(5.9)
Foreign	(11.0)		4.2		(11.0)
Total deferred	16.4		(18.9)		(21.8)
Income tax provision	$	196.3	$	172.3	$	141.0

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards giving rise to deferred tax assets and liabilities as of December 31, 2023 and 2022 are summarized in the table below:

(in millions)	2023		2022
Deferred tax assets:
Loss carryforwards	$	59.9	$	56.8
Tax credit carryforwards	56.1		52.9
Deferred revenue	38.0		36.3
Product warranties	35.4		33.6
Sales incentives and discounts	33.3		29.2
Operating lease liabilities	29.8		24.4
Interest expense	17.6		18.0
Equity compensation	13.1		13.5
Other	73.2		66.2
Gross deferred tax assets	356.4		330.9
Valuation allowance	(71.3)		(52.8)
Deferred tax assets	285.1		278.1
Deferred tax liabilities:
Depreciation and amortization	(54.5)		(81.7)
Operating lease assets	(27.6)		(21.8)
State and Local income taxes	(22.7)		(22.7)
Other	(5.9)		(9.3)
Deferred tax liabilities	(110.7)		(135.5)
Total net deferred tax assets	$	174.4	$	142.6

Reconciliation of Unrecognized Tax Benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits excluding interest and penalties for the 2023, 2022 and 2021 annual reporting periods:

(in millions)	2023		2022		2021
Balance as of January 1	$	7.5	$	9.7	$	3.7
Gross increases - tax positions prior periods	0.9		0.5		5.9
Gross decreases - tax positions prior periods	—		(2.1)		(0.2)
Gross increases - current period tax positions	—		—		0.5
Decreases - settlements with taxing authorities	—		(0.6)		(0.2)
Balance as of December 31	$	8.4	$	7.5	$	9.7

Reconciliation of Income Taxes at the Statutory Federal Income Tax Rate to Income Tax Provision (Benefit)

The difference between the actual income tax provision and the tax provision computed by applying the statutory Federal income tax rate to Earnings before income taxes is attributable to the following:

(in millions)	2023			2022			2021
Income tax provision at 21 percent	$	132.1		$	179.3		$	154.6
State and local income taxes, net of federal income tax effect	13.3			19.5			18.0
Deferred tax asset valuation allowance	17.8			(10.4)			(24.2)
Equity compensation	(1.3)			(2.9)			(1.8)
Change in estimates related to prior years and prior years amended tax return filings	1.8			(1.3)			3.5
Federal and state tax credits	(15.2)			(16.6)			(14.9)
Taxes related to foreign income, net of credits	(4.5)			12.1			5.5
Deferred tax reassessment	2.5			6.4			6.4
FDII deduction	(16.6)			(18.4)			(15.3)
Intercompany sales of intellectual property rights	53.1			—			—
Nondeductible loss on intercompany sale	6.9			—			—
Other	6.4			4.6			9.2
Actual income tax provision	$	196.3		$	172.3		$	141.0
Effective tax rate	31.2		%	20.2		%	19.1		%