Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Earnings Before Income Taxes by Jurisdiction

The sources of Earnings before income taxes were as follows:


(in millions)	2024		2023		2022
United States	$	89.9	$	364.4	$	603.2
Foreign	113.4		264.5		250.4
Earnings before income taxes	$	203.3	$	628.9	$	853.6

Schedule of Components of Income Tax Provision (Benefit)

The Income tax provision consisted of the following:


(in millions)	2024		2023		2022
Current tax expense:
U.S. Federal	$	20.2	$	88.7	$	109.8
State and local	7.8		17.3		20.3
Foreign	41.6		73.9		61.1
Total current	69.6		179.9		191.2

Deferred tax (benefit) expense:
U.S. Federal	(13.1)		17.2		(24.6)
State and local	11.7		10.2		1.5
Foreign	(14.2)		(11.0)		4.2
Total deferred	(15.6)		16.4		(18.9)

Income tax provision	$	54.0	$	196.3	$	172.3

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards giving rise to deferred tax assets and liabilities as of December 31, 2024, and 2023 are summarized in the table below:


(in millions)	2024		2023
Deferred tax assets:

Loss carryforwards	$	60.5	$	59.9
Tax credit carryforwards	53.0		56.1
Deferred revenue	40.2		38.0
Product warranties	34.4		35.4
Interest expense	33.5		17.6
Sales incentives and discounts	30.3		33.3
Operating lease liabilities	30.1		29.8




Equity compensation	13.0		13.1

Other	82.5		73.2
Gross deferred tax assets	377.5		356.4
Valuation allowance	(75.1)		(71.3)
Deferred tax assets	302.4		285.1

Deferred tax liabilities:

Depreciation and amortization	(54.3)		(54.5)
Operating lease assets	(28.3)		(27.6)
State and Local income taxes	(22.6)		(22.7)
Other	(10.1)		(5.9)
Deferred tax liabilities	(115.3)		(110.7)

Total net deferred tax assets	$	187.1	$	174.4

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)	2024			2023			2022
Income tax provision at 21 percent	$	42.7		$	132.1		$	179.3
State and local income taxes, net of federal income tax effect	4.2			13.3			19.5
Deferred tax asset valuation allowance	5.0			17.8			(10.4)


Change in estimates related to prior years and prior years amended tax return filings	3.4			1.8			(1.3)
Federal and state tax credits	(10.2)			(15.2)			(16.6)
Taxes related to foreign income, net of credits	2.6			(4.5)			12.1

Deferred tax reassessment	7.3			2.5			6.4
Tax reserve reassessment	(3.4)			0.8			(0.1)
Asset impairment	6.8			—			—


FDII deduction	(8.7)			(16.6)			(18.4)
Intercompany sales of intellectual property rights	—			53.1			—
Nondeductible loss on intercompany sale	—			6.9			—
Other	4.3			4.3			1.8
Actual income tax provision	$	54.0		$	196.3		$	172.3

Effective tax rate	26.6		%	31.2		%	20.2		%