Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Benefit (Expense) Reconciliation Table

Income tax expense attributable to our earnings from continuing operations before income taxes differs from the amounts computed using the applicable income tax rate as a result of the following factors:


	Three months ended March 31,
			2022		2021
		in millions

Computed “expected” tax expense (a)			$	(219.8)	$	(301.7)
Non-deductible or non-taxable foreign currency exchange results			128.2		119.9
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates (b)			62.2		0.4
International rate differences (c)			(40.9)		(23.9)
Non-deductible or non-taxable interest and other items			(32.2)		(15.6)
Change in valuation allowances			13.9		34.5
Tax benefit associated with technology innovation			5.8		5.8
Other, net			1.6		15.4
Total income tax expense			$	(81.2)	$	(165.2)

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(a)The statutory or “expected” tax rate is the U.K. rate of 19.0%. On June 10, 2021, legislation was enacted in the U.K. to increase the U.K. corporate income rate to 25.0% from April 1, 2023. The impact of this rate change on our deferred tax balances was recorded during the second quarter of 2021. Effective January 1, 2022, the enacted corporate income tax rate in the Netherlands increased from 25.0% to 25.8%. This change did not have a material impact on our consolidated financial statements.

(b)Amounts reflect the net impact of differences in the treatment of income and loss items between financial reporting and tax accounting related to investments in subsidiaries and affiliates, including the effects of foreign earnings.

(c)Amounts reflect adjustments (either a benefit or expense) to the “expected” tax benefit (expense) for statutory rates in jurisdictions in which we operate outside of the U.K.