Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes

Earnings from continuing operations before income taxes for the years ended December 31 were as follows ($ in millions):

	2021		2020		2019
United States	$	367.4	$	1,213.3	$	91.3
International	310.1		294.4		245.4
Total	$	677.5	$	1,507.7	$	336.7

Schedule of Provision For Income Taxes

The continuing operations provision for income taxes for the years ended December 31 were as follows ($ in millions):

	2021		2020		2019
Current:
Federal U.S.	$	21.5	$	59.4	$	23.4
Non-U.S.	75.0		74.3		48.7
State and local	7.8		19.4		5.0
Deferred:
Federal U.S.	(21.9)		(44.1)		16.9
Non-U.S.	(16.9)		(33.0)		(17.4)
State and local	(2.2)		(20.5)		(8.0)
Income tax provision	$	63.3	$	55.5	$	68.6

Schedule of Effective Income Tax Rate Reconciliation

The continuing operations effective income tax rate for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows:

	Percentage of Pretax Earnings
	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in tax rate resulting from:
State income taxes (net of federal income tax benefit)	0.9	%	0.4	%	(3.3)	%
Foreign income taxed at different rates than U.S. statutory rate	(4.4)	%	(0.5)	%	(1.7)	%
U.S. federal permanent differences related to the TCJA	(5.6)	%	(0.9)	%	1.2	%
Compensation related	(0.3)	%	(0.5)	%	(1.7)	%
Other	(0.3)	%	(0.2)	%	4.9	%
Effective income tax rate before adjustments related to the unrealized gain on the Retained Vontier Shares	11.3	%	19.3	%	20.4	%
Adjustment for the unrealized gain on the Retained Vontier Shares	(2.0)	%	(15.6)	%	—	%
Effective income tax rate after adjustments related to the unrealized gain on the Retained Vontier Shares	9.3	%	3.7	%	20.4	%

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities from continuing operations as of December 31 were as follows ($ in millions):

	2021		2020
Deferred Tax Assets:
Allowance for doubtful accounts	$	7.5	$	8.4
Operating lease liabilities	45.6		47.9
Inventories	11.4		12.5
Pension benefits	36.9		32.1
Environmental and regulatory compliance	2.2		4.1
Other accruals and prepayments	30.6		16.5
Deferred service income	5.2		4.6
Warranty services	5.4		3.9
Stock-based compensation expense	29.0		27.9
Tax credit and loss carryforwards	214.8		155.1
Valuation allowances	(73.7)		(47.1)
Total deferred tax assets	$	314.9	$	265.9
Deferred Tax Liabilities:
Property, plant and equipment	$	(43.8)	$	(46.0)
Operating lease right-of-use assets	(42.6)		(44.3)
Insurance, including self-insurance	(157.3)		(166.8)
Goodwill and other intangibles	(765.1)		(554.4)
Other	(4.0)		(27.6)
Total deferred tax liabilities	(1,012.8)		(839.1)
Net deferred tax liability	$	(697.9)	$	(573.2)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions):

	2021		2020		2019
Unrecognized tax benefits, beginning of year	$	200.1	$	214.9	$	133.4
Additions based on tax positions related to the current year	7.9		10.4		17.8
Additions for tax positions of prior years	3.4		16.1		79.7
Reductions for tax positions of prior years	(1.4)		(26.5)		(13.0)
Lapse of statute of limitations	(15.6)		(6.1)		(2.3)
Settlements	(0.2)		(0.5)		(0.3)
Effect of foreign currency translation	(1.2)		1.7		(0.4)
Separation related adjustments (a)	—		(9.9)		—
Unrecognized tax benefits, end of year	$	193.0	$	200.1	$	214.9
(a) Unrecognized tax benefit reserves decreased in 2020 by $10 million upon separation from Vontier in accordance with the Agreements.