INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Earnings Before Income Taxes

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


	2023		2022		2021
United States	$	698.2	$	587.7	$	367.4
International	292.6		285.8		310.1
Total	$	990.8	$	873.5	$	677.5

Schedule of Provision For Income Taxes

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


	2023		2022		2021
Current:
Federal U.S.	$	108.8	$	75.4	$	21.5
Non-U.S.	97.3		85.3		75.0
State and local	23.0		19.7		7.8
Deferred:
Federal U.S.	(72.0)		(32.8)		(21.9)
Non-U.S.	(23.3)		8.6		(16.9)
State and local	(8.8)		(37.9)		(2.2)
Income tax provision	$	125.0	$	118.3	$	63.3

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
	2023		2022		2021
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	%	(1.8)	%	0.9	%
Foreign income taxed at different rates than U.S. statutory rate	(0.1)	%	0.1	%	(4.4)	%

U.S. federal permanent differences related to the TCJA	(7.7)	%	(7.0)	%	(5.6)	%

Effect of change in tax rates enacted in the current period	(2.6)	%	0.3	%	(0.1)	%
Changes in valuation allowances	1.7	%	1.8	%	—	%
Other	(0.6)	%	(0.9)	%	(0.5)	%
Effective income tax rate before adjustments related to the unrealized gain on the Retained Vontier Shares	12.6	%	13.5	%	11.3	%

Adjustment for the unrealized gain on the Retained Vontier Shares	—	%	—	%	(2.0)	%
Effective income tax rate after adjustments related to the unrealized gain on the Retained Vontier Shares	12.6	%	13.5	%	9.3	%

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):


	2023		2022
Deferred Tax Assets:

Operating lease liabilities	$	38.7	$	39.1
Inventories	14.8		10.4
Pension benefits	27.2		24.4



Stock-based compensation expense	36.2		34.2
Capitalized expenses	233.3		190.7
Tax credit and loss carryforwards	377.7		168.5

Accruals, prepayments, and other	79.1		39.4
Valuation allowances	(282.4)		(74.6)
Total deferred tax assets	$	524.6	$	432.1
Deferred Tax Liabilities:
Property, plant and equipment	$	(36.8)	$	(42.9)
Operating lease right-of-use assets	(36.0)		(36.8)
Insurance, including self-insurance	(211.9)		(205.0)
Goodwill, other intangibles, and other	(748.7)		(779.7)

Total deferred tax liabilities	(1,033.4)		(1,064.4)
Net deferred tax liability	$	(508.8)	$	(632.3)

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):


	2023		2022		2021
Unrecognized tax benefits, beginning of year	$	178.2	$	193.0	$	200.1
Additions based on tax positions related to the current year	21.6		6.2		7.9
Additions for tax positions of prior years	13.5		11.2		3.4
Reductions for tax positions of prior years	(3.0)		(6.3)		(1.4)
Lapse of statute of limitations	(33.0)		(24.4)		(15.6)
Settlements	(2.2)		—		(0.2)
Effect of foreign currency translation	—		(1.5)		(1.2)
Acquisition related adjustments	1.0		—		—

Unrecognized tax benefits, end of year	$	176.1	$	178.2	$	193.0