Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of (Loss) Earnings from Operations Before Income Taxes

Income taxes have been based on the following components of earnings (loss) before income taxes for the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
	2022		2021		2020
U.S.	$	131.8	$	173.6	$	(28.3	)
Foreign		7.5		24.2		10.8
Earnings (loss) before income taxes	$	139.3	$	197.8	$	(17.5	)

Components of Income Tax Expense (Benefit) from Operations

The components of income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 were as follows:

	Year Ended December 31,
	2022			2021			2020
Current:
U.S. Federal	$	23.9		$	33.5		$	21.1
U.S. State and Local		10.8			14.7			10.0
Foreign		2.6			4.0			3.7
Current income tax expense		37.3			52.2			34.8
Deferred:
U.S. Federal		(0.6	)		1.2			(20.9	)
U.S. State and Local		0.3			0.4			(6.4	)
Foreign		(0.2	)		(1.9	)		0.9
Deferred income tax (benefit) expense		(0.5	)		(0.3	)		(26.4	)
Total income tax expense	$	36.8		$	51.9		$	8.4

Reconciliation of Differences Between U.S. Federal Statutory and Effective Income Tax Rate

The following table outlines the reconciliation of differences between the U.S. Federal statutory tax rate and the Company’s worldwide effective income tax rate:

	Year Ended December 31,
	2022			2021			2020
Federal statutory tax rate		21.0	%		21.0	%		21.0	%
State and local income taxes, net of U.S. federal income tax benefit		6.8			5.9			(8.7	)
Changes in valuation allowances		1.2			(1.5	)		(10.5	)
Non-deductible expenses		1.0			0.5			(17.0	)
Adjustment of uncertain tax positions and interest		0.4			0.4			(3.1	)
Foreign tax rate differential		0.2			—			(0.7	)
Provision to return		(1.9	)		0.1			0.7
Credits and incentives		(1.4	)		(0.5	)		4.7
Foreign-derived intangible income		(1.2	)		(0.6	)		10.2
Global intangible low-taxed income provision		—			0.8			—
Goodwill impairment		—			—			(45.3	)
Tax-exempt income and expense		—			—			0.6
Other		0.3			0.1			0.1
Effective income tax rate		26.4	%		26.2	%		(48.0	%)

Significant Deferred Tax Assets and Liabilities

The significant deferred tax assets and liabilities at December 31, 2022 and 2021 were as follows:

	December 31,
	2022			2021
Deferred tax assets:
Accrued liabilities and other reserves	$	15.2		$	28.6
Pension and other postretirement benefits plans liabilities		12.3			11.9
Lease liabilities		11.4			14.4
Net operating losses and other tax carryforwards		7.7			10.1
Capitalized research costs (a)		7.1			—
Share-based compensation		5.5			3.9
Allowance for doubtful accounts		5.5			3.4
Other		1.8			1.7
Total deferred tax assets		66.5			74.0
Valuation allowances		(5.4	)		(4.8	)
Total deferred tax assets	$	61.1		$	69.2
Deferred tax liabilities:
Other intangible assets	$	(9.6	)	$	(8.8	)
Accelerated depreciation		(7.4	)		(14.6	)
Right-of-use assets		(6.6	)		(8.5	)
Prepaid assets		(1.1	)		(1.0	)
Other		(3.0	)		(4.6	)
Total deferred tax liabilities		(27.7	)		(37.5	)
Net deferred tax assets	$	33.4		$	31.7

___________

(a)Beginning on January 1, 2022, for U.S. tax purposes, certain research and development costs are required to be capitalized and amortized, primarily over a 5-year period.

Transactions Affecting Valuation Allowance on Deferred Tax Assets

Transactions affecting the valuation allowances on deferred tax assets during the years ended December 31, 2022, 2021 and 2020 were as follows:

	December 31,
	2022		2021			2020
Balance, beginning of year	$	4.8	$	7.5		$	5.2
Expense (income), net		0.6		(2.7	)		2.3
Balance, end of year	$	5.4	$	4.8		$	7.5

Unrecognized Tax Benefits

Changes in the Company’s unrecognized tax benefits at December 31, 2022, 2021 and 2020 were as follows:

	December 31,
	2022			2021			2020
Balance, beginning of year	$	2.2		$	1.3		$	0.5
Additions for tax positions of the current year		0.5			0.3			0.3
Additions for tax positions of prior years		0.3			0.7			0.5
Releases		(0.5	)		—			—
Settlements during the year		—			(0.1	)		—
Balance, end of year	$	2.5		$	2.2		$	1.3