INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

Earnings (loss) before income taxes from continuing operations consists of the following:


	Year Ended December 31,
	2023		2022		2021
United States	$	49.1	$	(83.0)	$	(72.7)
Non-U.S. (1)	484.6		250.0		238.9
Total earnings (loss) before income taxes	$	533.7	$	167.0	$	166.2

(1)Certain of the Company’s Non-U.S. entities generate significant losses for which a valuation allowance is provided for and accordingly do not create a tax benefit.

Schedule of Components of Income Tax Expense (Benefit)

The principal components of income tax expense (benefit) from continuing operations consists of the following:


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	45.5	$	1.2	$	2.3
State and local	16.9		3.4		9.7
Non-U.S.	142.5		94.4		104.4
Deferred:
Federal	(94.0)		4.3		(25)
State and local	(23.5)		(1.5)		(4.7)
Non-U.S.	(13.9)		(11.4)		(40.1)
Income tax expense (benefit)	$	73.5	$	90.4	$	46.6

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation of U.S. federal statutory taxes to the Company’s total income tax expense (benefit) from continuing operations consists of the following:


	Year Ended December 31,
	2023		2022		2021
Taxes at U.S. statutory rate (21%)	$	112.1	$	35.1	$	34.9
State and local taxes, net of federal tax benefit	13.5		(0.5)		4.5
Non-U.S. rate differential	6.1		14.2		29.5
Non-U.S. tax holidays and incentives	(13.1)		(0.7)		(12.1)
Uncertain tax positions	5.7		7.5		33.7
U.S. tax impact of non-U.S. operations	10.0		6.5		(21.1)
Change in valuation allowances	(100.5)		33.6		(24.0)
Taxes on undistributed foreign earnings and withholding/ dividend taxes	13.2		17.1		14.2
Foreign derived intangible income	(3.0)		(1.1)		(15.9)
R&D deduction/ credit	(15.0)		(11.9)		(11.8)
Impact of non-tax litigation and other settlements	5.5		—		(8.5)
Change in fair value of warrant liabilities	33.2		(19.1)		13.0
Other permanent differences	1.0		(1.3)		7.2
Impact of rate changes in non-U.S. jurisdictions	1.4		8.9		(9.2)
Impact of transaction costs	—		(0.4)		6.0
Non-deductible compensation	1.0		2.1		0.9
Other (1)	2.4		0.4		5.3
Total income tax expense (benefit)	$	73.5	$	90.4	$	46.6

(1)Represents several adjustments, none of which are significant for separate disclosure.

Schedule of Deferred Tax Assets and Liabilities

The principal items that gave rise to deferred income tax assets and liabilities follow:


	December 31, 2023		December 31, 2022
Deferred tax assets
Net operating losses and capital losses	$	60.8	$	95.3
Capitalized research expenditures	105.7		84.7
Accrued liabilities	44.8		38.8
Employee compensation and benefits	23.3		13.7
Pensions	14.8		12.8
Business interest deduction limitation	88.7		78.4
Inventory	29.8		23.9
R&D credit carryforward	4.4		7.6
Lease liability	22.5		24.6
Bad debts	9.2		6.8
Foreign tax credit carryforward	26.8		21.1

Other	6.3		3.7
Total deferred tax assets, before valuation allowances	$	437.1	$	411.4
Valuation allowances	$	(146.8)	$	(250.4)
Deferred tax assets, net of valuation allowances	$	290.3	$	161.0
Deferred tax liabilities
Intangibles & Goodwill	(175.9)		(176.9)
Undistributed foreign earnings	(39.0)		(41.3)
Property, plant & equipment	(27.0)		(21.1)
Debt issuance costs	(24.6)		(27.8)
Lease Right of Use Asset	(20.2)		(22.5)
Other	(3.3)		(1.5)
Total deferred tax liabilities	$	(290.0)	$	(291.1)
Net deferred income tax liabilities	$	0.3	$	(130.1)

Schedule of Unrecognized Tax Benefits Roll Forward

Following are changes in unrecognized tax benefits before considering recoverability of cross-jurisdictional tax credits (federal, state, and non-U.S.) and temporary differences. The amount of unrecognized tax benefits is not expected to significantly increase or decrease within the next 12 months.


	December 31, 2023		December 31, 2022		December 31, 2021
Beginning balance	$	97.0	$	98.6	$	70.0
Additions for the current year tax positions	20.6		11.9		25.1
Additions for prior year tax positions	5.8		—		22.8
Reductions for prior year tax positions	(0.5)		(11.9)		(10.2)
Reductions for settlements with tax authorities	(4.1)		—		(8.5)
Reductions for expirations of statute of limitations	(16.3)		(1.6)		(0.6)
Ending balance	$	102.5	$	97.0	$	98.6

Summary of Change in Income Tax Valuation Allowance

The change in the income tax valuation allowance is as follows:


	December 31, 2023		December 31, 2022		December 31, 2021
Beginning balance	$	250.4	$	241.6	$	282.6
Additions (reductions) charged to expense	(100.4)		33.6		(24.0)
Reductions charged to other accounts	(3.2)		(24.8)		(17.0)
Ending balance	$	146.8	$	250.4	$	241.6