Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes for the years ended December 31 were as follows ($ in millions):

	2020		2019		2018
United States	$	(91.3)	$	109.9	$	201.8
International	61.2		165.6		99.3
Total	$	(30.1)	$	275.5	$	301.1

Schedule of Components of Income Tax Expense (Benefit)

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

	2020		2019		2018
Current:
Federal U.S.	$	8.2	$	20.0	$	34.9
Non-U.S.	20.1		41.3		26.0
State and local	(0.3)		5.5		7.8
Deferred:
Federal U.S.	(13.6)		0.2		4.9
Non-U.S.	(73.5)		(9.2)		(4.3)
State and local	(4.3)		0.1		1.1
Income tax provision	$	(63.4)	$	57.9	$	70.4

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities as of December 31 were as follows ($ in millions):

	2020		2019
Deferred tax assets:
Inventories	$	17.5	$	17.9
Pension benefits	13.3		19.2
Other accruals and prepayments	51.0		41.5
Lease liabilities	45.4		51.1
Stock-based compensation expense	6.0		3.0
Unrealized gains and losses	30.9		4.5
Tax credit and loss carryforwards	159.5		152.0
Valuation allowances	(126.0)		(119.1)
Total deferred tax asset	197.6		170.1
Deferred tax liabilities:
Property, plant and equipment	(14.5)		(8.3)
Interest expense	(2.3)		—
Right-of-use assets	(40.6)		(48.2)
Goodwill and other intangible assets	(278.0)		(339.0)
Total deferred tax liability	(335.4)		(395.5)
Net deferred tax liability	$	(137.8)	$	(225.4)

Summary Of Effective Income Tax Rate

The 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 Income
	2020		2019		2018
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)	11.3		1.4		2.5
Impact of foreign operations	61.1		(0.1)		1.7
Foreign-Derived Intangible Income (“FDII”)	—		(1.1)		(0.9)
Subpart F and GILTI, net of foreign tax credits	(48.3)		2.0		0.1
Change in uncertain tax positions	2.3		0.6		(0.9)
Research and experimentation credits and other	(5.1)		(0.5)		1.0
Excess tax benefit from stock-based compensation	7.7		(2.3)		(1.1)
Impact of step-up of Swiss assets	160.6		—		—
Effective income tax rate	210.6	%	21.0	%	23.4	%

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

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):

	2020		2019		2018
Unrecognized tax benefits, beginning of year	$	9.1	$	27.2	$	37.4
Additions based on tax positions related to the current year	0.3		0.5		0.7
Additions for tax positions of prior years	0.3		3.1		1.7
Reductions for tax positions of prior years	(1.7)		(1.5)		—
Split-Off related adjustments a	—		(18.1)		—
Lapse of statute of limitations	(1.0)		(1.8)		(5.6)
Settlements	—		(0.4)		(5.9)
Effect of foreign currency translation	0.1		0.1		(1.1)
Unrecognized tax benefits, end of year	$	7.1	$	9.1	$	27.2
a Unrecognized tax benefits were reduced by $18.1 million in 2019 related to positions taken prior to the Split-Off for which Danaher, as the Company’s Former Parent, is the primary obligor and is responsible for settlement and payment of any resulting tax obligation.