Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign

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


	2022		2021		2020
United States	$	21.9	$	35.0	$	(64.3)
International	262.0		219.5		44.3
Total	$	283.9	$	254.5	$	(20.0)

Schedule of Components of Income Tax Expense (Benefit)

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


	2022		2021		2020
Current:
Federal U.S.	$	42.5	$	17.7	$	13.1
Non-U.S.	22.4		26.9		13.5
State and local	8.6		4.4		0.9
Deferred:
Federal U.S.	(31.3)		(2.2)		(13.1)
Non-U.S.	11.3		(57.5)		(72.7)
State and local	(7.6)		1.7		(4.2)
Income tax provision (benefit)	$	45.9	$	(9.0)	$	(62.5)

Schedule of Deferred Tax Assets and Liabilities

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


	2022		2021
Deferred tax assets:
Inventories	$	15.4	$	17.4
Pension benefits	6.2		11.5
Other accruals and prepayments	45.3		54.3
Lease liabilities	35.5		34.2
Stock-based compensation expense	7.5		6.8
Interest expense	36.0		8.7
Capitalized research expenses	15.1		3.8
Tax credit and loss carryforwards	38.2		117.3
Valuation allowances	(38.7)		(90.0)
Total deferred tax asset	160.5		164.0
Deferred tax liabilities:
Property, plant and equipment	(5.7)		(9.6)

Unrealized gains and losses	(6.2)		(6.5)
Right-of-use assets	(31.5)		(30.3)
Goodwill and other intangible assets	(92.2)		(192.3)
Total deferred tax liability	(135.6)		(238.7)
Net deferred tax asset (liability)	$	24.9	$	(74.7)

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
	2022		2021		2020
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)	0.3		1.2		17.0
Impact of foreign operations	(5.0)		(6.4)		80.4
Foreign-Derived Intangible Income (“FDII”)	(0.7)		—		—
Subpart F and GILTI, net of foreign tax credits	6.7		6.4		(72.4)
Change in uncertain tax positions	(0.5)		—		3.4
Research and experimentation credits and other	(1.6)		(1.6)		13.2
Permanent differences and other	(0.9)		2.7		(20.3)
Excess tax benefit from stock-based compensation	(1.6)		(1.9)		11.6
Valuation allowance release on certain Swiss NOLs	—		(8.1)		—
Impact of step-up of Swiss assets	(1.5)		(16.8)		258.6
Effective income tax rate	16.2	%	(3.5)	%	312.5	%

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):


	2022		2021		2020
Unrecognized tax benefits, beginning of year	$	5.7	$	7.1	$	9.1
Additions based on tax positions related to the current year	0.3		0.3		0.3
Additions for tax positions of prior years	4.2		—		0.3
Reductions for tax positions of prior years	—		(0.3)		(1.7)
Lapse of statute of limitations	(2.3)		(1.0)		(1.0)
Settlements	(1.1)		(0.4)		—
Effect of foreign currency translation	(0.2)		—		0.1
Unrecognized tax benefits, end of year	$	6.6	$	5.7	$	7.1