Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

Earnings (losses) before income taxes for the years ended December 31 were as follows:

($ in millions)	2020		2019		2018
United States	$	496.8	$	510.9	$	460.7
Non-U.S.	(36.5)		54.9		46.6
Total	$	460.3	$	565.8	$	507.3

Schedule of provision for income taxes

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

($ in millions)	2020		2019		2018
Current:
Federal U.S.	$	122.9	$	80.2	$	71.2
Non-U.S.	19.8		19.5		25.5
State and local	18.4		16.8		19.3
Deferred:
Federal U.S.	(33.3)		13.2		8.9
Non-U.S.	(8.4)		(1.1)		(3.7)
State and local	(1.1)		0.7		0.6
Income tax provision	$	118.3	$	129.3	$	121.8

Schedule of deferred tax assets and liabilities

Deferred income tax assets and liabilities as of December 31 were as follows:

($ in millions)	2020		2019
Deferred Tax Assets:
Allowance for credit losses	$	22.9	$	12.6
Financing receivables	—		4.6
Operating lease liabilities	10.2		8.7
Inventories	6.3		6.9
Pension benefits	0.6		0.8
Other accruals and prepayments	23.2		25.9
Deferred revenue	9.5		6.3
Warranty services	12.6		12.3
Stock-based compensation expense	6.7		4.3
Tax credit and loss carryforwards	29.0		34.4
Other	4.0		—
Valuation allowances	(22.4)		(29.7)
Total deferred tax assets	102.6		87.1
Deferred Tax Liabilities:
Property, plant and equipment	(8.6)		(8.0)
Operating lease right-of-use assets	(9.4)		(8.7)
Insurance, including self-insurance	(18.3)		(78.2)
Goodwill and other intangibles	(66.2)		(75.7)
Other	(4.4)		0.4
Total deferred tax liabilities	(106.9)		(170.2)
Net deferred tax liability	$	(4.3)	$	(83.1)

Schedule of effective income tax rate reconciliation

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 Earnings
	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)	3.1	%	2.8	%	3.1	%
Non-U.S. income taxed at different rate than U.S. statutory rate	4.0	%	0.8	%	2.2	%
Foreign derived intangible income taxation	(1.6)	%	(1.5)	%	(1.8)	%
Goodwill impairment	1.1	%	—	%	—	%
Compensation related	—	%	(0.8)	%	(0.5)	%
Non-taxable income	(3.3)	%	—	%	—	%
Uncertain tax positions	1.5	%	0.5	%	—	%
Other	(0.1)	%	—	%	—	%
Effective income tax rate	25.7	%	22.8	%	24.0	%

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 as of December 31:

($ in millions)	2020		2019		2018
Unrecognized tax benefits, beginning of year	$	14.5	$	11.5	$	11.3
Additions based on tax positions related to the current year	8.5		0.4		0.2
Additions for tax positions of prior years	0.5		2.6		—
Reductions for tax positions of prior years	(0.6)		—		—
Lapse of statute of limitations	(0.3)		—		—
Settlements	(2.1)		—		—
Effect of foreign currency translation	0.3		—		—
Separation-related adjustments	(3.4)		—		—
Unrecognized tax benefits, end of year	$	17.4	$	14.5	$	11.5