Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
United States	$	552.4	$	506.8	$	496.8
Non-U.S.	(25.0)		27.2		(36.5)
Total	$	527.4	$	534.0	$	460.3

Schedule of provision for income taxes

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

($ in millions)	2022		2021		2020
Current:
Federal U.S.	$	127.1	$	122.2	$	122.9
Non-U.S.	14.4		15.5		19.8
State and local	28.1		29.0		18.4
Deferred:
Federal U.S.	(26.3)		(32.8)		(33.3)
Non-U.S.	(15.5)		(10.2)		(8.4)
State and local	(1.7)		(2.7)		(1.1)
Income tax provision	$	126.1	$	121.0	$	118.3

Schedule of deferred tax assets and liabilities

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

($ in millions)	2022		2021
Deferred tax assets:
Allowance for credit losses	$	23.7	$	26.2
Operating lease liabilities	11.7		12.0
Inventories	15.8		8.6
Pension benefits	1.7		1.6
Other accruals and prepayments	42.6		31.5
Deferred revenue	16.0		15.3
Warranty services	9.5		10.8
Stock-based compensation expense	6.8		7.4
Tax credit and loss carryforwards	50.8		39.0
Other	5.0		2.5
Valuation allowances	(26.8)		(23.0)
Total deferred tax assets	156.8		131.9
Deferred tax liabilities:
Property, plant and equipment	(4.5)		(8.5)
Operating lease right-of-use assets	(10.4)		(11.1)
Insurance, including self-insurance	(6.5)		(16.0)
Goodwill and other intangibles	(105.4)		(107.3)
Other	(3.3)		(5.8)
Total deferred tax liabilities	(130.1)		(148.7)
Net deferred tax asset (liability)	$	26.7	$	(16.8)

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
	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)	4.0	%	3.9	%	3.1	%
Non-U.S. income taxed at different rate than U.S. statutory rate	0.7	%	0.7	%	4.0	%
Foreign derived intangible income taxation	(1.4)	%	(1.5)	%	(1.6)	%
Nontaxable income	(0.9)	%	(1.0)	%	(3.3)	%
Uncertain tax positions	0.3	%	0.2	%	1.5	%
Tax credits	(1.3)	%	(1.0)	%	(0.7)	%
Goodwill impairment	—	%	—	%	1.1	%
Other	1.5	%	0.4	%	0.6	%
Effective income tax rate	23.9	%	22.7	%	25.7	%

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)	2022		2021		2020
Unrecognized tax benefits, beginning of year	$	14.1	$	17.4	$	14.5
Additions based on tax positions related to the current year	1.0		2.7		8.5
Additions for tax positions of prior years	1.2		0.2		0.5
Reductions for tax positions of prior years	(1.1)		(2.9)		(0.6)
Lapse of statute of limitations	—		—		(0.3)
Settlements	(0.9)		(2.9)		(2.1)
Effect of foreign currency translation	(0.3)		(0.4)		0.3
Separation-related adjustments	—		—		(3.4)
Unrecognized tax benefits, end of year	$	14.0	$	14.1	$	17.4