Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Provision

The income tax provision (benefit) consisted of the following components:


	Year Ended December 31,
(In millions)	2022		2021		2020
U.S. Federal:
Current	$	115.3	$	12.6	$	(6.4)
Deferred	263.7		(182.7)		(277.0)
	379.0		(170.1)		(283.4)
U.S. State:
Current	26.5		7.7		(0.1)
Deferred	20.3		(10.8)		7.7
	46.8		(3.1)		7.6
Non-U.S.:
Current	618.7		(91.3)		168.7
Deferred	(309.9)		869.2		55.8
	308.8		777.9		224.5
Income tax provision (benefit)	$	734.6	$	604.7	$	(51.3)
Earnings before income taxes:

United States	794.8		(1,982.5)		(945.5)
Foreign - Other	2,018.4		1,318.1		224.3
Total earnings (loss) before income taxes	$	2,813.2	$	(664.4)	$	(721.2)

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carry-forwards that result in deferred tax assets and liabilities were as follows:


(In millions)	December 31, 2022		December 31, 2021
Deferred tax assets:
Employee benefits	$	129.6	$	271.3
Litigation reserves	20.5		94.4
Accounts receivable allowances	446.2		425.9
Inventory	159.3		187.8
Tax credit and loss carry-forwards	760.3		1,256.0
Operating lease assets	56.2		63.6
Interest expense	94.8		111.6
Intangible assets	149.3		151.1
Other	209.3		327.8
	2,025.5		2,889.5
Less: Valuation allowance	(387.0)		(780.4)
Total deferred tax assets	1,638.5		2,109.1
Deferred tax liabilities:
Plant and equipment	56.6		19.6
Operating lease liabilities	56.2		63.6
Intangible assets and goodwill	2,880.3		3,468.3
Other	151.5		39.9
Total deferred tax liabilities	3,144.6		3,591.4
Deferred tax liabilities, net	$	(1,506.1)	$	(1,482.3)

Statutory Tax Rate to Effective Tax Rate Reconciliation

Our effective tax rate from continuing operations differs from the applicable United States statutory federal income tax rate of 21.0%, due to the following:


	Year Ended December 31,
	2022		2021		2020
Statutory tax rate	21.0	%	21.0	%	21.0	%


Clean energy and research credits	—	%	9.8	%	12.8	%
Foreign rate differential	(3.6)	%	31.4	%	8.6	%
Expiration of attributes	9.8	%	—	%	—	%
Goodwill impairment	6.5	%	—	%	—	%
State income taxes and credits	1.3	%	(0.6)	%	(1.6)	%
Tax settlements and resolution of certain tax positions	1.0	%	0.9	%	(3.8)	%

Impact of the Combination and divestitures	(6.7)	%	(109.7)	%	(35.5)	%
Incremental U.S. tax on foreign earnings	2.0	%	(36.9)	%	(3.6)	%
Valuation allowance	(13.6)	%	(8.4)	%	24.6	%
Deferred tax impact of tax law changes	5.4	%	7.0	%	—	%
Withholding taxes	1.5	%	(1.3)	%	(1.6)	%
Waived deductions under IRC § 59A	—	%	—	%	(3.3)	%
















Other items	1.5	%	(4.2)	%	(10.5)	%
Effective tax rate	26.1	%	(91.0)	%	7.1	%

Schedule of Unrecognized Tax Benefits

A reconciliation of the unrecognized tax benefits is as follows:


	Year Ended December 31,
(In millions)	2022		2021		2020
Unrecognized tax benefit — beginning of year	$	322.9	$	391.1	$	92.1
Additions for current year tax positions	8.2		—		13.4
Additions for prior year tax positions	1.0		—		35.7
Reductions for prior year tax positions	(5.8)		(9.1)		(5.2)
Settlements	(0.4)		(47.3)		(8.9)
Reductions due to expirations of statute of limitations	(1.9)		(7.0)		—
(Reduction) addition due to acquisition	(27.3)		(4.8)		264.0
Unrecognized tax benefit — end of year	$	296.7	$	322.9	$	391.1