Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Provision

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


	Year Ended December 31,
(In millions)	2023		2022		2021
U.S. Federal:
Current	$	2.6	$	115.3	$	12.6
Deferred	293.4		263.7		(182.7)
	296.0		379.0		(170.1)
U.S. State:
Current	1.9		26.5		7.7
Deferred	2.6		20.3		(10.8)
	4.5		46.8		(3.1)
Non-U.S.:
Current	530.8		618.7		(91.3)
Deferred	(683.1)		(309.9)		869.2
	(152.3)		308.8		777.9
Income tax provision	$	148.2	$	734.6	$	604.7
Earnings (loss) before income taxes:

United States	(951.5)		794.8		(1,982.5)
Foreign - Other	1,154.4		2,018.4		1,318.1
Total earnings (loss) before income taxes	$	202.9	$	2,813.2	$	(664.4)

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, 2023		December 31, 2022
Deferred tax assets:
Employee benefits	$	148.7	$	129.6
Litigation reserves	32.2		20.5
Accounts receivable allowances	413.7		446.2
Inventory	143.8		159.3
Tax credit and loss carry-forwards	758.2		760.3
Operating lease assets	51.3		56.2
Interest expense	114.8		94.8
Intangible assets	167.7		149.3
Other	326.1		209.3
	2,156.5		2,025.5
Less: Valuation allowance	(421.4)		(387.0)
Total deferred tax assets	1,735.1		1,638.5
Deferred tax liabilities:
Plant and equipment	54.0		56.6
Operating lease liabilities	51.3		56.2
Intangible assets and goodwill	2,506.2		2,880.3
Other	166.4		151.5
Total deferred tax liabilities	2,777.9		3,144.6
Deferred tax liabilities, net	$	(1,042.8)	$	(1,506.1)

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,
	2023		2022		2021
Statutory tax rate	21.0	%	21.0	%	21.0	%


Clean energy and research credits	(5.2)	%	—	%	9.8	%
Foreign rate differential	(58.8)	%	(3.6)	%	31.4	%
Expiration of attributes	1.5	%	9.8	%	—	%
Goodwill impairment	60.8	%	6.5	%	—	%
State income taxes and credits	(3.9)	%	1.3	%	(0.6)	%
Tax settlements and resolution of certain tax positions	14.2	%	1.0	%	0.9	%

Impact of the Combination and divestitures	11.2	%	(6.7)	%	(109.7)	%
Incremental U.S. tax on foreign earnings	69.4	%	2.0	%	(36.9)	%
Valuation allowance	10.9	%	(13.6)	%	(8.4)	%
Deferred tax impact of tax law changes	(1.0)	%	5.4	%	7.0	%
Withholding taxes	7.4	%	1.5	%	(1.3)	%
















Deferred tax impact of internal restructuring	(74.0)	%	—	%	—	%
Other items	19.5	%	1.5	%	(4.2)	%
Effective tax rate	73.0	%	26.1	%	(91.0)	%

Schedule of Unrecognized Tax Benefits

A reconciliation of the unrecognized tax benefits is as follows:


	Year Ended December 31,
(In millions)	2023		2022		2021
Unrecognized tax benefit — beginning of year	$	296.7	$	322.9	$	391.1
Additions for current year tax positions	—		8.2		—
Additions for prior year tax positions	3.0		1.0		—
Reductions for prior year tax positions	(4.6)		(5.8)		(9.1)
Settlements	(2.1)		(0.4)		(47.3)
Reductions due to expirations of statute of limitations	(13.0)		(1.9)		(7.0)
Reduction due to acquisition	—		(27.3)		(4.8)
Impact of foreign currency translation	(7.2)		—		—
Unrecognized tax benefit — end of year	$	272.8	$	296.7	$	322.9