INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Income before income taxes

(millions)	2024		2023		2022
United States (U.S.)		$1,035.3		$408.9		$295.6
International		1,535.9		1,346.6		1,047.8
Total		$2,571.2		$1,755.5		$1,343.4

Provision (benefit) for income taxes

(millions)	2024		2023		2022
U.S. federal and state		$301.3		$137.6		$145.7
International		322.6		280.0		231.4
Total current		623.9		417.6		377.1
U.S. federal and state		(143.1)		(40.1)		(78.9)
International		(41.5)		(15.0)		(63.7)
Total deferred		(184.6)		(55.1)		(142.6)
Provision for income taxes		$439.3		$362.5		$234.5

Net deferred tax assets and deferred tax liabilities

December 31 (millions)	2024		2023
Deferred tax assets
Pension and post-retirement benefits		$68.2		$82.1
Other accrued liabilities		152.5		162.0
Lease liability		176.7		135.9
Credit carryforwards		105.1		83.7
Capitalization of R&D costs		246.5		180.9
Loss carryforwards		92.9		57.3
Share-based compensation		54.2		54.5
Deferred income		72.4		27.9
Deferred interest		85.2		64.3
Other, net		32.8		49.0
Valuation allowance		(77.8)		(65.7)
Total deferred tax assets		1,008.7		831.9
Deferred tax liabilities
Goodwill		(133.9)		(160.1)
Intangible assets		(410.4)		(451.3)
Property, plant and equipment		(310.7)		(332.3)
Lease asset		(177.8)		(136.1)
Financing		(43.3)		(32.1)
Other, net		(57.1)		(18.9)
Total deferred tax liabilities		(1,133.2)		(1,130.8)
Net deferred tax liabilities balance		($124.5)		($298.9)

Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate

	2024		2023		2022
Statutory U.S. rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.5		1.4		1.3
Foreign operations	(1.2)		(0.5)		(0.8)
Excess stock benefits	(0.7)		(0.3)		(0.4)
R&D credit	(0.9)		(1.3)		(1.4)
Foreign derived intangible income	(1.9)		(1.2)		(1.8)
Change in valuation allowance	0.6		0.5		0.7
Legal entity rationalization	-		0.1		(1.5)
Sale of global surgical solutions business	1.1		-		-
Capital losses	(3.4)		-		-
Other, net	1.0		0.9		0.4
Effective income tax rate	17.1	%	20.6	%	17.5	%

Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits

(millions)	2024		2023		2022
Balance at beginning of year		$24.2		$24.9		$25.1
Additions based on tax positions related to the current year		4.6		5.8		2.7
Additions for tax positions of prior years		11.6		1.7		3.6
Reductions for tax positions of prior years		-		-		(1.5)
Reductions for tax positions due to statute of limitations		(0.7)		(2.7)		(0.7)
Settlements		(5.3)		(5.5)		(3.4)
Foreign currency translation		(0.3)		-		(0.9)
Balance at end of year		$34.1		$24.2		$24.9