INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Provision from (benefit for) Income Taxes

The provision for income taxes consisted of the following:


	Twelve Months Ended December 31,
	2023		2022		2021
	(In millions)
Current:
Federal	$	155.5	$	73.4	$	108.1
State	24.2		27.7		39.3
Foreign	56.7		40.3		44.0
	236.4		141.4		191.4
Deferred:
Federal	(50.2)		68.6		43.3
State	12.4		19.0		4.7
Foreign	(32.4)		0.5		(38.7)
	(70.2)		88.1		9.3
Provision for income taxes	$	166.2	$	229.5	$	200.7

Domestic and Foreign Income before Income Taxes

Domestic and foreign income before income taxes was as follows:


	Twelve Months Ended December 31,
	2023		2022		2021
	(In millions)
U.S.	$	573.2	$	794.7	$	885.6
Foreign	144.7		135.0		63.6
	$	717.9	$	929.7	$	949.2

Provision for Income Taxes Reconciles with U.S. Federal Statutory Rate

The provision for income taxes reconciles with the U.S. federal statutory rate, as follows:


	Twelve Months Ended December 31,
	2023			2022			2021
	(In millions)
Federal statutory rate	21.0		%	21.0		%	21.0		%

Provision computed at federal statutory rate	$	150.8		$	195.2		$	199.3
State and local taxes, net of federal tax benefit	30.0			34.7			34.9
Foreign differential	20.5			14.8			(10.4)

Federal research & development credit	(24.2)			(28.5)			(16.6)
Equity compensation	(3.2)			(6.8)			(14.0)
Tax reserves	5.8			4.9			(0.8)
Reversal of BVS deferred tax liability	(27.3)			—			—

Excess officer’s compensation	8.4			6.1			5.8
Valuation allowance	1.9			3.8			0.5
Other	3.5			5.3			2.0
Provision for income taxes	$	166.2		$	229.5		$	200.7

Effective income tax rate	23.2		%	24.7		%	21.2		%

Components of Deferred Income Tax Assets and Liabilities

Components of the deferred income tax assets and liabilities at December 31, 2023 and 2022, were as follows:


	December 31,
	2023		2022
	(In millions)
Deferred income tax assets:
Net operating and capital loss carryforwards	$	101.2	$	110.2
Goodwill and intangible assets	116.0		114.6
Employee compensation programs	59.8		45.3
Foreign tax credits	17.2		17.2
Employee pension benefits	26.6		26.7
Reserves and accrued expenses	6.4		10.1
Accrued legal expense	9.1		7.1
Research and development costs	22.3		32.6
Operating lease asset	25.0		19.3
Other	24.3		18.3
Gross deferred income tax assets	407.9		401.4
Valuation allowance	(178.5)		(185.1)
Total deferred income tax assets, net	229.4		216.3

Deferred income tax liabilities:
Goodwill and intangible assets	(615.9)		(582.6)
Undistributed earnings of foreign subsidiaries	(6.2)		(6.0)
Depreciation	(29.8)		(26.6)
Operating lease liability	(25.0)		(19.3)

Prepaid expenses	(15.0)		(11.3)
Investment basis difference	(0.1)		(23.4)
Other	(2.1)		(0.8)
Total deferred income tax liability	(694.1)		(670.0)
Net deferred income tax liability	$	(464.7)	$	(453.7)

Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities

Our deferred income tax assets and deferred income tax liabilities at December 31, 2023 and 2022 are included in the accompanying Consolidated Balance Sheets as follows:


	December 31,
	2023		2022
	(In millions)

Long-term deferred income tax assets, included in other assets	$	10.2	$	6.6
Long-term deferred income tax liabilities	(474.9)		(460.3)
Net deferred income tax liability	$	(464.7)	$	(453.7)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2023		2022
	(In millions)
Beginning balance (January 1)	$	56.2	$	48.5
Increases related to prior year tax positions	3.1		7.7
Decreases related to prior year tax positions	(2.0)		(1.0)
Increases related to current year tax positions	10.6		12.2
Decreases related to settlements	(0.3)		(1.0)
Expiration of the statute of limitations for the assessment of taxes	(12.0)		(9.9)
Currency translation adjustment	(0.1)		(0.3)
Ending balance (December 31)	$	55.5	$	56.2