INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Provision from (benefit for) Income Taxes

The provision for income taxes consisted of the following:


	Twelve Months Ended December 31,
	2024		2023		2022
	(In millions)
Current:
Federal	$	169.9	$	155.5	$	73.4
State	38.3		24.2		27.7
Foreign	61.9		56.7		40.3
	270.1		236.4		141.4
Deferred:
Federal	(47.7)		(50.2)		68.6
State	(0.3)		12.4		19.0
Foreign	(18.9)		(32.4)		0.5
	(66.9)		(70.2)		88.1
Provision for income taxes	$	203.2	$	166.2	$	229.5

Domestic and Foreign Income before Income Taxes

Domestic and foreign income before income taxes was as follows:


	Twelve Months Ended December 31,
	2024		2023		2022
	(In millions)
U.S.	$	651.9	$	573.2	$	794.7
Foreign	158.6		144.7		135.0
	$	810.5	$	717.9	$	929.7

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,
	2024			2023			2022
	(In millions)
Federal statutory rate	21.0		%	21.0		%	21.0		%

Provision computed at federal statutory rate	$	170.2		$	150.8		$	195.2
State and local taxes, net of federal tax benefit	30.1			30.0			34.7
Foreign differential	27.1			20.5			14.8

Federal research & development credit	(17.6)			(24.2)			(28.5)
Equity compensation	(8.2)			(3.2)			(6.8)
Tax reserves	(5.7)			5.8			4.9
Reversal of BVS deferred tax liability	—			(27.3)			—

Excess officer’s compensation	9.2			8.4			6.1
Valuation allowance	(7.2)			1.9			3.8
Other	5.3			3.5			5.3
Provision for income taxes	$	203.2		$	166.2		$	229.5

Effective income tax rate	25.1		%	23.2		%	24.7		%

Components of Deferred Income Tax Assets and Liabilities

Components of the deferred income tax assets and liabilities at December 31, 2024 and 2023 were as follows:


	December 31,
	2024		2023
	(In millions)
Deferred income tax assets:
Net operating and capital loss carryforwards	$	83.9	$	101.2
Goodwill and intangible assets	106.2		116.0
Employee compensation programs	71.2		59.8
Foreign tax credits	17.2		17.2
Employee pension benefits	27.7		26.6
Reserves and accrued expenses	8.1		6.4
Accrued legal expense	8.6		9.1
Research and development costs	27.2		22.3
Operating lease asset	29.8		25.0
Other	30.8		24.3
Gross deferred income tax assets	410.7		407.9
Valuation allowance	(170.8)		(178.5)
Total deferred income tax assets, net	239.9		229.4

Deferred income tax liabilities:
Goodwill and intangible assets	(471.1)		(615.9)
Undistributed earnings of foreign subsidiaries	(8.3)		(6.2)
Depreciation	(27.4)		(29.8)
Operating lease liability	(29.8)		(25.0)

Prepaid expenses	(16.0)		(15.0)

Other	(5.1)		(2.2)
Total deferred income tax liability	(557.7)		(694.1)
Net deferred income tax liability	$	(317.8)	$	(464.7)

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

Our deferred income tax assets and deferred income tax liabilities at December 31, 2024 and 2023 are included in the accompanying Consolidated Balance Sheets as follows:


	December 31,
	2024		2023
	(In millions)

Long-term deferred income tax assets, included in other assets	$	33.8	$	10.2
Long-term deferred income tax liabilities	(351.6)		(474.9)
Net deferred income tax liability	$	(317.8)	$	(464.7)

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:


	2024		2023
	(In millions)
Beginning balance (January 1)	$	55.5	$	56.2
Increases related to prior year tax positions	1.7		3.1
Decreases related to prior year tax positions	(0.7)		(2.0)
Increases related to current year tax positions	8.5		10.6
Decreases related to settlements	—		(0.3)
Expiration of the statute of limitations for the assessment of taxes	(20.1)		(12.0)
Currency translation adjustment	(0.2)		(0.1)
Ending balance (December 31)	$	44.7	$	55.5