Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Selected Data with Respect to the Company's Income Tax Provision

The following table sets forth selected data with respect to the Company’s income tax provisions of continuing operations for the years ended December 31, (in millions):


	2023		2022		2021
Income before income taxes:
United States	$	848.0	$	528.9	$	347.5
International	135.3		128.1		111.8
TOTAL INCOME BEFORE INCOME TAXES	$	983.3	$	657.0	$	459.3
Provision for income taxes — current:
Federal	$	165.6	$	120.3	$	43.3
State	35.6		24.2		13.0
International	32.3		23.5		22.7
Total provision — current	233.5		168.0		79.0
Provision for income taxes — deferred:
Federal	(8.5)		(26.2)		8.8
State	(8.0)		(3.9)		1.9
International	0.3		2.3		(1.5)
Total provision — deferred	(16.2)		(27.8)		9.2
TOTAL PROVISION FOR INCOME TAXES	$	217.3	$	140.2	$	88.2

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) of continuing operations at December 31, were as follows (in millions):


	2023		2022
Deferred tax assets:
Inventories	$	12.0	$	9.6
Lease liabilities	42.5		27.4
Income tax credits	26.1		22.8
Accrued liabilities	42.5		40.8
Pension	32.2		38.9
Post retirement and post employment benefits	3.9		4.5
Stock-based compensation	7.4		6.9
Loss carryforwards	12.7		14.2
Capitalized research expenditures	40.0		18.4
Miscellaneous other	25.0		16.4
Gross deferred tax assets	244.3		199.9
Valuation allowance	(37.4)		(32.2)
Total deferred tax assets, net of valuation allowance	206.9		167.7
Deferred tax liabilities:
Liability on undistributed foreign earnings	(9.4)		(7.0)
Goodwill and intangibles	(329.0)		(185.0)
Right-of-use assets	(41.8)		(26.1)
Property, plant, and equipment	(59.8)		(57.9)
Total deferred tax liabilities	(440.0)		(276.0)
TOTAL NET DEFERRED TAX LIABILITY	$	(233.1)	$	(108.3)
Deferred taxes are reflected in the Consolidated Balance Sheet as follows:
Non-current tax assets (included in Other long-term assets)	7.2		5.5
Non-current tax liabilities (included in Other Non-Current Liabilities)	(240.3)		(113.8)
TOTAL NET DEFERRED TAX LIABILITY	$	(233.1)	$	(108.3)

Summary of Income Tax Examinations

The following tax years, by major jurisdiction, are still subject to examination by taxing authorities:


Jurisdiction			Open Years
United States			2020-2023
UK			2021-2023
Puerto Rico			2019-2023
Canada			2019-2023

Schedule of Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


	2023		2022		2021
Unrecognized tax benefits at beginning of year	$	42.1	$	41.2	$	47.6
Additions based on tax positions relating to the current year	10.4		12.1		6.1
Reductions based on expiration of statute of limitations	(7.6)		(4.8)		(10.3)
Additions/(Subtractions) to tax positions relating to previous years	2.8		(6.2)		(2.2)
Settlements	(0.7)		(0.2)		—
TOTAL UNRECOGNIZED TAX BENEFITS	$	47.0	$	42.1	$	41.2

Schedule of Effective Income Tax Rate Reconciliation

The consolidated effective income tax rate varied from the United States federal statutory income tax rate of continuing operations for the years ended December 31, as follows:


	2023		2022		2021
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	2.2		2.4		2.5
Foreign income taxes	0.4		(0.2)		(0.5)
Federal R&D Credit	(0.7)		(0.8)		(1.4)
Other, net	(0.8)		(1.1)		(2.4)
CONSOLIDATED EFFECTIVE INCOME TAX RATE	22.1	%	21.3	%	19.2	%