Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Earnings From Continuing Operations Before Income Taxes

The components of earnings before income taxes are as follows:

	Year Ended December 31
	2021		2020		2019
Domestic	$	249.7	$	115.3	$	168.9
Foreign	272.4		212.6		234.6
Earnings before income taxes	$	522.1	$	327.9	$	403.5

Income Tax Expense From Continuing Operations

Income tax expense (benefit) is comprised of the following components:

	Year Ended December 31
	2021		2020		2019
Current
Federal	$	57.0	$	36.9	$	34.6
State and local	11.5		7.8		5.3
Foreign	59.5		51.0		48.7
Total current	128.0		95.7		88.6
Deferred
Federal	(9.3)		(15.0)		2.2
State and local	(2.3)		(2.6)		(.9)
Foreign	3.1		(3.3)		(.5)
Total deferred	(8.5)		(20.9)		.8
Total income taxes	$	119.5	$	74.8	$	89.4

Schedule of Income Tax Expense From Continuing Operations Percentage

Income tax expense (benefit), as a percentage of earnings before income taxes, differs from the statutory federal income tax rate as follows:

	Year Ended December 31
	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Increases (decreases) in rate resulting from:
State taxes, net of federal benefit	1.5		.8		1.3
Tax effect of foreign operations	(.9)		(2.2)		(1.7)
Global intangible low-taxed income	.5		(.3)		2.3
Current and deferred foreign withholding taxes	2.3		2.7		1.3
Stock-based compensation	(.5)		(.6)		(1.1)
Change in valuation allowance	—		.8		.4
Change in uncertain tax positions, net	—		.6		(.3)
Goodwill impairment	—		1.6		—
Other permanent differences, net	(.8)		(1.3)		(.3)
Other, net	(.2)		(.3)		(.7)
Effective tax rate	22.9	%	22.8	%	22.2	%

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of our gross unrecognized tax benefits for the periods presented is as follows:

	2021		2020		2019
Gross unrecognized tax benefits, January 1	$	5.3	$	6.4	$	8.2
Gross increases—tax positions in prior periods 1	.7		2.9		—
Gross decreases—tax positions in prior periods	(.3)		(.4)		(.4)
Gross increases—current period tax positions	.7		.6		.7
Change due to exchange rate fluctuations	(.1)		.1		—
Settlements 1	—		(3.2)		—
Lapse of statute of limitations	(1.0)		(1.1)		(2.1)
Gross unrecognized tax benefits, December 31	5.3		5.3		6.4
Interest	1.1		1.4		1.9
Penalties	.2		.2		.3
Total gross unrecognized tax benefits, December 31	$	6.6	$	6.9	$	8.6

1 In 2020, we effectively settled a tax matter in Korea totaling $2.9 plus $.3 in interest.

Deferred Tax Assets or Liabilities

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. The major temporary differences and their associated deferred tax assets or liabilities are as follows:

	December 31
	2021				2020
	Assets		Liabilities		Assets		Liabilities
Property, plant and equipment	$	16.8	$	(79.3)	$	17.4	$	(81.7)
Inventories	3.0		(13.1)		2.6		(21.4)
Accrued expenses	65.5		(10.2)		68.1		(6.3)
Net operating losses and other tax carryforwards	29.1		—		32.3		—
Pension cost and other post-retirement benefits	14.6		(.7)		22.3		(.7)
Intangible assets	.2		(200.0)		.2		(194.7)
Derivative financial instruments	1.2		(4.4)		2.4		(2.4)
Tax on undistributed earnings (primarily from Canada and China)	—		(16.0)		—		(14.8)
Uncertain tax positions	.9		—		1.1		—
Other	5.5		(5.7)		5.7		(6.4)
Gross deferred tax assets (liabilities)	136.8		(329.4)		152.1		(328.4)
Valuation allowance	(16.2)		—		(18.1)		—
Total deferred taxes	$	120.6	$	(329.4)	$	134.0	$	(328.4)
Net deferred tax liability			$	(208.8)			$	(194.4)

Deferred Tax Assets And (Liabilities) Included In Consolidated Balance Sheets

Deferred tax assets (liabilities) included in the Consolidated Balance Sheets are as follows:

	December 31
	2021		2020
Sundry	$	8.6	$	11.0
Deferred income taxes	(217.4)		(205.4)
Net deferred tax liability	$	(208.8)	$	(194.4)