Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of (Loss) income before income taxes

(Loss) income from continuing operations before income taxes consists of the following:


	Year Ended December 31,
	2022		2021		2020

United States	$	(21.3)	$	(26.8)	$	(22.2)
Outside the United States	32.0		25.7		20.4
	$	10.7	$	(1.1)	$	(1.8)

Components of income taxes

Income taxes consists of the following:


	Year Ended December 31,
	2022		2021		2020

Current (benefit) expense:
Federal	$	(1.6)	$	(4.9)	$	(16.0)
State	(0.2)		0.3		0.4
Foreign	9.4		9.4		7.4
	7.6		4.8		(8.2)
Deferred expense (benefit):
Federal	(8.0)		(5.9)		7.3
State	0.8		(0.6)		(0.1)
Foreign	(1.1)		0.7		(0.3)
	(8.3)		(5.8)		6.9
Income tax benefit	$	(0.7)	$	(1.0)	$	(1.3)

Reconciliation of income tax (benefit) expense

A reconciliation of income tax expense (benefit) computed by applying the statutory federal income tax rate to income tax benefit as recorded is as follows:


	Year Ended December 31,
	2022		2021		2020

Income tax expense (benefit) at U.S. statutory rate	$	2.3	$	(0.2)	$	(0.4)
Effect of state income taxes, net	0.3		(0.3)		(0.3)
Effect of foreign operations	3.0		1.9		1.5
Valuation allowance	0.8		(0.1)		0.6
Uncertain tax positions	0.4		(0.3)		(1.0)
Non-deductible items	(0.2)		0.9		1.5


Equity compensation	1.4		0.6		0.6
CARES Act NOL carryback	—		(3.1)		(5.3)
Foreign tax credit	(4.1)		(1.4)		(0.8)
Other tax credits	(5.6)		(0.4)		(0.3)
GILTI	1.8		1.4		1.8
FDII	(0.2)		—		—

Other, net	(0.6)		—		0.8
Income tax benefit as recorded	$	(0.7)	$	(1.0)	$	(1.3)

Significant components of the company's net deferred tax assets and liabilities

Significant components of the Company’s net deferred income tax assets and liabilities are as follows:


	Year Ended December 31,
	2022		2021

Deferred income tax assets:
Postretirement benefit obligation	$	0.4	$	0.5
Inventory	12.8		8.4
Net operating loss and credit carryforwards	17.8		15.4

Operating lease liabilities	13.3		14.1

Compensation	2.3		3.4
Capitalized research and development expenditures	10.8		—
Disallowed interest	7.9		4.9
Other	4.2		5.1
Total deferred income tax assets	69.5		51.8
Deferred income tax liabilities:
Depreciation	19.3		20.6
Pension	14.1		18.8

Intangible assets	16.2		17.3
Lease right-of-use assets	13.3		14.0
Other	3.1		2.0
Total deferred income tax liabilities	66.0		72.7
Net deferred income tax assets (liabilities) prior to valuation allowances	3.5		(20.9)
Valuation allowances	(8.6)		(6.1)
Net deferred income tax liability	$	(5.1)	$	(27.0)

Reconciliation of unrecognized tax benefits

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


	2022		2021		2020

Unrecognized Tax Benefit — January 1	$	1.0	$	2.1	$	3.7

Gross Increases to Tax Positions Related to Prior Years	0.3		—		0.1
Gross Decreases to Tax Positions Related to Prior Years	—		—		(0.5)
Gross Decreases related to settlements with taxing authorities	—		(0.1)		—
Expiration of Statute of Limitations	(0.5)		(1.0)		(1.2)

Unrecognized Tax Benefit — December 31	$	0.8	$	1.0	$	2.1