Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income (loss) before income taxes

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


	Year Ended December 31,
	2023		2022		2021

United States	$	0.2	$	(21.3)	$	(26.8)
Outside the United States	41.3		32.0		25.7
	$	41.5	$	10.7	$	(1.1)

Components of income taxes

Income taxes consists of the following:


	Year Ended December 31,
	2023		2022		2021

Current expense (benefit):
Federal	$	1.7	$	(1.6)	$	(4.9)
State	0.1		(0.2)		0.3
Foreign	13.9		9.4		9.4
	15.7		7.6		4.8
Deferred (benefit) expense:
Federal	(7.1)		(8.0)		(5.9)
State	(1.2)		0.8		(0.6)
Foreign	1.1		(1.1)		0.7
	(7.2)		(8.3)		(5.8)
Income tax expense (benefit)	$	8.5	$	(0.7)	$	(1.0)

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,
	2023		2022		2021

Income tax expense (benefit) at U.S. statutory rate	$	8.7	$	2.3	$	(0.2)
Effect of state income taxes, net	(1.1)		0.3		(0.3)
Effect of foreign operations	4.4		3.0		1.9
Valuation allowance	(1.3)		0.8		(0.1)
Uncertain tax positions	0.3		0.4		(0.3)
Non-deductible items	2.3		(0.2)		0.9


Equity compensation	1.4		1.4		0.6
CARES Act NOL carryback	—		—		(3.1)
Foreign tax credit	(4.3)		(4.1)		(1.4)
Other tax credits	(3.3)		(5.6)		(0.4)
GILTI	2.4		1.8		1.4
FDII	(0.8)		(0.2)		—

Other, net	(0.2)		(0.6)		—
Income tax expense (benefit) as recorded	$	8.5	$	(0.7)	$	(1.0)

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,
	2023		2022

Deferred income tax assets:
Postretirement benefit obligation	$	0.3	$	0.4
Inventory	13.0		12.8
Net operating loss and credit carryforwards	18.9		17.8

Operating lease liabilities	11.3		13.3

Compensation	3.7		2.3
Capitalized research and development expenditures	13.1		10.8
Disallowed interest	11.5		7.9
Other	4.1		4.2
Total deferred income tax assets	75.9		69.5
Deferred income tax liabilities:
Depreciation	15.7		19.3
Pension	17.0		14.1

Intangible assets	16.0		16.2
Lease right-of-use assets	11.3		13.3
Other	4.8		3.1
Total deferred income tax liabilities	64.8		66.0
Net deferred income tax assets prior to valuation allowances	11.1		3.5
Valuation allowances	(7.3)		(8.6)
Net deferred income tax asset (liability)	$	3.8	$	(5.1)

Reconciliation of unrecognized tax benefits

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


	2023		2022		2021

Unrecognized Tax Benefit — January 1	$	0.8	$	1.0	$	2.1

Gross Increases to Tax Positions Related to Prior Years	—		0.3		—

Gross Decreases related to settlements with taxing authorities	—		—		(0.1)
Expiration of Statute of Limitations	(0.3)		(0.5)		(1.0)

Unrecognized Tax Benefit — December 31	$	0.5	$	0.8	$	1.0