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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Taxes  
Schedule of income before income taxes

Year Ended December 31, 

 

    

2022

    

2021

    

2020

 

Income from continuing operations before income taxes:

United States

$

442.3

$

407.3

$

310.3

Foreign

 

2,025.1

 

1,581.9

 

1,216.3

$

2,467.4

$

1,989.2

$

1,526.6

Current tax provision (benefit):

United States

$

97.7

$

86.8

$

(5.7)

Foreign

 

457.6

 

351.9

 

288.2

555.3

438.7

282.5

Deferred tax provision (benefit):

United States

(31.5)

(35.4)

43.0

Foreign

 

26.8

 

5.8

 

(12.2)

 

(4.7)

 

(29.6)

 

30.8

Total provision for income taxes

$

550.6

$

409.1

$

313.3

Schedule of provision for income taxes

The components of income from continuing operations before income taxes and the provision for income taxes are as follows:

Year Ended December 31, 

 

    

2022

    

2021

    

2020

 

Income from continuing operations before income taxes:

United States

$

442.3

$

407.3

$

310.3

Foreign

 

2,025.1

 

1,581.9

 

1,216.3

$

2,467.4

$

1,989.2

$

1,526.6

Current tax provision (benefit):

United States

$

97.7

$

86.8

$

(5.7)

Foreign

 

457.6

 

351.9

 

288.2

555.3

438.7

282.5

Deferred tax provision (benefit):

United States

(31.5)

(35.4)

43.0

Foreign

 

26.8

 

5.8

 

(12.2)

 

(4.7)

 

(29.6)

 

30.8

Total provision for income taxes

$

550.6

$

409.1

$

313.3

Schedule of differences between the U.S. statutory federal tax rate and the Company's effective income tax rate

Year Ended December 31, 

 

2022

  

2021

  

2020

 

U.S. statutory federal tax rate

21.0

%

21.0

%

21.0

%

State and local taxes, net

0.6

0.8

0.8

Foreign earnings and dividends taxed at different rates

2.3

1.8

2.1

U.S. tax on foreign income

0.5

0.6

0.8

Excess tax benefits related to stock-based compensation

(2.3)

(3.2)

(2.8)

Settlements of uncertain tax positions in foreign jurisdictions including refund claims and related deferred taxes

(0.7)

(1.3)

Other, net

0.2

0.3

(0.1)

Effective tax rate

22.3

%

20.6

%

20.5

%

Schedule of deferred tax assets and liabilities

December 31, 

   

2022

   

2021

Deferred tax assets relating to:

Accrued liabilities and reserves

$

72.4

$

60.0

Operating lease liabilities

66.6

56.4

Operating loss and tax credit carryforwards

 

57.4

 

62.6

Pensions

 

15.0

 

20.3

Inventories

 

77.8

 

60.2

Employee benefits

 

42.9

 

37.9

Total deferred tax assets

332.1

297.4

Valuation allowance

(42.2)

(44.9)

Total deferred tax assets, net of valuation allowances

289.9

252.5

Deferred tax liabilities relating to:

Goodwill

251.7

234.2

Depreciation and amortization

 

140.3

 

176.0

Operating lease right-of-use assets

66.6

56.4

Unremitted foreign earnings

154.2

 

119.1

Total deferred tax liabilities

612.8

585.7

Net deferred tax liability

$

322.9

$

333.2

Classification of deferred tax assets and liabilities, as reflected on the Consolidated Balance Sheets:

Other long-term assets

$

86.9

$

91.0

Deferred income taxes

 

409.8

 

424.2

Net deferred tax liability, long-term

$

322.9

$

333.2

Schedule of reconciliation of gross amounts of unrecognized tax benefits excluding interest and penalties

    

2022

    

2021

    

2020

 

Unrecognized tax benefits as of January 1

$

147.7

$

135.3

$

159.1

Gross increases for tax positions in prior periods

 

12.8

 

6.5

 

5.4

Gross increases for tax positions in current period

 

4.9

 

8.2

 

16.4

Settlements

 

(0.4)

 

 

(38.8)

Lapse of statutes of limitations

 

(0.9)

 

(2.3)

 

(6.8)

Unrecognized tax benefits as of December 31

$

164.1

$

147.7

$

135.3