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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before taxes consisted of the following:
202420232022
US$(169.2)$(389.5)$221.2 
Foreign417.2 387.9 392.6 
Total$248.0 $(1.6)$613.8 

The provision for income taxes is summarized as follows:
202420232022
Current
US Federal $45.9 $39.6 $101.6 
US State10.0 6.4 10.2 
 Foreign146.0 122.0 87.2 
$201.9 $168.0 $199.0 
Deferred
US Federal $(89.6)$(84.3)$(50.7)
US State(15.3)(9.4)(12.1)
 Foreign(47.4)(21.6)(17.3)
(152.3)(115.3)(80.1)
Total$49.6 $52.7 $118.9 
A reconciliation of the federal statutory expense (benefit) and the income tax expense reflected in the Consolidated Statements of Income (Loss) follows:
202420232022
Federal Statutory Expense (Benefit)$52.1 $(0.4)$128.9 
State Income Taxes, Net of Federal Benefit(3.2)(8.6)3.2 
Effect of Impairments and Divestitures21.2 35.0 — 
Foreign Rate Differential(8.3)(10.8)(1.4)
Research and Development Credit(8.7)(8.7)(9.7)
Valuation Allowance(6.6)4.3 0.2 
Tax on Repatriation5.3 25.8 7.2 
Transaction Costs— 6.9 — 
US Tax on Foreign Operations(6.6)14.2 6.7 
Deferred Tax Remeasurement(1.1)3.4 (2.4)
Other5.5 (8.4)(13.8)
Income Tax Expense$49.6 $52.7 $118.9 

Deferred taxes arise primarily from differences in amounts reported for tax and financial statement purposes. The Company's net deferred tax liability was $785.5 million as of December 31, 2024, classified on the Consolidated Balance Sheet as a net non-current deferred income tax benefit of $30.0 million and a net non-current deferred income tax liability of $815.5 million. As of December 31, 2023, the Company's net deferred tax liability was $978.9 million classified on the Consolidated Balance Sheet as a net non-current deferred income tax asset of $33.8 million and a net non-current deferred income tax liability of $1,012.7 million.

The components of this net deferred tax liability are as follows:
December 31, 2024December 31, 2023
Accrued Benefits$53.1 $65.4 
Bad Debt Allowances7.4 7.9 
Warranty Accruals7.6 8.4 
Derivative Instruments2.6 — 
Inventory33.7 8.6 
Tax Loss Carryforward14.8 16.1 
Operating Lease Liability56.5 67.4 
Deferred Interest92.6 43.7 
Other35.0 32.3 
    Deferred Tax Assets before Valuation Allowance303.3 249.8 
Valuation Allowance(8.3)(11.0)
    Total Deferred Tax Assets295.0 238.8 
Property Related(83.3)(92.5)
Intangible Items(936.4)(1,026.6)
Accrued Liabilities(11.8)(29.9)
Derivative Instruments— (8.3)
Operating Lease Asset(49.0)(60.4)
    Deferred Tax Liabilities(1,080.5)(1,217.7)
Net Deferred Tax Liability$(785.5)$(978.9)
Following is a reconciliation of the beginning and ending amount of unrecognized tax benefits:
Unrecognized Tax Benefits, January 1, 2022$8.8 
Gross Increases from Current Period Tax Positions0.6 
Settlements with Taxing Authorities(2.0)
Lapse of Statute of Limitations(1.7)
Unrecognized Tax Benefits, December 31, 2022$5.7 
Gross Increases from Current Period Tax Positions0.3 
Gross Increases from Acquisitions3.8 
Lapse of Statute of Limitations(1.3)
Unrecognized Tax Benefits, December 31, 2023$8.5 
Gross Increases from Current Period Tax Positions0.8 
Acquisition Measurement Period Adjustment(2.8)
Lapse of Statute of Limitations(2.3)
Unrecognized Tax Benefits, December 31, 2024$4.2 

Unrecognized tax benefits as of December 31, 2024 amount to $4.2 million, all of which would impact the effective income tax rate if recognized.

Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense. During 2024, 2023 and 2022, the Company recognized approximately $(0.3) million, $(0.1) million and $(0.1) million of net interest income, respectively. The Company had approximately $0.7 million, $1.1 million and $1.2 million of accrued interest as of December 31, 2024, December 31, 2023 and December 31, 2022, respectively.

Due to statute expirations, approximately $1.8 million of the unrecognized tax benefits, including accrued interest, could reasonably change in the coming year.

The Company conducts business globally and, as a result, files income tax returns in the US federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The US Internal Revenue Service is currently conducting an audit of the Company's 2022 income tax return. No material deficiencies have been assessed related to ongoing audits as of December 31, 2024. With few exceptions, the Company is no longer subject to US federal and state/local income tax examinations by tax authorities for years prior to 2021, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2020.

As of December 31, 2024 and December 31, 2023 the Company had approximately $14.8 million and $16.1 million, respectively, of tax effected net operating losses in various jurisdictions with a portion expiring over a period of up to 15 years and the remaining without expiration.

Valuation allowances totaling $8.3 million and $11.0 million as of December 31, 2024 and December 31, 2023, respectively, have been established for deferred income tax assets primarily related to certain subsidiary loss carryforwards that may not be realized. Realization of the net deferred income tax assets is dependent on generating sufficient taxable income prior to their expiration. Although realization is not assured, management believes it is more-likely-than-not that the net deferred income tax assets will be realized. The amount of the net deferred income tax assets considered realizable, however, could change in the near term if future taxable income during the carryforward period fluctuates.
The Company continues to treat approximately $213.0 million of earnings from certain foreign entities as permanently reinvested and has not recorded a deferred tax liability for the local withholding taxes of approximately $16.9 million on those earnings.