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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

United States and International Components of Loss before Income Taxes

The U.S. and International components of income (loss) before income taxes consisted of the following for the years ended, December 31:


In millions
	2021		2020		2019
U.S.	$	(14.0)	$	65.6	$	(150.5)
International	14.7		(121.6)		(212.3)
Total income (loss) before income taxes	$	0.7	$	(56.0)	$	(362.8)

Significant Components of Income Tax Benefit (Expense)

Significant components of the Company’s income tax (expense) benefit for the years ended December 31, are as follows:


In millions
	2021		2020		2019
Current
U.S. - federal	$	4.9	$	108.3	$	—
U.S. - state and local	(1.4)		(2.9)		(10.7)
International	(6.4)		(6.0)		(6.4)
	(2.9)		99.4		(17.1)
Deferred
U.S. - federal	(17.0)		(85.9)		23.9
U.S. - state and local	(4.6)		(13.7)		8.0
International	(3.0)		0.3		2.0
	(24.6)		(99.3)		33.9
Total (expense) benefit	$	(27.5)	$	0.1	$	16.8

Reconciliation of Income Tax Provision Computed at Federal Statutory Rate to Effective Tax Rate

A reconciliation of the income tax provision computed at the U.S. federal statutory rate to the effective tax rate for the years ended December 31, are as follows:


	2021		2020		2019
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Effect of:
State and local taxes, net of federal tax effect	(317.2	%)	(11.2	%)	1.2	%
International tax rates	(938.5	%)	14.3	%	5.1	%
Permanent - other items	248.2	%	(2.1	%)	(4.2	%)
Permanent - goodwill impairment	—	%	—	%	(14.1	%)
FCPA settlement accrual	3,118.2	%	—	%	—	%
CARES Act and other tax matters	(268.4	%)	79.2	%	—	%
Valuation allowance	1,727.9	%	(26.5	%)	(1.2	%)
Divestitures	(708.4	%)	(62.7	%)	1.2	%
Stock-based compensation and executive compensation disallowance	908.6	%	(11.9	%)	(1.0	%)
Other	37.6	%	0.1	%	(3.4	%)
Effective tax rate	3,829.0	%	0.2	%	4.6	%

Accordingly, the Company has included a reconciliation in both dollars and percentages below. Both the Company’s near-nil income before taxes and the Company’s magnified effective tax rate are driven by the FCPA settlement accrual and its non-deductibility for tax purposes (see Note 19 – Legal Proceedings for further information).


	2021 Tax Expense (Benefit)		Tax Rate
U.S. federal tax expense (benefit) at statutory income tax rate	$	0.2	21.0	%
Effect of:
State and local taxes, net of federal tax effect	(2.3)		(317.2	%)
International tax rates	(6.8)		(938.5	%)
Permanent - other items	1.8		248.2	%

FCPA settlement accrual	22.5		3,118.2	%
CARES Act and other tax matters	(1.9)		(268.4	%)
Valuation allowance	12.5		1,727.9	%
Divestitures	(5.1)		(708.4	%)
Stock-based compensation and executive compensation disallowance	6.5		908.6	%
Other	0.1		37.6	%
Effective tax expense (benefit)	$	27.5	3,829.0	%

Deferred Tax Liabilities and Assets

Deferred tax liabilities and assets at December 31, were as follows:


In millions
	2021		2020
Deferred tax liabilities:
Property, plant and equipment	$	(87.2)	$	(49.0)
Goodwill and intangibles	(394.4)		(391.2)
Leases - right of use asset	(89.9)		(91.3)
Other	(15.7)		(17.1)
Total deferred tax liabilities	(587.2)		(548.6)
Deferred tax assets:
Accrued liabilities	58.6		63.1
Leases - right of use liability	95.1		96.5
Net operating tax loss carry-forwards	73.4		49.0
Interest expense carry-forward	15.3		11.3
Other	11.7		15.0
Less: valuation allowance	(61.4)		(52.0)
Total deferred tax assets	192.7		182.9
Net deferred tax liabilities	$	(394.5)	$	(365.7)

Summary of Aggregate Changes in Unrecognized Tax benefits

The following table summarizes the aggregate changes in unrecognized tax benefits:


In millions
Unrecognized tax positions as of December 31, 2019	$	62.7
Gross increases - tax positions in prior periods	(33.5)
Gross increases - current period tax positions	2.4
Settlements	(0.8)
Lapse of statute of limitations	(6.5)
Unrecognized tax positions as of December 31, 2020	24.3
Gross increases (decreases) - tax positions in prior periods	(5.7)
Gross increases - current period tax positions	5.3
Settlements	(0.2)
Lapse of statute of limitations	(4.0)
Unrecognized tax positions as of December 31, 2021	$	19.7

Summary of Valuation Allowance

valuation allowance on deferred tax assets is as follows:



In millions	Year Ended December 31,



	2021		2020		2019
Balances at beginning of period	$	52.0	$	39.4	$	35.3
Additions Charged to Income Tax Expense(1)	10.5		17.8		13.3
Other Changes to Reserves (2)	(1.1)		(5.2)		(9.2)
Balances at end of period	$	61.4	$	52.0	$	39.4

(1)2021 amount includes valuation allowances on business operations (including the U.K., Brazil, and Spain). 2020 amount includes valuation allowances on business operations (including the U.K. and Brazil).

(2)2021 and 2020 amounts consist primarily of currency translation adjustments. 2019 amount consists primarily of divestiture valuation allowances for businesses in Mexico and Chile.