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TAXES BASED ON INCOME (Tables)

12 Months Ended

Dec. 31, 2022

Taxes based on income were as follows:

The principal items accounting for the difference between taxes computed at U.S. federal statutory rate and taxes recorded were as follows:


(In millions)	2022		2021		2020
Tax provision computed at U.S. federal statutory rate(1)	$	209.9	$	208.5	$	154.8
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit	11.8		4.5		6.9
Foreign earnings taxed at different rates(1)	55.3		75.4		51.4
GILTI high-tax exclusion election, net(2)	(11.9)		(22.8)		(12.5)
Valuation allowance	(5.0)		(4.8)		(3.3)
U.S. federal research and development tax credits	(6.5)		(6.2)		(6.2)
Tax contingencies and audit settlements	(4.3)		3.9		(5.5)
Other items, net	(7.1)		(9.9)		(7.9)
Provision for income taxes	$	242.2	$	248.6	$	177.7


(1)			All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.
(2)			In 2022, we recognized $11.9 million of benefit related to a GILTI exclusion election made on our 2021 U.S. federal tax return. In 2021, we recognized $14.1 million and $8.7 million of benefit related to GILTI exclusion elections made on our amended 2018 and originally filed 2020 U.S. federal tax returns, respectively. In 2020, we recognized $12.5 million of benefit related to a GILTI exclusion election we planned to make on our amended 2019 U.S. federal tax return.

Income before taxes from our U.S. and international operations was as follows:

The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:


(In millions)	2022		2021
Accrued expenses not currently deductible	$	32.3	$	34.6
Net operating loss carryforwards	137.2		154.4
Tax credit carryforwards	9.7		34.6
Capitalized research expenses	38.6		23.7
Stock-based compensation	15.4		13.6
Pension and other postretirement benefits	31.5		38.8
Inventory reserve	15.6		14.7
Lease liabilities	33.2		42.5
Other assets	21.3		25.3
Valuation allowance	(59.4)		(70.1)
Total deferred tax assets(1)	275.4		312.1
Depreciation and amortization	(296.6)		(292.6)
Repatriation accrual	(12.0)		(16.2)
Foreign operating loss recapture	(3.2)		(3.4)
Lease assets	(33.8)		(43.8)
Total deferred tax liabilities(1)	(345.6)		(356.0)
Total net deferred tax assets (liabilities)	$	(70.2)	$	(43.9)

(1)Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.

If unused, foreign net operating losses and tax credit carryforwards will expire as follows:

(1)Net operating losses are presented before tax effects and valuation allowance.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is set forth below.


(In millions)	2022		2021
Balance at beginning of year	$	74.0	$	72.0
Additions for tax positions of current year	6.6		9.1
Additions (reductions) for tax positions of prior years, net	(2.2)		1.2
Settlements with tax authorities	(1.1)		(1.1)
Expirations of statutes of limitations	(4.8)		(5.2)
Changes due to translation of foreign currencies	(3.0)		(2.0)
Balance at end of year	$	69.5	$	74.0