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TAXATION
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
TAXATION TAXATION
The components of the company's income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 are as follows:
(in millions)202320222021
Current:
Federal$164.0 $214.1 $287.5 
State42.7 50.2 68.7 
Foreign32.8 9.6 95.2 
$239.5 $273.9 $451.4 
Deferred:
Federal$(235.3)$35.2 $72.7 
State(44.1)(1.1)22.2 
Foreign(29.8)14.2 (15.2)
(309.2)48.3 79.7 
Total income tax expense (benefit)$(69.7)$322.2 $531.1 
A reconciliation between the statutory U.S. federal income tax rate and the effective tax rate per the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 is as follows:
2023 (1)
20222021
Statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal tax effect3.2 %3.1 %2.9 %
Effect of foreign taxes on non-U.S. earnings11.1 %1.3 %0.1 %
Effect of income/(loss) attributable to noncontrolling interests in consolidated entities(6.3)%(0.1)%(2.9)%
Effect of income/(loss) attributable to equity method investments in corporate joint ventures
7.4 %(1.7)%(0.9)%
Change in valuation allowance(2.9)%— %— %
Nontaxable gains3.9 %— %— %
Nondeductible executive compensation(4.6)%— %— %
Other(3.5)%2.2 %1.0 %
Effective tax rate per Consolidated Statements of Income29.3 %25.8 %21.2 %
__________
(1)    Certain signs within the table in the year ended December 31, 2023 are the opposite compared to the years ended December 31, 2022 and 2021 as a result of applying each line’s total income tax benefit or expense to the loss before income taxes.

The company’s effective tax rate is affected by the tax rates in foreign jurisdictions, which are different than the U.S. federal statutory tax rate of 21%, and the relative amount of income earned in those jurisdictions. As a result, the effective tax rate will vary from year to year depending on the mix of the profits and losses from each jurisdiction.

The components of income/(loss) before taxes for the years ended December 31, 2023, 2022 and 2021 are as follows:

(in millions)202320222021
Domestic$(469.2)$1,212.0 $2,089.5 
Foreign231.3 35.7 411.0 
Income/(loss) before income taxes$(237.9)$1,247.7 $2,500.5 

The components of the deferred tax assets and liabilities reflected in the Consolidated Balance Sheets at December 31, 2023 and 2022 include the following:
(in millions)20232022
Deferred tax assets:
Compensation and benefits$95.6 $97.8 
Lease obligations66.7 67.2 
Net operating loss carryforwards154.3 124.4 
Fixed assets15.7 7.1 
Accrued liabilities34.4 37.1 
Other4.9 9.0 
Total deferred tax assets371.6 342.6 
Valuation allowance(98.9)(93.5)
Deferred tax assets, net of valuation allowance272.7 249.1 
Deferred tax liabilities:
Goodwill and intangibles(1,519.1)(1,796.1)
Leased assets(55.9)(58.4)
Other(21.8)(27.3)
Total deferred tax liabilities(1,596.8)(1,881.8)
Net deferred tax liability$(1,324.1)$(1,632.7)
Deferred income tax assets and liabilities are recorded net when related to the same tax jurisdiction. At December 31, 2023, the company recorded on the Consolidated Balance Sheets net deferred tax assets of $1.6 million in Other assets and net Deferred tax liabilities of $1,325.7 million. At December 31, 2022, the company recorded on the Consolidated Balance Sheets net deferred tax assets of $30.0 million in Other assets and net Deferred tax liabilities of $1,662.7 million.

At December 31, 2023, the company had state net operating loss carryforwards of $33.5 million, which will expire, if not utilized, between 2024 and 2038 except for approximately $2.6 million which have an indefinite life. At December 31, 2023, the company also had federal and foreign net operating loss carryforwards of $120.8 million, of which approximately $10.5 million will expire over several years starting in 2024, with the remaining $110.3 million having an indefinite life. A valuation allowance has been recorded against certain carryforwards and certain deferred tax assets related to tax jurisdictions in which it is unlikely that the deferred tax asset will be realized.

Deferred tax liabilities are recognized for taxes that would be payable on the unremitted earnings of the company's foreign subsidiaries and corporate joint ventures, except where it is our intention to indefinitely reinvest the undistributed earnings. A deferred tax liability has not been recognized for our Canadian unremitted earnings, which are indefinitely reinvested, of approximately $1,068.8 million and $1,034.0 million at December 31, 2023 and 2022, respectively. If these earnings were distributed as a dividend, Canadian withholding tax of 5.0% would be due on the dividend. There are no other significant jurisdictions for which a deferred tax liability has not been recognized on unremitted earnings.

A reconciliation of the gross UTBs for the years ended December 31, 2023, 2022 and 2021 is as follows:
(in millions)202320222021
Balance at January 1$100.2 $86.6 $61.9 
Additions for tax positions related to the current year9.6 16.2 15.9 
Additions for tax positions related to prior years1.3 3.1 14.2 
Reductions for tax positions related to prior years(7.7)(1.2)(3.5)
Reductions related to lapse of statute of limitations(1.8)(2.1)(1.9)
Reductions related to settlements(10.3)(2.4)— 
Balance at December 31$91.3 $100.2 $86.6 

The amount of UTBs that, if recognized, would favorably affect the company's effective tax rate was $72.6 million at December 31, 2023. The company recognizes accrued interest and penalties related to UTBs as a component of the income tax provision. The Consolidated Balance Sheets include accrued interest and penalties related to UTBs of $17.0 million, $15.1 million and $14.8 million at December 31, 2023, 2022 and 2021, respectively. The company recognized expense for interest and penalties related to UTBs of $1.9 million, $1.4 million and $1.6 million in 2023, 2022 and 2021, respectively.

The company files U.S. federal, U.S. state and local, and numerous foreign income tax returns. The company is periodically examined by various taxing authorities. With few exceptions, the company is no longer subject to income tax examinations for years prior to 2013. As a result of the completion of taxing authorities' examinations and the expiration of statutes of limitations, it is reasonably possible that the company's gross UTBs may decrease by as much as $10.0 million within the next twelve months.