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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
INCOME TAXES  
Income before income taxes

(millions)

    

2022

    

2021

    

2020

United States (U.S.)

    

$295.6

    

    

$277.7

    

    

$100.5

    

International

 

1,047.8

1,136.5

1,060.9

Total

$1,343.4

$1,414.2

$1,161.4

Provision (benefit) for income taxes

(millions)

    

2022

    

2021

    

2020

U.S. federal and state

    

$145.7

$30.9

($43.9)

    

International

 

231.4

240.2

259.8

Total current

 

377.1

271.1

215.9

U.S. federal and state

 

(78.9)

3.6

12.0

International

 

(63.7)

(4.5)

(51.3)

Total deferred

 

(142.6)

(0.9)

(39.3)

Provision for income taxes

$234.5

$270.2

$176.6

Net deferred tax assets and deferred tax liabilities

December 31 (millions)

    

2022

    

2021

Deferred tax assets

    

    

    

    

Pension and post-retirement benefits

$87.0

$136.8

Other accrued liabilities

129.6

135.6

Lease liability

 

 

109.2

 

101.3

Credit carryforwards

97.8

81.8

Capitalization of R&D costs

84.5

-

Loss carryforwards

 

 

67.2

 

59.6

Share-based compensation

 

 

51.2

 

44.7

Deferred income

59.6

44.8

Other, net

 

 

98.8

 

71.0

Valuation allowance

 

 

(65.2)

 

(50.3)

Total deferred tax assets

 

 

719.7

 

625.3

Deferred tax liabilities

Intangible assets

 

 

(611.1)

 

(631.0)

Property, plant and equipment

 

 

(319.7)

 

(333.5)

Lease asset

(109.1)

(100.3)

Financing

(33.5)

(34.2)

Other, net

 

 

(43.8)

 

(27.7)

Total deferred tax liabilities

 

 

(1,117.2)

 

(1,126.7)

Net deferred tax liabilities balance

($397.5)

($501.4)

Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate

    

2022

2021

2020

Statutory U.S. rate

21.0

%  

21.0

%

21.0

%

State income taxes, net of federal benefit

1.3

 

0.6

 

0.4

Foreign operations

(0.8)

 

(0.6)

 

(1.3)

Excess stock benefits

(0.4)

(2.0)

(4.9)

R&D credit

(1.4)

 

(1.3)

 

(1.1)

Foreign derived intangible income

(1.8)

(1.6)

(0.2)

Change in valuation allowance

0.7

 

0.5

 

0.6

Legal entity rationalization

(1.5)

-

-

One-time transfer of intangibles

-

1.8

-

Other, net

0.4

 

0.7

 

0.7

Effective income tax rate

17.5

%

19.1

%

15.2

%

Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits

(millions)

    

2022

    

2021

2020

Balance at beginning of year

$25.1

$20.7

$27.0

Additions based on tax positions related to the current year

    

2.7

 

3.8

 

3.3

Additions for tax positions of prior years

 

 

3.6

 

3.0

 

-

Current year acquisitions

-

4.4

-

Reductions for tax positions of prior years

 

 

(1.5)

 

-

 

(1.1)

Reductions for tax positions due to statute of limitations

 

 

(0.7)

 

(3.0)

 

(9.1)

Settlements

 

 

(3.4)

 

(3.7)

 

-

Foreign currency translation

 

 

(0.9)

 

(0.1)

 

0.6

Balance at end of year

$24.9

$25.1

$20.7