XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes for the years ended December 31, 2021, 2020 and 2019 consisted of the following components:
| 2021 |  | 2020 |  | 2019
United States | $ | 915.3 |  |  | $ | 752.7 |  |  | $ | 1,741.2 |
Other | 355.7 |  |  | 298.7 |  |  | 316.2 |
| $ | 1,271.0 |  |  | $ | 1,051.4 |  |  | $ | 2,057.4 |
Components of income tax expense for the years ended December 31, 2021, 2020 and 2019 were as follows:
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 130.6 |  |  | $ | 157.5 |  |  | $ | 366.5 |
State | 56.8 |  |  | 50.0 |  |  | 72.0 |
Foreign | 94.5 |  |  | 75.3 |  |  | 77.9 |
Deferred: |  |  |  |  |
Federal | 28.0 |  |  | (56.7) |  |  | (47.1) |
State | (26.6) |  |  | (5.2) |  |  | (2.2) |
Foreign | 5.1 |  |  | 5.0 |  |  | (49.7) |
| $ | 288.4 |  |  | $ | 225.9 |  |  | $ | 417.4 |
Reconciliations between the statutory federal income tax rate and the effective income tax rate for the years ended December 31, 2021, 2020 and 2019 were as follows:
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign operations, net | 2.6 |  |  | 1.7 |  |  | (0.1) |
R&D tax credits | (1.8) |  |  | (1.4) |  |  | (0.5) |
State taxes, net of federal benefit | 2.7 |  |  | 2.9 |  |  | 1.4 |
Stock-based compensation | (2.3) |  |  | (3.3) |  |  | (1.3) |
Impact of UK tax rate change | 1.7 |  |  | — |  |  | — |
Divestitures | — |  |  | — |  |  | 2.0 |
Legal entity restructuring | (1.2) |  |  | — |  |  | (2.0) |
Other, net | — |  |  | 0.6 |  |  | (0.2) |
| 22.7 | % |  | 21.5 | % |  | 20.3 | %
The deferred income tax balance sheet accounts arise from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. Components of the deferred tax assets and liabilities at December 31 were as follows:
| 2021 |  | 2020
Deferred tax assets: |  |  |
Reserves and accrued expenses | $ | 195.8 |  |  | $ | 175.0 |
Net operating loss carryforwards | 101.5 |  |  | 153.6 |
R&D credits | 12.5 |  |  | 26.2 |
Interest expense limitation carryforwards | 10.9 |  |  | 63.0 |
Outside basis differences on assets held for sale | 57.5 |  |  | — |
Lease liability | 52.6 |  |  | 56.3 |
Valuation allowance | (44.4) |  |  | (37.7) |
Total deferred tax assets | $ | 386.4 |  |  | $ | 436.4 |
Deferred tax liabilities: |  |  |
Reserves and accrued expenses | $ | 16.1 |  |  | $ | 21.5 |
Amortizable intangible assets | 1,670.2 |  |  | 1,762.8 |
Plant and equipment | 3.8 |  |  | 7.4 |
Accrued tax on unremitted foreign earnings | 24.7 |  |  | 18.6 |
ROU asset | 50.0 |  |  | 54.4 |
Total deferred tax liabilities | $ | 1,764.8 |  |  | $ | 1,864.7 |
As of December 31, 2021, the Company has approximately $11.1 of tax-effected U.S. federal net operating loss carryforwards. Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2022 if not utilized. The majority of the U.S. federal net operating loss carryforwards are subject to limitation under the Internal Revenue Code of 1986, as amended (“IRC”) Section 382; however, the Company expects to utilize such losses in their entirety prior to expiration. The U.S. federal net operating loss carryforwards decreased from 2020 to 2021 primarily due to current year utilization. The Company has approximately $39.2 of tax-effected state net operating loss carryforwards (without regard to federal benefit of state). Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2022 if not utilized. The state net operating loss carryforwards are primarily related to Florida, but the Company has smaller net operating losses in various other states. The Company has approximately $59.5 of tax-effected foreign net operating loss carryforwards. Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2022 if not utilized. The foreign net operating loss carryforwards decreased from 2020 to 2021 primarily due to current year utilization. The Company has $14.8 of U.S. federal and state research and development tax credit carryforwards (without regard to federal benefit of state). Some of these research and development credit carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2022 if not utilized. The research and development tax credit carryforwards decreased from 2020 to 2021 primarily due to current year utilization. Additionally, as of December 31, 2021, the Company has $10.9 of IRC Section 163(j) interest expense limitation carryforwards which have an indefinite carryforward period. The interest expense limitation carryforward decreased from 2020 to 2021 primarily due to current year utilization. As of December 31, 2021, the Company determined that a total valuation allowance of $44.4 was necessary to reduce U.S. federal and state deferred tax assets by $25.3 and foreign deferred tax assets by $19.1, where it was more likely than not that all of such deferred tax assets will not be realized. As of December 31, 2021, the Company believes it is more likely than not that the remaining net deferred tax assets will be realized based on the Company’s estimates of future taxable income and any applicable tax-planning strategies within various tax jurisdictions. The Company recognizes in the Consolidated Financial Statements only those tax positions determined to be “more likely than not” of being sustained upon examination based on the technical merits of the positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2021 |  | 2020 |  | 2019
Beginning balance | $ | 75.6 |  |  | $ | 69.8 |  |  | $ | 63.6 |
Additions for tax positions of prior periods | 2.2 |  |  | 6.0 |  |  | 2.9 |
Additions for tax positions of the current period | 3.3 |  |  | 3.5 |  |  | 4.2 |
Additions due to acquisitions | 1.0 |  |  | 6.2 |  |  | 1.9 |
Reductions for tax positions of prior periods | (0.6) |  |  | (3.6) |  |  | (0.3) |
Reductions attributable to lapses of applicable statute of limitations | (4.6) |  |  | (6.3) |  |  | (2.5) |
Reductions attributable to settlements with taxing authorities | (27.5) |  |  | — |  |  | — |
Ending balance | $ | 49.4 |  |  | $ | 75.6 |  |  | $ | 69.8 |
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $48.1. Interest and penalties related to unrecognized tax benefits were $4.5 in 2021 and are classified as a component of income tax expense. Accrued interest and penalties were $5.0 at December 31, 2021 and $9.6 at December 31, 2020. During the next twelve months, it is reasonably possible that the unrecognized tax benefits may decrease by a net $3.0, mainly due to anticipated statute of limitations lapses in various jurisdictions. The Company and its subsidiaries are subject to examinations for U.S. federal income tax as well as income tax in various state, city and foreign jurisdictions. The Company’s federal income tax returns for 2018 through the current period remain open to examination and the relevant state, city and foreign statutes vary. The Company does not expect the assessment of any significant additional tax in excess of amounts reserved. The Company intends to distribute all historical unremitted foreign earnings up to the amount of excess foreign cash, as well as all future foreign earnings that can be repatriated without incremental U.S. federal tax cost. Any remaining outside basis differences relating to the Company’s investment in foreign subsidiaries are not expected to be material and will be indefinitely reinvested.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration