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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 10 I ncome Taxes Significant components of the provision for income taxes for the years ended December 31 are as follows:
(in millions) |  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 179.7 |  |  | $ | 124.1 |  |  | $ | 106.8 |
State |  |  | 57.0 |  |  |  | 35.3 |  |  |  | 32.6 |
Foreign |  |  | 23.6 |  |  |  | 2.1 |  |  |  | 1.8 |
Total current provision |  |  | 260.3 |  |  |  | 161.5 |  |  |  | 141.2 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 26.6 |  |  |  | 38.9 |  |  |  | 28.0 |
State |  |  | 5.7 |  |  |  | 8.2 |  |  |  | 5.0 |
Foreign |  |  | (17.0 | ) |  |  | (4.3 | ) |  |  | 1.5 |
Total deferred provision |  |  | 15.3 |  |  |  | 42.8 |  |  |  | 34.5 |
Total tax provision |  | $ | 275.6 |  |  | $ | 204.3 |  |  | $ | 175.7 |
A reconciliation of the differences between the effective tax rate and the federal statutory tax rate for the years ended December 31 is as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Federal statutory tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal income tax benefit |  |  | 4.5 |  |  |  | 4.7 |  |  |  | 4.7 |
Non-deductible employee stock purchase plan expense |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.2 |
Non-deductible meals and entertainment |  |  | 0.2 |  |  |  | 0.1 |  |  |  | — |
Non-deductible officers’ compensation |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 0.4 |
Tax benefit from stock-based compensation |  |  | (1.6 | ) |  |  | (3.1 | ) |  |  | (3.6 | )
Other, net |  |  | (0.6 | ) |  |  | (0.2 | ) |  |  | 0.3 |
Effective tax rate |  |  | 24.1 | % |  |  | 23.3 | % |  |  | 23.0 | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for income tax reporting purposes. Significant components of the Company’s net deferred tax liabilities as of December 31 are as follows:
(in millions) |  | 2023 |  |  | 2022 |
Non-current deferred tax liabilities: |  |  |  |  |  |
Intangible assets |  | $ | 700.7 |  |  | $ | 631.6 |
Fixed assets |  |  | 23.0 |  |  |  | 21.1 |
Right-of-use assets |  |  | 43.1 |  |  |  | 48.3 |
Impact of adoption of ASC 606 revenue recognition |  |  | 25.0 |  |  |  | 19.8 |
Net unrealized holding (loss)/gain on available-for-sale securities |  |  | (0.3 | ) |  |  | (0.4 | )
Total non-current deferred tax liabilities |  |  | 791.5 |  |  |  | 720.4 |
Non-current deferred tax assets: |  |  |  |  |  |
Deferred compensation |  |  | 85.1 |  |  |  | 67.4 |
Accruals and reserves |  |  | 19.4 |  |  |  | 12.5 |
Lease liabilities |  |  | 48.9 |  |  |  | 54.6 |
Net operating loss carryforwards and other carryforwards |  |  | 23.3 |  |  |  | 3.0 |
Valuation allowance for deferred tax assets |  |  | (1.4 | ) |  |  | (1.1 | )
Total non-current deferred tax assets |  |  | 175.3 |  |  |  | 136.4 |
Net non-current deferred tax liability |  | $ | 616.2 |  |  | $ | 584.0 |
Income taxes paid in 2023, 2022 and 2021 were $218.5 million, $124.9 million and $147.5 million, respectively. At December 31, 2023, for income tax reporting purposes, the Company had net operating loss carryforwards of $35.0 million for federal, no net operating loss carryforwards for international jurisdiction and $80.1 million net operating loss carryforwards for state, portions of which expire in the years 2024 and thereafter. The state carryforward amount is derived from the operating results of certain subsidiaries. During 2022, the Company was able to utilize the 2021 net operating loss carryforward in Canada of $1.8 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in millions) |  | 2023 |  |  | 2022 |  |  | 2021 |
Unrecognized tax benefits balance at January 1 |  | $ | 3.1 |  |  | $ | 0.9 |  |  | $ | 1.3 |
Gross increases for tax positions of prior years |  |  | 3.2 |  |  |  | 2.2 |  |  |  | 0.3 |
Gross decreases for tax positions of prior years |  |  | — |  |  |  | — |  |  |  | (0.5 | )
Settlements |  |  | (1.0 | ) |  |  | — |  |  |  | (0.2 | )
Unrecognized tax benefits balance at December 31 |  | $ | 5.3 |  |  | $ | 3.1 |  |  | $ | 0.9 |
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2023, 2022 and 2021 the Company had $0.6 million, $0.7 million and $0.3 million of accrued interest and penalties related to uncertain tax positions, respectively. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized was $5.3 million as of December 31, 2023, $3.1 million as of December 31, 2022 and $0.9 million as of December 31, 2021. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company is subject to taxation in the United States and various state jurisdictions. The Company is also subject to taxation in various international jurisdictions throughout Europe and Asia. In the United States, federal returns for fiscal years 2020 through 2023 remain open and subject to examination by the Internal Revenue Service. The Company files and remits state income taxes in various states where the Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2019 through 2023. The Company files and remits income taxes in various international jurisdictions where the Company has determined it is required to file income taxes. The Company's filings with those countries remain open for audit for the fiscal years 2018 through 2023. The Company also operates in Bermuda and the Cayman Islands. The Company is not subject to any income taxes in these countries. During 2022, the Company came under audit in the State of Massachusetts for the fiscal years 2018-2020. A subsidiary of the Company is currently under audit in the State of Missouri for the fiscal years 2019-2021. During 2023, the Company settled the previously disclosed State of Massachusetts income tax audit for the fiscal years 2015-2017, settled the previously disclosed State of Wisconsin audit for the fiscal years 2017-2020 and settled the previously disclosed State of Missouri audit for the fiscal years 2019-2021. There were no material adjustments as a result of the finalization of these audits. During 2023, the State of Michigan initiated an audit on the Company for the fiscal years 2018-2021, and the State of California initiated an audit for the fiscal years 2020-2021. In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. The Company has determined it is not practical to determine the unrecognized deferred tax liabilities on the undistributed earnings from the Company’s international subsidiaries as such earnings are considered to be indefinitely reinvested.

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- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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