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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Before Taxes | The components of income before taxes are as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 447.1 |  |  | $ | 958.6 |  |  | $ | 921.6 |
Foreign |  |  | 76.2 |  |  |  | 73.1 |  |  |  | 52.2 |
Total |  | $ | 523.3 |  |  | $ | 1,031.7 |  |  | $ | 973.8 |
Schedule of U.S. Federal, State and Foreign Income Taxes | The following table summarizes the provision for U.S. federal, state and foreign income taxes:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 162.0 |  |  | $ | 130.6 |  |  | $ | 114.2 |
State |  |  | 44.8 |  |  |  | 34.1 |  |  |  | 32.1 |
Foreign |  |  | 20.3 |  |  |  | 19.2 |  |  |  | 15.9 |
|  |  | 227.1 |  |  |  | 183.9 |  |  |  | 162.2 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. federal |  |  | (78.8 | ) |  |  | 16.5 |  |  |  | 22.9 |
State |  |  | (38.3 | ) |  |  | 4.5 |  |  |  | 4.2 |
Foreign |  |  | (0.6 | ) |  |  | (0.7 | ) |  |  | (1.4 | )
|  |  | (117.7 | ) |  |  | 20.3 |  |  |  | 25.7 |
Total provision |  | $ | 109.4 |  |  | $ | 204.2 |  |  | $ | 187.9 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consist of the following at December 31:
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 8.9 |  |  | $ | 8.6 |
Deferred compensation |  |  | 46.9 |  |  |  | 52.0 |
Pension, postretirement and postemployment benefits |  |  | 5.0 |  |  |  | 6.1 |
Other (including reserves) |  |  | 16.1 |  |  |  | 23.3 |
Sec 174 R&D Capitalization |  |  | 22.0 |  |  | 0.0 |
Tax credit carryforwards/other tax attributes |  |  | 2.8 |  |  |  | 2.9 |
International operating loss carryforwards |  |  | 8.8 |  |  |  | 8.2 |
Interest rate swaps |  | 0.0 |  |  |  | 10.3 |
Total gross deferred tax assets |  |  | 110.5 |  |  |  | 111.4 |
Valuation allowances |  |  | (9.4 | ) |  |  | (13.1 | )
Total deferred tax assets |  |  | 101.1 |  |  |  | 98.3 |
Deferred tax liabilities: |  |  |  |  |  |
Goodwill |  |  | (272.1 | ) |  |  | (270.2 | )
Trade names and other intangibles |  |  | (504.5 | ) |  |  | (508.5 | )
Property, plant and equipment |  |  | (74.2 | ) |  |  | (55.5 | )
Interest rate swaps |  |  | (4.5 | ) |  | 0.0 |
Total deferred tax liabilities |  |  | (855.3 | ) |  |  | (834.2 | )
Net deferred tax liability |  | $ | (754.2 | ) |  | $ | (735.9 | )
Long term net deferred tax asset |  |  | 2.8 |  |  |  | 9.2 |
Long term net deferred tax liability |  |  | (757.0 | ) |  |  | (745.1 | )
Net deferred tax liability |  | $ | (754.2 | ) |  | $ | (735.9 | )
Effective Tax Rate Reconciliation | The difference between tax expense and the tax that would result from the application of the federal statutory rate is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Tax that would result from use of the federal statutory rate |  | $ | 109.9 |  |  | $ | 216.6 |  |  | $ | 204.5 |
State and local income tax, net of federal effect |  |  | 5.2 |  |  |  | 30.5 |  |  |  | 28.7 |
Varying tax rates of foreign affiliates |  |  | 2.9 |  |  |  | 2.6 |  |  |  | 2.8 |
Valuation Allowances |  |  | (4.1 | ) |  |  | (8.5 | ) |  |  | 2.9 |
Stock Options Exercised |  |  | (5.2 | ) |  |  | (29.0 | ) |  |  | (29.4 | )
Reserve for Uncertain Tax Position |  |  | (0.9 | ) |  |  | 0.0 |  |  |  | (10.6 | )
Other |  |  | 1.6 |  |  |  | (8.0 | ) |  |  | (11.0 | )
Recorded tax expense |  | $ | 109.4 |  |  | $ | 204.2 |  |  | $ | 187.9 |
Effective tax rate |  |  | 20.9 | % |  |  | 19.8 | % |  |  | 19.3 | %
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Unrecognized tax benefits at January 1 |  | $ | 4.7 |  |  | $ | 7.3 |  |  | $ | 18.9 |
Gross increases - tax positions in current period |  |  | 2.4 |  |  |  | 0.3 |  |  |  | 0.0 |
Gross increases - tax positions in prior period |  | 0.0 |  |  |  | 0.8 |  |  |  | 1.6 |
Gross decreases - tax positions in prior period |  |  | (0.1 | ) |  |  | 0.0 |  |  |  | (11.8 | )
Decreases due to settlements and payments |  | 0.0 |  |  |  | 0.0 |  |  |  | (1.4 | )
Lapse of statute of limitations |  |  | (1.2 | ) |  |  | (3.7 | ) |  |  | 0.0 |
Unrecognized tax benefits at December 31 |  | $ | 5.8 |  |  | $ | 4.7 |  |  | $ | 7.3 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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