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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Components of Income Before Taxes | The components of income before taxes are as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | 872.4 |  |  | $ | 447.1 |  |  | $ | 958.6 |
Foreign |  |  | 95.0 |  |  |  | 76.2 |  |  |  | 73.1 |
Total |  | $ | 967.4 |  |  | $ | 523.3 |  |  | $ | 1,031.7 |
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:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 159.1 |  |  | $ | 162.0 |  |  | $ | 130.6 |
State |  |  | 40.9 |  |  |  | 44.8 |  |  |  | 34.1 |
Foreign |  |  | 25.6 |  |  |  | 20.3 |  |  |  | 19.2 |
|  |  | 225.6 |  |  |  | 227.1 |  |  |  | 183.9 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. federal |  |  | (11.3 | ) |  |  | (78.8 | ) |  |  | 16.5 |
State |  |  | (2.8 | ) |  |  | (38.3 | ) |  |  | 4.5 |
Foreign |  |  | 0.3 |  |  |  | (0.6 | ) |  |  | (0.7 | )
|  |  | (13.8 | ) |  |  | (117.7 | ) |  |  | 20.3 |
Total provision |  | $ | 211.8 |  |  | $ | 109.4 |  |  | $ | 204.2 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consist of the following at December 31, 2023 and 2022:
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 10.1 |  |  | $ | 8.9 |
Deferred compensation |  |  | 50.7 |  |  |  | 46.9 |
Pension, postretirement and postemployment benefits |  |  | 4.8 |  |  |  | 5.0 |
Inventory reserve |  |  | 9.0 |  |  |  | 8.8 |
Sec 174 R&D Capitalization |  |  | 41.9 |  |  |  | 22.0 |
Tax credit carryforwards/other tax attributes |  |  | 2.6 |  |  |  | 2.8 |
International operating loss carryforwards |  |  | 9.0 |  |  |  | 8.8 |
Other |  |  | 9.9 |  |  |  | 7.3 |
Total gross deferred tax assets |  |  | 138.0 |  |  |  | 110.5 |
Valuation allowances |  |  | (9.8 | ) |  |  | (9.4 | )
Total deferred tax assets |  |  | 128.2 |  |  |  | 101.1 |
Deferred tax liabilities: |  |  |  |  |  |
Goodwill |  |  | (285.7 | ) |  |  | (272.1 | )
Trade names and other intangibles |  |  | (496.3 | ) |  |  | (504.5 | )
Property, plant and equipment |  |  | (81.1 | ) |  |  | (74.2 | )
Interest rate swaps |  |  | (4.1 | ) |  |  | (4.5 | )
Total deferred tax liabilities |  |  | (867.2 | ) |  |  | (855.3 | )
Net deferred tax liability |  | $ | (739.0 | ) |  | $ | (754.2 | )
Long term net deferred tax asset |  |  | 4.1 |  |  |  | 2.8 |
Long term net deferred tax liability |  |  | (743.1 | ) |  |  | (757.0 | )
Net deferred tax liability |  | $ | (739.0 | ) |  | $ | (754.2 | )
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:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Statutory rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Tax that would result from use of the federal statutory rate |  | $ | 203.1 |  |  | $ | 109.9 |  |  | $ | 216.6 |
State and local income tax, net of federal effect |  |  | 30.1 |  |  |  | 5.2 |  |  |  | 30.5 |
Varying tax rates of foreign affiliates |  |  | 6.8 |  |  |  | 2.9 |  |  |  | 2.6 |
Valuation Allowances |  | 0.0 |  |  |  | (4.1 | ) |  |  | (8.5 | )
Stock Options Exercised |  |  | (21.8 | ) |  |  | (5.2 | ) |  |  | (29.0 | )
Reserve for Uncertain Tax Position |  |  | (0.3 | ) |  |  | (0.9 | ) |  |  | 0.0 |
Other |  |  | (6.1 | ) |  |  | 1.6 |  |  |  | (8.0 | )
Recorded tax expense |  | $ | 211.8 |  |  | $ | 109.4 |  |  | $ | 204.2 |
Effective tax rate |  |  | 21.9 | % |  |  | 20.9 | % |  |  | 19.8 | %
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Unrecognized tax benefits at January 1 |  | $ | 5.8 |  |  | $ | 4.7 |  |  | $ | 7.3 |
Gross increases - tax positions in current period |  | 0.0 |  |  |  | 2.4 |  |  |  | 0.3 |
Gross increases - tax positions in prior period |  | 0.0 |  |  | 0.0 |  |  |  | 0.8 |
Gross decreases - tax positions in prior period |  | 0.0 |  |  |  | (0.1 | ) |  | 0.0 |
Decreases due to settlements and payments |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Lapse of statute of limitations |  |  | (0.7 | ) |  |  | (1.2 | ) |  |  | (3.7 | )
Unrecognized tax benefits at December 31 |  | $ | 5.1 |  |  | $ | 5.8 |  |  | $ | 4.7 |

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