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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income before taxes and the provision (benefit) for taxes consisted of the following:
| 2021 |  | 2020 |  | 2019
(In millions) |  |  |  |  |
Income before taxes: |  |  |  |  |
United States | $ | 144.0 |  |  | $ | 24.7 |  |  | $ | 43.0 |
Foreign | 430.6 |  |  | 370.3 |  |  | 301.8 |
Total | $ | 574.6 |  |  | $ | 395.0 |  |  | $ | 344.8 |
Provision (benefit) for taxes: |  |  |  |  |
U.S. Federal: |  |  |  |  |
Current | $ | 27.1 |  |  | $ | (5.8) |  |  | $ | (3.8) |
Deferred | (22.9) |  |  | (16.3) |  |  | 252.3 |
| 4.2 |  |  | (22.1) |  |  | 248.5 |
U.S. State: |  |  |  |  |
Current | 5.6 |  |  | 0.8 |  |  | 5.1 |
Deferred | (2.5) |  |  | 7.1 |  |  | (0.7) |
| 3.1 |  |  | 7.9 |  |  | 4.4 |
Foreign: |  |  |  |  |
Current | 76.0 |  |  | 62.2 |  |  | 49.2 |
Deferred | (1.5) |  |  | (43.6) |  |  | (471.8) |
| 74.5 |  |  | 18.6 |  |  | (422.6) |
Income tax provision (benefit) | $ | 81.8 |  |  | $ | 4.4 |  |  | $ | (169.7) |
Effective tax rate | 14.2 | % |  | 1.1 | % |  | (49.2) | %
The difference between the tax provision (benefit) at the statutory federal income tax rate and the tax provision (benefit) as a percentage of income before taxes (“effective tax rate”) was as follows:
| 2021 |  | 2020 |  | 2019
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (reduction) in tax rate resulting from: |  |  |  |  |
Foreign income taxed at different rates | 0.5 | % |  | 1.7 | % |  | (7.3) | %
Change in valuation allowance | — | % |  | 2.0 | % |  | — | %
U.S. State income taxes | 1.1 | % |  | 0.5 | % |  | 1.5 | %
Stock-based compensation | 1.7 | % |  | 1.5 | % |  | 1.2 | %
Excess tax benefit related to stock-based compensation | (2.5) | % |  | (1.5) | % |  | (2.4) | %
Other U.S. taxes on foreign operations | (1.6) | % |  | (1.0) | % |  | 1.3 | %
U.S. Federal research and development credits | (2.1) | % |  | (2.3) | % |  | (2.8) | %
Tax reserve releases | (2.1) | % |  | (4.8) | % |  | (4.9) | %
Intellectual property restructuring and tax law changes | (2.5) | % |  | (16.2) | % |  | (59.8) | %
Other | 0.7 | % |  | 0.2 | % |  | 3.0 | %
Effective tax rate | 14.2 | % |  | 1.1 | % |  | (49.2) | %
In December 2021, due to a change in the Netherlands tax law, the statutory tax rate was further increased from 25.0% to 25.8% effective January 1, 2022. As a result, we recorded a one-time tax benefit of $14.4 million in 2021 due to the revaluation of the Netherlands deferred tax assets. Previously in December 2020, also as a result of a Netherlands tax law change that increased Netherlands statutory tax rate from 21.7% to 25.0%, effective January 1, 2021, we recorded a one-time tax benefit of $64.0 million in 2020 due to the revaluation of the Netherlands deferred tax assets. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of deferred tax assets and liabilities were as follows:
At the End of Year | 2021 |  | 2020
(In millions) |  |  |
Deferred tax liabilities: |  |  |
Global intangible low-taxed income | $ | 207.6 |  |  | $ | 219.7 |
Purchased intangibles | 115.8 |  |  | 138.1 |
Operating lease right-of-use assets | 33.5 |  |  | 32.3 |
Other | 12.7 |  |  | 11.3 |
Total deferred tax liabilities | 369.6 |  |  | 401.4 |
Deferred tax assets: |  |  |
Depreciation and amortization | 474.9 |  |  | 497.1 |
Operating lease liabilities | 36.4 |  |  | 35.0 |
U.S. tax credit carryforwards | 25.8 |  |  | 32.8 |
Expenses not currently deductible | 43.7 |  |  | 32.3 |
Foreign net operating loss carryforwards | 18.0 |  |  | 16.8 |
Stock-based compensation | 13.9 |  |  | 10.6 |
U.S. net operating loss carryforwards | 5.8 |  |  | 7.4 |
Other | 35.7 |  |  | 20.6 |
Total deferred tax assets | 654.2 |  |  | 652.6 |
Valuation allowance | (45.7) |  |  | (41.3) |
Total deferred tax assets | 608.5 |  |  | 611.3 |
Total net deferred tax assets | $ | 238.9 |  |  | $ | 209.9 |
Reported as: |  |  |
Non-current deferred income tax assets | $ | 502.0 |  |  | $ | 510.2 |
Non-current deferred income tax liabilities | (263.1) |  |  | (300.3) |
Net deferred tax assets | $ | 238.9 |  |  | $ | 209.9 |
At the end of 2021, we have U.S. federal and foreign net operating loss carryforwards, or NOLs, of approximately $12.9 million and $90.2 million, respectively. The U.S. federal NOLs will begin to expire in 2026. There is generally no expiration for the foreign NOLs. Utilization of our U.S. federal NOLs is subject to annual limitations in accordance wit h the applicable tax code. We have determined that it is more likely than not that we will not realize a portion of the foreign NOLs and, accordingly, a valuation allowance has been established for such amount. We have California research and development credit carryforwards of approximatel y $33.0 million, which have an indefinite carryforward period. We believe that it is more likely than not that we will not r ealize a significant portion of the California research and development credit carryforwards and, accordingly, a valuation allowance has been established for such amount. As a result of the Tax Act, we can repatriate foreign earnings back to the U.S. when needed with minimal U.S. income tax consequences. We reinvested a large portion of our undistributed foreign earnings in acquisitions and other investments and inte nd to bring back a portion of foreign cash that was subject to the transition tax and the global intangible low-taxed income tax. During 2021, we repatriated $290.1 million of our foreign earnings to the U.S. The total amount of the unrecognized tax benefits at the end of 2021 was $64.2 million. A reconciliation of gross unrecognized tax benefit was as follows:
| 2021 |  | 2020 |  | 2019
(In millions) |  |  |  |  |
Beginning balance | $ | 64.1 |  |  | $ | 71.6 |  |  | $ | 69.1 |
Increase related to current year tax positions | 9.6 |  |  | 8.0 |  |  | 12.6 |
(Decrease) increase related to prior years' tax positions | 1.3 |  |  | (0.4) |  |  | 3.8 |
Settlement with taxing authorities | (1.3) |  |  | (0.5) |  |  | (5.7) |
Lapse of statute of limitations | (9.5) |  |  | (14.6) |  |  | (8.2) |
Ending balance | $ | 64.2 |  |  | $ | 64.1 |  |  | $ | 71.6 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $42.3 million and $47.8 million at the end of 2021 and 2020. We and our subsidiaries are subject to U.S. federal, state, and foreign income taxes. Our tax years are substantially closed for all U.S. federal and state income taxes for audit purposes through 2015. Non-U.S. income tax matters have been concluded for years through 2008. We are currently in various stages of multiple year examinations state, and foreign (multiple jurisdictions) taxing authorities. While we generally believe it is more likely than not that our tax positions will be sustained, it is reasonably possible that future obligations related to these matters could arise. We believe that our reserves are adequate to cover any potential assessments that may result from the examinations and negotiations. Although timing of the resolution and/or closure of audits is not certain, we do not believe that our gross unrecognized tax benefits would materially change in the next twelve months. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Our liability for unrecognized tax benefits including interest and penalties was recorded in Other non-current liabilities on our Consolidated Balance Sheets. At the end of 2021 and 2020, we accrued $9.2 million and $9.6 million for interest and penalties.

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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 -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
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