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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Pre-tax Income Attributable to Operating Segments | The following sets forth the amount of income before income taxes attributable to each of the Company's geographies for the years ended December 31, 2020, 2019 and 2018:
| Year Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
Income before income taxes: |  |  |  |  |
United States | $ | 319.5 |  |  | $ | 150.9 |  |  | $ | 59.2 |
Rest of the world | 132.9 |  |  | 114.6 |  |  | 105.8 |
| $ | 452.4 |  |  | $ | 265.5 |  |  | $ | 165.0 |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | The Company's effective income tax provision differs from the amount calculated using the statutory U.S. federal income tax rate, principally due to the following:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
(dollars in millions) | Amount |  | Percentage of Income Before Income Taxes |  | Amount |  | Percentage of Income Before Income Taxes |  | Amount |  | Percentage of Income Before Income Taxes
Statutory U.S. federal income tax | $ | 95.0 |  |  | 21.0 | % |  | $ | 55.8 |  |  | 21.0 | % |  | $ | 34.6 |  |  | 21.0 | %
State income taxes, net of federal benefit | 9.9 |  |  | 2.2 | % |  | 8.7 |  |  | 3.3 | % |  | 1.8 |  |  | 1.1 | %
Foreign tax differential | 2.8 |  |  | 0.6 | % |  | 2.1 |  |  | 0.8 | % |  | 2.5 |  |  | 1.5 | %
Change in valuation allowances | 5.5 |  |  | 1.2 | % |  | (8.6) |  |  | (3.2) | % |  | (17.7) |  |  | (10.7) | %
Uncertain tax positions and interest | 0.5 |  |  | 0.1 | % |  | 2.4 |  |  | 0.9 | % |  | 33.1 |  |  | 20.1 | %
Subpart F income | 3.3 |  |  | 0.7 | % |  | 1.8 |  |  | 0.7 | % |  | (0.8) |  |  | (0.5) | %
Global Intangible Low-Taxed Income (“GILTI”) | — |  |  | — |  |  | 9.2 |  |  | 3.4 | % |  | 7.4 |  |  | 4.5 | %
GILTI High-Taxed Exception | (8.6) |  |  | (1.9) | % |  | — |  |  | — |  |  | — |  |  | — |
Stock compensation | (10.9) |  |  | (2.4) | % |  | 0.9 |  |  | 0.3 | % |  | 0.8 |  |  | 0.5 | %
Transition Tax | — |  |  | — |  |  | — |  |  | — |  |  | (6.8) |  |  | (4.1) | %
Permanent and other | 5.1 |  |  | 1.2 | % |  | 2.4 |  |  | 0.9 | % |  | (5.3) |  |  | (3.3) | %
Effective income tax provision | $ | 102.6 |  |  | 22.7 | % |  | $ | 74.7 |  |  | 28.1 | % |  | $ | 49.6 |  |  | 30.1 | %
Summary of Tax Provision | The income tax provision consisted of the following:
| Year Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
Current provision |  |  |  |  |
Federal | $ | 55.1 |  |  | $ | 50.4 |  |  | $ | (14.6) |
State | 17.3 |  |  | 11.9 |  |  | 1.1 |
Foreign | 38.8 |  |  | 19.5 |  |  | 57.1 |
Total current | $ | 111.2 |  |  | $ | 81.8 |  |  | $ | 43.6 |
Deferred provision |  |  |  |  |
Federal | $ | (3.4) |  |  | $ | (10.8) |  |  | $ | 11.4 |
State | (3.4) |  |  | (8.0) |  |  | (4.5) |
Foreign | (1.8) |  |  | 11.7 |  |  | (0.9) |
Total deferred | (8.6) |  |  | (7.1) |  |  | 6.0 |
Total income tax provision | $ | 102.6 |  |  | $ | 74.7 |  |  | $ | 49.6 |
Deferred Tax Assets and Liabilities Recognized in the Consolidated Balance Sheets | The net deferred tax assets and liabilities recognized in the accompanying Consolidated Balance Sheets, determined using the income tax rate applicable to each period in which those items will reverse, consist of the following:
| December 31,
(in millions) | 2020 |  | 2019
Deferred tax assets: |  |  |
Stock-based compensation | $ | 21.6 |  |  | $ | 13.9 |
Operating lease obligations | 92.9 |  |  | 67.2 |
Accrued expenses and other | 55.1 |  |  | 62.5 |
Net operating losses, foreign tax credits and other tax attribute carryforwards | 50.6 |  |  | 43.1 |
Inventories | 11.1 |  |  | 8.2 |
Transaction costs | 6.0 |  |  | 6.6 |
Property, plant and equipment | 2.5 |  |  | 2.9 |
Total deferred tax assets | 239.8 |  |  | 204.4 |
Valuation allowances | (33.5) |  |  | (30.0) |
Total net deferred tax assets | $ | 206.3 |  |  | $ | 174.4 |
Deferred tax liabilities: |  |  |
Intangible assets | $ | (150.7) |  |  | $ | (156.4) |
Operating lease right-of-use assets | (82.3) |  |  | (63.9) |
Property, plant and equipment | (34.3) |  |  | (36.9) |
Accrued expenses and other | (15.9) |  |  | (5.2) |
Total deferred tax liabilities | (283.2) |  |  | (262.4) |
Net deferred tax liabilities | $ | (76.9) |  |  | $ | (88.0) |
Summary of Operating Loss and Tax Credit Carryforwards | Included in the calculation of the Company's deferred tax assets are the following gross income tax attributes available at December 31, 2020 and 2019, respectively:
(in millions) | 2020 |  | 2019
State net operating losses (“SNOLs”) | $ | 157.0 |  |  | $ | 165.7 |
U.S. federal foreign tax credits (“FTCs”) | 12.2 |  |  | 12.2 |
U.S. state income tax credits ("SITCs") | 4.9 |  |  | 5.3 |
Foreign net operating losses (“FNOLs”) | 54.1 |  |  | 36.9 |
Charitable contribution carryover ("CCCs") | 23.6 |  |  | 32.9 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in millions) |
Balance as of December 31, 2018 | $ | 103.8 |
Additions based on tax positions related to 2019 | — |
Additions for tax positions of prior years | 0.7 |
Expiration of statutes of limitations | — |
Settlements of uncertain tax positions with tax authorities | — |
Balance as of December 31, 2019 | $ | 104.5 |
Additions based on tax positions related to 2020 | — |
Additions for tax positions of prior years | 14.1 |
Expiration of statutes of limitations | — |
Settlements of uncertain tax positions with tax authorities | — |
Balance as of December 31, 2020 | $ | 118.6 |
Schedule of Balance Sheet Location | The uncertain income tax liabilities for the Danish Tax Matter Settlement Years and for the 2012 to Current Period are reflected in the Company Consolidated Balance Sheet as per below:
|  |  |  | December 31, 2020 |  | December 31, 2019
Period |  | Balance Sheet Presentation |  | DKK |  | USD |  | DKK |  | USD
Settlement Years |  | Accrued expenses and other current liabilities |  | 847.3 |  | $ | 139.1 |  |  | 847.3 |  | $ | 127.2 |
2012 to Current Period |  | Other non-current liabilities |  | 295.0 |  | 48.4 |  | 263.3 |  | 39.5
|  | Total |  | 1,142.3 |  | $ | 187.5 |  |  | 1,110.6 |  | $ | 166.7 |
The above Value Added Tax refunds withheld and the tax deposits made are reflected in the Company's Consolidated Balance Sheet (translated at the exchange rates on December 31, 2020 and December 31, 2019), as per below:
| December 31, 2020 |  | December 31, 2019
| DKK |  | USD |  | DKK |  | USD
Prepaid expenses and other current assets | 847.3 |  | $ | 139.1 |  |  | 847.3 |  | $ | 127.2 |
Other non-current assets | 333.6 |  | 54.8 |  |  | 122.8 |  | 18.4 |
Total | 1,180.9 |  |  | $ | 193.9 |  |  | 970.1 |  | $ | 145.6 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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