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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 2021 and 2020:

			Year Ended December 31,
(in millions)			2022						2021						2020
Income before income taxes:
United States			$	382.5					$	602.5					$	319.5
Rest of the world			194.7						221.5						132.9
			$	577.2					$	824.0					$	452.4

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,
			2022												2021												2020
(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			$	121.2					21.0		%				$	172.9					21.0		%				$	95.0					21.0		%
State income taxes, net of federal benefit			12.5						2.2		%				21.0						2.6		%				9.9						2.2		%
Foreign tax differential			2.9						0.5		%				4.6						0.6		%				2.8						0.6		%
Change in valuation allowances			1.3						0.2		%				4.9						0.6		%				5.5						1.2		%
Uncertain tax positions and interest			(19.2)						(3.3)		%				6.5						0.8		%				0.5						0.1		%
Subpart F income			—						—		%				—						—		%				3.3						0.7		%
Global Intangible Low-Taxed Income ("GILTI")			3.2						0.5		%				1.5						0.2		%				—						—
GILTI High-Taxed Exception			—						—		%				—						—		%				(8.6)						(1.9)		%
Stock compensation			(13.8)						(2.4)		%				(8.1)						(1.0)		%				(10.9)						(2.4)		%
Nondeductible compensation			14.6						2.5		%				5.1						0.6		%				3.7						0.8		%
Permanent and other			(3.7)						(0.6)		%				(10.1)						(1.3)		%				1.4						0.4		%
Effective income tax provision			$	119.0					20.6		%				$	198.3					24.1		%				$	102.6					22.7		%

Summary of Tax Provision

The income tax provision consisted of the following:

			Year Ended December 31,
(in millions)			2022						2021						2020
Current provision
Federal			$	85.0					$	109.9					$	55.1
State			18.3						24.5						17.3
Foreign			26.2						52.8						38.8
Total current			$	129.5					$	187.2					$	111.2
Deferred provision
Federal			$	(7.7)					$	11.6					$	(3.4)
State			(2.3)						0.4						(3.4)
Foreign			(0.5)						(0.9)						(1.8)
Total deferred			(10.5)						11.1						(8.6)
Total income tax provision			$	119.0					$	198.3					$	102.6

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)			2022						2021
Deferred tax assets:
Stock-based compensation			$	31.8					$	30.1
Operating lease obligations			147.5						137.6
Accrued expenses and other			64.1						41.8
Net operating losses, foreign tax credits and other tax attribute carryforwards			58.0						49.6
Inventories			10.3						9.0
Transaction costs			4.3						3.9
Property, plant and equipment			9.7						12.9
Total deferred tax assets			325.7						284.9
Valuation allowances			(42.3)						(42.6)
Total net deferred tax assets			$	283.4					$	242.3
Deferred tax liabilities:
Intangible assets			$	(174.0)					$	(181.7)
Operating lease right-of-use assets			(132.0)						(122.8)
Property, plant and equipment			(60.0)						(37.1)
Accrued expenses and other			(20.1)						(16.3)
Total deferred tax liabilities			(386.1)						(357.9)
Net deferred tax liabilities			$	(102.7)					$	(115.6)

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, 2022 and 2021, respectively:

(in millions)			2022						2021
State net operating losses ("SNOLs")			$	103.8					$	114.9
U.S. federal foreign tax credits ("FTCs")			10.6						12.2
U.S. state income tax credits ("SITCs")			3.7						3.2
Foreign net operating losses ("FNOLs")			63.6						50.6
Charitable contribution carryover ("CCCs")			0.9						1.2

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, 2020			$	118.6
Additions based on tax positions related to 2021			1.4
Additions for tax positions of prior years			2.5
Expiration of statutes of limitations			—
Settlements of uncertain tax positions with tax authorities			(77.2)
Balance as of December 31, 2021			$	45.3
Additions based on tax positions related to 2022			0.3
Additions for tax positions of prior years			0.2
Expiration of statutes of limitations			(1.9)
Reduction for tax positions of prior years			(4.9)
Settlements of uncertain tax positions with tax authorities			—
Balance as of December 31, 2022			$	39.0

Schedule of Balance Sheet Location

The uncertain income tax liabilities for the Danish Tax Matter for the 2012 to Current Period are reflected in the Company Consolidated Balance Sheet as per below:

												December 31, 2022						December 31, 2021
Period						Balance Sheet Presentation						USD						USD
2012 to Current Period						Accrued expenses and other current liabilities						$	37.8					$	—
2012 to Current Period						Other non-current liabilities						—						50.1
						Total						$	37.8					$	50.1

The above VAT refunds withheld and the tax deposits made are reflected in the Company's Consolidated Balance Sheets, as per below:

			December 31, 2022						December 31, 2021
			USD						USD
Prepaid expenses and other current assets			$	58.8					$	—
Other non-current assets			—						48.6
Total			$	58.8					$	48.6

Summary of Income Tax Examinations

As of December 31, 2022, the Company made the following tax deposits with SKAT related to the Danish Tax Matter for the years 2012 through 2016:

			USD
VAT deposits remaining with SKAT			$	1.4
Payments during the three months ended March 31, 2020			19.3
Payments during the three months ended September 30, 2020			11.1
Payments during the three months ended September 30, 2021			14.0
Payments during the three months ended December 31, 2022			13.0
Total			$	58.8

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