XML 48 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 8. INCOME TAXES Our provision for income taxes consisted of the following:
| Year Ended December 31,
(in millions) | 2022 | 2021 | 2020
U.S. federal: |  |  |
| Current | $ | 81.7 |  | 95.1 |  | 16.4 |
| Deferred | (5.8) |  | 29.1 |  | 3.8 |
|  | $ | 75.9 |  | 124.2 |  | 20.2 |
State and Local: |  |  |
| Current | $ | 29.2 |  | 34.6 |  | 12.5 |
| Deferred | 2.1 |  | 11.8 |  | 0.2 |
|  | $ | 31.3 |  | 46.4 |  | 12.7 |
International: |  |  |
| Current | $ | 136.3 |  | 156.0 |  | 103.7 |
| Deferred | (42.7) |  | (62.3) |  | (29.7) |
|  | $ | 93.6 |  | 93.7 |  | 74.0 |
Total | $ | 200.8 |  | 264.3 |  | 106.9 |
The U.S. Internal Revenue Code contains two code sections - the Base Erosion Anti-Abuse Tax and Global Intangible Low-Taxed Income Tax - for which we treat any associated income tax as a period cost and record an expense provision for any year we are subject to the taxes. Accordingly, the estimated impacts of these taxes were included in our provision for income taxes in 2022, 2021 and 2020. In 2022, 2021 and 2020, our current tax expense increased by $25.6 million, $52.4 million and $2.9 million, respectively, and our deferred tax expense reduced by a corresponding amount, due to the generation of net operating loss carryovers. Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 21% to earnings before provision for income taxes as a result of the following:
| Year Ended December 31,
($ in millions) | 2022 |  | 2021 |  | 2020
Income tax expense at statutory rates | $ | 208.7 |  | 21.0 | % |  | $ | 256.9 |  | 21.0 | % |  | $ | 111.2 |  | 21.0 | %
| Increase (reduction) in income taxes from: |  |  |  |  |  |  |  |
| State and local income taxes, net of federal income tax benefit | 26.8 |  | 2.7 |  |  | 39.7 |  | 3.2 |  |  | 9.4 |  | 1.8 |
| Nondeductible expenses | 13.9 |  | 1.4 |  |  | 17.6 |  | 1.4 |  |  | 11.2 |  | 2.1 |
| International earnings taxed at various rates | (34.7) |  | (3.5) |  |  | (22.6) |  | (1.8) |  |  | (20.5) |  | (3.9) |
| U.S. capital loss carryover | — |  | — |  |  | (35.2) |  | (2.9) |  |  | — |  | — |
| Valuation allowance | (4.8) |  | (0.5) |  |  | 34.2 |  | 2.8 |  |  | 4.3 |  | 0.8 |
| Other, net | (9.1) |  | (0.9) |  |  | (26.3) |  | (2.1) |  |  | (8.7) |  | (1.6) |
Total | $ | 200.8 |  | 20.2 | % |  | $ | 264.3 |  | 21.6 | % |  | $ | 106.9 |  | 20.2 | %
With respect to international earnings taxed at varying rates, we have operations which constitute a taxable income presence in 92 countries or other taxable jurisdictions outside of the U.S. which are treated as such by the U.S. Internal Revenue Code. Of those countries or other taxable jurisdictions, 70 had income tax rates lower than the combined U.S. federal and state income tax rate in 2022. In defining "very low tax rate jurisdictions," we consider effective tax rates which applied in 2022 based upon income levels and including national and municipal, state or provincial taxes also based upon income levels, which may cause those effective rates to differ from the maximum national statutory rates for the jurisdictions. We consider jurisdictions with a tax rate of 25% or lower to be very low tax rate jurisdictions, based upon our historical practice. Effective January 1, 2018, the U.S. federal income tax rate was reduced to 21%. However, factoring in the impact of state income taxes, we do not consider the U.S. to be a very low tax rate jurisdiction. With respect to very low tax rate jurisdictions in which we operate, income from Hong Kong (16.5%), Singapore (17%), and the United Kingdom (19%) represent the most significant components of the international earnings line item in our effective tax rate reconciliation. In the aggregate, these very low tax rate jurisdictions contributed a large proportion of the difference between the actual income tax provision for international earnings and the equivalent provision at the U.S. federal and state statutory rate in 2022. Our income before taxes from domestic (U.S.) and international sources is presented in the following table.
| Year Ended December 31,
(in millions) | 2022 | 2021 | 2020
Domestic | $ | 447.9 |  | 798.9 |  | 165.2 |
International | 546.3 |  | 424.7 |  | 364.4 |
Total | $ | 994.2 |  | 1,223.6 |  | 529.6 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below.
| December 31,
(in millions) | 2022 | 2021 |
Deferred tax assets attributable to: |  |  |
Accrued expenses | $ | 393.6 |  | 354.2 |  |
U.S. federal and state loss and credit carryovers | 52.5 |  | 82.0 |  |
Allowances for uncollectible accounts | 33.9 |  | 27.1 |  |
International loss carryovers | 237.3 |  | 225.8 |  |
Pension liabilities | 19.8 |  | 17.6 |  |
Other | — |  | 1.9 |  |
Deferred tax assets | 737.1 |  | 708.6 |  |
Less: valuation allowances | (120.8) |  | (128.8) |  |
Net deferred tax assets | $ | 616.3 |  | 579.8 |  |
Deferred tax liabilities attributable to: |  |  |
Property and equipment | $ | 23.6 |  | 23.1 |  |
Intangible assets | 325.6 |  | 342.8 |  |
Income deferred for tax purposes | 7.5 |  | 6.3 |  |
Investments | 72.6 |  | 56.2 |  |
Other | 1.4 |  | 0.3 |  |
Deferred tax liabilities | $ | 430.7 |  | 428.7 |  |
Net deferred taxes | $ | 185.6 |  | 151.1 |  |
We have not provided a deferred tax liability on the unremitted foreign earnings of international subsidiaries because it is our intent to permanently reinvest such earnings outside of the U.S. If repatriation of all such earnings were to occur, we would incur withholding taxes, dividend distribution taxes, and potentially an amount of gain taxation which is not presently determinable. As of December 31, 2022, we had an available U.S. federal net operating loss carryover of $58.6 million from acquired companies, for which we have established a full valuation allowance due to significant statutory limitations on its usage, and which will begin to expire in 2028. We have U.S. state net operating loss ("NOL") carryovers with a tax effect of $21.2 million, which expire at various dates through 2042, and international NOL carryovers of $1,073.8 million, which generally do not have expiration dates. The change in deferred tax balances for NOL carryovers from 2021 to 2022 included increases from current year losses and decreases from current year estimated utilization. As of December 31, 2022, we believe it is more-likely-than-not the net deferred tax assets of $185.6 million will be realized based upon our estimates of future income and the consideration of net operating losses, earnings trends and tax planning strategies. Valuation allowances have been provided with regard to the tax benefit of certain international net operating loss carryovers, for which we have concluded recognition is not yet appropriate. In 2022, we reduced valuation allowances by $20.1 million on some jurisdictions' net operating losses due to the utilization or expiration of those losses; and we increased valuation allowances by $17.0 million for other jurisdictions based upon circumstances that caused us to establish or continue to provide valuation allowances on current or prior-year losses (including acquired NOL carryovers) in addition to those provided in prior years. The balance of the movement in valuation allowances comparing December 31, 2022 to December 31, 2021 was attributable to the effect of changes in foreign currency exchange rates. As of December 31, 2022, our net current receivable for income tax was $1.0 million, consisting of a current receivable of $215.2 million and current payable of $214.2 million, and our net noncurrent liability was $114.7 million, entirely a noncurrent payable. As of December 31, 2021, our net current payable for income tax was $33.7 million, consisting of a current receivable of $187.3 million and a current payable of $221.1 million, and our net noncurrent liability was $144.6 million, entirely a noncurrent payable. The current receivables, current payables, and noncurrent payables are included in Notes and other receivables, Accounts payable and accrued liabilities, and Other liabilities, respectively, on our Consolidated Balance Sheets. We file income tax returns in the U.S. (including 46 states, 25 cities, the District of Columbia and Puerto Rico), the United Kingdom (including England, Scotland and Wales), Australia, Germany, The People's Republic of China (including Hong Kong and Macau), France, Japan, Singapore, India, the Netherlands, Spain and 78 other countries. Generally, our open tax years include those from 2018 to the present, although reviews of taxing authorities for more recent years have been completed or are in process in a number of jurisdictions. As of December 31, 2022, we were under examination in Germany, Nigeria, Pakistan, Egypt, Portugal, Hungry, Hong Kong, Indonesia, Malaysia, Mexico, the Philippines, Singapore and Thailand. In the U.S., we were under examination by the Internal Revenue Service for the Transition Tax reported in our 2018 federal income tax return; as well as in the states of Arizona, Connecticut, Illinois, Massachusetts, Michigan, New York, and in New York City. A reconciliation of the beginning and ending amount of unrecognized tax benefits is presented in the following table.
(in millions) | 2022 | 2021
Balance as of January 1, | $ | 79.3 |  | 75.3 |
Additions based on tax positions related to the current year | 3.6 |  | 5.7 |
Decrease related to tax positions of prior years | (5.6) |  | (1.7) |
Settlements with taxing authorities | (2.2) |  | — |
Balance as of December 31, | $ | 75.1 |  | 79.3 |
We believe it is reasonably possible that matters for which we have recorded $46.2 million of unrecognized tax benefits as of December 31, 2022, will be resolved during 2023. The recognition of tax benefits, and other changes to the amounts of our unrecognized tax benefits, may occur as the result of ongoing operations, the outcomes of audits or other examinations by tax authorities, or the passing of statutes of limitations. We do not expect changes to our unrecognized tax benefits to have a significant impact on net income, the financial position, or the cash flows of JLL. We do not believe we have material tax positions for which the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility. We recognize interest accrued and penalties, if any, in Provision for income taxes on our Consolidated Statements of Comprehensive Income. During the years ended December 31, 2022, 2021 and 2020, the amount of interest expense and penalties was not material. In addition, the amount of accrued interest related to income taxes was not material as of December 31, 2022 and 2021

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration