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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Tax Data from Continuing Operations | The following table displays information regarding income tax expense (benefit) from continuing operations.
For the Year Ended December 31 | 2021 |  | 2020 |  | 2019
Income (loss) components: |  |  |  |  |
United States | $ | 199.4 |  |  | $ | (124.3) |  |  | $ | 143.9 |
International | 309.7 |  |  | 209.5 |  |  | 270.5 |
Income from continuing operations before income tax | 509.1 |  |  | 85.2 |  |  | 414.4 |
Income tax expense (benefit) components: |  |  |  |  |
Current income tax expense (benefit): |  |  |  |  |
United States – federal | 21.1 |  |  | 9.9 |  |  | 9.4 |
United States – state and local | 2.6 |  |  | (1.5) |  |  | 0.5 |
International | 50.2 |  |  | 50.8 |  |  | 49.1 |
Total current income tax expense | 73.9 |  |  | 59.2 |  |  | 59.0 |
Deferred income tax expense (benefit) components: |  |  |  |  |
United States – federal | 96.9 |  |  | (36.6) |  |  | 10.1 |
United States – state and local | 15.5 |  |  | (4.8) |  |  | 1.5 |
International | 3.3 |  |  | (2.5) |  |  | 19.3 |
Total deferred income tax expense (benefit) | 115.7 |  |  | (43.9) |  |  | 30.9 |
Income tax expense | $ | 189.6 |  |  | $ | 15.3 |  |  | $ | 89.9 |
Effective income tax rate | 37.2 | % |  | 18.0 | % |  | 21.7 | %
Reconciliation of Tax Provision for Continuing Operations | The following table includes a reconciliation of the U.S. statutory tax rate to our effective income tax rate related to income from continuing operations.
For the Year Ended December 31 | 2021 |  | 2020 |  | 2019
Tax provision at U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Asbestos divestiture | 18.9 | % |  | — | % |  | — | %
Tax on undistributed foreign earnings | 0.8 | % |  | 7.4 | % |  | 1.8 | %
Pension settlement AOCI expense | — | % |  | 5.9 | % |  | — | %
Italy patent box | (1.3) | % |  | (5.6) | % |  | (1.2) | %
Audit settlements and unrecognized tax benefits | (1.0) | % |  | (5.4) | % |  | 0.1 | %
Excess tax benefits on stock-based compensation | (0.6) | % |  | (3.6) | % |  | (1.1) | %
State and local income tax | 0.6 | % |  | (2.4) | % |  | 0.7 | %
Foreign tax rate differential | (0.2) | % |  | 1.6 | % |  | 2.8 | %
Valuation allowance on deferred tax assets | (0.4) | % |  | 1.5 | % |  | (0.5) | %
U.S. tax on foreign earnings | 0.1 | % |  | (0.2) | % |  | — | %
U.S. permanent items | (0.1) | % |  | (0.1) | % |  | (1.0) | %
Other adjustments | (0.6) | % |  | (2.1) | % |  | (0.9) | %
Effective income tax rate | 37.2 | % |  | 18.0 | % |  | 21.7 | %
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities include the following:
As of December 31 | 2021 |  | 2020
Deferred Tax Assets: |  |  |
Loss carryforwards | $ | 121.3 |  |  | $ | 128.6 |
Asbestos | — |  |  | 116.7 |
Employee benefits | 60.1 |  |  | 64.7 |
Accruals | 32.0 |  |  | 36.8 |
Inventory | 22.7 |  |  | 22.5 |
Credit carryforwards | 6.2 |  |  | 3.4 |
Investment | 1.7 |  |  | 0.5 |
Other | 20.9 |  |  | 27.0 |
Gross deferred tax assets | 264.9 |  |  | 400.2 |
Less: Valuation allowance | 108.8 |  |  | 123.0 |
Net deferred tax assets | $ | 156.1 |  |  | $ | 277.2 |
Deferred Tax Liabilities: |  |  |
Intangibles | $ | (38.0) |  |  | $ | (40.9) |
Undistributed earnings | (46.5) |  |  | (49.2) |
Accelerated depreciation | (27.3) |  |  | (30.3) |
Total deferred tax liabilities | $ | (111.8) |  |  | $ | (120.4) |
Net deferred tax assets | $ | 44.3 |  |  | $ | 156.8 |
Deferred Taxes in Consolidated Balance Sheets | Deferred taxes are presented in the Consolidated Balance Sheets as follows:
As of December 31 | 2021 |  | 2020
Non-current assets | $ | 63.4 |  |  | $ | 158.3 |
Other non-current liabilities | (19.1) |  |  | (1.5) |
Net deferred tax assets | $ | 44.3 |  |  | $ | 156.8 |
Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block] | The table included below provides a rollforward of our valuation allowance on net deferred income tax assets.
|  |  | State |  | Foreign |  | Total
DTA valuation allowance - December 31, 2018 |  |  | $ | 57.3 |  |  | $ | 83.7 |  |  | $ | 141.0 |
Change in assessment |  |  | — |  |  | 5.6 |  |  | 5.6 |
Current year operations |  |  | (8.8) |  |  | (8.0) |  |  | (16.8) |
DTA valuation allowance - December 31, 2019 |  |  | $ | 48.5 |  |  | $ | 81.3 |  |  | $ | 129.8 |
Change in assessment |  |  | — |  |  | (6.2) |  |  | (6.2) |
Current year operations |  |  | (8.1) |  |  | 7.5 |  |  | (0.6) |
DTA valuation allowance - December 31, 2020 |  |  | $ | 40.4 |  |  | $ | 82.6 |  |  | $ | 123.0 |
Change in assessment |  |  | — |  |  | (1.9) |  |  | (1.9) |
Current year operations |  |  | (4.7) |  |  | (7.6) |  |  | (12.3) |
DTA valuation allowance - December 31, 2021 |  |  | $ | 35.7 |  |  | $ | 73.1 |  |  | $ | 108.8 |
Attributes Available for Utilization | We have the following tax attributes available for utilization at December 31, 2021:
Attribute | Amount |  | First Year of Expiration
U.S. federal net operating losses | $ | 2.3 |  |  | 12/31/2037
U.S. state net operating losses | 520.4 |  |  | 12/31/2022
U.S. federal tax credits | 5.3 |  |  | 12/31/2029
U.S. state tax credits | 0.9 |  |  | 12/31/2027
Foreign net operating losses(a) | 310.8 |  |  | 12/31/2022
(a) Includes approximately $208.8 of net operating loss carryforwards in Luxembourg as of December 31, 2021.
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | The following table displays a rollforward of our unrecognized tax benefits.
For the Year Ended December 31 | 2021 |  | 2020 |  | 2019
Unrecognized tax benefits – January 1 | $ | 41.5 |  |  | $ | 46.2 |  |  | $ | 45.8 |
Additions for: |  |  |  |  |
Current year tax positions | 0.6 |  |  | 0.9 |  |  | 1.5 |
Prior year tax positions | 0.1 |  |  | 0.3 |  |  | 0.3 |
Reductions for: |  |  |  |  |
Prior year tax positions | (5.5) |  |  | — |  |  | (0.1) |
Expiration of statute of limitations | (19.7) |  |  | (4.7) |  |  | (1.2) |
Settlements | (9.4) |  |  | (1.2) |  |  | (0.1) |
Unrecognized tax benefits – December 31 | $ | 7.6 |  |  | $ | 41.5 |  |  | $ | 46.2 |
Open Tax Years by Major Jurisdiction | The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2021:
Jurisdiction | Earliest Open Year
China | 2016
Czech Republic | 2018
Germany | 2017
Hong Kong | 2020
India | 2013
Italy | 2014
Korea | 2016
Luxembourg | 2016
Mexico | 2016
United States | 2018

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