XML 52 R39.htm IDEA: XBRL DOCUMENT
v3.22.4

TAXES BASED ON INCOME (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Taxes Based on Income | Taxes based on income were as follows:
(In millions) |  | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |  |
U.S. federal tax |  | $ | 29.4 |  |  | $ | 7.3 |  |  | $ | 1.1 |
State taxes |  | 8.8 |  |  | 5.3 |  |  | 1.9 |
International taxes |  | 177.7 |  |  | 229.9 |  |  | 168.5 |
|  | 215.9 |  |  | 242.5 |  |  | 171.5 |
Deferred: |  |  |  |  |  |
U.S. federal tax |  | 5.8 |  |  | (1.1) |  |  | 5.0 |
State taxes |  | .9 |  |  | (5.3) |  |  | 1.6 |
International taxes |  | 19.6 |  |  | 12.5 |  |  | (.4) |
|  | 26.3 |  |  | 6.1 |  |  | 6.2 |
Provision for income taxes |  | $ | 242.2 |  |  | $ | 248.6 |  |  | $ | 177.7 |
Schedule of the Principal Items Accounting for the Difference Between Taxes Computed at the U.S. Federal Statutory Rate | The principal items accounting for the difference between taxes computed at U.S. federal statutory rate and taxes recorded were as follows:
(In millions) |  | 2022 |  | 2021 |  | 2020
Tax provision computed at U.S. federal statutory rate(1) |  | $ | 209.9 |  |  | $ | 208.5 |  |  | $ | 154.8 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |
State taxes, net of federal tax benefit |  | 11.8 |  |  | 4.5 |  |  | 6.9 |
Foreign earnings taxed at different rates(1) |  | 55.3 |  |  | 75.4 |  |  | 51.4 |
GILTI high-tax exclusion election, net(2) |  | (11.9) |  |  | (22.8) |  |  | (12.5) |
Valuation allowance |  | (5.0) |  |  | (4.8) |  |  | (3.3) |
U.S. federal research and development tax credits |  | (6.5) |  |  | (6.2) |  |  | (6.2) |
Tax contingencies and audit settlements |  | (4.3) |  |  | 3.9 |  |  | (5.5) |
Other items, net |  | (7.1) |  |  | (9.9) |  |  | (7.9) |
Provision for income taxes |  | $ | 242.2 |  |  | $ | 248.6 |  |  | $ | 177.7 |
(1) | All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.
(2) | In 2022, we recognized $11.9 million of benefit related to a GILTI exclusion election made on our 2021 U.S. federal tax return. In 2021, we recognized $14.1 million and $8.7 million of benefit related to GILTI exclusion elections made on our amended 2018 and originally filed 2020 U.S. federal tax returns, respectively. In 2020, we recognized $12.5 million of benefit related to a GILTI exclusion election we planned to make on our amended 2019 U.S. federal tax return.
Summary of Income Before Taxes from the U.S. and International Operations | Income before taxes from our U.S. and international operations was as follows:
(In millions) |  | 2022 |  | 2021 |  | 2020
U.S. |  | $ | 232.4 |  |  | $ | 88.0 |  |  | $ | 123.8 |
International |  | 766.9 |  |  | 904.6 |  |  | 613.5 |
Income before taxes |  | $ | 999.3 |  |  | $ | 992.6 |  |  | $ | 737.3 |
Schedule of Components of the Temporary Differences | The primary components of the temporary differences that gave rise to our deferred tax assets and liabilities were as follows:
(In millions) |  | 2022 |  | 2021
Accrued expenses not currently deductible |  | $ | 32.3 |  |  | $ | 34.6 |
Net operating loss carryforwards |  | 137.2 |  |  | 154.4 |
Tax credit carryforwards |  | 9.7 |  |  | 34.6 |
Capitalized research expenses |  | 38.6 |  |  | 23.7 |
Stock-based compensation |  | 15.4 |  |  | 13.6 |
Pension and other postretirement benefits |  | 31.5 |  |  | 38.8 |
Inventory reserve |  | 15.6 |  |  | 14.7 |
Lease liabilities |  | 33.2 |  |  | 42.5 |
Other assets |  | 21.3 |  |  | 25.3 |
Valuation allowance |  | (59.4) |  |  | (70.1) |
Total deferred tax assets(1) |  | 275.4 |  |  | 312.1 |
Depreciation and amortization |  | (296.6) |  |  | (292.6) |
Repatriation accrual |  | (12.0) |  |  | (16.2) |
Foreign operating loss recapture |  | (3.2) |  |  | (3.4) |
Lease assets |  | (33.8) |  |  | (43.8) |
Total deferred tax liabilities(1) |  | (345.6) |  |  | (356.0) |
Total net deferred tax assets (liabilities) |  | $ | (70.2) |  |  | $ | (43.9) |
(1)Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.
Schedule of Tax Credit and Net Operating Loss Carryforwards | If unused, foreign net operating losses and tax credit carryforwards will expire as follows:
(In millions) |  | Net Operating Losses(1) |  | Tax Credits
Year of Expiry |  |  |  |
2023 |  | $ | 4.5 |  |  | $ | .3 |
2024 |  | 2.6 |  |  | .2 |
2025 |  | 2.9 |  |  | .2 |
2026 |  | 7.2 |  |  | .3 |
2027 |  | 4.1 |  |  | .8 |
2028-2040 |  | 13.7 |  |  | 5.9 |
Indefinite life/no expiry |  | 427.7 |  |  | 2.0 |
Total |  | $ | 462.7 |  |  | $ | 9.7 |
(1)Net operating losses are presented before tax effects and valuation allowance.
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is set forth below.
(In millions) |  | 2022 |  | 2021
Balance at beginning of year |  | $ | 74.0 |  |  | $ | 72.0 |
Additions for tax positions of current year |  | 6.6 |  |  | 9.1 |
Additions (reductions) for tax positions of prior years, net |  | (2.2) |  |  | 1.2 |
Settlements with tax authorities |  | (1.1) |  |  | (1.1) |
Expirations of statutes of limitations |  | (4.8) |  |  | (5.2) |
Changes due to translation of foreign currencies |  | (3.0) |  |  | (2.0) |
Balance at end of year |  | $ | 69.5 |  |  | $ | 74.0 |

X
- Definition Schedule of tax credit and net operating loss carryforwards. + References No definition available. + Details
Name: | avy_ScheduleOfTaxCreditAndNetOperatingLossCarryforwardsTableTextBlock
Namespace Prefix: | avy_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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 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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration