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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Pretax income for 2021, 2020 and 2019 was taxed in the following jurisdictions:
| 2021 |  | 2020 |  | 2019
| (In millions)
U.S. | $ | 350.2 |  |  | $ | 296.3 |  |  | $ | 377.2 |
Foreign | 229.6 |  |  | 174.0 |  |  | 155.7 |
Total | $ | 579.8 |  |  | $ | 470.3 |  |  | $ | 532.9 |
The provision (benefit) for income taxes for 2021, 2020 and 2019 was as follows:
| 2021 |  | 2020 |  | 2019
| (In millions)
Current |  |  |  |  |
U.S. | $ | 64.7 |  |  | $ | 29.5 |  |  | $ | 49.8 |
State and local | 11.0 |  |  | 4.6 |  |  | 9.1 |
Foreign | 60.9 |  |  | 50.2 |  |  | 41.9 |
Total current | 136.6 |  |  | 84.3 |  |  | 100.8 |
Deferred |  |  |  |  |
U.S. | (4.1) |  |  | 10.1 |  |  | 10.1 |
State and local | (1.4) |  |  | 1.5 |  |  | (0.1) |
Foreign | (0.6) |  |  | (3.4) |  |  | (3.4) |
Total deferred | (6.1) |  |  | 8.2 |  |  | 6.6 |
Total provision for income taxes | $ | 130.5 |  |  | $ | 92.5 |  |  | $ | 107.4 |
Deferred tax assets (liabilities) at December 31, 2021 and 2020 were:
| 2021 |  | 2020
| (In millions)
Employee and retiree benefit plans | $ | 23.6 |  |  | $ | 26.9 |
Capital loss and other carryforwards | 11.9 |  |  | 16.3 |
Operating lease assets | 25.7 |  |  | 24.7 |
Operating lease liabilities | (24.8) |  |  | (23.9) |
Depreciation and amortization | (222.0) |  |  | (189.0) |
Inventories | 11.7 |  |  | 8.8 |
Allowances and accruals | 10.3 |  |  | 7.3 |
Interest rate exchange agreement | — |  |  | 0.7 |
Other | (16.6) |  |  | (16.9) |
Total gross deferred tax (liabilities) | (180.2) |  |  | (145.1) |
Valuation allowance | (11.9) |  |  | (16.3) |
Total deferred tax (liabilities), net of valuation allowances | $ | (192.1) |  |  | $ | (161.4) |
The deferred tax assets and liabilities recognized in the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020 were:
| 2021 |  | 2020
| (In millions)
Noncurrent deferred tax asset - Other noncurrent assets | $ | 4.3 |  |  | $ | 2.5 |
Noncurrent deferred tax liabilities - Deferred income taxes | (196.4) |  |  | (163.9) |
Net deferred tax liabilities | $ | (192.1) |  |  | $ | (161.4) |
The Company had prepaid income taxes, recorded within Other current assets on the Consolidated Balance Sheets, of $9.1 million and $20.9 million as of December 31, 2021 and 2020, respectively. The provision for income taxes differs from the amount calculated by applying the statutory federal income tax rate to pretax income. The calculated amount and the differences for 2021, 2020 and 2019 are shown in the following table:
| 2021 |  | 2020 |  | 2019
| (In millions)
Pretax income | $ | 579.8 |  |  |  |  | $ | 470.3 |  |  |  |  | $ | 532.9 |  |  |
Provision for income taxes: |  |  |  |  |  |  |  |  |  |  |
Computed amount at statutory rate of 21% | $ | 121.8 |  |  | 21.0 | % |  | $ | 98.8 |  |  | 21.0 | % |  | $ | 111.9 |  |  | 21.0 | %
State and local income tax (net of federal tax benefit) | 8.0 |  |  | 1.4 | % |  | 5.9 |  |  | 1.3 | % |  | 8.2 |  |  | 1.5 | %
Taxes on non-U.S. earnings-net of foreign tax credits | 9.2 |  |  | 1.6 | % |  | 8.4 |  |  | 1.8 | % |  | 6.3 |  |  | 1.2 | %
Global Intangible Low-Taxed Income | 0.4 |  |  | 0.1 | % |  | (2.7) |  |  | (0.6 | %) |  | 2.3 |  |  | 0.4 | %
Foreign-Derived Intangible Income Deduction | (7.5) |  |  | (1.3 | %) |  | (4.9) |  |  | (1.0 | %) |  | (5.8) |  |  | (1.1 | %)
Share-based payments | (3.5) |  |  | (0.6 | %) |  | (9.8) |  |  | (2.1 | %) |  | (11.0) |  |  | (2.1 | %)
Other | 2.1 |  |  | 0.3 | % |  | (3.2) |  |  | (0.7 | %) |  | (4.5) |  |  | (0.7 | %)
Total provision for income taxes | $ | 130.5 |  |  | 22.5 | % |  | $ | 92.5 |  |  | 19.7 | % |  | $ | 107.4 |  |  | 20.2 | %
The Company has $40.6 million and $28.6 million of permanently reinvested earnings of non-U.S. subsidiaries as of December 31, 2021 and 2020, respectively. No deferred U.S. income taxes have been provided on the $40.6 million of earnings that are considered to be permanently reinvested. It should also be noted that the aforementioned earnings will not incur U.S. taxes when ultimately repatriated other than potentially U.S. federal, state and local taxes on foreign exchange gains or losses recognized on the distribution of such earnings. Such distributions could also be subject to additional foreign withholding and foreign income taxes. The amount of unrecognized deferred income tax liabilities on currently permanently reinvested earnings is estimated to be $6.1 million and $4.3 million as of December 31, 2021 and 2020, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company repatriated $116.0 million, $27.0 million and $99.0 million of foreign earnings, respectively. These actual distributions resulted in no incremental income tax expense for the years ended December 31, 2021, 2020 and 2019. These repatriations represent distributions of previously taxed income as well as distributions from liquidating subsidiaries. A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2021, 2020 and 2019 is as follows:
| 2021 |  | 2020 |  | 2019
| (In millions)
Beginning balance January 1 | $ | 1.1 |  |  | $ | 3.7 |  |  | $ | 4.1 |
Gross increases for tax positions of prior years | 0.1 |  |  | — |  |  | — |
Gross decreases for tax positions of prior years | (0.3) |  |  | — |  |  | — |
Settlements | (0.2) |  |  | (2.6) |  |  | (0.1) |
Lapse of statute of limitations | (0.6) |  |  | — |  |  | (0.3) |
Ending balance December 31 | $ | 0.1 |  |  | $ | 1.1 |  |  | $ | 3.7 |
The Company recognizes interest and penalties related to uncertain tax positions in provision for income taxes in the Consolidated Statements of Income. As of December 31, 2021, the Company accrued interest and penalties of less than $0.1 million related to uncertain tax positions. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized is $0.1 million, $1.1 million and $3.7 million as of December 31, 2021, 2020 and 2019, respectively. The tax years 2016-2020 remain open to examination by major taxing jurisdictions. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change. However, these unrecognized tax benefits are long-term in nature and are not expected to change within the next 12 months. As of December 31, 2021, the Company had non-U.S. and U.S. state net operating loss carryforwards of $0.7 million and $22.5 million, respectively. The entire balance of the non-U.S. net operating losses, the majority of which relates to acquisitions is available to be carried forward indefinitely. The U.S. state net operating loss will expire between 2033 and 2040. There is no valuation allowance as it is more-likely-than-not that the net operating losses will be realized. The Company has U.S. federal, U.S. state and non-U.S. capital loss carryforwards of $11.9 million, $11.9 million and $13.5 million, respectively, with a full valuation allowance against the deferred tax asset. The non-U.S. capital loss can be carried forward indefinitely. The U.S. federal and U.S. state capital loss carryforwards will expire at various dates between 2025 and 2040. As of December 31, 2021, the Company has a foreign tax credit carryforward for U.S. federal purposes of approximately $6.6 million with a full valuation allowance against the deferred tax asset. The U.S. federal foreign tax credit carryover will expire between 2029 and 2031.

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- 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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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