XML 46 R21.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Pretax income for 2023, 2022 and 2021 was taxed in the following jurisdictions:
| 2023 |  | 2022 |  | 2021
U.S. | $ | 534.1 |  |  | $ | 516.5 |  |  | $ | 350.2 |
Foreign | 226.2 |  |  | 232.9 |  |  | 229.6 |
Total | $ | 760.3 |  |  | $ | 749.4 |  |  | $ | 579.8 |
The provision (benefit) for income taxes for 2023, 2022 and 2021 was as follows:
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
U.S. | $ | 103.8 |  |  | $ | 102.8 |  |  | $ | 64.7 |
State and local | 13.7 |  |  | 14.5 |  |  | 11.0 |
Foreign | 61.9 |  |  | 63.9 |  |  | 60.9 |
Total current | 179.4 |  |  | 181.2 |  |  | 136.6 |
Deferred |  |  |  |  |
U.S. | (11.1) |  |  | (12.2) |  |  | (4.1) |
State and local | 1.7 |  |  | (1.0) |  |  | (1.4) |
Foreign | (5.3) |  |  | (5.3) |  |  | (0.6) |
Total deferred | (14.7) |  |  | (18.5) |  |  | (6.1) |
Total provision for income taxes | $ | 164.7 |  |  | $ | 162.7 |  |  | $ | 130.5 |
Deferred tax assets (liabilities) at December 31, 2023 and 2022 were:
| 2023 |  | 2022
Allowances and accruals | $ | 18.8 |  |  | $ | 21.1 |
Employee and retiree benefit plans | 20.9 |  |  | 17.8 |
Inventories | 10.8 |  |  | 12.0 |
Foreign tax credit and other carryforwards | 14.8 |  |  | 15.0 |
Lease liabilities | 25.8 |  |  | 26.9 |
Right of use assets | (24.7) |  |  | (25.9) |
Depreciation and amortization | (322.1) |  |  | (301.3) |
Taxes on undistributed foreign earnings | (21.0) |  |  | (18.4) |
Other | 0.7 |  |  | 5.6 |
Total gross deferred tax (liabilities) | (276.0) |  |  | (247.2) |
Valuation allowance | (14.4) |  |  | (15.0) |
Total deferred tax (liabilities), net of valuation allowances | $ | (290.4) |  |  | $ | (262.2) |
The deferred tax assets and liabilities recognized in the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022 were:
| 2023 |  | 2022
Noncurrent deferred tax asset - Other noncurrent assets | $ | 1.5 |  |  | $ | 2.0 |
Noncurrent deferred tax liabilities - Deferred income taxes | (291.9) |  |  | (264.2) |
Net deferred tax liabilities | $ | (290.4) |  |  | $ | (262.2) |
The Company had prepaid income taxes, recorded within Other current assets on the Consolidated Balance Sheets, of $14.3 million and $15.1 million as of December 31, 2023 and 2022, 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 2023, 2022 and 2021 are shown in the following table:
| 2023 |  | 2022 |  | 2021
Pretax income | $ | 760.3 |  |  |  |  | $ | 749.4 |  |  |  |  | $ | 579.8 |  |  |
Provision for income taxes: |  |  |  |  |  |  |  |  |  |  |
Computed amount at statutory rate of 21% | $ | 159.7 |  |  | 21.0 | % |  | $ | 157.4 |  |  | 21.0 | % |  | $ | 121.8 |  |  | 21.0 | %
State and local income tax (net of federal tax benefit) | 12.6 |  |  | 1.7 | % |  | 11.4 |  |  | 1.5 | % |  | 8.0 |  |  | 1.4 | %
Taxes on non-U.S. earnings-net of foreign tax credits | 10.8 |  |  | 1.4 | % |  | 12.4 |  |  | 1.7 | % |  | 9.2 |  |  | 1.6 | %
Global Intangible Low-Taxed Income | — |  |  | — | % |  | 2.0 |  |  | 0.3 | % |  | 0.4 |  |  | 0.1 | %
Foreign-Derived Intangible Income Deduction | (11.3) |  |  | (1.5 | %) |  | (11.9) |  |  | (1.6 | %) |  | (7.5) |  |  | (1.3 | %)
Share-based payments | (2.0) |  |  | (0.3 | %) |  | (2.6) |  |  | (0.4 | %) |  | (3.5) |  |  | (0.6 | %)
Other | (5.1) |  |  | (0.6 | %) |  | (6.0) |  |  | (0.8 | %) |  | 2.1 |  |  | 0.3 | %
Total provision for income taxes | $ | 164.7 |  |  | 21.7 | % |  | $ | 162.7 |  |  | 21.7 | % |  | $ | 130.5 |  |  | 22.5 | %
The Company has $54.9 million and $45.3 million of permanently reinvested earnings of non-U.S. subsidiaries as of December 31, 2023 and 2022, respectively. No deferred U.S. income taxes have been provided on the $54.9 million of earnings that are considered to be permanently reinvested. The Company does not expect these earnings to 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 $8.2 million and $6.8 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company repatriated $134.1 million, $199.9 million and $116.0 million of foreign earnings, respectively. These actual distributions resulted in no incremental income tax expense other than tax impacts on foreign exchange gains or losses. These repatriations represent distributions of previously taxed income. A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2023, 2022 and 2021 is as follows:
| 2023 |  | 2022 |  | 2021
Beginning balance January 1 | $ | — |  |  | $ | 0.1 |  |  | $ | 1.1 |
Gross increases for tax positions of prior years | — |  |  | — |  |  | 0.1 |
Gross decreases for tax positions of prior years | — |  |  | — |  |  | (0.3) |
Settlements | — |  |  | — |  |  | (0.2) |
Lapse of statute of limitations | — |  |  | (0.1) |  |  | (0.6) |
Ending balance December 31 | $ | — |  |  | $ | — |  |  | $ | 0.1 |
As of December 31, 2023, the Company has no remaining unrecognized tax benefits that would affect the Company’s effective tax rate. The tax years 2018-2022 remain open to examination by major taxing jurisdictions. Due to the potential federal, state and foreign examinations, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change. As of December 31, 2023, the Company has minimal deferred tax assets on non-U.S. and U.S. state net operating loss carryforwards of $0.3 million and $0.6 million, respectively. The entire balance of net operating losses across jurisdictions, the majority of which relates to acquisitions, is available to be carried forward indefinitely. There is no valuation allowance as it is more-likely-than-not that the net operating losses will be realized. As of December 31, 2023, the Company has deferred tax assets on non-U.S. capital loss carryforwards of $3.1 million with a full valuation allowance. The non-U.S. capital loss can be carried forward indefinitely. As of December 31, 2023, the Company has deferred tax assets with a full valuation allowance recorded against foreign tax credit carryforwards for U.S. federal purposes of approximately $10.6 million. The U.S. federal foreign tax credit carryforward will expire between 2029 and 2033.

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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration