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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities from continuing operations at the end of each fiscal year were as follows:
(Millions of Dollars) | 2022 |  | 2021
Deferred tax liabilities: |  |  |
Depreciation | $ | 160.1 |  |  | $ | 132.2 |
Intangible assets | 907.5 |  |  | 917.3 |
Liability on undistributed foreign earnings | 45.4 |  |  | 48.2 |
Lease right-of-use asset | 108.2 |  |  | 106.5 |
Inventory | 59.4 |  |  | 79.6 |
Other | 46.7 |  |  | 48.4 |
Total deferred tax liabilities | $ | 1,327.3 |  |  | $ | 1,332.2 |
Deferred tax assets: |  |  |
Employee benefit plans | $ | 130.9 |  |  | $ | 204.2 |
Basis differences in liabilities | 104.0 |  |  | 100.4 |
Operating loss, capital loss and tax credit carryforwards | 817.4 |  |  | 830.7 |
Lease liability | 110.4 |  |  | 109.7 |
Intangible assets | 556.8 |  |  | 417.7 |
Basis difference in debt obligations | 268.0 |  |  | 205.1 |
Capitalized research and development costs | 134.7 |  |  | 86.0 |
Other | 204.3 |  |  | 206.6 |
Total deferred tax assets | $ | 2,326.5 |  |  | $ | 2,160.4 |
Net Deferred Tax Asset before Valuation Allowance | $ | 999.2 |  |  | $ | 828.2 |
Valuation Allowance | $ | (1,032.5) |  |  | $ | (1,067.2) |
Net Deferred Tax Liability after Valuation Allowance | $ | (33.3) |  |  | $ | (239.0) |
Classification of Deferred Taxes | The components of earnings from continuing operations before income taxes and equity interest consisted of the following:
(Millions of Dollars) | 2022 |  | 2021 |  | 2020
United States | $ | (1,233.8) |  |  | $ | (77.7) |  |  | $ | 144.5 |
Foreign | 1,271.7 |  |  | 1,664.6 |  |  | 1,039.2 |
Earnings before income taxes and equity interest | $ | 37.9 |  |  | $ | 1,586.9 |  |  | $ | 1,183.7 |
Income Tax Expense (Benefit) Attributable to Continuing Operations | Income taxes on continuing operations consisted of the following:
(Millions of Dollars) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | (79.0) |  |  | $ | 0.3 |  |  | $ | 55.4 |
Foreign | 248.6 |  |  | 388.0 |  |  | 183.2 |
State | (16.7) |  |  | 31.8 |  |  | 19.8 |
Total current | $ | 152.9 |  |  | $ | 420.1 |  |  | $ | 258.4 |
Deferred: |  |  |  |  |
Federal | $ | (61.2) |  |  | $ | (124.7) |  |  | $ | (25.1) |
Foreign | (222.5) |  |  | (210.1) |  |  | (192.1) |
State | (1.6) |  |  | (30.2) |  |  | (3.2) |
Total deferred | (285.3) |  |  | (365.0) |  |  | (220.4) |
Income taxes | $ | (132.4) |  |  | $ | 55.1 |  |  | $ | 38.0 |
Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations | The reconciliation of the U.S. federal statutory income tax provision to Income taxes on continuing operations in the Consolidated Statements of Operations is as follows:
(Millions of Dollars) | 2022 |  | 2021 |  | 2020
Tax at statutory rate | $ | 8.0 |  |  | $ | 333.2 |  |  | $ | 248.6 |
State income taxes, net of federal benefits | (19.3) |  |  | 1.4 |  |  | 12.0 |
Foreign tax rate differential | (28.8) |  |  | (63.5) |  |  | (58.6) |
Uncertain tax benefits | 26.3 |  |  | 49.6 |  |  | 17.7 |
Change in valuation allowance | (25.1) |  |  | (11.9) |  |  | (12.7) |
Change in deferred tax liabilities on undistributed foreign earnings | 12.8 |  |  | 23.1 |  |  | (118.8) |
Stock-based compensation | 7.3 |  |  | (6.3) |  |  | (9.2) |
Change in tax rates | (5.5) |  |  | (31.1) |  |  | (0.3) |
Tax credits | (8.8) |  |  | (6.7) |  |  | (6.0) |
Capital loss | — |  |  | — |  |  | (40.4) |
U.S. federal tax expense (benefit) on foreign earnings | 55.7 |  |  | (118.1) |  |  | 2.0 |
Intra-entity asset transfer of intellectual property | (153.3) |  |  | (114.2) |  |  | (27.7) |
Other | (1.7) |  |  | (0.4) |  |  | 31.4 |
Income taxes | $ | (132.4) |  |  | $ | 55.1 |  |  | $ | 38.0 |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits from continuing operations:
(Millions of Dollars) | 2022 |  | 2021 |  | 2020
Balance at beginning of year | $ | 487.7 |  |  | $ | 428.3 |  |  | $ | 392.0 |
Additions based on tax positions related to current year | 27.2 |  |  | 33.6 |  |  | 27.8 |
Additions based on tax positions related to prior years | 41.1 |  |  | 53.5 |  |  | 34.4 |
Reductions based on tax positions related to prior years | (37.8) |  |  | (17.2) |  |  | (19.0) |
Settlements | (7.0) |  |  | (1.3) |  |  | (0.5) |
Statute of limitations expirations | (8.5) |  |  | (9.2) |  |  | (6.4) |
Balance at end of year | $ | 502.7 |  |  | $ | 487.7 |  |  | $ | 428.3 |

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