XML 49 R33.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The following table sets forth the components of income before income taxes by jurisdiction:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
|  |  | (In millions) |  |
United States | $ | 739.4 |  |  | $ | 859.4 |  |  | $ | 396.8 |
Foreign | 252.6 |  |  | 277.3 |  |  | 185.1 |
Income before income taxes | $ | 992.0 |  |  | $ | 1,136.7 |  |  | $ | 581.9 |
Schedule of Components of Income Tax Expense | The following table sets forth the components of the provision for income taxes:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
|  |  | (In millions) |  |
Current income taxes: |  |  |  |  |
Federal | $ | 124.8 |  |  | $ | 166.1 |  |  | $ | 107.9 |
State | 34.6 |  |  | 43.0 |  |  | 30.2 |
Foreign | 74.4 |  |  | 66.7 |  |  | 55.7 |
Total current income taxes | 233.8 |  |  | 275.8 |  |  | 193.8 |
Deferred income taxes: |  |  |  |  |
Federal | (1.0) |  |  | (7.5) |  |  | (62.3) |
State | 2.7 |  |  | 0.7 |  |  | (12.3) |
Foreign | (9.6) |  |  | 5.6 |  |  | (3.7) |
Total deferred income taxes | (7.9) |  |  | (1.2) |  |  | (78.3) |
Provision for income taxes | $ | 225.9 |  |  | $ | 274.5 |  |  | $ | 115.5 |
Schedule of Effective Income Tax Rate Reconciliation | The following table sets forth the reconciliation between the federal statutory income tax rate and the effective tax rate:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit | 3.0 |  |  | 3.1 |  |  | 2.0 |
Tax effect of intercompany financing | (0.9) |  |  | (1.2) |  |  | (3.2) |
Unrecognized tax benefits | — |  |  | 0.3 |  |  | 2.5 |
Nondeductible expenses | — |  |  | 0.3 |  |  | 0.6 |
Change in valuation allowance | (0.9) |  |  | (0.9) |  |  | (2.8) |
Effect of cross-border tax laws | 1.4 |  |  | 1.4 |  |  | (1.1) |
Other | (0.8) |  |  | 0.2 |  |  | 0.9 |
Effective tax rate | 22.8 | % |  | 24.2 | % |  | 19.9 | %
On August 16, 2022, the Inflation Reduction Act of 2022 was enacted into U.S. law, which includes implementation of a new corporate alternative minimum tax (“CAMT”), among other provisions. The CAMT imposes a minimum tax of 15% on the adjusted financial statement income (“AFSI”) of certain corporations with average annual AFSI over a three-year period in excess of $1 billion, so-called “applicable corporations”. CAMT is effective for tax years beginning after December 31, 2022. The Company was not subject to CAMT in 2023 and does not expect to be subject to it in 2024.
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth deferred tax assets and liabilities:
| As of December 31,
| 2023 |  | 2022
|  |  | (In millions) |  |
| Assets |  | Liabilities |  | Assets |  | Liabilities
Accounts receivable | $ | 23.3 |  |  | $ | — |  |  | $ | 21.0 |  |  | $ | — |
Inventories | 45.9 |  |  | — |  |  | 23.9 |  |  | — |
Depreciation of property, buildings and equipment | — |  |  | 41.0 |  |  | — |  |  | 46.9 |
Operating leases | 201.8 |  |  | 192.0 |  |  | 169.3 |  |  | 165.2 |
Amortization of intangible assets | — |  |  | 564.5 |  |  | — |  |  | 575.4 |
Employee benefits | 21.5 |  |  | — |  |  | 36.5 |  |  | — |
Stock-based compensation | 11.2 |  |  | — |  |  | 14.1 |  |  | — |
Prepaid royalty payments | — |  |  | — |  |  | 14.0 |  |  | — |
Disallowed business interest expense | 1.9 |  |  | — |  |  | 4.8 |  |  | — |
Net operating loss carryforwards | 36.7 |  |  | — |  |  | 32.0 |  |  | — |
Foreign tax credit carryforwards | 41.1 |  |  | — |  |  | 52.2 |  |  | — |
Other | 38.3 |  |  | 10.3 |  |  | 37.3 |  |  | 10.5 |
Deferred income taxes before valuation allowance | 421.7 |  |  | 807.8 |  |  | 405.1 |  |  | 797.9 |
Valuation allowance | (23.5) |  |  | — |  |  | (33.7) |  |  | — |
Total deferred income taxes | $ | 398.2 |  |  | $ | 807.8 |  |  | $ | 371.4 |  |  | $ | 797.9 |
Summary of Income Tax Examinations | The Company is under examination by tax authorities in various jurisdictions and remains subject to examination until the applicable statutes of limitation expire. The statutes of limitation for the material jurisdictions in which the Company files income tax returns remain open as follows:
United States — Federal |  | 2020 and forward
United States — Material States |  | 2017 and forward
Canada |  | 2012 and forward
UK |  | 2018 and forward
Australia |  | 2018 and forward
Summary of Income Tax Contingencies | The following table sets forth the reconciliation of gross unrecognized tax benefits:
| As of December 31,
| 2023 |  | 2022 |  | 2021
| (In millions)
Beginning balance January 1 | $ | 109.3 |  |  | $ | 107.3 |  |  | $ | 68.1 |
Additions for current year tax positions | 29.2 |  |  | 14.4 |  |  | 39.8 |
Additions for prior year tax positions | 6.6 |  |  | 0.9 |  |  | 8.4 |
Additions for acquired tax positions | 0.9 |  |  | 5.5 |  |  | — |
Reductions for prior year tax positions | (6.7) |  |  | (1.8) |  |  | (3.9) |
Settlements | (2.5) |  |  | — |  |  | (0.1) |
Lapse in statute of limitations | (15.8) |  |  | (14.5) |  |  | (3.8) |
Foreign currency exchange rate changes | 0.3 |  |  | (2.6) |  |  | (1.2) |
Ending balance December 31 | $ | 121.3 |  |  | $ | 109.3 |  |  | $ | 107.3 |

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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + 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 -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 + Details
Name: | us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration