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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income from continuing operations before income taxes and the (provision for) benefit from income taxes consisted of the following:
| Year ended December 31,
| 2020 |  | 2019 |  | 2018
Income from continuing operations: |  |  |  |  |
United States | $ | 89.5 |  |  | $ | 89.4 |  |  | $ | 74.5 |
Foreign | 27.0 |  |  | (4.4) |  |  | 10.0 |
| $ | 116.5 |  |  | $ | 85.0 |  |  | $ | 84.5 |
(Provision for) benefit from income taxes: |  |  |  |  |
Current: |  |  |  |  |
United States | $ | (0.7) |  |  | $ | 6.8 |  |  | $ | 1.5 |
Foreign | (3.8) |  |  | (5.5) |  |  | (3.2) |
Total current | (4.5) |  |  | 1.3 |  |  | (1.7) |
Deferred and other: |  |  |  |  |
United States | (11.3) |  |  | (14.2) |  |  | (0.6) |
Foreign | — |  |  | (1.0) |  |  | (0.3) |
Total deferred and other | (11.3) |  |  | (15.2) |  |  | (0.9) |
Total provision | $ | (15.8) |  |  | $ | (13.9) |  |  | $ | (2.6) |
The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows:
| Year ended December 31,
| 2020 |  | 2019 |  | 2018
Tax at U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local taxes, net of U.S. federal benefit | 3.2 | % |  | 3.2 | % |  | 2.9 | %
U.S. credits and exemptions | (3.7) | % |  | (4.9) | % |  | (3.8) | %
Foreign earnings/losses taxed at different rates | (3.1) | % |  | (7.6) | % |  | (1.1) | %
Nondeductible expenses | 1.5 | % |  | 2.6 | % |  | 2.4 | %
Adjustments to uncertain tax positions | (3.0) | % |  | (0.5) | % |  | (8.4) | %
Changes in valuation allowance | 1.0 | % |  | 5.4 | % |  | (8.0) | %
Share-based compensation | (2.5) | % |  | (2.2) | % |  | (2.2) | %
U.S. tax reform | — | % |  | — | % |  | (0.8) | %
Other | (0.8) | % |  | (0.6) | % |  | 1.1 | %
| 13.6 | % |  | 16.4 | % |  | 3.1 | %
Significant components of our deferred tax assets and liabilities were as follows:
| As of December 31,
| 2020 |  | 2019
Deferred tax assets: |  |  |
NOL and credit carryforwards | $ | 142.0 |  |  | $ | 145.7 |
Pension, other postretirement and postemployment benefits | 36.5 |  |  | 36.4 |
Payroll and compensation | 17.1 |  |  | 19.0 |
Legal, environmental and self-insurance accruals | 22.6 |  |  | 21.3 |
Working capital accruals | 13.9 |  |  | 11.5 |
Other | 7.9 |  |  | 7.1 |
Total deferred tax assets | 240.0 |  |  | 241.0 |
Valuation allowance | (92.0) |  |  | (93.6) |
Net deferred tax assets | 148.0 |  |  | 147.4 |
Deferred tax liabilities: |  |  |
Intangible assets recorded in acquisitions | 74.9 |  |  | 75.1 |
Basis difference in affiliates | 16.3 |  |  | 14.0 |
Accelerated depreciation | 25.7 |  |  | 22.4 |
Deferred income | 29.4 |  |  | 23.0 |
Other | 4.2 |  |  | 1.6 |
Total deferred tax liabilities | 150.5 |  |  | 136.1 |
| $ | (2.5) |  |  | $ | 11.3 |
General Matters Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess deferred tax assets to determine if they are likely to be realized and the adequacy of deferred tax liabilities, incorporating the results of local, state, federal and foreign tax audits in our estimates and judgments. At December 31, 2020, we had $483.2 of state and $321.3 of foreign tax loss carryforwards available. We also had federal and state tax credit carryforwards of $27.6. Of these amounts, $23.8 expire in 2021 and $482.1 expire at various times between 2022 and 2040. The remaining carryforwards have no expiration date. Realization of deferred tax assets, including those associated with net operating loss and credit carryforwards, is dependent upon generating sufficient taxable income in the appropriate tax jurisdiction. We believe that it is more likely than not that we may not realize the benefit of certain of these deferred tax assets and, accordingly, have established a valuation allowance against these deferred tax assets. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that the deferred tax assets will be realized through future taxable earnings or tax planning strategies. However, deferred tax assets could be reduced in the near term if our estimates of taxable income are significantly reduced or tax planning strategies are no longer viable. The valuation allowance decreased by $1.6 in 2020 and increased by $4.3 in 2019. The 2020 decrease was primarily driven by the impact of foreign exchange rates on our foreign losses. The amount of income tax that we pay annually is dependent on various factors, including the timing of certain deductions. These deductions can vary from year to year, and, consequently, the amount of income taxes paid in future years will vary from the amounts paid in prior years. Undistributed Foreign Earnings In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of December 31, 2020, we have $158.0 of undistributed earnings of our foreign subsidiaries. The majority of these earnings have already been reinvested in our overseas businesses. Further, we believe future domestic cash generation will be sufficient to meet future domestic cash needs. For this reason, we have not recorded a provision for U.S. or foreign withholding taxes on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. Generally, such amounts may become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of a deferred tax liability related to the undistributed earnings of our foreign subsidiaries in the event that these earnings are no longer considered to be indefinitely reinvested, due to the hypothetical nature of the calculation. Unrecognized Tax Benefits A s of December 31, 2020, we had gross and net unrecognized tax benefits of $13.6 and $11.0, respectively. Of these net unrecognized tax benefits, $7.0 would impact our effective tax rate from continuing operations if recognized. Similarly, at December 31, 2019 and 2018, we had gross unrecognized tax benefits of $17.2 (net unrecognized tax benefits of $13.9) and $20.3 (net unrecognized tax benefits of $13.8), respectively. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax (provision) benefit. As of December 31, 2020, gross accrued interest totaled $3.8 (net accrued interest of $3.0), while the related amounts as of December 31, 2019 and 2018 were $4.1 (net accrued interest of $3.2) and $3.8 (net accrued interest of $2.9), respectively. Our income tax (provision) benefit for the years ended December 31, 2020, 2019 and 2018 included gross interest income (expense) of $0.2, $(0.5), and $0.1, respectively, resulting from adjustments to our liability for uncertain tax positions. As of December 31, 2020, 2019 and 2018, we had no accrual for penalties included in our unrecognized tax benefits. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by up to $5.0. The previously unrecognized tax benefits relate to a variety of tax matters including transfer pricing and various state matters. The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 were as follows:
| Year ended December 31,
| 2020 |  | 2019 |  | 2018
Unrecognized tax benefit — opening balance | $ | 17.2 |  |  | $ | 20.3 |  |  | $ | 31.3 |
Gross increases — tax positions in prior period | 0.3 |  |  | 1.1 |  |  | 0.6 |
Gross decreases — tax positions in prior period | (2.2) |  |  | (0.8) |  |  | (2.4) |
Gross increases — tax positions in current period | 0.2 |  |  | 0.2 |  |  | 0.7 |
Settlements | (0.3) |  |  | (2.1) |  |  | — |
Lapse of statute of limitations | (1.7) |  |  | (1.5) |  |  | (9.8) |
Change due to foreign currency exchange rates | 0.1 |  |  | — |  |  | (0.1) |
Unrecognized tax benefit — ending balance | $ | 13.6 |  |  | $ | 17.2 |  |  | $ | 20.3 |
Other Tax Matters During 2020, our income tax provision was impacted most significantly by (i) $4.2 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions and (ii) $2.9 of excess tax benefits resulting from stock-based compensation awards that vested and/or were exercised during the year. During 2019, our income tax provision was impacted most significantly by (i) $1.9 of excess tax benefits resulting from stock-based compensation awards that vested and/or were exercised during the year, (ii) a $1.9 tax benefit associated with an adjustment to the taxation of foreign earnings, (iii) $1.3 of tax benefits related to our U.S. tax credits and incentives, and (iv) $1.2 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions, partially offset by $3.8 of tax expense related to various valuation allowance adjustments, primarily due to foreign losses generated during the year for which no foreign tax benefit was recognized as future realization of any such tax benefit is considered unlikely. During 2018, our income tax provision was impacted most significantly by (i) the utilization of $33.0 of prior years’ losses generated in foreign jurisdictions in which no tax benefit was previously recognized, (ii) $7.0 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions, and (iii) $2.2 of excess tax benefits resulting from stock-based compensation awards that vested during the year. We perform reviews of our income tax positions on a continuous basis and accrue for potential uncertain positions when we determine that a tax position meets the criteria of the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are recorded in “Income taxes payable” and “Deferred and other income taxes” in the accompanying consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. The Internal Revenue Service (“IRS”) currently is performing an audit of our 2013, 2014, 2015, 2016 and 2017 federal income tax returns. With regard to all open tax years, we believe any contingencies are adequately provided for. State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination. We believe any uncertain tax positions related to these examinations have been adequately provided for. We have various foreign income tax returns under examination. The most significant of these are in Germany for the 2010 through 2014 tax years. We believe that any uncertain tax positions related to these examinations have been adequately provided for. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) On March 27, 2020, the CARES Act was enacted into law and provides changes to various tax laws that impact businesses. We do not believe these changes impact our current and deferred income tax balances; therefore, no resulting adjustments have been recorded to such balances as of December 31, 2020. As provided within the CARES Act, we are deferring payments of our social security payroll taxes, for the period March 27, 2020 to December 31, 2020, with such deferral totaling $10.8 as of December 31, 2020. One-half of the deferred amount is required to be paid in 2021, with the remainder to be paid in 2022.

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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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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