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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income from Continuing Operations Before Income Taxes Income from continuing operations before income taxes consists of the following:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
United States | $ | 25.9 |  |  | $ | 48.0 |  |  | $ | 24.4 |
Foreign | 48.2 |  |  | 37.2 |  |  | 10.2 |
Income from continuing operations before income taxes | $ | 74.1 |  |  | $ | 85.2 |  |  | $ | 34.6 |
Provision Significant components of income tax expense (benefit), net are as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 1.7 |  |  | $ | (0.2) |  |  | $ | 4.9 |
State and local | 3.2 |  |  | 1.9 |  |  | 2.7 |
Foreign | 16.5 |  |  | 12.2 |  |  | 11.4 |
Total current | 21.4 |  |  | 13.9 |  |  | 19.0 |
Deferred: |  |  |  |  |
Federal | (5.8) |  |  | 7.5 |  |  | (2.0) |
State and local | 1.1 |  |  | (2.9) |  |  | (5.5) |
Foreign | (3.2) |  |  | (3.6) |  |  | (8.7) |
Total deferred | (7.9) |  |  | 1.0 |  |  | (16.2) |
Total income tax expense (benefit), net | $ | 13.5 |  |  | $ | 14.9 |  |  | $ | 2.8 |
Effective Tax Rate Reconciliation The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Income tax expense at U.S. statutory rate | $ | 15.6 |  |  | $ | 17.9 |  |  | $ | 7.3 |
State income taxes, net of federal tax benefit | 3.6 |  |  | (0.9) |  |  | (2.3) |
Foreign income, net of credit on foreign taxes | 2.1 |  |  | — |  |  | (1.3) |
Effective tax rate differential of earnings outside of U.S. | 1.8 |  |  | 2.4 |  |  | — |
Change in valuation allowance | (5.9) |  |  | (4.2) |  |  | 1.0 |
Research & experimentation credits | (0.9) |  |  | (1.0) |  |  | (0.9) |
Foreign derived intangible income | (0.8) |  |  | (0.2) |  |  | (1.2) |
Net non-deductible items | 1.6 |  |  | 1.2 |  |  | 2.3 |
Change in uncertain tax positions | (0.2) |  |  | (0.6) |  |  | — |
Share-based compensation | (2.2) |  |  | (1.7) |  |  | (2.8) |
Tax effect of 2017 tax reform federal rate change | — |  |  | (0.2) |  |  | — |
Other items | (1.2) |  |  | 2.2 |  |  | 0.7 |
Income tax expense | $ | 13.5 |  |  | $ | 14.9 |  |  | $ | 2.8 |
Deferred Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:
| December 31,
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accruals and reserves | $ | 16.8 |  |  | $ | 15.7 |
Pensions | 0.5 |  |  | 2.6 |
Inventory | 42.3 |  |  | 3.5 |
Share-based compensation | 4.5 |  |  | 4.4 |
Tax credit carryforwards | 17.6 |  |  | 10.6 |
Foreign net operating loss carryforwards | 16.3 |  |  | 22.4 |
State net operating loss carryforwards | 2.3 |  |  | 1.9 |
Convertible notes | 6.3 |  |  | 0.7 |
Operating leases | 7.5 |  |  | 8.1 |
Other – net | 11.1 |  |  | 7.4 |
Total deferred tax assets before valuation allowances | 125.2 |  |  | 77.3 |
Valuation allowances | (21.6) |  |  | (33.9) |
Total deferred tax assets, net of valuation allowances | $ | 103.6 |  |  | $ | 43.4 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | 37.9 |  |  | $ | 27.8 |
Goodwill and intangible assets | 82.2 |  |  | 69.1 |
Other – net | (0.1) |  |  | 5.2 |
Investments | 3.8 |  |  | — |
Deferred revenue | 37.9 |  |  | — |
Total deferred tax liabilities | $ | 161.7 |  |  | $ | 102.1 |
Net deferred tax liabilities | $ | 58.1 |  |  | $ | 58.7 |
The net deferred tax liability is classified as follows: |  |  |
Other assets | $ | (1.7) |  |  | $ | (1.5) |
Long-term deferred tax liabilities | 59.8 |  |  | 60.2 |
Net deferred tax liabilities | $ | 58.1 |  |  | $ | 58.7 |
As of December 31, 2021, we have $133.5 of state and foreign net operating losses, of which approximately $24.6 expire between 2022 and 2030. We routinely review valuation allowances recorded against deferred tax assets on a more likely than not basis as to whether we have the ability to realize the deferred tax assets. As of December 31, 2021, we have valuation allowances totaling $21.6 consisting primarily of $16.6 associated with our operations in China. Other Tax Information We previously considered the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. We have analyzed our global working capital and cash requirements as of December 31, 2021 and have determined that we do not plan to repatriate any earnings at this time. Cash paid for income taxes during the years ended December 31, 2021, 2020 and 2019 was $57.2, $12.5, and $16.8, respectively. Unrecognized Income Tax Benefits The reconciliation of beginning to ending unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Unrecognized tax benefits at beginning of the year | $ | 1.9 |  |  | $ | 2.4 |  |  | $ | 2.3 |
Additions (reductions) for tax positions taken during the prior period | 0.4 |  |  | (0.6) |  |  | (0.1) |
Additions for tax positions taken during the current period | — |  |  | 0.2 |  |  | 0.2 |
Reductions relating to settlements with taxing authorities | — |  |  | (0.1) |  |  | — |
Lapse of statutes of limitation | (0.6) |  |  | — |  |  | — |
Unrecognized tax benefits at end of the year | $ | 1.7 |  |  | $ | 1.9 |  |  | $ | 2.4 |
Included in the balance of unrecognized tax benefits at December 31, 2021 and 2020 was $1.2 and $1.3, respectively of income tax (benefit)/expenses, which, if ultimately recognized, would impact our annual effective tax rate. We accrued approximately $0.3 of interest and penalties at both December 31, 2021 and 2020. Due to the expiration of various statutes of limitation, it is reasonably possible our unrecognized tax benefits at December 31, 2021 may decrease within the next twelve months by $0.1. We are subject to income taxes in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years prior to 2017.

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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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