XML 35 R23.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to the non-controlling interests.
The following table presents the consolidated provision for income taxes:
 For the Three Months Ended March 31,
 20222023
Controlling interest:  
Current taxes$30.3 $31.2 
Intangible-related deferred taxes15.7 14.8 
Other deferred taxes4.5 (3.5)
Total controlling interest50.5 42.5 
Non-controlling interests:
Current taxes$5.2 $2.5 
Deferred taxes— — 
Total non-controlling interests5.2 2.5 
Income tax expense $55.7 $45.0 
Income before income taxes (controlling interest)$196.5 $177.0 
Effective tax rate (controlling interest)(1)
25.7 %24.0 %
__________________________
(1)Taxes attributable to the controlling interest divided by income before income taxes (controlling interest).
The Company’s effective tax rate (controlling interest) for the three months ended March 31, 2022 was higher than the marginal tax rate of 24.5%, primarily due to increases in non-deductible compensation expense and unrecognized tax benefits, partially offset by tax benefits from foreign operations. The Company’s effective tax rate (controlling interest) for the three months ended March 31, 2023 was lower than the marginal tax rate of 24.5%, primarily due to tax windfalls related to share-based compensation, partially offset by the impact of the increase in the UK corporate tax rate in 2023.
In August 2022, the Inflation Reduction Act was enacted into law. The relevant provisions of the Inflation Reduction Act for the Company are the 15% corporate alternative minimum income tax and the 1% excise tax on repurchases of the Company’s common stock. These provisions are effective as of January 1, 2023. The Company does not currently expect the Inflation Reduction Act to have a material impact on its Consolidated Financial Statements. The Company expects to record the excise tax as part of the cost basis of its common stock repurchased.