XML 38 R25.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 15. Income Taxes The components of income from continuing operations before income taxes and noncontrolling interests were as follows:
(In millions) |  |  | 2021 |  |  |  | 2020 |  |  | 2019 |
Domestic operations |  |  | $ | 836.0 |  |  |  | $ | 576.8 |  |  | $ | 438.2 |
Foreign operations |  |  |  | 169.1 |  |  |  |  | 154.0 |  |  |  | 137.1 |
Income before income taxes and noncontrolling interests |  |  | $ | 1,005.1 |  |  |  | $ | 730.8 |  |  | $ | 575.3 |
Income tax expense in the consolidated statement of income consisted of the following:
(In millions) |  |  | 2021 |  |  |  | 2020 |  |  | 2019 |
Current |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | $ | 153.0 |  |  |  | $ | 100.0 |  |  | $ | 94.9 |
Foreign |  |  |  | 49.1 |  |  |  |  | 55.9 |  |  |  | 35.1 |
State and other |  |  |  | 30.7 |  |  |  |  | 27.5 |  |  |  | 21.5 |
Deferred |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  | 2.5 |  |  |  |  | (1.8 | ) |  |  | (6.9 | )
Foreign |  |  |  | (2.8 | ) |  |  |  | (11.5 | ) |  |  | (3.1 | )
State and Local |  |  |  | 0.2 |  |  |  |  | (1.3 | ) |  |  | 2.5 |
Total income tax expense |  |  | $ | 232.7 |  |  |  | $ | 168.8 |  |  | $ | 144.0 |
A reconciliation between the federal statutory tax rate and the effective tax rate is as follows:
(In millions) |  |  | 2021 |  |  |  | 2020 |  |  | 2019 |
Income tax expense computed at federal statutory income tax rate |  |  | $ | 211.1 |  |  |  | $ | 153.5 |  |  | $ | 120.8 |
State and local income taxes, net of federal tax benefit |  |  |  | 33.9 |  |  |  |  | 22.3 |  |  |  | 18.0 |
Foreign taxes at a different rate than U.S. federal statutory income tax rate |  |  |  | 9.0 |  |  |  |  | 3.0 |  |  |  | 1.4 |
Provision for foreign earnings repatriation, net |  |  |  | 0.3 |  |  |  |  | 3.2 |  |  |  | 0.4 |
Net adjustments for uncertain tax positions |  |  |  | (12.6 | ) |  |  |  | (0.2 | ) |  |  | 7.5 |
Share-based compensation (ASU 2016-09) |  |  |  | (10.4 | ) |  |  |  | (11.5 | ) |  |  | (3.7 | )
Deferred tax impact of state tax rate changes |  |  |  | (0.9 | ) |  |  |  | (0.7 | ) |  |  | 3.1 |
Valuation allowance (decrease) increase |  |  |  | 4.6 |  |  |  |  | (7.1 | ) |  |  | 3.4 |
Expiration of loss carryforwards |  |  |  | — |  |  |  |  | 6.1 |  |  |  | — |
Miscellaneous other, net |  |  |  | (2.3 | ) |  |  |  | 0.2 |  |  |  | (6.9 | )
Income tax expense as reported |  |  | $ | 232.7 |  |  |  | $ | 168.8 |  |  | $ | 144.0 |
Effective income tax rate |  |  |  | 23.2 | % |  |  |  | 23.1 | % |  |  | 25.0 | %
The 2021 effective income tax rate was unfavorably impacted by state and local income taxes, foreign income taxed at higher rates and a valuation allowance increase. This expense was offset by favorable benefits for the release of uncertain tax positions, primarily related to statute of limitations lapses, and share-based compensation. The 2020 and 2019 effective income tax rates were unfavorably impacted by state and local income taxes and foreign income taxed at higher rates. The 2019 effective income tax rate was also unfavorably impacted by increases in uncertain tax positions and valuation allowances. Both 2020 and 2019 expenses were offset by a tax benefit related to share-based compensation. A reconciliation of the beginning and ending amount of unrecognized tax benefits (“UTBs”) is as follows:
(In millions) |  |  | 2021 |  |  |  | 2020 |  |  | 2019 |
Unrecognized tax benefits—beginning of year |  |  | $ | 96.1 |  |  |  | $ | 88.0 |  |  | $ | 83.5 |
Gross additions—current year tax positions |  |  |  | 2.6 |  |  |  |  | 7.2 |  |  |  | 9.2 |
Gross additions—prior year tax positions |  |  |  | 2.0 |  |  |  |  | 3.7 |  |  |  | 2.9 |
Gross additions (reductions)—purchase accounting adjustments |  |  |  | — |  |  |  |  | 12.1 |  |  |  | — |
Gross reductions—prior year tax positions |  |  |  | (16.6 | ) |  |  |  | (11.7 | ) |  |  | (6.9 | )
Gross reductions—settlements with taxing authorities |  |  |  | (1.0 | ) |  |  |  | (3.2 | ) |  |  | (0.7 | )
Unrecognized tax benefits—end of year |  |  | $ | 83.1 |  |  |  | $ | 96.1 |  |  | $ | 88.0 |
The amount of UTBs that, if recognized as of December 31, 2021, would affect the Company’s effective tax rate is $69.2 million. It is reasonably possible that, within the next twelve months, total UTBs may decrease in the range of $4.1 million to $41.9 million primarily as a result of the conclusion of U.S. federal, state and foreign income tax proceedings. The Company classifies interest and penalty accruals related to UTBs as income tax expense. In 2021, the Company recognized an interest and penalty benefit of approximately $1.9 million. In 2020 and 2019, the Company recognized interest and penalty expenses of approximately $0.7 million and $3.0 million, respectively. As of December 31, 2021 and 2020, the Company had accruals for the payment of interest and penalties of $15.5 million and $17.6 million, respectively. The Company files income tax returns in the U.S., various state and foreign jurisdictions. The Company is currently under examination by the U.S. Internal Revenue Service for the periods related to 2017 and 2018. In addition to the U.S., the Company has tax years that remain open and subject to examination by tax authorities in the following major taxing jurisdictions: Canada for years after 2016, Mexico for years after 2016 and China for years after 2017. The components of net deferred tax assets (liabilities) as of December 31, 2021 and 2020 were as follows:
(In millions) |  |  | 2021 |  |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Compensation and benefits |  |  | $ | 46.1 |  |  |  | $ | 43.3 |
Defined benefit plans |  |  |  | 18.7 |  |  |  |  | 38.9 |
Capitalized inventories |  |  |  | 28.4 |  |  |  |  | 18.4 |
Accounts receivable |  |  |  | 20.6 |  |  |  |  | 16.0 |
Operating lease liabilities |  |  |  | 50.9 |  |  |  |  | 43.3 |
Other accrued expenses |  |  |  | 85.5 |  |  |  |  | 79.7 |
Net operating loss and other tax carryforwards |  |  |  | 25.3 |  |  |  |  | 14.4 |
Valuation allowance |  |  |  | (20.5 | ) |  |  |  | (9.7 | )
Miscellaneous |  |  |  | 0.1 |  |  |  |  | 1.2 |
Total deferred tax assets |  |  |  | 255.1 |  |  |  |  | 245.5 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  |  | (98.3 | ) |  |  |  | (86.4 | )
Intangible assets |  |  |  | (239.0 | ) |  |  |  | (220.9 | )
Operating lease assets |  |  |  | (48.5 | ) |  |  |  | (43.3 | )
Other investments |  |  |  | (0.2 | ) |  |  |  | (6.8 | )
Miscellaneous |  |  |  | (16.3 | ) |  |  |  | (17.8 | )
Total deferred tax liabilities |  |  |  | (402.3 | ) |  |  |  | (375.2 | )
Net deferred tax liability |  |  | $ | (147.2 | ) |  |  | $ | (129.7 | )
In accordance with ASC requirements for Income Taxes, deferred taxes were classified in the consolidated balance sheets as of December 31, 2021 and 2020 as follows:
(In millions) |  |  | 2021 |  |  |  | 2020 |
Other assets |  |  |  | 28.8 |  |  |  |  | 30.8 |
Deferred income taxes |  |  |  | (176.0 | ) |  |  |  | (160.5 | )
Net deferred tax liability |  |  | $ | (147.2 | ) |  |  | $ | (129.7 | )
As of December 31, 2021, and 2020, the Company had deferred tax assets related to net operating losses and other tax carryforwards of $25.3 million and $14.4 million, respectively. Approximately $2.9 million expires between 2022 and 2026, and the remainder will expire in 2027 and thereafter. The Company evaluated its ability to realize tax benefits associated with deferred tax assets and concluded, based on the available evidence, that is more likely than not that certain of these deferred tax assets will not be fully realized. The valuation allowance at December 31, 2021, includes amounts set up against acquired federal and state net operating losses of Flo, that are limited in utilization. See Note 4, "Acquisitions and Dispositions" for additional information. Accumulated foreign earnings and profits of the Company’s foreign subsidiaries as of December 31, 2017 were subject to a deemed repatriation tax and should not be subject to additional U.S. federal income tax upon an actual repatriation of these earnings. As of December 31, 2021, the Company has recorded an estimated deferred tax liability of $7.3 million for foreign and state taxes that will be payable upon distribution of these earnings. Subsequent to December 31, 2017, we consider the unremitted earnings of certain foreign subsidiaries that impose local country taxes on dividends to be indefinitely reinvested. We have not provided deferred taxes on the remaining book over tax outside basis difference of $201.1 million related to these subsidiaries. The amount of unrecognized deferred tax liabilities for local country withholding taxes that would be owed related to these earnings is $13.2 million.

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 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration