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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes
| Years Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Income (loss) from continuing operations before income taxes |  |  |  |  |
U.S. | $ | (44.3) |  |  | (1.8) |  |  | (72.9) |
Foreign | 270.5 |  |  | 237.3 |  |  | 152.2 |
Income from continuing operations before income taxes | $ | 226.2 |  |  | 235.5 |  |  | 79.3 |
Provision (benefit) for income taxes from continuing operations |  |  |  |  |
Current tax expense (benefit) |  |  |  |  |
U.S. federal | $ | 2.8 |  |  | 0.5 |  |  | (0.8) |
State | 1.6 |  |  | 0.9 |  |  | (0.6) |
Foreign | 99.3 |  |  | 104.3 |  |  | 86.2 |
Current tax expense | 103.7 |  |  | 105.7 |  |  | 84.8 |
Deferred tax expense (benefit) |  |  |  |  |
U.S. federal | (59.3) |  |  | 6.0 |  |  | (7.9) |
State | (0.1) |  |  | 2.9 |  |  | (1.6) |
Foreign | (2.9) |  |  | 5.7 |  |  | (18.7) |
Deferred tax expense (benefit) | (62.3) |  |  | 14.6 |  |  | (28.2) |
Provision for income taxes of continuing operations | $ | 41.4 |  |  | 120.3 |  |  | 56.6 |
| Years Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Comprehensive provision (benefit) for income taxes allocable to |  |  |  |  |
Continuing operations | $ | 41.4 |  |  | 120.3 |  |  | 56.6 |
Discontinued operations | (0.9) |  |  | 0.6 |  |  | (0.2) |
Other comprehensive income (loss) | 55.9 |  |  | 55.3 |  |  | (12.4) |
Equity | — |  |  | — |  |  | (0.6) |
Comprehensive provision for income taxes | $ | 96.4 |  |  | 176.2 |  |  | 43.4 |
Rate Reconciliation The following table reconciles the difference between the actual tax rate on continuing operations and the statutory U.S. federal income tax rate of 21% for 2022, 2021 and 2020.
| Years Ended December 31,
(In percentages) | 2022 |  | 2021 |  | 2020
U.S. federal tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (reductions) in taxes due to: |  |  |  |  |
Foreign rate differential | 7.5 |  |  | 7.6 |  |  | 12.9 |
Taxes on cross border income, net of credits | 6.9 |  |  | 4.6 |  |  | 11.0 |
Adjustments to valuation allowances | (21.1) |  |  | 6.7 |  |  | 6.6 |
Foreign income taxes | (0.7) |  |  | 6.1 |  |  | 10.6 |
French business tax | 0.8 |  |  | 0.7 |  |  | 3.7 |
State income taxes, net | 0.7 |  |  | 0.9 |  |  | (1.6) |
Share-based compensation | 1.3 |  |  | 0.2 |  |  | (3.1) |
Acquisition costs | — |  |  | 0.5 |  |  | 6.0 |
Other | 1.9 |  |  | 2.8 |  |  | 4.3 |
Actual income tax rate on continuing operations | 18.3 | % |  | 51.1 | % |  | 71.4 | %
Components of Deferred Tax Assets and Liabilities
| December 31,
(In millions) | 2022 |  | 2021
Deferred tax assets |  |  |
Pension liabilities | $ | 33.5 |  |  | 53.1 |
Retirement benefits other than pensions | 23.8 |  |  | 54.6 |
Lease liabilities | 80.9 |  |  | 85.4 |
Workers’ compensation and other claims | 27.5 |  |  | 35.5 |
Property and equipment, net | 54.1 |  |  | 35.7 |
Other assets and liabilities | 113.3 |  |  | 88.2 |
Net operating loss carryforwards | 53.4 |  |  | 72.8 |
Interest limitations and other tax carryforwards(a) | 20.6 |  |  | 6.0 |
Foreign tax and other tax credits(b) | 57.4 |  |  | 82.8 |
Subtotal | 464.5 |  |  | 514.1 |
Valuation allowances | (77.3) |  |  | (141.5) |
Total deferred tax assets | 387.2 |  |  | 372.6 |
Deferred tax liabilities |  |  |
Right-of-use assets, net | 76.8 |  |  | 76.9 |
Goodwill and other intangibles | 100.3 |  |  | 76.7 |
Other assets and miscellaneous | 31.7 |  |  | 28.8 |
Deferred tax liabilities | 208.8 |  |  | 182.4 |
Net deferred tax asset | $ | 178.4 |  |  | 190.2 |
Included in: |  |  |
Noncurrent assets | $ | 246.2 |  |  | 239.4 |
Noncurrent liabilities | (67.8) |  |  | (49.2) |
Net deferred tax asset | $ | 178.4 |  |  | 190.2 |
(a)U.S. interest limitation carryforward of $10.8 million has an unlimited carryforward and is not subject to a valuation allowance. In addition, foreign interest limitation and other tax carryforwards of $9.8 million have an unlimited carryforward and are subject to a full valuation allowance. (b)U.S. foreign tax credits of $54.0 million expire in various years between 2023 and 2031 and other remaining credits of $3.4 million have various expiration periods. The U.S. foreign tax credits and other credits have a valuation allowance of $10.3 million. Valuation Allowances Valuation allowances relate to deferred tax assets for certain federal credit carryforwards, certain state and non-U.S. jurisdictions. Based on our analysis of positive and negative evidence including historical and expected future taxable earnings, and a consideration of available tax-planning strategies, we believe it is more-likely-than-not that we will realize the benefit of the existing deferred tax assets, net of valuation allowances, at December 31, 2022.
| Years Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Valuation allowances: |  |  |  |  |
Beginning of year | $ | 141.5 |  |  | 128.1 |  |  | 118.3 |
Expiring tax credits | (0.2) |  |  | (0.7) |  |  | (0.4) |
Acquisitions and dispositions | — |  |  | (0.8) |  |  | 4.9 |
Changes in judgment about deferred tax assets(a) | (46.1) |  |  | 8.8 |  |  | (2.4) |
Other changes in deferred tax assets, charged to: |  |  |  |  |
Income from continuing operations | (1.4) |  |  | 7.4 |  |  | 8.1 |
Other comprehensive income (loss) | (13.9) |  |  | (0.2) |  |  | (0.3) |
Foreign currency exchange effects | (2.6) |  |  | (1.1) |  |  | (0.1) |
End of year | $ | 77.3 |  |  | 141.5 |  |  | 128.1 |
(a)Changes in judgment about valuation allowances are based on a recognition threshold of “more-likely-than-not” of realizing beginning-of-year balances of deferred tax assets. Amounts are recognized in income from continuing operations. The 2022 change in judgment includes the impact of the U.S. final foreign tax credit regulations. We determined a significant amount of the post-2021 foreign withholding taxes will now be ineligible for U.S. foreign income tax credit treatment and therefore our U.S. operations will no longer annually be generating new foreign tax credits in excess of its annual foreign tax credit utilization limit. As a result, we expect to be able to utilize a substantial amount of our foreign tax credit and general business tax credit carryforwards to offset future tax prior to their expiration.. Net Operating Losses The gross amount of the net operating loss carryforwards as of December 31, 2022, was $385.3 million. The tax benefit of net operating loss carryforwards, before valuation allowances, as of December 31, 2022, was $53.4 million, and expires as follows:
(In millions) | Federal |  | State |  | Foreign |  | Total
Years of expiration |  |  |  |  |  |  |
2023-2027 | $ | — |  |  | — |  |  | 1.8 |  |  | 1.8 |
2028-2032 | — |  |  | 0.5 |  |  | 1.1 |  |  | 1.6 |
2033 and thereafter | — |  |  | 9.7 |  |  | 4.2 |  |  | 13.9 |
Unlimited | 4.2 |  |  | 1.7 |  |  | 30.2 |  |  | 36.1 |
| $ | 4.2 |  |  | 11.9 |  |  | 37.3 |  |  | 53.4 |
Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Years Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Uncertain tax positions: |  |  |  |  |
Beginning of year | $ | 28.9 |  |  | 14.0 |  |  | 12.0 |
Increases related to prior-year tax positions | 1.2 |  |  | 3.0 |  |  | — |
Decreases related to prior-year tax positions | (2.9) |  |  | (0.4) |  |  | (0.2) |
Increases related to current-year tax positions | 2.3 |  |  | 5.2 |  |  | 2.3 |
Increases related to acquisitions | 0.3 |  |  | 11.8 |  |  | 4.1 |
Settlements | (2.4) |  |  | (2.5) |  |  | (2.1) |
Effect of the expiration of statutes of limitation | (1.9) |  |  | (1.6) |  |  | (1.4) |
Foreign currency exchange effects | (2.0) |  |  | (0.6) |  |  | (0.7) |
End of year | $ | 23.5 |  |  | 28.9 |  |  | 14.0 |
Included in the balance of unrecognized tax benefits at December 31, 2022, are potential benefits of approximately $19.8 million that, if recognized, will reduce the effective tax rate on income from continuing operations. We recognize accrued interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes. We reverse interest and penalty accruals when a statute of limitation lapses or when we otherwise conclude the amounts should not be accrued. The impact of interest and penalties on the 2022, 2021 and 2020 tax provisions was not significant. We had accrued interest and penalties of $5.8 million at December 31, 2022, and $7.6 million at December 31, 2021. We file income tax returns in the U.S. federal and various state and foreign jurisdictions. As of December 31, 2022, we are subject to U.S. Federal income tax examination by tax authorities for the taxable year ending December 31, 2019, but with few exceptions, we are no longer subject to any state and local, or non-U.S. income tax examinations by tax authorities for years before 2019. Additionally, due to statute of limitations expirations and audit settlements, it is reasonably possible that approximately $3.8 million of currently remaining unrecognized tax positions may be recognized by the end of 2023.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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