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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of our income (loss) from continuing operations before income taxes and the provision for income taxes are as follows (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Income (loss) from continuing operations before income taxes: |  |  |  |  |
Domestic | $ | (209.7) |  |  | $ | (59.7) |  |  | $ | (55.8) |
Foreign | 63.2 |  |  | 98.3 |  |  | 70.1 |
Total | $ | (146.5) |  |  | $ | 38.6 |  |  | $ | 14.3 |
Income tax expense (benefit): |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 22.1 |  |  | $ | (9.2) |  |  | $ | (16.6) |
Foreign | 16.0 |  |  | 23.1 |  |  | 27.7 |
State | — |  |  | (1.6) |  |  | (0.4) |
Total current provision | 38.1 |  |  | 12.3 |  |  | 10.7 |
Deferred: |  |  |  |  |
Federal | (29.4) |  |  | (2.9) |  |  | 4.6 |
Foreign | 3.2 |  |  | 0.9 |  |  | 0.4 |
State | (3.6) |  |  | (0.3) |  |  | (0.6) |
Total deferred provision | (29.8) |  |  | (2.3) |  |  | 4.4 |
Income tax expense | $ | 8.3 |  |  | $ | 10.0 |  |  | $ | 15.1 |
The provision for income taxes was different from the U.S. federal statutory rate applied to income before taxes, and is reconciled as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net | 3.8 | % |  | (4.8) | % |  | 1.3 | %
Reserves for tax exposures | — | % |  | 0.4 | % |  | (1.2) | %
Change in valuation allowance | (25.2) | % |  | 8.5 | % |  | 9.5 | %
International operations | (4.7) | % |  | 2.9 | % |  | 56.2 | %
Stock-based compensation | (0.1) | % |  | — | % |  | (5.3) | %
Impact of law and rate change | 0.2 | % |  | (5.6) | % |  | 1.5 | %
Excess officer's compensation | (1.0) | % |  | 5.5 | % |  | 7.9 | %
Transaction costs | — | % |  | (0.2) | % |  | 2.5 | %
Refund claims | — | % |  | — | % |  | (19.2) | %
Goodwill and other intangibles impairment | (0.9) | % |  | — | % |  | — | %
Impact of acquisition and divestiture adjustments | 1.3 | % |  | — | % |  | 34.3 | %
Other, net | (0.1) | % |  | (1.8) | % |  | (2.9) | %
Effective rate | (5.7) | % |  | 25.9 | % |  | 105.6 | %
The effective tax rate in 2023 was unfavorably impacted by the goodwill and other intangibles impairment charges and the recording of valuation allowance against the U.S. net deferred tax asset. The effective tax rate in 2021 was unfavorably impacted by earnings mix between domestic and foreign, and by the expense for the increase in the estimated value of contingent consideration for which no tax benefit was recorded. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax benefits associated with the goodwill and tradename impairments resulted in the U.S. being in a net deferred tax asset position. Due to the three-year cumulative loss related to U.S. operations, we recorded a valuation allowance against the U.S. net deferred tax asset at December 31, 2023. We offset all deferred tax assets and liabilities by jurisdiction, as well as any related valuation allowance, and present them as a non-current deferred income tax asset or liability (as applicable). Deferred tax assets (liabilities) are comprised of the following (in millions):
| December 31,
| 2023 |  | 2022
Gross deferred tax assets: |  |  |
Allowances for trade and finance receivables | $ | 8.1 |  |  | $ | 9.0 |
Accruals and liabilities | 4.3 |  |  | 3.9 |
Employee benefits and compensation | 9.2 |  |  | 7.1 |
Net operating loss carryforwards | 19.9 |  |  | 19.5 |
Right of use lease liability | 20.1 |  |  | 22.4 |
Other | 7.9 |  |  | 5.3 |
Total deferred tax assets | 69.5 |  |  | 67.2 |
Deferred tax asset valuation allowance | (63.2) |  |  | (25.3) |
Total | 6.3 |  |  | 41.9 |
Gross deferred tax liabilities: |  |  |
Property and equipment | (3.5) |  |  | (16.1) |
Goodwill and intangible assets | 4.1 |  |  | (49.9) |
Right of use lease asset | (18.7) |  |  | (21.0) |
Other | (6.1) |  |  | (2.6) |
Total | (24.2) |  |  | (89.6) |
Net deferred tax liabilities | $ | (17.9) |  |  | $ | (47.7) |
The tax benefit from state and federal net operating loss carryforwards expires as follows (in millions):
2024 | $ | 0.1 |
2025 | 0.2 |
2026 | 0.1 |
2027 | — |
2028 | — |
2029 and after | 19.5 |
| $ | 19.9 |
Permanently reinvested undistributed earnings of our foreign subsidiaries were approximately $452.6 million at December 31, 2023. Because these amounts have been or will be permanently reinvested in properties and working capital, we have not recorded the deferred taxes associated with these earnings. If the undistributed earnings of foreign subsidiaries were to be remitted, state and local income tax expense and withholding tax expense would need to be recognized, net of any applicable foreign tax credits. It is not practical for us to determine the additional tax that would be incurred upon remittance of these earnings. We made federal income tax payments, related to continuing operations and net of federal income tax refunds, of $7.5 million, $0.0 million and $0.0 million in 2023, 2022 and 2021, respectively. State and foreign income taxes paid by us, net of refunds, totaled $28.3 million, $25.6 million and $24.8 million in 2023, 2022 and 2021, respectively. We apply the provisions of ASC 740, Income Taxes. ASC 740 clarifies the accounting and reporting for uncertainty in income taxes recognized in an enterprise's financial statements. These provisions prescribe a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken on income tax returns. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
| December 31,
| 2023 |  | 2022
Balance at beginning of period | $ | 5.8 |  |  | $ | 5.0 |
Increase in prior year tax positions | 9.2 |  |  | 0.4 |
Increase in current year tax positions | 0.7 |  |  | 1.4 |
Lapse in statute of limitations | (0.8) |  |  | (1.0) |
Balance at end of period | $ | 14.9 |  |  | $ | 5.8 |
The total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate was $12.3 million and $4.2 million at December 31, 2023 and 2022, respectively. We record interest and penalties associated with the uncertain tax positions within our provision for income taxes on the consolidated statement of income (loss). We had reserves totaling $1.1 million and $0.4 million at December 31, 2023 and 2022 associated with interest and penalties, net of tax. The provision for income taxes involves management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which the Company operates. Future changes in applicable laws, projected levels of taxable income and tax planning could change the effective tax rate and tax balances recorded by us. In addition, U.S. and non-U.S. tax authorities periodically review income tax returns filed by us and can raise issues regarding our filing positions, timing and amount of income or deductions and the allocation of income among the jurisdictions in which we operate. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a revenue authority with respect to that return. In the normal course of business we are subject to examination by taxing authorities in the U.S., Canada, Western Europe, United Kingdom, Mexico, Uruguay and the Philippines. In general, the examination of our material tax returns is completed for the years prior to 2020. Based on the potential outcome of the Company's tax examinations and the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the currently remaining unrecognized tax benefits will change within the next 12 months. The associated net tax impact on the reserve balance is estimated to be in the range of a $0.0 million to $0.5 million decrease.

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