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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Taxes |
Components of Pre-Tax Income | The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows (in millions):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Domestic |  | $ | (59.9 | ) |  | $ | — |  |  | $ | 434.7 |
Foreign |  |  | 995.3 |  |  |  | 855.1 |  |  |  | 886.7 |
Total pre-tax income |  | $ | 935.4 |  |  | $ | 855.1 |  |  | $ | 1,321.4 |
Provision for Income Taxes | The provision for income taxes was as follows (in millions):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Federal |  | $ | 40.3 |  |  | $ | 50.1 |  |  | $ | 153.7 |
State and local |  |  | 1.4 |  |  |  | 1.1 |  |  |  | 22.9 |
Foreign |  |  | 87.9 |  |  |  | 59.6 |  |  |  | 86.5 |
Total provision for income taxes |  | $ | 129.6 |  |  | $ | 110.8 |  |  | $ | 263.1 |
Effective Tax Rates | The Company’s effective tax rates differed from statutory rates as follows:
| Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal income tax benefits |  |  | 0.2 | % |  |  | 0.5 | % |  |  | 1.4 | %
Foreign rate differential, net of United States tax paid on foreign earnings (3.3%, 5.6%, and 2.3%, respectively) |  |  | (9.5 | )% |  |  | (8.3 | )% |  |  | (5.5 | )%
Divestitures |  |  | — | % |  |  | — | % |  |  | 2.4 | %
Change in Business Solutions permanent reinvestment assertion |  |  | 1.9 | % |  |  | — | % |  |  | — | %
Lapse of statute of limitations |  |  | (0.5 | )% |  |  | (0.7 | )% |  |  | (0.5 | )%
Valuation allowances |  |  | — | % |  |  | 0.2 | % |  |  | 0.1 | %
Other |  |  | 0.8 | % |  |  | 0.2 | % |  |  | 1.0 | %
Effective tax rate |  |  | 13.9 | % |  |  | 12.9 | % |  |  | 19.9 | %
Components of Provision for Income Taxes | The Company’s provision for income taxes consisted of the following components (in millions):
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 43.9 |  |  | $ | 35.7 |  |  | $ | 169.4 |
State and local |  |  | 4.3 |  |  |  | 1.9 |  |  |  | 18.1 |
Foreign |  |  | 84.0 |  |  |  | 59.3 |  |  |  | 100.1 |
Total current taxes |  |  | 132.2 |  |  |  | 96.9 |  |  |  | 287.6 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (3.6 | ) |  |  | 14.4 |  |  |  | (15.7 | )
State and local |  |  | (2.9 | ) |  |  | (0.8 | ) |  |  | 4.8 |
Foreign |  |  | 3.9 |  |  |  | 0.3 |  |  |  | (13.6 | )
Total deferred taxes |  |  | (2.6 | ) |  |  | 13.9 |  |  |  | (24.5 | )
|  | $ | 129.6 |  |  | $ | 110.8 |  |  | $ | 263.1 |
Principal Components of Deferred Tax Items | Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of deferred tax items (in millions):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets related to: |  |  |  |  |  |
Reserves, accrued expenses and employee-related items |  | $ | 13.6 |  |  | $ | 22.9 |
Lease liabilities |  |  | 21.2 |  |  |  | 23.8 |
Tax attribute carryovers |  |  | 28.0 |  |  |  | 30.2 |
Intangibles, property and equipment |  |  | 11.8 |  |  |  | 15.1 |
Other |  |  | 8.9 |  |  |  | 8.6 |
Valuation allowance |  |  | (17.8 | ) |  |  | (18.6 | )
Total deferred tax assets |  |  | 65.7 |  |  |  | 82.0 |
Deferred tax liabilities related to: |  |  |  |  |  |
Intangibles, property and equipment |  |  | 218.6 |  |  |  | 218.0 |
Lease right-of-use assets |  |  | 13.8 |  |  |  | 15.8 |
Prepaid pension costs |  |  | — |  |  |  | 7.8 |
Outside basis difference in Business Solutions |  |  | 17.9 |  |  |  | — |
Other |  |  | 7.4 |  |  |  | 14.2 |
Total deferred tax liabilities |  |  | 257.7 |  |  |  | 255.8 |
Net deferred tax liability(a) |  | $ | 192.0 |  |  | $ | 173.8 |
a) As of December 31, 2021 and 2020, deferred tax assets that cannot be fully offset by deferred tax liabilities in the respective tax jurisdictions of $11.8 million and $15.1 million, respectively, are reflected in Other assets in the Consolidated Balance Sheets.
Reconciliation of Beginning and Ending of Unrecognized Tax Benefits | Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s consolidated financial statements and are reflected in Income taxes payable in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties and before offset of related items, is as follows (in millions):
|  | 2021 |  |  | 2020 |
Balance as of January 1 |  | $ | 340.7 |  |  | $ | 293.9 |
Increase related to current period tax positions(a) |  |  | 3.1 |  |  |  | 2.8 |
Increase related to prior period tax positions(b) |  |  | 7.3 |  |  |  | 49.7 |
Decrease related to prior period tax positions |  |  | (2.0 | ) |  |  | (1.9 | )
Decrease due to settlements with taxing authorities |  |  | (0.6 | ) |  |  | — |
Decrease due to lapse of applicable statute of limitations |  |  | (3.4 | ) |  |  | (3.2 | )
Decrease due to effects of foreign currency exchange rates |  |  | (0.5 | ) |  |  | (0.6 | )
Balance as of December 31 |  | $ | 344.6 |  |  | $ | 340.7 |
(a) Includes recurring accruals for issues which initially arose in previous periods. (b) Includes gross accrual for tax positions associated with current audits.

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