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Income Taxes (Tables)

12 Months Ended

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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