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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Roll-forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties | A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows:
(in millions) |  | Unrecognised Tax Benefits |  |  | Interest and Penalties |  |  | Total |
Opening balance at January 1, 2020 |  | $ | 14.4 |  |  | $ | 2.0 |  |  | $ | 16.4 |
Reductions for tax positions of prior periods |  |  | (1.2 | ) |  |  | (0.2 | ) |  |  | (1.4 | )
Additions for tax positions of prior periods |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 1.0 |
Closing balance at 31 December, 2020 |  |  | 13.6 |  |  |  | 2.4 |  |  |  | 16.0 |
Current |  |  | — |  |  |  | — |  |  |  | — |
Non-current |  | $ | 13.6 |  |  | $ | 2.4 |  |  | $ | 16.0 |
Opening balance at January 1, 2021 |  | $ | 13.6 |  |  | $ | 2.4 |  |  | $ | 16.0 |
Reductions for tax positions of prior periods |  |  | (1.3 | ) |  |  | 0.0 |  |  |  | (1.3 | )
Additions for tax positions of prior periods |  |  | 0.9 |  |  |  | 0.7 |  |  |  | 1.6 |
Closing balance at 31 December, 2021 |  |  | 13.2 |  |  |  | 3.1 |  |  |  | 16.3 |
Current |  |  | — |  |  |  | — |  |  |  | — |
Non-current |  | $ | 13.2 |  |  | $ | 3.1 |  |  | $ | 16.3 |
Opening balance at January 1, 2022 |  | $ | 13.2 |  |  | $ | 3.1 |  |  | $ | 16.3 |
Reductions for tax positions of prior periods |  |  | (3.1 | ) |  |  | — |  |  |  | (3.1 | )
Additions for tax positions of prior periods |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.2 |
Closing balance at 31 December, 2022 |  |  | 10.2 |  |  |  | 3.2 |  |  |  | 13.4 |
Current |  |  | — |  |  |  | — |  |  |  | — |
Non-current |  | $ | 10.2 |  |  | $ | 3.2 |  |  | $ | 13.4 |
Sources of Income before Income Taxes | The sources of income before income taxes were as follows:
(in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 106.3 |  |  | $ | 53.2 |  |  | $ | (0.7 | )
Foreign |  |  | 78.3 |  |  |  | 81.2 |  |  |  | 40.4 |
|  | $ | 184.6 |  |  | $ | 134.4 |  |  | $ | 39.7 |
Components of Income Tax Expense | The components of income tax expense are summarized as follows:
(in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 27.0 |  |  | $ | 12.4 |  |  | $ | 6.1 |
State and local |  |  | 6.5 |  |  |  | 2.6 |  |  |  | 0.5 |
Foreign |  |  | 23.1 |  |  |  | 19.4 |  |  |  | 6.8 |
|  |  | 56.6 |  |  |  | 34.4 |  |  |  | 13.4 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (3.7 | ) |  |  | (1.9 | ) |  |  | (2.8 | )
State and local |  |  | (0.7 | ) |  |  | (0.3 | ) |  |  | (0.4 | )
Foreign |  |  | (0.6 | ) |  |  | 9.1 |  |  |  | 0.8 |
|  |  | (5.0 | ) |  |  | 6.9 |  |  |  | (2.4 | )
|  | $ | 51.6 |  |  | $ | 41.3 |  |  | $ | 11.0 |
Factors Effecting Effective Tax Rate from U.S. Federal Statutory Rate | The effective tax rate varies from the U.S. federal statutory rate because of the factors indicated below:
(in percent) |  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Foreign income inclusions |  |  | 3.3 |  |  |  | 1.7 |  |  |  | 7.1 |
Foreign tax rate differential |  |  | 0.9 |  |  |  | 1.0 |  |  |  | 4.2 |
Tax charge/(credit) from previous years |  |  | 0.2 |  |  |  | 0.6 |  |  |  | 3.7 |
Net charge/(credit) from unrecognized tax benefits |  |  | (1.4 | ) |  |  | 0.4 |  |  |  | (1.7 | )
Foreign currency transactions |  |  | 3.5 |  |  |  | 0.1 |  |  |  | (4.5 | )
Tax on unremitted earnings |  |  | 0.3 |  |  |  | 0.1 |  |  |  | 0.3 |
Non-deductible foreign interest |  |  | — |  |  |  | — |  |  |  | 0.7 |
Change in U.K. statutory tax rate |  |  | — |  |  |  | 5.4 |  |  |  | 6.9 |
State and local taxes |  |  | 2.2 |  |  |  | 1.3 |  |  |  | 1.5 |
U.S. incentive for foreign derived intangible income |  |  | (2.7 | ) |  |  | (1.5 | ) |  |  | (1.5 | )
Innovation incentives – current year |  |  | (0.8 | ) |  |  | (1.1 | ) |  |  | (4.9 | )
Innovation incentives – prior years |  |  | — |  |  |  | — |  |  |  | (5.3 | )
Non-deductible officer compensation |  |  | 1.4 |  |  |  | 0.2 |  |  |  | 1.8 |
Tax on closure of legacy operations |  |  | — |  |  |  | 1.6 |  |  |  | — |
Other items and adjustments, net |  |  | 0.1 |  |  |  | (0.1 | ) |  |  | (1.6 | )
|  |  | 28.0 | % |  |  | 30.7 | % |  |  | 27.7 | %
Details of Deferred Tax Assets and Liabilities | Details of deferred tax assets and liabilities are analyzed as follows:
(in millions) |  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Stock compensation |  | $ | 3.7 |  |  | $ | 5.2 |
Net operating loss carry forwards |  |  | 10.9 |  |  |  | 12.0 |
Other intangible assets |  |  | 10.5 |  |  |  | 11.1 |
Accretion expense |  |  | 3.2 |  |  |  | 3.2 |
Restructuring provision |  |  | 1.7 |  |  |  | 2.0 |
Employee related liabilities |  |  | 8.1 |  |  |  | 4.1 |
Foreign tax credits |  |  | 0.8 |  |  |  | 1.9 |
Operating lease liabilities |  |  | 11.8 |  |  |  | 10.6 |
Inventory provisions |  |  | 6.6 |  |  |  | 3.6 |
Research and experimental expenditure |  |  | 2.7 |  |  |  | — |
Other |  |  | 4.8 |  |  |  | 3.8 |
Subtotal |  |  | 64.8 |  |  |  | 57.5 |
Less valuation allowance |  |  | (0.7 | ) |  |  | (0.8 | )
Total net deferred tax assets |  | $ | 64.1 |  |  | $ | 56.7 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | (22.5 | ) |  | $ | (23.6 | )
Intangible assets including goodwill |  |  | (30.3 | ) |  |  | (29.8 | )
Pension asset |  |  | (10.9 | ) |  |  | (38.2 | )
Customer relationships |  |  | (3.4 | ) |  |  | (4.5 | )
Unremitted overseas earnings |  |  | (1.9 | ) |  |  | (1.9 | )
Right-of-use assets |  |  | (11.8 | ) |  |  | (10.6 | )
Other |  |  | (3.6 | ) |  |  | (2.5 | )
Total deferred tax liabilities |  | $ | (84.4 | ) |  | $ | (111.1 | )
Net deferred tax liability |  | $ | (20.3 | ) |  | $ | (54.4 | )
Deferred tax assets |  | $ | 5.9 |  |  | $ | 6.4 |
Deferred tax liabilities |  |  | (26.2 | ) |  |  | (60.8 | )
|  | $ | (20.3 | ) |  | $ | (54.4 | )

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