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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of provision for income taxes | The provision for income taxes was as follows:
Year Ended December 31 |  | 2022 |  |  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |
Federal |  | $ | 17.6 |  |  | $ | 20.2 |  |  | $ | 5.2 |
State |  |  | 6.8 |  |  |  | 3.3 |  |  |  | 4.5 |
Non-United States |  |  | 154.1 |  |  |  | 163.5 |  |  |  | 124.6 |
Total current |  |  | 178.5 |  |  |  | 187.0 |  |  |  | 134.3 |
Deferred |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |
Federal |  |  | 11.2 |  |  |  | 5.8 |  |  |  | (11.0 | )
State |  |  | 0.9 |  |  |  | 2.4 |  |  |  | (4.9 | )
Non-United States |  |  | (7.3 | ) |  |  | (9.5 | ) |  |  | 5.5 |
Total deferred |  |  | 4.8 |  |  |  | (1.3 | ) |  |  | (10.4 | )
Total provision |  | $ | 183.3 |  |  | $ | 185.7 |  |  | $ | 123.9 |
Income Tax Reconciliation | A tax reconciliation between taxes computed at the United States federal statutory rate of 21% and the consolidated effective tax rate is as follows:
Year Ended December 31 |  | 2022 |  |  | 2021 |  |  | 2020 |
Income tax based on statutory rate |  | $ | 117.0 |  |  | $ | 119.3 |  |  | $ | 31.0 |
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |
Non-United States tax rate difference: |  |  |  |  |  |  |  |  |
French business tax(1) |  |  | 24.6 |  |  |  | 26.7 |  |  |  | 43.7 |
Other(2) |  |  | 15.2 |  |  |  | 22.2 |  |  |  | 9.7 |
Repatriation of non-United States earnings |  |  | 10.7 |  |  |  | 5.7 |  |  |  | (2.0 | )
State income taxes, net of federal benefit |  |  | 5.5 |  |  |  | 5.0 |  |  |  | (1.3 | )
Change in valuation allowance(3) |  |  | 13.7 |  |  |  | 22.0 |  |  |  | 48.5 |
Work Opportunity Tax Credit(4) |  |  | (12.4 | ) |  |  | (10.9 | ) |  |  | (4.9 | )
Foreign-Derived Intangible Income deduction |  |  | (9.6 | ) |  |  | (10.7 | ) |  |  | (8.8 | )
Goodwill impairment(5) |  |  | 8.9 |  |  |  | — |  |  |  | 13.4 |
Other, net |  |  | 9.7 |  |  |  | 6.4 |  |  |  | (5.4 | )
Tax provision |  | $ | 183.3 |  |  | $ | 185.7 |  |  | $ | 123.9 |
(1) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $31.2, $33.7 and $55.3 for 2022, 2021 and 2020, respectively. The amounts in the table above of $24.6, $26.7 and $43.7 for 2022, 2021 and 2020, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21%. In December 2020, the French Parliament approved the Finance Bill for 2021 which lowered the business tax rate from 1.5% to 0.75%. The benefit of this tax rate reduction is reflected in our 2022 and 2021 Consolidated Financial Statements. In December 2022, the French Parliament approved the Finance Bill for 2023 which repeals the business tax over two years beginning in 2023. The business tax rate will be halved in 2023 and eliminated in 2024. The benefit of this tax rate reduction and repeal will be reflected in our 2023 and 2024 Consolidated Financial Statements. (2) Included in Other Non-United States tax rate differences is the impact of all Non-United States pre-tax earnings and permanent tax differences at the local statutory tax rate versus the United States federal rate of 21%. This includes benefits of $1.5, $2.5 and $6.1 for 2022, 2021 and 2020, respectively, related to the difference between the United States federal rate and the French tax rate applied to the respective gross amounts of the French business tax deduction previously mentioned. (3) In 2020, we determined that it was more likely than not that certain deferred tax assets in Germany and the Netherlands would not be realized and recorded income tax expense of $36.9 and $8.1, respectively, to establish valuation allowances. Additional losses incurred in 2022 and 2021 in Germany resulted in an increase in valuation allowance of $13.5 and $20.1, respectively. (4) The Work Opportunity Tax Credit is currently authorized until December 31, 2025. (5) Non-deductible portion of the goodwill impairment charges recorded in the Netherlands in 2022 and Germany in 2020.
Deferred Income Taxes Temporary Differences | Temporary differences, which give rise to the deferred taxes, are as follows:
December 31 |  | 2022 |  |  | 2021 |
Future Income Tax Benefits (Expense) |  |  |  |  |  |
Accrued payroll taxes and insurance |  | $ | 8.8 |  |  | $ | 22.5 |
Employee compensation payable |  |  | 37.7 |  |  |  | 38.9 |
Pension and postretirement benefits |  |  | 65.0 |  |  |  | 77.9 |
Intangible assets |  |  | (140.4 | ) |  |  | (135.7 | )
Repatriation of non-United States earnings |  |  | (18.4 | ) |  |  | (16.1 | )
Loans denominated in foreign currencies |  |  | (0.7 | ) |  |  | — |
Operating lease ROU assets |  |  | (92.9 | ) |  |  | (96.3 | )
Operating lease liabilities |  |  | 94.6 |  |  |  | 99.5 |
Net operating losses |  |  | 128.9 |  |  |  | 129.4 |
Other |  |  | 179.7 |  |  |  | 163.9 |
Valuation allowance |  |  | (161.1 | ) |  |  | (167.1 | )
Total future tax benefits |  | $ | 101.2 |  |  | $ | 116.9 |
Deferred tax asset |  | $ | 126.7 |  |  | $ | 135.0 |
Deferred tax liability |  |  | (25.5 | ) |  |  | (18.1 | )
Total future tax benefits |  | $ | 101.2 |  |  | $ | 116.9 |
Summary of Net Operating Loss Carryforwards | The net operating loss carryforwards expire as follows:
|  | United States Federal and Non-United States |  |  | United States State |
2023 |  |  | 0.1 |  |  |  | 8.2 |
2024 |  |  | 5.0 |  |  |  | 52.2 |
2025 |  |  | 2.7 |  |  |  | 5.3 |
2026 |  |  | 1.2 |  |  |  | 9.2 |
2027 |  | 3.4 |  |  | 5.7 |
Thereafter |  |  | 8.0 |  |  |  | 52.6 |
No expirations |  |  | 631.0 |  |  |  | 8.1 |
Total net operating loss carryforwards |  | $ | 651.4 |  |  | $ | 141.3 |
Summary of Unrecognized Tax Benefit Activity | The following table summarizes the activity related to our unrecognized tax benefits during 2022, 2021 and 2020:
|  | 2022 |  |  | 2021 |  |  | 2020 |
Gross unrecognized tax benefits, beginning of year |  | $ | 67.3 |  |  | $ | 60.9 |  |  | $ | 65.9 |
Increases in prior year tax positions |  |  | 10.5 |  |  |  | 4.6 |  |  |  | 1.4 |
Decreases in prior year tax positions |  |  | (1.2 | ) |  |  | (0.4 | ) |  |  | (4.1 | )
Increases for current year tax positions |  |  | 2.3 |  |  |  | 9.0 |  |  |  | 3.2 |
Expiration of statute of limitations and audit settlements |  |  | (2.6 | ) |  |  | (6.8 | ) |  |  | (5.5 | )
Gross unrecognized tax benefits, end of year |  | $ | 76.3 |  |  | $ | 67.3 |  |  | $ | 60.9 |
Potential interest and penalties |  |  | 5.3 |  |  |  | 4.5 |  |  |  | 3.6 |
Balance, end of year |  | $ | 81.6 |  |  | $ | 71.8 |  |  | $ | 64.5 |

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