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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of U.S. and foreign income before income taxes | U.S. and foreign income before income taxes consist of the following (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
United States | $ | (34.8) |  |  | $ | (90.3) |  |  | $ | (47.7) |
Foreign | 101.5 |  |  | 235.4 |  |  | 147.8 |
Income (loss) before income taxes | $ | 66.7 |  |  | $ | 145.1 |  |  | $ | 100.0 |
Schedule of components of income tax provision (benefit) | Our total income tax provision (benefit) related to income before income taxes consists of the following components (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
U.S. federal statutory tax | $ | 8.9 |  |  | $ | 4.2 |  |  | $ | 4.4 |
State | 2.4 |  |  | 2.2 |  |  | 1.4 |
Foreign | 23.4 |  |  | 42.9 |  |  | 22.4 |
Current income tax expense (benefit) | 34.8 |  |  | 49.2 |  |  | 28.2 |
Deferred: |  |  |  |  |
U.S. federal statutory tax | (12.7) |  |  | (4.6) |  |  | 2.2 |
State | (1.1) |  |  | 0.6 |  |  | 2.7 |
Foreign | (16.9) |  |  | (14.5) |  |  | (12.5) |
Deferred income tax expense (benefit) | (30.7) |  |  | (18.5) |  |  | (7.6) |
Non-current tax expense (income) (1) | 8.9 |  |  | (1.5) |  |  | 5.3 |
Total provision for income taxes | $ | 13.0 |  |  | $ | 29.2 |  |  | $ | 25.8 |
(1)Non-current tax expense (income) is primarily related to income tax associated with the reserve for uncertain tax positions, including associated interest and penalties.
Reconciliation of the U.S. federal statutory income tax rate to effective income tax rate | A reconciliation of the tax provision calculated using the U.S. federal statutory income tax rate to our tax provision is as follows (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Tax provision based on U.S. federal statutory tax rate | $ | 14.0 |  |  | $ | 30.5 |  |  | $ | 21.0 |
Foreign rates varying from federal statutory tax rate | (1.5) |  |  | (5.4) |  |  | (10.3) |
State income taxes, net of U.S. federal income tax benefit | 7.5 |  |  | 0.7 |  |  | 1.8 |
U.S. taxes on foreign earnings and other tax reform impacts | 9.4 |  |  | 29.7 |  |  | 11.1 |
Uncertain tax positions | 8.9 |  |  | (1.5) |  |  | 5.3 |
Statutory adjustments, including foreign currency and tax rate changes | (9.2) |  |  | (3.8) |  |  | 0.6 |
Non-taxable interest income & non-deductible interest expense | (3.3) |  |  | 2.1 |  |  | (2.1) |
Valuation allowances | (10.9) |  |  | (13.3) |  |  | (6.6) |
Non-deductible officer compensation | 1.8 |  |  | 1.0 |  |  | 1.5 |
Withholding tax | 8.0 |  |  | 7.8 |  |  | 6.2 |
Foreign tax credit | (13.2) |  |  | (25.0) |  |  | (5.6) |
Other | 1.5 |  |  | 6.6 |  |  | 2.9 |
Total provision for income taxes | $ | 13.0 |  |  | $ | 29.2 |  |  | $ | 25.8 |
Schedule of net deferred tax liabilities | The temporary differences which comprise our net deferred tax liabilities are as follows (in millions):
| As of December 31,
| 2023 |  | 2022
Gross Deferred Tax Assets: |  |  |
Bad debt reserve and accrued expenses | $ | 15.8 |  |  | $ | 12.0 |
Net operating loss | 69.1 |  |  | 56.7 |
Accrued and other share-based compensation | 26.0 |  |  | 26.1 |
U.S. foreign income tax credits | 15.8 |  |  | 8.3 |
Interest expense limitations | 45.8 |  |  | 26.6 |
Other | 7.1 |  |  | 7.2 |
Total gross deferred tax assets | 179.6 |  |  | 136.8 |
Less: Valuation allowance (1) | 15.2 |  |  | 26.1 |
Gross deferred tax assets, net of valuation allowance | 164.5 |  |  | 110.7 |
Gross Deferred Tax Liabilities: |  |  |
Depreciation | (32.2) |  |  | (26.7) |
Goodwill and intangible assets | (84.4) |  |  | (70.8) |
Unrealized foreign exchange, derivatives, and cash flow hedges | (6.7) |  |  | (7.0) |
Deferred tax costs on foreign unrepatriated earnings | (12.0) |  |  | (11.8) |
Other | (4.9) |  |  | (4.3) |
Total gross deferred tax liabilities | (140.3) |  |  | (120.6) |
Net deferred tax liability | $ | — |  |  | $ | 9.9 |
Net deferred tax asset | $ | 24.2 |  |  | $ | — |
Reported on the Consolidated Balance Sheets as: |  |  |
Other non-current assets for deferred tax assets, non-current | $ | 83.4 |  |  | $ | 68.0 |
Non-current income tax liabilities, net for deferred tax liabilities, non-current | $ | 59.2 |  |  | $ | 77.9 |
(1)During the year ended December 31, 2023, we recognized additional valuation allowances of $0.2 million relating primarily to the 2023 results of certain our worldwide entities and released valuation allowances totaling $11.1 million relating to certain of our US and non-US entities.
Schedule of expiration of NOL carryforward | This deferred tax asset expires as follows (in millions):
Net Operating Loss | Expiration Date | Deferred Tax Asset
US States | 2024-2043 | $ | 8.5 |
US States | Indefinite | 3.8 |
Foreign | 2024-2043 | 8.1 |
Foreign | Indefinite | 48.7 |
Total |  | $ | 69.1 |
Summary of income tax concessions | The decrease to our foreign income taxes from the Singapore tax concession was as follows (in millions, except per share amounts):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Singapore tax concession impact on foreign income tax | $ | (2.1) |  |  | $ | (3.3) |  |  | $ | (1.1) |
Impact on basic earnings per share | $ | (0.03) |  |  | $ | (0.05) |  |  | $ | (0.02) |
Impact on diluted earnings per share | $ | (0.03) |  |  | $ | (0.05) |  |  | $ | (0.02) |
Schedule of reconciliation of the total amounts of unrecognized income tax benefits | The following is a tabular reconciliation of the total amounts of gross Unrecognized Tax Liabilities for the year (in millions):
| 2023 |  | 2022 |  | 2021
Gross Unrecognized Tax Liabilities – opening balance | $ | 68.1 |  |  | $ | 75.1 |  |  | $ | 78.2 |
Gross increases – tax positions in prior period | 7.7 |  |  | 2.2 |  |  | 2.4 |
Gross decreases – tax positions in prior period | (0.4) |  |  | (8.0) |  |  | (6.1) |
Gross increases – tax positions in current period | 1.4 |  |  | 2.0 |  |  | 3.5 |
Settlements | (0.5) |  |  | (1.6) |  |  | — |
Payments | — |  |  | 1.6 |  |  | — |
Lapse of statute of limitations | (3.2) |  |  | (3.3) |  |  | (2.9) |
Gross Unrecognized Tax Liabilities – ending balance | $ | 73.1 |  |  | $ | 68.1 |  |  | $ | 75.1 |
Schedule of open tax years by jurisdiction with major uncertain tax positions | The following table summarizes open tax years by major jurisdiction:
| Open Tax Year
Jurisdiction | Examination in progress |  | Examination not yet initiated
Denmark | 2013-2019 |  | 2020-2023
United States | None |  | 2020-2023
United Kingdom | None |  | 2020-2023
Singapore | None |  | 2020-2023
Other non-U.S. | None |  | 2013-2023

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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 + Details
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