XML 42 R21.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of "Earnings (loss) before income taxes" are as follows:
| Year Ended December 31
| 2023 |  | 2022 |  | 2021
Domestic | $ | (388.6) |  |  | $ | 163.6 |  |  | $ | 249.7 |
Foreign | 215.2 |  |  | 240.0 |  |  | 272.4 |
Earnings before income taxes | $ | (173.4) |  |  | $ | 403.6 |  |  | $ | 522.1 |
"Income taxes" is comprised of the following components:
| Year Ended December 31
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | 24.4 |  |  | $ | 48.3 |  |  | $ | 57.0 |
State and local | 3.7 |  |  | 7.9 |  |  | 11.5 |
Foreign | 64.5 |  |  | 53.2 |  |  | 59.5 |
Total current | 92.6 |  |  | 109.4 |  |  | 128.0 |
Deferred |  |  |  |  |
Federal | (100.6) |  |  | (14.1) |  |  | (9.3) |
State and local | (19.9) |  |  | (2.0) |  |  | (2.3) |
Foreign | (8.7) |  |  | .4 |  |  | 3.1 |
Total deferred | (129.2) |  |  | (15.7) |  |  | (8.5) |
Total income taxes | $ | (36.6) |  |  | $ | 93.7 |  |  | $ | 119.5 |
"Income taxes" as a percentage of "Earnings (loss) before income taxes", differs from the statutory federal income tax rate as follows:
| Year Ended December 31
| 2023 |  | 2022 |  | 2021
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (decreases) in rate resulting from: |  |  |  |  |
State taxes, net of federal benefit | .2 |  |  | .9 |  |  | 1.5 |
Tax effect of foreign operations | (1.4) |  |  | (.5) |  |  | (.9) |
Global intangible low-taxed income (GILTI) | (1.5) |  |  | .6 |  |  | .5 |
Current and deferred foreign withholding taxes | (7.3) |  |  | 2.6 |  |  | 2.3 |
Long-lived asset impairment | 5.4 |  |  | — |  |  | — |
Stock-based compensation | .1 |  |  | (.1) |  |  | (.5) |
Change in valuation allowance | (.4) |  |  | (.1) |  |  | — |
Change in uncertain tax positions, net | (.3) |  |  | — |  |  | — |
Other permanent differences, net | 3.9 |  |  | (1.0) |  |  | (.8) |
Other, net | 1.4 |  |  | (.2) |  |  | (.2) |
Effective tax rate | 21.1 | % |  | 23.2 | % |  | 22.9 | %
The change in percentages above during 2023 was impacted by the reported loss for the year. Dollar amounts for significant items for all years presented are discussed below. For all periods presented, the tax rate benefited from income earned in various foreign jurisdictions at rates lower than the U.S. federal statutory rate. The rate benefited from income earned primarily in China and Cyprus during 2023 and 2022, and China, Croatia, and Switzerland in 2021. In 2023, the rate associated with foreign operations was also adversely impacted by changes in estimates related to tax filings and a reduction to a contingent purchase price liability. In 2023, we recognized a $9.4 benefit due to the tax effects of the long-lived asset impairment charges discussed in Note C. We also recognized tax expense related to foreign withholding taxes of $12.7, $10.5, and $11.9, and other net tax (benefit) expense of $(5.9), $.4, and $2.7 for the years ended December 31, 2023, 2022, and 2021, respectively. We file tax returns in each jurisdiction where we are required to do so. In these jurisdictions, a statute of limitations period exists. After a statute period expires, the tax authorities can no longer assess additional income tax for the expired period. In addition, once the statute expires we are no longer eligible to file claims for refund for any tax that we may have overpaid. Unrecognized Tax Benefits The total amount of our gross unrecognized tax benefits including interest and penalties at December 31, 2023, 2022, and 2021 was $5.0 (of which $3.9 would impact our effective tax rate, if recognized), $5.9, and $6.6, respectively.
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in the Consolidated Statements of Operations, which is consistent with prior reporting periods. We are currently in various stages of audit by certain governmental tax authorities. We have established liabilities for unrecognized tax benefits as appropriate, with such amounts representing a reasonable provision for taxes we ultimately might be required to pay. However, these liabilities could be adjusted over time as more information becomes known and management continues to evaluate the progress of these examinations. We are not subject to significant U.S. federal tax examinations for years prior to 2020, or significant U.S. state or foreign income tax examinations for years prior to 2014. It is reasonably possible that the resolution of certain tax audits could reduce our unrecognized tax benefits within the next 12 months, as certain tax positions may either be sustained on audit or we may agree to certain adjustments, or resulting from the expiration of statutes of limitations in various jurisdictions. It is not expected that any change would have a material impact on our Consolidated Financial Statements. Deferred Income Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. The major temporary differences and their associated deferred tax assets or liabilities are as follows:
| December 31
| 2023 |  | 2022
| Assets |  | Liabilities |  | Assets |  | Liabilities
Property, plant and equipment | $ | 14.7 |  |  | $ | (80.7) |  |  | $ | 15.0 |  |  | $ | (80.2) |
Inventories | 6.5 |  |  | (1.0) |  |  | 6.6 |  |  | (6.5) |
Accrued expenses | 52.7 |  |  | (.6) |  |  | 52.6 |  |  | (.9) |
Net operating losses and other tax carryforwards 1 | 39.8 |  |  | — |  |  | 25.6 |  |  | — |
Pension cost and other post-retirement benefits | 5.6 |  |  | (.9) |  |  | 7.5 |  |  | (.8) |
Intangible assets 2 | 12.0 |  |  | (108.2) |  |  | .1 |  |  | (204.5) |
Derivative financial instruments | .5 |  |  | (4.2) |  |  | .6 |  |  | (3.8) |
Tax on undistributed earnings (primarily from Canada and China) | — |  |  | (18.5) |  |  | — |  |  | (17.0) |
Uncertain tax positions | .7 |  |  | — |  |  | .8 |  |  | — |
Other 3 | 18.8 |  |  | (7.5) |  |  | 11.8 |  |  | (5.6) |
Gross deferred tax assets (liabilities) | 151.3 |  |  | (221.6) |  |  | 120.6 |  |  | (319.3) |
Valuation allowance | (17.7) |  |  | — |  |  | (15.7) |  |  | — |
Total deferred taxes | $ | 133.6 |  |  | $ | (221.6) |  |  | $ | 104.9 |  |  | $ | (319.3) |
Net deferred tax liability |  |  | $ | (88.0) |  |  |  |  | $ | (214.4) |
1 The $14.2 increase in our deferred tax asset was primarily associated with the U.S. interest expense limitation related to an expired provision of the Tax Cuts and Jobs Act of 2017 (TCJA). 2 Intangible assets includes an $11.9 increase in our deferred tax asset and $96.3 decrease in our deferred tax liability, both of which relate primarily to the long-lived asset impairment charges discussed in Note C. 3 Other includes a $7.0 increase in our deferred tax asset, which was primarily associated with the capitalization and amortization of research and experimentation expenditures related to an expired provision of TCJA. Deferred tax assets (liabilities) included in the Consolidated Balance Sheets are as follows:
| December 31
| 2023 |  | 2022
Sundry | $ | 13.2 |  |  | $ | 8.3 |
Deferred income taxes | (101.2) |  |  | (222.7) |
Net deferred tax liability | $ | (88.0) |  |  | $ | (214.4) |
The valuation allowance recorded primarily relates to net operating loss, tax credit, and capital loss carryforwards for which utilization is uncertain. Cumulative tax losses in certain state and foreign jurisdictions during recent years, limited carryforward periods in certain jurisdictions, future reversals of existing taxable temporary differences, and reasonable tax planning strategies were among the factors considered in determining the valuation allowance. Individually, none of these tax carryforwards presents a material exposure. Most of our tax carryforwards have expiration dates that vary generally over the next 20 years, with no amount greater than $10.0 expiring in any one year. Deferred withholding taxes (tax on undistributed earnings) have been provided on the earnings of our foreign subsidiaries to the extent it is anticipated that the earnings will be remitted in the future as dividends. We are not asserting permanent reinvestment on $514.1 of our earnings and have accrued tax on these undistributed earnings as presented in the table above. Foreign withholding taxes have not been provided on certain foreign earnings which are indefinitely reinvested outside the U.S. The cumulative undistributed earnings which are indefinitely reinvested as of December 31, 2023, are $337.6. If such earnings were repatriated to the U.S. through dividends, the resulting incremental tax expense would approximate $16.8, based on present income tax laws.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration