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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of "Earnings (loss) before income taxes" are as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Domestic | $ | (586.2) |  |  | $ | (388.6) |  |  | $ | 163.6 |
Foreign | 77.0 |  |  | 215.2 |  |  | 240.0 |
Earnings (loss) before income taxes | $ | (509.2) |  |  | $ | (173.4) |  |  | $ | 403.6 |
"Income taxes" is comprised of the following components:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Current |  |  |  |  |
Federal | $ | 7.2 |  |  | $ | 24.4 |  |  | $ | 48.3 |
State and local | 1.4 |  |  | 3.7 |  |  | 7.9 |
Foreign | 51.6 |  |  | 64.5 |  |  | 53.2 |
Total current | 60.2 |  |  | 92.6 |  |  | 109.4 |
Deferred |  |  |  |  |
Federal | (48.6) |  |  | (100.6) |  |  | (14.1) |
State and local | (7.2) |  |  | (19.9) |  |  | (2.0) |
Foreign | (2.2) |  |  | (8.7) |  |  | .4 |
Total deferred | (58.0) |  |  | (129.2) |  |  | (15.7) |
Total income taxes | $ | 2.2 |  |  | $ | (36.6) |  |  | $ | 93.7 |
"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,
| 2024 |  | 2023 |  | 2022
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (decreases) in rate resulting from: |  |  |  |  |
State taxes, net of federal benefit | .1 |  |  | .2 |  |  | .9 |
Tax effect of foreign operations | .8 |  |  | (1.4) |  |  | (.5) |
Global intangible low-taxed income (GILTI) | (.4) |  |  | (1.5) |  |  | .6 |
Current and deferred foreign withholding taxes | (1.9) |  |  | (7.3) |  |  | 2.6 |
Goodwill and long-lived asset impairments | (19.5) |  |  | 5.4 |  |  | — |
Stock-based compensation | (.2) |  |  | .1 |  |  | (.1) |
Change in valuation allowance | (1.3) |  |  | (.4) |  |  | (.1) |
Change in uncertain tax positions, net | (.1) |  |  | (.3) |  |  | — |
Other permanent differences, net | 1.1 |  |  | 3.9 |  |  | (1.0) |
Other, net | — |  |  | 1.4 |  |  | (.2) |
Effective tax rate | (.4) | % |  | 21.1 | % |  | 23.2 | %
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, primarily in China and Cyprus. 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 2024, our rate was adversely impacted by $99.3 primarily due to non-deductible tax effects from goodwill impairment charges, but benefited by $9.4 in 2023 from deductible tax effects of other long-lived asset impairment charges, both of which are discussed in Note F. We also recognized tax expense related to foreign withholding taxes of $9.7, $12.7, and $10.5, and other net tax (benefits) expenses of $(.8), $(5.9), and $.4 for the years ended December 31, 2024, 2023, and 2022, respectively. In 2024, our rate was also adversely impacted by $4.8 due to a change in valuation allowance related to a 2022 acquisition in our Specialized Products segment. We file tax returns in each jurisdiction where we are required to do s o. 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, 2024, 2023, and 2022 was $8.0 (of which $3.9 would impact our effective tax rate, if recognized), $5.0, and $5.9, 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 2021, or significant U.S. state or foreign income tax examinations for years prior to 2015. 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,
| 2024 |  | 2023
| Assets |  | Liabilities |  | Assets |  | Liabilities
Property, plant and equipment | $ | 13.7 |  |  | $ | (76.2) |  |  | $ | 14.7 |  |  | $ | (80.7) |
Inventories | 5.8 |  |  | (.7) |  |  | 6.5 |  |  | (1.0) |
Accrued expenses | 51.1 |  |  | (.3) |  |  | 52.7 |  |  | (.6) |
Net operating losses and other tax carryforwards 1 | 56.2 |  |  | — |  |  | 39.8 |  |  | — |
Pension cost and other post-retirement benefits | 3.8 |  |  | (.9) |  |  | 5.6 |  |  | (.9) |
Intangible assets 2 | 10.8 |  |  | (69.1) |  |  | 12.0 |  |  | (108.2) |
Derivative financial instruments | .9 |  |  | (4.0) |  |  | .5 |  |  | (4.2) |
Capitalized research and experimentation expenses | 12.5 |  |  | — |  |  | 9.1 |  |  | — |
Tax on undistributed earnings (primarily from Canada and China) | — |  |  | (18.6) |  |  | — |  |  | (18.5) |
Uncertain tax positions | 3.3 |  |  | — |  |  | .7 |  |  | — |
Other | 9.9 |  |  | (8.3) |  |  | 9.7 |  |  | (7.5) |
Gross deferred tax assets (liabilities) | 168.0 |  |  | (178.1) |  |  | 151.3 |  |  | (221.6) |
Valuation allowance | (20.5) |  |  | — |  |  | (17.7) |  |  | — |
Total deferred taxes | $ | 147.5 |  |  | $ | (178.1) |  |  | $ | 133.6 |  |  | $ | (221.6) |
Net deferred tax liability |  |  | $ | (30.6) |  |  |  |  | $ | (88.0) |
1 The $16.4 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. 2 Intangible assets includes a $39.1 decrease in our deferred tax liability relating primarily to the goodwill and long-lived asset impairment charges discussed in Note F. Deferred tax assets (liabilities) included in the Consolidated Balance Sheets are as follows:
| December 31,
| 2024 |  | 2023
Sundry | $ | 18.3 |  |  | $ | 13.2 |
Deferred income taxes | (48.9) |  |  | (101.2) |
Net deferred tax liability | $ | (30.6) |  |  | $ | (88.0) |
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 $541.1 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 United States. The cumulative undistributed earnings which are indefinitely reinvested as of December 31, 2024, are $316.9. If such earnings were repatriated to the United States through dividends, the resulting incremental tax expense would approximate $19.2, based on present income tax laws.

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