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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes consisted of the following:
|  |  | Years ended December 31, |
| In millions |  | 2022 |  | 2021 |  | 2020 |
| U.K. |  | $ | 10.9 |  |  | $ | 21.8 |  |  | $ | 21.0 |  |
| International(1) |  | 30.1 |  |  | 13.6 |  |  | 6.7 |  |
| Income before income taxes |  | $ | 41.0 |  |  | $ | 35.4 |  |  | $ | 27.7 |  |
(1) "International" reflects non-U.K. income before income taxes. The provision for income taxes consisted of the following:
|  |  | Years ended December 31, |
| In millions |  | 2022 |  | 2021 |  | 2020 |
| Currently payable |  |  |  |  |  |  |
| U.K. |  | $ | (3.5) |  |  | $ | 2.0 |  |  | $ | (0.2) |  |
| International(1) |  | 2.7 |  |  | 5.4 |  |  | 2.3 |  |
| Total current taxes |  | $ | (0.8) |  |  | $ | 7.4 |  |  | $ | 2.1 |  |
| Deferred |  |  |  |  |  |  |
| U.K. |  | $ | 7.1 |  |  | $ | (1.1) |  |  | $ | 2.1 |  |
| International(1) |  | 2.7 |  |  | (0.9) |  |  | 2.7 |  |
| Total deferred taxes |  | $ | 9.8 |  |  | $ | (2.0) |  |  | $ | 4.8 |  |
| Total provision for income taxes |  | $ | 9.0 |  |  | $ | 5.4 |  |  | $ | 6.9 |  |
(1) "International" reflects non-U.K. income taxes. Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable to the Company, among other factors, give rise to permanent differences between the statutory tax rate applicable in the U.K. and the effective tax rate presented in the Consolidated Income Statement, which in 2022, 2021 and 2020, were as follows:
|  | Years ended December 31, |
| In millions | 2022 |  | 2021 |  | 2020 |
| Income before income taxes | $ | 41.0 |  |  | $ | 35.4 |  |  | $ | 27.7 |  |
| Provision for income taxes at the U.K. statutory tax rate (2022: 19%, 2021:19%, 2020: 19%) | 7.8 |  |  | 6.7 |  |  | 5.3 |  |
| Effect of: |  |  |  |  |  |
| Non-deductible expenses | 0.7 |  |  | 1.9 |  |  | 1.7 |  |
| Movement in valuation allowances | 0.6 |  |  | (0.6) |  |  | 0.8 |  |
| Differences in income tax rates in countries where the Company operates(1) | 1.5 |  |  | 0.5 |  |  | (0.1) |  |
| Effect of changes in tax rates (2) | (0.1) |  |  | (2.0) |  |  | 0.1 |  |
| Movement in uncertain tax positions | — |  |  | — |  |  | (0.4) |  |
| Other | (1.5) |  |  | (1.1) |  |  | (0.5) |  |
| Total provision for income taxes | $ | 9.0 |  |  | $ | 5.4 |  |  | $ | 6.9 |  |
(1) Refers mainly to the effects of the differences between the statutory income tax rate in the U.K. against the applicable income tax rates of each country where the Company operates. (2) An increase in the U.K. corporation tax rate from 19% to 25%, effective from April 1, 2023, was announced in March 2021. Rate changes also occur in each period as a result of changes in the average state tax rate in the U.S. 13. Income Taxes (continued) Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows:
|  | Years ended December 31, |
| In millions | 2022 |  | 2021 |  | 2020 |
| Beginning balance | $ | 1.8 |  |  | $ | 2.4 |  |  | $ | 3.2 |  |
| Gross increases based on tax positions related to the current year | — |  |  | 0.1 |  |  | 0.6 |  |
| Reductions due to expiry of statute of limitations | (0.7) |  |  | (0.7) |  |  | (1.4) |  |
| Ending balance | $ | 1.1 |  |  | $ | 1.8 |  |  | $ | 2.4 |  |
| Non-current | $ | 1.1 |  |  | $ | 1.8 |  |  | $ | 2.4 |  |
The Company's unrecognized tax benefits relate to the pricing of its various inter-company transactions. Because the transfer pricing calculation is often multifaceted, taking into account economics, finance, industry practice, and functional analysis, a company's transfer pricing position often sits at a particular point along a wide continuum of possible pricing outcomes. The inherent subjectivity in pricing inter-company balances gives rise to measurement uncertainty. Management has considered the valuation uncertainty in determining the measurement of the uncertain tax position. There are no current tax audit examinations. At December 31, 2022, 2021 and 2020, there were $0.3 million, $0.4 million, and $0.5 million of unrecognized tax benefits, respectively, that, if recognized, would affect the annual effective tax rate. The Company recognizes interest accrued and penalties relating to unrecognized tax benefits in the income tax line. During the years ended December 31, 2022, 2021 and 2020, the Company recognized approximately $nil, $nil and $0.1 million, respectively, in interest and penalties. The following is a summary of the tax years open by major tax jurisdiction:
| Jurisdiction |  | Years open |
| U.K. |  | 2020 - 2022 |
| U.S. Federal |  | 2019 - 2022 |
| U.S. State and local |  | 2019 - 2022 |
| France |  | 2019 - 2022 |
| Germany |  | 2018 - 2022 |
| China |  | 2019 - 2022 |
| Canada |  | 2018 - 2022 |
13. Income Taxes (continued) Taxes have not been provided on undistributed earnings of subsidiaries where it is our intention to reinvest these earnings permanently or to repatriate the earnings only when it is tax efficient to do so. The amount of unremitted earnings at December 31, 2022 was approximately $83.1 million (at December 31, 2021: $70.3 million, at December 31, 2020: $56.4 million). If these earnings were remitted, it is estimated that the additional income tax arising would be approximately $1.2 million (at December 31, 2021: $1.0 million, at December 31, 2020: $0.8 million). Deferred taxes were recorded in the Consolidated Balance Sheets as follows:
|  | December 31, |
| In millions | 2022 |  | 2021 |
| Deferred tax assets | $ | 3.0 |  |  | $ | 8.0 |  |
| Deferred tax liabilities | (9.9) |  |  | (2.7) |  |
| Net deferred tax (liabilities) / assets | $ | (6.9) |  |  | $ | 5.3 |  |
The tax effects of the major items recorded in deferred tax assets and liabilities were as follows:
|  | December 31, |
| In millions | 2022 |  | 2021 |
| Deferred tax assets |  |  |  |
| Pension benefits | $ | — |  |  | $ | 0.5 |  |
| Accrued liabilities | 0.8 |  |  | 1.5 |  |
| Tax loss and credit carry forwards | 18.9 |  |  | 28.3 |  |
| Employee compensation benefits | 1.3 |  |  | 2.9 |  |
| Operating leases | 4.0 |  |  | 1.1 |  |
| Other | 0.4 |  |  | 1.0 |  |
| Total deferred tax assets | 25.4 |  |  | 35.3 |  |
| Valuation allowances | (16.5) |  |  | (18.0) |  |
| Deferred tax assets, net of valuation allowances | $ | 8.9 |  |  | $ | 17.3 |  |
| Deferred tax liabilities |  |  |  |
| Property, plant and equipment | $ | 4.3 |  |  | $ | 4.5 |  |
| Pension benefits | 3.7 |  |  | 3.5 |  |
| Goodwill and other intangibles | 3.9 |  |  | 2.4 |  |
| Operating leases | 3.9 |  |  | 0.3 |  |
| Other | — |  |  | 1.3 |  |
| Total deferred tax liabilities | $ | 15.8 |  |  | $ | 12.0 |  |
| Net deferred tax assets | $ | (6.9) |  |  | $ | 5.3 |  |
Q Deferred tax liabilities and assets represent the tax effect of temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by the relevant jurisdiction's tax laws and regulations. Deferred tax assets and liabilities from the same tax jurisdiction have been netted, resulting in assets and liabilities being recorded under the deferred taxation captions on the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible or creditable. Management considers the scheduled reversal of existing taxable temporary differences, projected future taxable income, and tax-planning strategies in making this assessment. In March 2021 an increase in the U.K. corporation tax rate from 19% to 25% was announced, effective from April 1, 2023. Deferred tax liabilities and assets which are expected to unwind after April 1, 2023 have been valued at 25%. 13. Income Taxes (continued) At December 31, 2022, the Company had carried forward tax losses and tax credits of $74.8 million (U.K.: $15.6 million, non-U.K.: $59.2 million). Carried forward tax losses and tax credits for 2021 were $106.3 million (U.K.: $43.0 million, non-U.K.: $63.3 million) and for 2020 were $104.2 million (U.K.: $30.0 million, non-U.K.: $74.2 million). To the extent that these losses are not already recognized as deferred income taxes assets and are available to offset against future taxable profits, it is expected that the future effective tax rate would be below the standard rate in the country where the profits are offset. A valuation allowance of $16.5 million (2021: $18.0 million, 2020: $19.3 million) exists for deferred tax benefits related to the tax loss and tax credit carry forwards and other benefits that may not be realized. The apportionment of the valuation allowance between the U.K. and non-U.K. jurisdictions is U.K.: $3.5 million, non-U.K.: $13.0 million (2021: U.K.: $4.1 million, non-U.K.: $13.9 million; 2020: U.K.: $3.2 million, non-U.K.: $16.1 million). The non-U.K. valuation allowances relates to tax losses in France and Germany. Of the carried forward tax losses and tax credits as at December 31, 2022, $11.9 million expire between 2023 and 2033, and $62.6 million are available for indefinite carry-forward.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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