Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Components of Earnings Before Income Tax Provision

The components of earnings before income tax provision were as follows:


	Year Ended December 31,
(In millions)	2022		2021		2020
Domestic	$	434.0	$	346.2	$	328.2
Foreign	295.3		370.0		298.0
Total	$	729.3	$	716.2	$	626.2

Components of Income Tax Provision

The components of our income tax provision were as follows:


	Year Ended December 31,
(In millions)	2022		2021		2020
Current tax expense:
Federal	$	154.1	$	63.1	$	(14.2)
State and local	25.6		17.2		5.6
Foreign	88.7		106.6		69.9
Total current expense	$	268.4	$	186.9	$	61.3
Deferred tax (benefit) expense:
Federal	$	(23.4)	$	9.6	$	59.4
State and local	2.3		6.9		11.8
Foreign	(9.3)		21.6		9.6
Total deferred tax (benefit) expense	(30.4)		38.1		80.8
Total income tax provision	$	238.0	$	225.0	$	142.1

Components of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consist of the following:


	December 31,
(In millions)	2022		2021

Accruals not yet deductible for tax purposes	$	17.6	$	17.1
Net operating loss carryforwards	208.4		219.4
Foreign, federal and state credits	9.5		6.4
Employee benefit items	40.3		45.4
Capitalized expenses	36.5		3.9
Intangibles	12.6		15.4
Derivatives and other	44.7		45.4
Sub-total deferred tax assets	369.6		353.0
Valuation allowance	(179.5)		(189.6)
Total deferred tax assets	$	190.1	$	163.4

Depreciation and amortization	$	(89.1)	$	(78.6)


Other	—		(0.2)
Total deferred tax liabilities	(89.1)		(78.8)
Net deferred tax assets	$	101.0	$	84.6

Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate, 21%, to income before provision for income taxes, is as follows:


	Year Ended December 31,
(In millions)	2022				2021				2020
Computed expected tax	$	153.2	21.0	%	$	150.4	21.0	%	$	131.5	21.0	%
State income taxes, net of federal tax benefit	18.3		2.5	%	15.6		2.2	%	13.4		2.1	%
Foreign earnings taxed at different rates	10.3		1.4	%	16.2		2.2	%	10.5		1.7	%
U.S. tax on foreign earnings	16.8		2.3	%	14.3		2.0	%	24.0		3.8	%
Tax credits	(30.6)		(4.2)	%	(30.2)		(4.2)	%	(27.8)		(4.4)	%
Unremitted foreign earnings	—		—	%	—		—	%	2.5		0.4	%
Reorganization and divestitures	—		—	%	—		—	%	0.4		0.1	%
Withholding tax	7.0		1.0	%	4.7		0.7	%	4.2		0.7	%
Net change in valuation allowance	1.0		0.1	%	3.6		0.5	%	(5.2)		(0.8)	%
Net change in unrecognized tax benefits	65.3		9.0	%	19.6		2.7	%	(1.1)		(0.2)	%
Legislative Changes	—		—	%	5.1		0.7	%	(22.4)		(3.6)	%
Deferred tax adjustments	—		—	%	11.4		1.6	%	3.0		0.5	%
Other	(3.3)		(0.5)	%	14.3		2.0	%	9.1		1.4	%
Income tax provision and rate	$	238.0	32.6	%	$	225.0	31.4	%	$	142.1	22.7	%

Unrecognized Tax Benefits and the Effect on Effective Income Tax Rate

We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized:


	Year Ended December 31,
(In millions)	2022		2021		2020
Beginning balance of unrecognized tax benefits	$	389.0	$	379.6	$	390.3
Additions for tax positions of current year	1.3		1.8		2.7
Additions for tax positions of prior years	41.6		9.7		8.3
Reductions for tax positions of prior years	(4.1)		(1.9)		(18.2)
Reductions for lapses of statutes of limitation and settlements	(7.7)		(0.2)		(3.5)
Ending balance of unrecognized tax benefits	$	420.1	$	389.0	$	379.6