Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of income tax provision (benefits) from continuing operations

The components of Interest expense, net in our Consolidated Statements of Operations were as follows (in millions):


	For the Years Ended December 31,
	2023		2022		2021
Interest expense, net of capitalized interest	$	56.0	$	39.8	$	26.0
Less: Interest income	4.3		1.1		1.0
Interest expense, net	$	51.7	$	38.7	$	25.0

Our provision for income taxes consisted of the following (in millions):


	For the Years Ended December 31,
	2023		2022		2021
Current:
Federal	$	131.8	$	104.0	$	72.0
State	26.6		21.6		17.0
Foreign	14.5		7.8		13.4
Total current	172.9		133.4		102.4
Deferred:
Federal	(22.2)		(13.9)		(2.6)
State	(4.9)		(3.1)		(1.5)
Foreign	1.6		2.3		(2.2)
Total deferred	(25.5)		(14.7)		(6.3)
Total provision for income taxes	$	147.4	$	118.7	$	96.1

Income from continuing operations before income taxes

Income before income taxes was comprised of the following (in millions):


	For the Years Ended December 31,
	2023		2022		2021
Domestic	$	471.4	$	340.2	$	307.8
Foreign	266.1		275.6		252.3
Total	$	737.5	$	615.8	$	560.1

Summary of difference between the income tax provision from continuing operations computed at the statutory federal income tax rate and the financial statement provision for taxes

The difference between the income tax provision computed at the statutory federal income tax rate and the financial statement Provision for income taxes is summarized as follows (in millions):


	For the Years Ended December 31,
	2023		2022		2021
Provision at the U.S. statutory rate of 21%	$	154.9	$	129.3	$	117.6
Increase (reduction) in tax expense resulting from:
State income tax, net of federal income tax benefit	16.4		14.6		12.1

Tax credits, net of unrecognized tax benefits	(3.4)		(8.0)		(9.3)
Change in unrecognized tax benefits	0.4		0.2		0.2
Change in valuation allowance	0.1		—		—
Foreign taxes at rates other than U.S. statutory rate	(40.3)		(47.4)		(43.6)
Deemed inclusions	6.1		10.0		7.7
Global intangible low-taxed income	17.5		23.9		18.8
Change in rates from the Tax Act & other law changes	0.2		0.1		0.1
Excess tax benefits from stock-based compensation	(5.2)		(0.6)		(5.7)
Miscellaneous other	0.7		(3.4)		(1.8)
Total provision for income taxes	$	147.4	$	118.7	$	96.1

Summary of deferred tax assets (liabilities)

Deferred tax assets (liabilities) were comprised of the following (in millions):


	As of December 31,
	2023		2022
Gross deferred tax assets:
Warranties	$	35.9	$	34.9
Loss carryforwards (foreign, U.S. and state)	10.9		29.6
Post-retirement and pension benefits	4.7		10.2
Inventory reserves	12.3		9.3
Receivables allowance	6.6		6.0
Compensation liabilities	6.2		5.9

Legal reserves	14.2		10.5
Tax credits, net of federal effect	12.1		11.9
Research and development capitalization	39.7		17.9
Other	9.0		7.1
Total deferred tax assets	151.6		143.3
Valuation allowance	(17.8)		(37.9)
Total deferred tax assets, net of valuation allowance	133.8		105.4
Gross deferred tax liabilities:
Depreciation	(61.8)		(58.9)
Intangibles	(15.9)		(15.6)
Insurance liabilities	(2.4)		(1.4)
Other	(1.9)		(2.0)
Total deferred tax liabilities	(82.0)		(77.9)
Net deferred tax assets	$	51.8	$	27.5