Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income (loss) before Income Tax

Income (loss) before income taxes included the following (in millions):


	2023		2022		2021
Domestic operations	$	532.4	$	490.3	$	108.0
Foreign operations	426.5		417.8		425.8
Total income (loss) before income taxes	$	958.9	$	908.1	$	533.8

Components of Income Tax Provision (Benefit)

The provision for income taxes included the following (in millions):


	2023		2022		2021
Current provision (benefit)
Federal	$	91.2	$	47.2	$	43.0
State	21.4		14.8		10.8
Foreign	57.1		47.8		57.5
Total current provision (benefit)	169.7		109.8		111.3
Deferred provision (benefit)
Federal	(78.8)		(39.0)		(39.7)
State	(4.6)		0.3		(0.1)
Foreign	(14.0)		48.1		17.0
Total deferred provision (benefit)	(97.4)		9.4		(22.8)
Provision (benefit) for income taxes	$	72.3	$	119.2	$	88.5

Reconciliation of the Statutory Federal Income Tax Rate to the Actual Effective Income Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:


	2023		2022		2021
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes, net of federal benefit	1.8		1.7		1.8
Research and development tax credits	(2.4)		(1.8)		(3.4)
Investment tax credits	(0.5)		(0.5)		(1.1)

Foreign rate differential	1.8		1.5		1.4
Net accruals (reversals) for unrecognized tax benefits	(10.8)		(7.9)		(2.4)
Stock-based compensation	(2.1)		(1.1)		(2.5)
U.S. export sales	(2.2)		(2.0)		(1.3)
Acquisition-related costs	—		—		1.7
Other	0.9		2.2		1.4
Effective income tax rate	7.5%		13.1	%	16.6	%

Schedule of Deferred Income Tax Assets and Liabilities

The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense were as follows (in millions):



Deferred income tax assets:	2023		2022
Long-term:
Accrued liabilities	$	29.5	$	32.0
Inventory valuation	29.1		30.3
Accrued vacation	8.1		8.3
Deferred compensation and other benefit plans	13.8		12.7
Postretirement benefits other than pensions	0.7		1.0
Operating lease liabilities	27.9		29.9
Capitalization of research and development	141.1		70.8
Tax credit and net operating loss carryforward	39.3		44.6
Other	34.8		32.6
Valuation allowance	(18.2)		(16.1)
Total deferred income tax assets	306.1		246.1

Deferred income tax liabilities:
Long-term:
Intangible amortization	638.7		646.9
Property, plant and equipment differences	29.0		31.9

Operating lease right-of-use assets	25.3		26.7
Unremitted earnings of foreign subsidiaries	3.6		3.1
Other	12.4		12.9
Total deferred income tax liabilities	709.0		721.5

Net deferred income tax liabilities	$	402.9	$	475.4

Rollforward of Unrecognized Tax Benefits

(a) Beginning and end of year balances include amounts offset by deferred tax and amounts offset by potential refunds in other taxing jurisdictions.