Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign components of income before taxes

The domestic and foreign components of income before income taxes for the years ended December 31 (in millions):

	2022			2021			2020
Domestic	$	(13.3	)	$	(15.4	)	$	(31.1	)
Foreign		427.2			409.0			256.9
Total income before provision for income taxes	$	413.9		$	393.6		$	225.8

Components of income tax provision

The components of the income tax provision for the years ended December 31 (in millions):

	2022			2021			2020
Current income tax expense (benefit):
Federal	$	(10.4	)	$	1.0		$	(0.5	)
State		2.5			1.2			(0.5	)
Foreign		135.3			118.0			85.4
Total current income tax expense		127.4			120.2			84.4
Deferred income tax expense (benefit):
Federal		(3.1	)		(7.8	)		(4.9	)
State		(1.7	)		(2.5	)		(1.0	)
Foreign		(6.2	)		3.1			(14.1	)
Total deferred income tax benefit		(11.0	)		(7.2	)		(20.0	)
Income tax provision	$	116.4		$	113.0		$	64.4

Schedule of significant components due to which income tax provision differs from the tax provision computed at the U.S. federal statutory rate

The income tax provision differs from the tax provision computed at the U.S. federal statutory rate due to the following significant components:

	2022			2021			2020
Statutory tax rate		21.0	%		21.0	%		21.0	%
Foreign tax rate differential		5.2	%		5.2	%		4.9	%
Permanent differences		1.1	%		1.2	%		2.0	%
U.S. tax on foreign earnings		(0.1	)%		1.6	%		0.3	%
Stock compensation		(0.6	)%		(2.5	)%		(0.7	)%
Mandatory repatriation		—			—			0.5	%
Tax contingencies		3.3	%		2.6	%		1.4	%
Change in tax rates		0.1	%		(0.1	)%		0.1	%
Withholding taxes		—			—			(0.1	)%
Repatriation of foreign earnings		0.2	%		(0.4	)%		0.6	%
State income taxes, net of federal benefits		0.2	%		(0.4	)%		(0.6	)%
Research and development credits		(2.1	)%		(0.9	)%		(1.2	)%
Other		(0.1	)%		1.2	%		(0.7	)%
Change in valuation allowance for unbenefited losses		(0.1	)%		0.2	%		1.0	%
Effective tax rate		28.1	%		28.7	%		28.5	%

Schedule of tax effect of temporary items that give rise to significant portions of deferred tax assets and liabilities

The tax effect of temporary items that give rise to significant portions of the deferred tax assets and liabilities are as follows (in millions):

	2022			2021
Deferred tax assets:
Accrued expenses	$	4.4		$	0.3
Compensation		15.3			28.8
Section 174 capitalization		15.8			—
Disallowed interest carryforwards		9.1			9.3
Net operating loss carryforwards		21.9			23.5
Foreign tax and other tax credit carryforwards		20.3			21.4
Unrealized currency gain/loss		13.1			6.8
Inventory		1.9			—
Hedge unrealized FX gain/loss		—			12.5
Lease obligations		10.5			14.1
Other		4.8			2.4
Gross deferred tax assets		117.1			119.1
Less valuation allowance		(6.6	)		(7.1	)
Total deferred tax assets		110.5			112.0
Deferred tax liabilities:
Accounts payable		7.7			—
Inventory		—			3.6
Hedge unrealized FX gain/loss		1.3			—
Deferred revenue		0.9			—
Fixed assets		10.1			6.1
Foreign patent reserves		2.9			4.4
Intangibles		53.8			32.6
Accrued expenses		1.3			0.5
Accrued withholding tax		7.9			6.7
Right-of-use asset		10.5			14.0
Other		—			0.2
Total deferred tax liabilities		96.4			68.1
Net deferred tax assets	$	14.1		$	43.9

Schedule of changes in the valuation allowance for deferred tax assets

Changes in the valuation allowance for deferred tax assets were as follows (in millions):

Balance at December 31, 2019	$	4.2
Increases recorded as part of acquisition purchase accounting		2.4
Balance at December 31, 2020		6.6
Increases recorded as an expense to income tax provision		0.5
Balance at December 31, 2021		7.1
Decrease recorded for state valuation allowance release		(0.5	)
Balance at December 31, 2022	$	6.6

Tabular reconciliation of the beginning and ending amount of unrecognized tax benefits

A tabular reconciliation of the Company’s gross unrecognized tax benefits is as follows (in millions):

Gross unrecognized tax benefits at December 31, 2019	$	15.9
Gross increases—tax positions in prior periods		1.2
Gross increases—current period tax positions		5.6
Gross unrecognized tax benefits at December 31, 2020		22.7
Gross increases—tax positions in prior periods		17.8
Gross increases—current period tax positions		10.9
Gross unrecognized tax benefits at December 31, 2021		51.4
Gross decreases—tax positions in prior periods		(8.2	)
Gross increases—current period tax positions		11.7
Gross unrecognized tax benefits at December 31, 2022	$	54.9