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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The components of our provision for income taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions):


	Year ended December 31,
	2022		2021		2020
Current income taxes:
UK	$	10.5	$	41.1	$	18.7
U.S., including state and local		95.9		154.0		136.4
International		8.8		12.4		9.8
Total current income taxes		115.2		207.5		164.9
Deferred income taxes:
UK		(10.3)		29.6		4.4
U.S., including state and local		10.0		(8.7)		(99.9)
International		(14.0)		(23.1)		(17.2)
Total deferred income taxes (benefits)		(14.3)		(2.2)		(112.7)
Total income tax expense	$	100.9	$	205.3	$	52.2

Schedule of components of income before taxes

The components of our total income before taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions):


	Year ended December 31,
	2022		2021		2020
UK	$	(44.1)	$	217.8	$	104.5
U.S.		428.7		627.1		109.7
International		(9.2)		(27.2)		(10.7)
Total income before taxes	$	375.4	$	817.7	$	203.5

Schedule of differences between effective income tax rate and statutory federal income tax rate


	Year ended December 31,
	2022		2021		2020
UK statutory corporation tax rate	19.0	%	19.0	%	19.0	%
Effect of foreign tax rates	6.3		3.5		4.0
Equity-based compensation	0.7		0.1		2.6
Tax adjustments	2.0		0.4		0.6
Impact of changes in statutory tax rates on deferred taxes	(1.3)		3.6		3.4
Goodwill impairments	—		—		1.8
Taxes applicable to prior years	(4.5)		(1.4)		(2.9)
Other, net	—		(0.3)		(0.8)
Effective income tax rate, controlling interest	22.2	%	24.9	%	27.7	%
Net loss (income) attributable to noncontrolling interests	4.7		0.2		(2.0)
Total effective income tax rate	26.9	%	25.1	%	25.7	%

Schedule of Significant components of deferred tax assets and liabilities

The significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021, are as follows (in millions):


	December 31,
	2022		2021
Deferred tax assets:
Compensation and staff benefits	$	57.6	$	65.3
Loss carryforwards⁽¹⁾		76.7		83.8
Accrued liabilities		6.3		4.3
Debt premium		2.1		2.9
Lease liabilities		19.6		27.8
Other		13.9		17.6
Gross deferred tax assets		176.2		201.7
Valuation allowance		(68.3)		(83.6)
Deferred tax assets, net of valuation allowance	$	107.9	$	118.1
Deferred tax liabilities:
Retirement benefits	$	(24.2)	$	(36.5)
Goodwill and acquired intangible assets		(631.2)		(657.1)
Lease right-of-use assets		(18.9)		(26.3)
Other		(7.1)		(9.1)
Gross deferred tax liabilities		(681.4)		(729.0)
Total deferred tax (liabilities)⁽²⁾	$	(573.5)	$	(610.9)

(1)	The majority of this loss carryforward relates to the UK capital loss of $279.0 million, before tax effects, which may be carried forward without time limitation. There is a full valuation allowance against UK capital losses.

(2)	The change in the net deferred tax liabilities does not equal the deferred tax expense due to the foreign currency translation adjustment on deferred tax liabilities booked through equity.

Schedule of balance sheet classification of deferred income tax assets and liabilities

Deferred tax assets and liabilities that relate to the same jurisdiction are recorded net on our Consolidated Balance Sheets as non-current balances and as of December 31, 2022 and 2021, are as follows (in millions):


	December 31,
	2022		2021
Deferred tax assets, net (included in other non-current assets)	$	1.1	$	8.3
Deferred tax liabilities, net		(574.6)		(619.2)
Total deferred tax (liabilities)	$	(573.5)	$	(610.9)

Reconciliation of beginning and ending tax contingencies liability

A reconciliation of the beginning and ending liability for the years ended December 31, 2022, 2021 and 2020, is as follows (in millions):


	Year ended December 31,
	2022		2021		2020
Beginning balance	$	19.2	$	15.8	$	14.1
Additions for tax positions of current year		9.7		5.0		—
Additions for tax positions of prior years		—		—		3.5
Reduction due to settlement with taxing authorities		(1.4)		(1.2)		—
Reduction due to statute expirations		(0.5)		(0.4)		(1.9)
Foreign currency translation		(0.3)		—		0.1
Ending balance	$	26.7	$	19.2	$	15.8