Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of income before income tax and components of Income tax expense (benefit)

Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions):

	Year Ended
	December 31, 2021		December 31, 2020		December 31, 2019
Pre-tax income (loss):
Ireland	$	341.9	$	(179.9)	$	(204.0)
United States	(35.3)		91.5		(368.4)
Other foreign	(47.9)		94.3		720.4
Total pre-tax income (loss)	258.7		5.9		148.0
Current provision (benefit) for income taxes:
Ireland	303.6		0.1		(0.5)
United States	14.9		4.5		24.8
Other foreign	81.3		34.9		8.3
Subtotal	399.8		39.5		32.6
Deferred provision (benefit) for income taxes:
Ireland	0.4		(0.1)		—
United States	3.3		(64.2)		(24.1)
Other foreign	(13.9)		(13.5)		(19.2)
Subtotal	(10.2)		(77.8)		(43.3)
Total provision for income taxes	$	389.6	$	(38.3)	$	(10.7)

Schedule of effective income tax rate reconciliation

A reconciliation of the provision based on the Irish statutory income tax rate to our effective income tax rate is as follows:

	Year Ended
	December 31, 2021		December 31, 2020		December 31, 2019
Provision at statutory rate	12.5	%	12.5	%	12.5	%
Foreign rate differential	1.5		(952.9)		6.9
State income taxes, net of federal benefit	0.2		139.7		1.5
Provision to return	0.4		144.3		1.0
Tax credits	(19.6)		(229.3)		(3.9)
Change in tax law	1.5		46.5		(1.2)
Change in valuation allowance	17.1		(1,331.7)		(29.2)
Change in unrecognized taxes	116.5		437.3		(8.5)
Permanent differences	1.6		1,624.8		16.5
Legal entity restructuring	18.6		(561.9)		—
Taxes on unremitted earnings	0.2		(0.1)		0.3
Other	0.1		15.0		(3.1)
Effective income tax rate	150.6	%	(655.8)	%	(7.2)	%

Schedule of deferred tax assets and liabilities

The components of our net deferred income tax asset (liability) are presented on a total company basis as follows (in millions):

    

	Year Ended
	December 31, 2021		December 31, 2020
Deferred income tax asset (liability):
Depreciation and amortization	$	(320.5)	$	(393.7)
Right of use assets	(42.5)		(44.3)
Unremitted earnings	19.6		(42.0)
Inventory basis differences	29.4		27.7
Accrued liabilities	38.3		81.4
Lease obligations	43.2		45.3
Share-based compensation	27.5		24.5
Federal benefit of unrecognized tax positions	21.7		23.5
Loss and credit carryforwards	341.7		390.1
R&D credit carryforwards	39.4		48.4
Interest carryforwards	6.9		17.9
Other, net	13.2		0.9
Subtotal	$	217.9	$	179.7
Valuation allowance (1)	(450.7)		(414.8)
Net deferred income tax liability	$	(232.8)	$	(235.1)

(1) The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency.

The above amounts are classified on the Consolidated Balance Sheets as follows (in millions):

	Year Ended
	December 31, 2021		December 31, 2020
Assets	$	6.5	$	44.2
Liabilities	(239.3)		(279.3)
Net deferred income tax liability	$	(232.8)	$	(235.1)

Summary of Valuation Allowance

The change in valuation allowance reducing deferred taxes was (in millions):

	Year Ended
	December 31, 2021		December 31, 2020		December 31, 2019
Balance at beginning of period	$	414.8	$	501.3	$	557.9
Change in assessment (1)	39.1		(50.3)		(8.3)
Current year operations, foreign currency and other	(3.2)		(36.2)		(48.3)
Balance at end of period	$	450.7	$	414.8	$	501.3

(1) Includes additions of $40.0 million related primarily to our Latin American businesses in 2021, and release of $51.5 million of valuation allowance against U.S. deferred tax assets in 2020.

Summary of income tax contingencies

The Company operates in multiple jurisdictions with complex tax policy and regulatory environments and establishes reserves for uncertain tax positions in accordance with the accounting guidance governing uncertainty in income taxes. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The following table is presented on a total company basis and summarizes the activity related to the liability recorded for uncertain tax positions, excluding interest and penalties (in millions):

	Unrecognized Tax Benefits
Balance at December 31, 2019	$	350.5
Additions:
Positions related to the current year	18.2
Positions related to prior years	28.9
Reductions:
Lapse of statutes of limitation	(2.2)
Decrease in prior year positions	(1.0)
Cumulative translation adjustment	1.6
Balance at December 31, 2020	396.0
Additions:
Positions related to the current year	11.4
Positions related to prior years	339.0
Reductions:
Settlements with taxing authorities	(344.1)
Lapse of statutes of limitation	(11.9)
Decrease in prior year positions	(41.9)
Cumulative translation adjustment	(1.3)
Balance at December 31, 2021	$	347.2