Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022		December 31, 2021
Pre-tax income (loss):
Ireland	$	72.3	$	(212.8)	$	341.9
United States	(23.8)		(38.2)		(35.3)
Other foreign	(56.9)		111.9		(47.9)
Total pre-tax income (loss)	(8.4)		(139.1)		258.7
Current provision (benefit) for income taxes:
Ireland	2.0		2.8		303.6
United States	18.2		(7.8)		14.9
Other foreign	56.6		30.8		81.3
Subtotal	76.8		25.8		399.8
Deferred provision (benefit) for income taxes:
Ireland	0.2		0.7		0.4
United States	(12.9)		(8.6)		3.3
Other foreign	(68.0)		(26.1)		(13.9)
Subtotal	(80.7)		(34.0)		(10.2)
Total provision for income taxes	$	(3.9)	$	(8.2)	$	389.6

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, 2023		December 31, 2022		December 31, 2021
Provision at statutory rate	12.5	%	12.5	%	12.5	%
Foreign rate differential	286.8		25.9		1.5
State income taxes, net of federal benefit	3.6		(0.3)		0.2
Provision to return	(67.6)		(0.5)		0.4
Tax credits	293.3		18.6		(19.6)
Change in tax law	(25.5)		0.7		1.5
Change in valuation allowance	(383.9)		(7.6)		17.1
Change in unrecognized taxes	654.7		4.4		116.5
Permanent differences	(723.3)		(42.3)		1.6
Legal entity restructuring	—		(4.6)		18.6
Taxes on unremitted earnings	4.7		(0.8)		0.2
Other	(8.1)		(0.1)		0.1
Effective income tax rate	47.2	%	5.9	%	150.6	%

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
Deferred income tax asset (liability):	December 31, 2023		December 31, 2022
Depreciation and amortization	$	(475.9)	$	(511.5)
Right of use assets	(44.4)		(52.6)
Unremitted earnings	(3.1)		(3.8)
Inventory basis differences	30.8		28.7
Accrued liabilities	26.3		26.5
Lease obligations	45.3		52.3
Share-based compensation	17.9		21.4
Federal benefit of unrecognized tax positions	18.7		18.7
Loss and credit carryforwards	438.3		360.8
R&D credit carryforwards	23.8		32.2
Capitalized R&D costs	31.2		17.5
Interest carryforwards	50.8		13.5
Other, net	44.7		29.7
Subtotal	$	204.4	$	33.4
Valuation allowance (1)	(440.9)		(394.5)
Net deferred income tax liability	$	(236.5)	$	(361.1)

(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, 2023		December 31, 2022
Assets	$	25.8	7.1
Liabilities	(262.3)		(368.2)
Net deferred income tax liability	$	(236.5)	(361.1)

Schedule of Valuation Allowance

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

	Year Ended
	December 31, 2023		December 31, 2022		December 31, 2021
Balance at beginning of period	$	394.5	$	450.7	$	414.8
Change in assessment (1)	48.3		(14.8)		39.1
Current year operations, foreign currency and other	(1.9)		(41.4)		(3.2)
Balance at end of period	$	440.9	$	394.5	$	450.7

(1) Includes increases in 2023 of $45 million related primarily to pre-acquisition net operating losses in our Elan US entity, reductions of $16.0 million in 2022 related primarily to projected utilization of capital losses and additions of $40.0 million in 2021 related primarily to our Latin American businesses.

Schedule of income tax contingencies

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):

	Year Ended
	December 31, 2023		December 31, 2022
Balance at beginning of period	$	331.6	$	347.2
Additions:
Positions related to the current year	9.8		9.2
Positions related to prior years	57.7		13.4
Reductions:
Settlements with taxing authorities	(50.4)		(20.2)
Lapse of statutes of limitation	(4.9)		—
Decrease in prior year positions	(104.9)		(17.1)
Cumulative translation adjustment	0.4		(0.9)
Balance at end of period	$	239.3	$	331.6