Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income before Income Tax, Domestic and Foreign

The components of earnings (loss) before income taxes and discontinued operations were:


	Years Ended December 31,
(in millions)	2023		2022		2021
Domestic	$	(120.4)	$	(410.1)	$	15.5
Foreign	165.4		(8.1)		89.1
Total earnings (loss) before income taxes and discontinued operations	$	45.0	$	(418.2)	$	104.6

Schedule of Components of Income Tax Expense (Benefit)

Income tax (benefit) expense for the years ended December 31, 2023, 2022, and 2021 is comprised of the following:


	Years Ended December 31,
(in millions)	2023		2022		2021
Current:
U.S. Federal	$	1.8	$	1.2	$	0.4
State and local	0.3		0.6		0.3
Foreign	12.1		5.5		14.8
Total current tax expense	$	14.2	$	7.3	$	15.5
Deferred:
U.S. Federal	$	(39.9)	$	3.0	$	(57.1)
State and local	(2.5)		(0.3)		(2.6)
Foreign	0.8		1.9		(1.4)
Total deferred tax (benefit) expense	(41.6)		4.6		(61.1)
Total income tax (benefit) expense	$	(27.4)	$	11.9	$	(45.6)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax (benefit) expense at the U.S. Federal income tax rate to the Company’s actual income tax (benefit) expense was as follows:


	Years Ended December 31,
	2023		2022		2021
Income tax expense (benefit) at U.S. federal statutory income tax rate	$	9.4	$	(87.8)	$	22.0
State and local taxes, net of Federal income tax benefit	(2.1)		0.6		0.3
Foreign operations tax effect	4.2		6.4		3.5
Research and experimentation tax credits	(2.9)		(3.4)		(4.0)
Valuation allowance	(14.4)		0.8		(59.7)
Tax incentives	(1.7)		(1.3)		(1.2)
Tax contingencies	(0.2)		(1.1)		0.6
Tax holiday	(0.8)		(0.4)		(10.6)
Foreign taxes	0.2		1.1		1.0
Non-deductible and non-taxable interest	(1.5)		0.2		(0.2)
Stock-based compensation	3.7		1.8		5.1
Impact of intangible property transfers	(26.6)		—		—
Other, principally non-tax deductible items	1.6		2.5		1.3
Goodwill impairment	—		90.6		—


Global low tax and foreign derived intangible income	4.3		0.1		(2.5)
Foreign currency adjustments	—		—		(0.7)
Prior period items	(0.6)		1.8		(0.5)
Total income tax (benefit) expense	$	(27.4)	$	11.9	$	(45.6)

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities included the following:


(in millions)	December 31, 2023		December 31, 2022
Deferred tax assets:
Accrued compensation, principally post-retirement, and other employee benefits	$	13.2	$	11.0
Accrued expenses	5.2		4.4
Accrued interest	0.4		1.5
Net operating loss and other carryforwards	67.4		68.0
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes	8.2		8.2

Unremitted earnings of non-U.S. subsidiaries	0.7		2.0
Intangible assets, principally due to different tax and financial reporting bases	23.3		6.9


Plant and equipment, principally due to differences in depreciation	10.0		13.8

Total gross deferred tax assets	128.4		115.8
Valuation allowance	(25.5)		(39.7)
Total deferred tax assets	$	102.9	$	76.1

Deferred tax liabilities:





Other liabilities	$	(4.0)	$	(2.2)

Total gross deferred tax liabilities	(4.0)		(2.2)
Net deferred tax asset	$	98.9	$	73.9

Classified as follows in the Consolidated Balance Sheets:


Other assets and deferred charges (non-current deferred tax assets)	$	99.6	$	74.8
Deferred income taxes (non-current deferred tax liabilities)	(0.7)		(0.9)
Net deferred tax asset	$	98.9	$	73.9

Schedule of Unrecognized Tax Benefits Roll Forward


Unrecognized tax benefits at January 1, 2021	$	10.2


Reductions for tax positions of prior years	(0.3)


Settlements	(0.4)

Unrecognized tax benefits at December 31, 2021	$	9.5


Reductions as a result of a lapse in statute of limitations	(1.3)


Foreign exchange fluctuations	(0.1)
Unrecognized tax benefits at December 31, 2022	$	8.1


Reductions as a result of a lapse in statute of limitations	(0.3)


Foreign exchange fluctuations	0.2
Unrecognized tax benefits at December 31, 2023	$	8.0