INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of domestic and foreign components of income before taxes

Components of income (loss) from continuing operations before income taxes - U.S. and outside U.S. components of income (loss) from continuing operations before income taxes were as follows:


	Year Ended December 31,
(In millions)	2021		2020		2019
United States	$	(288.2)	$	(2,169.3)	$	(2,376.4)
Outside United States	486.3		(1,329.4)		(194.7)
Income (loss) from continuing operations before income taxes	$	198.1	$	(3,498.7)	$	(2,571.1)

Provision for income taxes

Provision (benefit) for income tax - The provision for income taxes consisted of:


	Year Ended December 31,
(In millions)	2021		2020		2019
Current
United States	$	0.2	$	(18.3)	$	39.1
Outside United States	206.0		69.5		12.0
Total current income taxes	206.2		51.2		51.1
Deferred
United States	—		(2.8)		3.8
Outside United States	(95.1)		(29.0)		24.1

Total deferred income taxes	(95.1)		(31.8)		27.9
Provision for income taxes	$	111.1	$	19.4	$	79.0

Deferred tax assets and liabilities

Deferred tax assets and liabilities - Significant components of deferred tax assets and liabilities were as follows:


	December 31,
(In millions)	2021		2020
Deferred tax assets attributable to
Accrued expenses	$	173.0	$	133.0
Capital loss	21.1		21.1
Non-deductible interest	95.4		77.0
Foreign tax credit carryforwards	136.5		134.4
Other tax credits	146.0		163.8
Net operating loss carryforwards	455.5		383.5
Inventories	1.2		16.6
Research and development credit	3.8		2.9
Foreign exchange	17.2		—
Provisions for pensions and other long-term employee benefits	31.9		66.1
Contingencies	38.3		2.9


Margin recognition on construction contracts	18.0		20.6
Leases	183.4		170.4

Other	5.4		0.6
Deferred tax assets	1,326.7		1,192.9
Valuation allowance	(935.5)		(815.1)
Deferred tax assets, net of valuation allowance	391.2		377.8

Deferred tax liabilities attributable to
Revenue in excess of billings on contracts accounted for under the percentage of completion method	32.2		33.6

U.S. tax on foreign subsidiaries’ undistributed earnings not indefinitely reinvested	—		4.2
Property, plant and equipment, intangibles and other assets	162.8		180.1
Foreign exchange	—		43.9
Leases	169.4		161.1

Deferred tax liabilities	364.4		422.9
Net deferred tax assets/(liabilities)	$	26.8	$	(45.1)

Schedule of net operating losses

Our deferred tax assets from net operating losses will expire as follows:


(In millions)	Net Operating Loss
2022 – 2026	$	55.4
2027 – 2031	42.0
2032 – 2042	70.1
Non-Expiring	288.0
	$	455.5

Unrecognized tax benefits and associated interest and penalties

Unrecognized tax benefits - The following table presents a summary of changes in our unrecognized tax benefits:


(In millions)	Federal, State and Foreign Tax
Balance at December 31, 2019	$	57.6
Reductions for tax positions related to prior years	(7.9)
Reductions for tax positions related to current year	(2.9)
Reductions for tax positions due to settlements	(0.6)
Balance at December 31, 2020	46.2
Reductions for tax positions related to prior years	(15.2)
Additions for tax positions related to current year	39.9
Reductions for tax positions due to settlements	(2.1)

Balance at December 31, 2021	$	68.8

Reconciliation of effective tax rate

Effective income tax rate reconciliation - The effective income tax rate was different from the statutory U.K. income tax rate due to the following:


	Year Ended December 31,
	2021		2020		2019
Statutory income tax rate	19.0	%	19.0	%	19.0	%
Net difference resulting from
Foreign earnings subject to different tax rates	24.4	%	1.3	%	3.4	%

Adjustments to prior year taxes	(52.4)	%	(1.2)	%	0.8	%
Net change in unrecognized tax benefits	12.3	%	—	%	—	%
Changes in valuation allowance	65.4	%	(0.9)	%	(7.2)	%
Deferred tax asset/liability revaluation for tax rate change	(12.2)	%	0.3	%	(0.4)	%

Impairments	—	%	(19.5)	%	(19.7)	%
Non-deductible legal provision	—	%	0.3	%	1.1	%
Other	(0.4)	%	0.1	%	(0.1)	%
Effective income tax rate	56.1	%	(0.6)	%	(3.1)	%