INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Income before income taxes

(millions)	2023		2022		2021
United States (U.S.)		$408.9		$295.6		$277.7
International		1,346.6		1,047.8		1,136.5
Total		$1,755.5		$1,343.4		$1,414.2

Provision (benefit) for income taxes

(millions)	2023		2022		2021
U.S. federal and state		$137.6		$145.7		$30.9
International		280.0		231.4		240.2
Total current		417.6		377.1		271.1
U.S. federal and state		(40.1)		(78.9)		3.6
International		(15.0)		(63.7)		(4.5)
Total deferred		(55.1)		(142.6)		(0.9)
Provision for income taxes		$362.5		$234.5		$270.2

Net deferred tax assets and deferred tax liabilities

December 31 (millions)	2023		2022
Deferred tax assets
Pension and post-retirement benefits		$82.1		$87.0
Other accrued liabilities		162.0		129.6
Lease liability		135.9		109.2
Credit carryforwards		83.7		97.8
Capitalization of R&D costs		180.9		84.5
Loss carryforwards		57.3		67.2
Share-based compensation		54.5		51.2
Deferred income		27.9		59.6
Other, net		113.3		98.8
Valuation allowance		(65.7)		(65.2)
Total deferred tax assets		831.9		719.7
Deferred tax liabilities
Goodwill		(160.1)		(124.8)
Intangible assets		(451.3)		(486.3)
Property, plant and equipment		(332.3)		(319.7)
Lease asset		(136.1)		(109.1)
Financing		(32.1)		(33.5)
Other, net		(18.9)		(43.8)
Total deferred tax liabilities		(1,130.8)		(1,117.2)
Net deferred tax liabilities balance		($298.9)		($397.5)

Reconciliation of the statutory U.S. federal income tax rate to the company's effective income tax rate

	2023		2022		2021
Statutory U.S. rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.4		1.3		0.6
Foreign operations	(0.5)		(0.8)		(0.6)
Excess stock benefits	(0.3)		(0.4)		(2.0)
R&D credit	(1.3)		(1.4)		(1.3)
Foreign derived intangible income	(1.2)		(1.8)		(1.6)
Change in valuation allowance	0.5		0.7		0.5
Legal entity rationalization	0.1		(1.5)		-
One-time transfer of intangibles	-		-		1.8
Other, net	0.9		0.4		0.7
Effective income tax rate	20.6	%	17.5	%	19.1	%

Reconciliation of the beginning and ending amount of gross liability for unrecognized tax benefits

(millions)	2023		2022		2021
Balance at beginning of year		$24.9		$25.1		$20.7
Additions based on tax positions related to the current year		5.8		2.7		3.8
Additions for tax positions of prior years		1.7		3.6		3.0
Current year acquisitions		-		-		4.4
Reductions for tax positions of prior years		-		(1.5)		-
Reductions for tax positions due to statute of limitations		(2.7)		(0.7)		(3.0)
Settlements		(5.5)		(3.4)		(3.7)
Foreign currency translation		-		(0.9)		(0.1)
Balance at end of year		$24.2		$24.9		$25.1