Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Earnings (Loss) From Continuing Operations Before Income Taxes

The components of "Earnings (loss) before income taxes" are as follows:


	Year Ended December 31
	2023		2022		2021
Domestic	$	(388.6)	$	163.6	$	249.7
Foreign	215.2		240.0		272.4
Earnings before income taxes	$	(173.4)	$	403.6	$	522.1

Schedule of Income Taxes

"Income taxes" is comprised of the following components:


	Year Ended December 31
	2023		2022		2021
Current
Federal	$	24.4	$	48.3	$	57.0
State and local	3.7		7.9		11.5
Foreign	64.5		53.2		59.5
Total current	92.6		109.4		128.0
Deferred
Federal	(100.6)		(14.1)		(9.3)
State and local	(19.9)		(2.0)		(2.3)
Foreign	(8.7)		.4		3.1
Total deferred	(129.2)		(15.7)		(8.5)
Total income taxes	$	(36.6)	$	93.7	$	119.5

Schedule of Income Tax Expense, Earning (Loss) From Continuing Operations Percentage

"Income taxes" as a percentage of "Earnings (loss) before income taxes", differs from the statutory federal income tax rate as follows:


	Year Ended December 31
	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Increases (decreases) in rate resulting from:
State taxes, net of federal benefit	.2		.9		1.5
Tax effect of foreign operations	(1.4)		(.5)		(.9)
Global intangible low-taxed income (GILTI)	(1.5)		.6		.5
Current and deferred foreign withholding taxes	(7.3)		2.6		2.3
Long-lived asset impairment	5.4		—		—

Stock-based compensation	.1		(.1)		(.5)

Change in valuation allowance	(.4)		(.1)		—
Change in uncertain tax positions, net	(.3)		—		—

Other permanent differences, net	3.9		(1.0)		(.8)
Other, net	1.4		(.2)		(.2)
Effective tax rate	21.1	%	23.2	%	22.9	%

Schedule of Deferred Income Tax Assets and Liabilities

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. The major temporary differences and their associated deferred tax assets or liabilities are as follows:


	December 31
	2023				2022
	Assets		Liabilities		Assets		Liabilities
Property, plant and equipment	$	14.7	$	(80.7)	$	15.0	$	(80.2)
Inventories	6.5		(1.0)		6.6		(6.5)
Accrued expenses	52.7		(.6)		52.6		(.9)
Net operating losses and other tax carryforwards 1	39.8		—		25.6		—
Pension cost and other post-retirement benefits	5.6		(.9)		7.5		(.8)

Intangible assets 2	12.0		(108.2)		.1		(204.5)
Derivative financial instruments	.5		(4.2)		.6		(3.8)
Tax on undistributed earnings (primarily from Canada and China)	—		(18.5)		—		(17.0)
Uncertain tax positions	.7		—		.8		—
Other 3	18.8		(7.5)		11.8		(5.6)
Gross deferred tax assets (liabilities)	151.3		(221.6)		120.6		(319.3)
Valuation allowance	(17.7)		—		(15.7)		—
Total deferred taxes	$	133.6	$	(221.6)	$	104.9	$	(319.3)
Net deferred tax liability			$	(88.0)			$	(214.4)

1 The $14.2 increase in our deferred tax asset was primarily associated with the U.S. interest expense limitation related to an expired provision of the Tax Cuts and Jobs Act of 2017 (TCJA).

2 Intangible assets includes an $11.9 increase in our deferred tax asset and $96.3 decrease in our deferred tax liability, both of which relate primarily to the long-lived asset impairment charges discussed in Note C.

3 Other includes a $7.0 increase in our deferred tax asset, which was primarily associated with the capitalization and amortization of research and experimentation expenditures related to an expired provision of TCJA.

Schedule of Deferred Tax Assets And (Liabilities) Included In Consolidated Balance Sheets

Deferred tax assets (liabilities) included in the Consolidated Balance Sheets are as follows:


	December 31
	2023		2022
Sundry	$	13.2	$	8.3
Deferred income taxes	(101.2)		(222.7)
Net deferred tax liability	$	(88.0)	$	(214.4)