Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes was as follows:

Year Ended December 31	2023			2022			2021
Current
United States
Federal	$	(2.9	)	$	17.6		$	20.2
State		7.3			6.8			3.3
Non-United States		133.3			154.1			163.5
Total current		137.7			178.5			187.0
Deferred
United States
Federal		(8.6	)		11.2			5.8
State		(4.0	)		0.9			2.4
Non-United States		(8.0	)		(7.3	)		(9.5	)
Total deferred		(20.6	)		4.8			(1.3	)
Total provision	$	117.1		$	183.3		$	185.7

Income Tax Reconciliation

A tax reconciliation between taxes computed at the United States federal statutory rate of 21% and the consolidated effective tax rate is as follows:

Year Ended December 31	2023			2022			2021
Income tax based on statutory rate	$	43.2		$	117.0		$	119.3
Increase (decrease) resulting from:
Non-United States tax rate difference:
French business tax(1)		13.0			24.6			26.7
Other(2)		10.4			15.2			22.2
Repatriation of non-United States earnings		4.6			10.7			5.7
State income taxes, net of federal benefit		2.0			5.5			5.0
Change in valuation allowance(3)		53.5			13.7			22.0
Work Opportunity Tax Credit(4)		(5.6	)		(14.4	)		(12.1	)
Foreign-Derived Intangible Income deduction		(7.2	)		(9.6	)		(10.7	)
Goodwill impairment(5)		10.9			8.9			—
Change in unrecognized tax benefits(6)		(14.4	)		4.2			1.6
Other, net		6.7			7.5			6.0
Tax provision	$	117.1		$	183.3		$	185.7

(1)The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $16.4, $31.2 and $33.7 for 2023, 2022, and 2021 respectively. The amounts in the table above of $13.0, $24.6 and $26.7 for 2023, 2022, and 2021, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21%. In December 2023, the French Parliament approved the Finance Bill for 2024 which reversed the scheduled elimination of the business tax in 2024 and replaced it with a gradual reduction of the tax rate (i.e., 0.28% in 2024, 0.19% in 2025, 0.09% in 2026) before eliminating altogether in 2027.

(2)Included in Other Non-United States tax rate differences is the impact of all Non-United States pre-tax earnings and permanent tax differences at the local statutory tax rate versus the United States federal rate of 21%. This includes benefits of $0.8, $1.5 and $2.5 for 2023, 2022 and 2021, respectively, related to the difference between the United States federal rate and the French tax rate applied to the respective gross amounts of the French business tax deduction previously mentioned.

(3)Losses incurred in 2023, 2022 and 2021 in Germany resulted in an increase in valuation allowance of $46.3, $13.5 and $20.1, respectively.

(4)The Work Opportunity Tax Credit is currently authorized until December 31, 2025.

(5)Non-deductible portion of the goodwill impairment charges recorded in the Netherlands in 2023 and 2022.

(6)Effective settlement of an audit during the third quarter of 2023 resulted in the recognition of a tax benefit of $10.8. For 2022 and 2021, the Work Opportunity Tax Credit and Other, net categories were updated to separately reflect the Change in unrecognized tax benefits.

Deferred Income Taxes Temporary Differences

Temporary differences, which give rise to the deferred taxes, are as follows:

December 31	2023			2022
Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance	$	11.2		$	8.8
Employee compensation payable		40.8			37.7
Pension and postretirement benefits		71.8			65.0
Intangible assets		(129.3	)		(140.4	)
Repatriation of non-United States earnings		(20.4	)		(18.4	)
Loans denominated in foreign currencies		16.8			(0.7	)
Operating lease ROU assets		(104.5	)		(92.9	)
Operating lease liabilities		107.0			94.6
Net operating losses		187.7			128.9
Other		166.3			179.7
Valuation allowance		(219.8	)		(161.1	)
Total future tax benefits	$	127.6		$	101.2
Deferred tax asset	$	138.3		$	126.7
Deferred tax liability		(10.7	)		(25.5	)
Total future tax benefits	$	127.6		$	101.2

Summary of Net Operating Loss Carryforwards

The net operating loss carryforwards expire as follows:

	United States Federal and Non-United States		United States State
2024		4.2		33.7
2025		2.6		5.0
2026		1.0		6.7
2027		3.2		5.6
2028	1.1		0.1
Thereafter		18.4		49.9
No expirations		979.8		23.2
Total net operating loss carryforwards	$	1,010.3	$	124.2

Summary of Unrecognized Tax Benefit Activity

The following table summarizes the activity related to our unrecognized tax benefits during 2023, 2022, and 2021:

	2023			2022			2021
Gross unrecognized tax benefits, beginning of year	$	76.3		$	67.3		$	60.9
Increases in prior year tax positions		4.6			10.5			4.6
Decreases in prior year tax positions		(1.2	)		(1.2	)		(0.4	)
Increases for current year tax positions		2.6			2.3			9.0
Expiration of statute of limitations and audit settlements		(51.2	)		(2.6	)		(6.8	)
Gross unrecognized tax benefits, end of year	$	31.1		$	76.3		$	67.3
Potential interest and penalties		1.7			5.3			4.5
Balance, end of year	$	32.8		$	81.6		$	71.8