Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Before Income Taxes

The Company’s income from continuing operations before income taxes consisted of the following (in millions):

	For the Years Ended December 31,
	2022		2021		2020
United States	$	608.4	$	495.4	$	382.0
Foreign	153.0		133.3		68.4
Income from continuing operations before income taxes	$	761.4	$	628.7	$	450.4

Components of Provision for Income Taxes

The provision for income taxes consisted of the following (in millions):

	For the Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	145.4	$	74.1	$	119.1
State	25.9		17.0		24.3
Foreign	41.5		29.0		26.8
Deferred	(54.8)		12.0		(80.3)
Total provision for income taxes	$	158.0	$	132.1	$	89.9

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

Reconciliations of the federal statutory income tax rate to the Company’s effective tax rate were as follows:

	For the Years Ended December 31,
	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	1.7		2.0		2.0
Domestic manufacturing deduction	—		—		(0.8)
Research and development tax credit	(1.8)		(3.4)		(3.9)
Stock based compensation	(0.3)		(0.5)		(0.1)
Valuation allowance	—		—		0.5
Foreign tax rate differential	0.9		0.9		1.8
Foreign-derived intangible income	(1.3)		—		—
Other permanent differences	0.5		1.0		(0.5)
Effective income tax rate for continuing operations	20.7	%	21.0	%	20.0	%

Net Deferred Income Taxes

The net deferred income taxes consist of the following (in millions):

	As of December 31,
	2022		2021
Deferred income taxes:
Inventories	$	87.2	$	73.6
Accrued expenses and other	125.5		105.0
Cost in excess of net assets of businesses acquired	(44.1)		24.5
Capitalized research expenditures	83.3		—
Property and equipment	(93.4)		(101.2)
Operating lease assets	(29.2)		(40.1)
Operating lease liabilities	29.2		40.5
Employee compensation and benefits	42.1		49.3
Net operating loss and other loss carryforwards	21.9		22.8
Valuation allowance	(16.6)		(17.0)
Total net deferred income tax asset	$	205.9	$	157.4

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

Reconciliations of the beginning and ending unrecognized tax benefits were as follows (in millions):

	For the Years Ended December 31,
	2022		2021
Balance as of January 1,	$	12.4	$	13.2
Gross increases for tax positions of prior years	—		0.4
Gross increases for tax positions of current year	2.4		2.7
Decreases due to settlements and other prior year tax positions	(0.6)		(1.7)
Decreases for lapse of statute of limitations	(3.3)		(2.2)
Balance as of December 31,	10.9		12.4
Reserves related to potential interest and penalties as of December 31,	0.8		0.9
Unrecognized tax benefits as of December 31,	$	11.7	$	13.3