Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of components of income tax (benefit) expense

Components of income tax (benefit) expense consist of the following (in millions):

	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	63.1	$	136.6	$	261.3
State		9.4		17.4		23.9
Total current		72.5		154.0		285.2
Deferred
Federal		(120.1)		12.7		67.2
State		(12.9)		3.0		(0.8)
Total deferred		(133.0)		15.7		66.4
Total income tax (benefit) expense	$	(60.5)	$	169.7	$	351.6

Schedule of reconciliation of income tax expense computed at the statutory federal tax rate to income tax expense

Presented below is a reconciliation of income tax (benefit) expense computed at the statutory federal tax rate of 21 percent in 2019 and 2018, and 35 percent in 2017 to income tax (benefit) expense as reported (in millions):

	Year Ended December 31,
	2019		2018		2017
Federal taxes at the statutory rate	$	(34.7)	$	159.4	$	269.2
General business credits		(20.4)		(14.9)		(15.1)
Nondeductible compensation expense		6.3		2.1		1.8
Change in valuation allowance		(5.7)		11.2		17.5
Foreign income adjustment		5.1		—		—
State taxes, net of federal benefit		(4.0)		15.3		14.2
Deduction for foreign-derived intangible income		(3.3)		(3.3)		—
Deconsolidation of VIE		(1.9)		—		—
Other		(1.6)		3.6		1.3
Excess tax benefits from share-based compensation		(0.3)		(1.9)		(4.5)
Tax reform		—		(1.8)		71.0
Section 199 deduction		—		—		(22.8)
Nondeductible portion of DOJ Settlement		—		—		19.0
Total income tax (benefit) expense	$	(60.5)	$	169.7	$	351.6

Schedule of components of net deferred tax assets

Components of the net deferred tax assets are as follows (in millions):

	As of December 31,
	2019		2018
Deferred tax assets:
Intangible assets	$	192.4	$	36.5
Share-based compensation		56.0		57.0
Impairments		25.8		23.1
SERP		10.1		10.7
NOLs		6.7		34.3
Reserves		6.5		9.3
Other		14.6		20.7
Total deferred tax assets		312.1		191.6
Deferred tax liabilities:
Plant and equipment principally due to differences in depreciation		(40.7)		(20.2)
Basis differences in foreign entities		0.6		(24.8)
Other		(5.4)		(8.3)
Net deferred tax assets before valuation allowance		266.6		138.3
Valuation allowance		(36.6)		(42.6)
Net deferred tax assets	$	230.0	$	95.7