INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of income tax provision (benefit) related to earnings

The following table summarizes the Company’s income tax provision related to earnings for the years ended December 31 (in millions):



	2019			2018			2017
Current:
Federal	$	5.3		$	8.1		$	0.5
State	2.0			4.3			(9.8		)
Foreign	26.6			13.1			85.8
Total current	33.9			25.5			76.5
Deferred:
Federal	(7.2		)	(8.6		)	(4.4		)
State	(1.9		)	(0.5		)	(0.5		)
Foreign	(2.7		)	(7.6		)	(11.6		)
Total deferred	(11.8		)	(16.7		)	(16.5		)
Total provision for income taxes	$	22.1		$	8.8		$	60.0

Schedule of income tax expense reconciliation

The following table summarizes components of earnings before taxes and shows the tax effects of significant adjustments from the expected tax expense computed at the federal statutory rate for the years ended December 31 (in millions):



	2019			2018			2017
U.S. income (loss)	$	31.7		$	(80.6	)	$	(41.2	)
Foreign income	52.9			158.2			143.9
Earnings before income taxes	$	84.6		$	77.6		$	102.7
Computed tax at the U.S. federal statutory rate of 21% in 2019 and 2018, 32.7% in 2017	17.8			16.3			33.6
Foreign income rate differential, mining, and withholding taxes, net of U.S. federal deduction	10.2			0.9			1.6
Percentage depletion in excess of basis	(5.8		)	(4.7		)	(6.4		)
Other domestic tax reserves, net of reversals	0.2			1.5			—
State income taxes, net of federal income tax benefit	—			2.1			0.8
Change in valuation allowance on deferred tax asset	0.2			(5.7		)	(23.9		)
Interest expense recognition differences	(3.5		)	(3.6		)	(5.6		)
Tax Cuts and Jobs Act of 2017	1.6			(3.0		)	46.8
Tax on repatriated amounts	0.9			3.4			—
Transfer pricing settlement with taxing authorities	—			2.2			13.8
Other, net	0.5			(0.6		)	(0.7		)
Provision for income taxes	$	22.1		$	8.8		$	60.0
Effective tax rate	26		%	11		%	58		%

Schedule of significant components of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in millions):



	2019			2018
Deferred tax assets:
Reluz Nordeste Indústria e Comércio Ltda net operating loss carryforwards	$	0.6		$	0.6
Compass Minerals South America net operating loss carryforwards	3.3			7.0
Excess interest expense	14.9			—
Foreign tax credit	38.1			—
Right of use lease liability	11.1			—
Stock-based compensation	2.3			—
Other, net	16.5			6.8
Total deferred tax assets before valuation allowance	86.8			14.4
Valuation allowance	(39.8		)	(0.6		)
Total deferred tax assets	47.0			13.8
Deferred tax liabilities to be netted with deferred tax assets:
Property, plant and equipment	21.2			—
Right of use lease asset	11.1			—
Other, net	1.0			—
Total deferred tax liabilities to be netted with deferred tax assets	33.3			—
Net noncurrent deferred tax assets	$	13.7		$	13.8

Deferred tax assets to be netted with deferred tax liabilities:
Foreign tax credit	$	—		$	38.2
Net operating loss carryforwards	2.2			2.1
Stock-based compensation	—			2.9
Right of use lease liability	0.9			—
Other, net	2.1			11.3
Total deferred tax assets before valuation allowance	5.2			54.5
Valuation allowance	(1.4		)	(40.3		)
Total deferred tax assets to be netted with deferred tax liabilities	3.8			14.2
Deferred tax liabilities:
Property, plant and equipment	63.7			82.3
Intangible asset	29.1			32.7
Right of use lease asset	0.9			—
Total deferred tax liabilities	93.7			115.0
Net deferred tax liabilities	$	89.9		$	100.8

Note - U.S. GAAP requires the netting of assets and liabilities by jurisdiction. In 2019, the U.S. deferred taxes netted to an overall asset, however in 2018, they netted to an overall liability.

Schedule of reconciliation of unrecognized tax benefits

The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions):



	2019			2018			2017
Unrecognized tax benefits:
Balance at January 1	$	50.9		$	67.4		$	20.7
Additions resulting from current year tax positions	0.2			8.0			1.3
Additions relating to tax positions taken in prior years	4.5			2.6			51.7
Reductions due to settlements	—			(25.0		)	(4.5		)
Reductions due to cash payments	(7.5		)	—			—
Reductions relating to tax positions taken in prior years	(0.4		)	(0.3		)	(1.4		)
Reductions due to expiration of tax years	(0.3		)	(1.8		)	(0.4		)
Balance at December 31	$	47.4		$	50.9		$	67.4