Income Taxes

The Company’s income tax provision consists of the following (in millions):



	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	21.4		$	19.4		$	22.0
State	3.1			3.2			3.1
Total current tax provision	24.5			22.6			25.1

Deferred:
Federal	6.7			7.8			(0.6		)
State	0.8			1.1			(0.5		)
Foreign	(0.7		)	(0.1		)	(0.3		)
Total deferred tax provision (benefit)	6.8			8.8			(1.4		)

Total income tax provision	$	31.3		$	31.4		$	23.7

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions):



	Year Ended December 31,
	2016					2015					2014
Federal income tax provision at the statutory rate	$	29.9		35.0	%	$	29.0		35.0	%	$	23.2		35.0	%
Increase (decrease) resulting from:
State income taxes, net of federal benefit	2.9			3.4		2.9			3.5		2.3			3.5
Decrease in unrecognized tax benefits (inclusive of
related interest and penalty)	(0.3		)	(0.4	)	—			—		(0.9		)	(1.4	)
Effect of foreign operations	(0.7		)	(0.8	)	(0.1		)	(0.1	)	(0.3		)	(0.5	)
Change in valuation allowance	—			—		(0.1		)	(0.1	)	—			—
Tax credits and other, net	(0.5		)	(0.6	)	(0.3		)	(0.4	)	(0.6		)	(0.9	)
Income tax provision	$	31.3		36.6	%	$	31.4		37.9	%	$	23.7		35.7	%

The Company’s effective tax rate was 36.6% for 2016 compared to 37.9% for 2015. The decrease in effective tax rate for 2016 was due primarily to the effects of prior years' estimates for foreign operations, as well as benefits in the current year related to the expiration of statute of limitations for uncertain tax positions and related interest recovery.

The provision for income taxes included a net benefit of $1.5 million and $0.3 million for 2016 and 2015, respectively, related primarily to the expiration of the statute of limitations for uncertain tax positions and adjustments of prior years’ estimates.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions):



	December 31, 2016			December 31, 2015
Deferred tax assets:
Employee benefits, including post-retirement benefits	$	15.4		$	15.2
Trade and other receivables	2.9			4.1
Goodwill and intangibles	0.2			2.0
Self-insurance reserves	1.7			1.5
Other	6.1			4.0
Subtotal	26.3			26.8
Less: valuation allowance	—			—
Net deferred tax assets	$	26.3		$	26.8
Deferred tax liabilities:
Inventories	$	7.0		$	9.0
Property and equipment	36.2			27.2
Goodwill and intangibles	5.6			6.0
Other	1.8			1.6
Total deferred tax liabilities	$	50.6		$	43.8

Total net deferred tax liabilities	$	(24.3	)	$	(17.0	)
Net current deferred tax assets	4.6			1.6
Net non-current deferred tax liabilities	$	(28.9	)	$	(18.6	)

At each balance sheet date, management assesses whether it is more likely than not that these deferred tax assets would not be realized. The Company had no valuation allowance at December 31, 2016 and 2015.

The total gross amount of unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.2 million and $0.4 million at December 31, 2016 and 2015, respectively, all of which would impact the Company’s effective tax rate, if recognized. The expiration of the statute of limitation in future years could impact the total gross amount of unrecognized tax benefits by $0.2 million through the year ended December 31, 2017 as a result of the statute limitations for certain tax positions in future years and expected settlement of certain tax audit issues. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2016, 2015 and 2014 is as follows (in millions):



	Year Ended December 31,
	2016			2015		2014
Balance at beginning of year	$	0.4		$	0.4	$	0.6
Lapse of statute of limitations	(0.2		)	—		(0.2		)
Balance at end of year	$	0.2		$	0.4	$	0.4

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The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2013 to 2016 tax years remain subject to examination by federal and state tax authorities. The 2012 tax year is still open for certain state tax authorities. The 2009 to 2016 tax years remain subject to examination by the tax authorities in Canada.

For the year ended December 31, 2016, the Company recognized a net benefit in its provision for income taxes of $0.1 million related primarily to the interest associated with certain unrecognized tax positions. For the year ended December 31, 2015 the Company did not recognize any net benefit and in 2014 recognized a net benefit of $0.2 million As of December 31, 2016 and December 31, 2015, the Company had a liability of $0.1 million and $0.3 million, respectively, for estimated interest and penalties related to unrecognized tax benefits.