Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

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



	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	17.4		$	10.6		$	(2.2	)
State	4.4			3.7			0.9
Foreign	1.8			—			—
Total current tax provision (benefit)	23.6			14.3			(1.3		)

Deferred:
Federal	(3.1		)	(0.5		)	(5.3		)
State	(0.9		)	0.1			1.4
Foreign	0.1			0.5			0.1
Total deferred tax (benefit) provision	(3.9		)	0.1			(3.8		)

Total income tax provision (benefit)	$	19.7		$	14.4		$	(5.1	)

Schedule of Effective Income Tax Rate Reconciliation

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, except percentages):



	Year Ended December 31,
	2019					2018					2017
Federal income tax provision at the statutory rate	$	16.2		21.0	%	$	12.6		21.0	%	$	9.9		35.0	%
Increase (decrease) resulting from:
State income taxes, net of federal benefit	2.7			3.5		2.6			4.3		1.6			5.7
Reduction in federal statutory rate⁽¹⁾	—			—		—			—		(14.6		)	(51.6	)
Decrease in unrecognized tax benefits (inclusive of
related interest and penalty)	—			—		—			—		(0.3		)	(1.0	)
Effect of foreign operations	0.1			0.1		0.5			0.8		0.1			0.4
Excess tax benefits from stock-based award payments⁽²⁾	0.1			0.1		0.2			0.3		(1.5		)	(5.3	)
Change in valuation allowance	1.7			2.2		—			—		—			—
Tax credits	(1.1		)	(1.4	)	(0.7		)	(1.2	)	(0.4		)	(1.4	)
Adjustments of prior years’ estimates	(0.7		)	(0.9	)	(0.5		)	(0.8	)	(0.4		)	(1.4	)
Other, net	0.7			0.9		(0.3		)	(0.4	)	0.5			1.6
Income tax provision (benefit)	$	19.7		25.5	%	$	14.4		24.0	%	$	(5.1	)	(18.0	)%

______________________________________________


(1)	As a result of the enactment of the TCJA, a $14.6 million net income tax benefit was recorded in the fourth quarter of 2017 due to a one-time revaluation of the Company’s net deferred tax liability.

(2)

As a result of the adoption of ASU 2016-09, the Company recognized excess tax deficiencies of $0.1 million and $0.2 million in 2019 and 2018, respectively, and an excess tax benefit of $1.5 million in 2017.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions):



	December 31,
	2019			2018
Deferred tax assets:
Employee benefits, including post-retirement benefits	$	11.8		$	10.3
Trade and other receivables	3.7			2.1
Self-insurance reserves	2.6			1.9
Rent expense	—			3.4
ROU assets	70.0			—
Other	3.0			0.9
Subtotal	91.1			18.6
Less: valuation allowance	(1.7		)	—
Total deferred tax assets	$	89.4		$	18.6
Deferred tax liabilities:
Inventories	$	13.1		$	12.4
Property and equipment	29.1			29.5
ROU liabilities	65.3			—
Goodwill and intangibles	2.8			2.6
Other	1.7			1.2
Total deferred tax liabilities	$	112.0		$	45.7

Net deferred tax liabilities	$	(22.6	)	$	(27.1	)

Tax jurisdiction:
Net deferred liability (Canada)	$	(0.5	)	$	(0.4	)
Net deferred liability (U.S.)	$	(22.1	)	$	(26.7	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2019, 2018 and 2017 is as follows (in millions):



	Year Ended December 31,
	2019		2018		2017
Balance at beginning of year	$	—	$	—	$	0.2
Lapse of statute of limitations	—		—		(0.2		)
Balance at end of year	$	—	$	—	$	—