Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	32.8	$	17.4	$	10.6
State	5.5		4.4		3.7
Foreign	1.2		1.8		—
Total current tax provision	39.5		23.6		14.3
Deferred:
Federal	(15.7)		(3.1)		(0.5)
State	(3.8)		(0.9)		0.1
Foreign	0.1		0.1		0.5
Total deferred tax (benefit) provision	(19.4)		(3.9)		0.1
Total income tax provision	$	20.1	$	19.7	$	14.4

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)(1):

	Year Ended December 31,
	2020				2019				2018
Federal income tax provision at the statutory rate	$	17.5	21.0	%	$	16.2	21.0	%	$	12.6	21.0	%
Increase (decrease) resulting from:
State income taxes, net of federal benefit	1.1		1.3		1.9		2.5		2.9		4.8
Foreign tax rate differential	0.3		0.4		0.1		0.1		—		—
U.S. branch taxes	2.5		3.0		(0.1)		(0.1)		0.5		0.8
Excess tax benefits from stock-based award payments(2)	0.2		0.2		0.1		0.1		0.2		0.3
Change in valuation allowance	(1.1)		(1.3)		1.7		2.2		—		—
Other tax credits	(0.9)		(1.1)		(1.2)		(1.6)		(1.2)		(2.0)
Other, net	0.5		0.6		1.0		1.3		(0.6)		(0.9)
Income tax provision	$	20.1	24.1	%	$	19.7	25.5	%	$	14.4	24.0	%

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(1)    Certain prior period amounts have been reclassified to conform with the current year’s presentation.

(2)    As a result of the adoption of ASU 2016-09, the Company recognized excess tax deficiencies of $0.2 million, $0.1 million and $0.2 million in 2020, 2019 and 2018, respectively.    

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,
	2020		2019
Deferred tax assets:
Employee benefits, including post-retirement benefits	$	11.9	$	11.8
Trade and other receivables	4.1		3.7
Inventories	4.1		—
Self-insurance reserves	2.4		2.6
ROU liabilities	80.1		70.0
Other	3.1		3.0
Subtotal	105.7		91.1
Less: valuation allowance	(0.6)		(1.7)
Total deferred tax assets	$	105.1	$	89.4
Deferred tax liabilities:
Inventories	$	—	$	13.1
Property and equipment	26.9		29.1
ROU assets	75.1		65.3
Goodwill and intangibles	3.0		2.8
Other	2.2		1.7
Total deferred tax liabilities	$	107.2	$	112.0
Net deferred tax liabilities	$	(2.1)	$	(22.6)
Tax jurisdiction:
Net deferred liability (Canada)	$	(0.6)	$	(0.5)
Net deferred liability (U.S.)	$	(1.5)	$	(22.1)

At each balance sheet date, management assesses whether it is more likely than not that these deferred tax assets would not be realized. As of December 31, 2020, the Company had a valuation allowance of $0.6 million which consisted primarily of net operating loss carry-forwards for certain states. The Company had a valuation allowance of $1.7 million which consisted of $1.0 million of foreign tax credits and $0.7 million of net operating loss carry-forwards for certain states at December 31, 2019, and no valuation allowance at December 31, 2018.

The Company had no unrecognized tax benefits related to federal, state and foreign taxes at December 31, 2020, 2019, and 2018.

The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2017 to 2019 tax years remain subject to examination by federal and state tax authorities. The 2016 tax year is still open for certain state tax authorities. The 2013 to 2019 tax years remain subject to examination by the tax authorities in Canada.