Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Earnings (Loss) Before Income Taxes Composition in Each Tax Jurisdiction

The income tax provision (benefit) is comprised of the following:



	For The Years Ended December 31,
(In millions)	2019			2018		2017
Current
Federal	$	(2.1	)	$	1.1	$	(16.7	)
State	0.1			2.1		0.9
Total current	(2.0		)	3.2		(15.8		)
Deferred
Federal	(0.6		)	3.6		(36.8		)
State	0.3			3.5		(3.8		)
Total deferred	(0.3		)	7.1		(40.6		)
Income tax provision (benefit)	$	(2.3	)	$	10.3	$	(56.4	)

Income Tax Reconciliation

The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate of 21.0% in 2019 and 2018 and 35.0% in 2017 to income (loss) before income taxes due to the following:



	For The Years Ended December 31,
(In millions)	2019			2018			2017
Tax at the statutory rate	$	(1.7	)	$	(28.0	)	$	14.3
Goodwill impairment	—			41.0			—
Federal rate change	—			—			(70.1		)
State and local taxes, net of federal income tax impact	(0.9		)	4.4			(1.2		)
Adjustment for state deferred tax rate	(1.2		)	0.1			(0.7		)
Federal credits and net operating losses	(2.3		)	(10.9		)	(3.2		)
Uncertain tax positions	0.7			—			0.3
Stock compensation	0.6			0.7			2.2
Non-deductible expenses	0.4			0.2			0.3
Change in valuation allowances	2.3			—			0.8
Other, net¹	(0.2		)	2.8			0.9
Income tax provision (benefit)	$	(2.3	)	$	10.3		$	(56.4	)

Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:



(In millions)	2019			2018
Deferred tax assets:
Employee benefits	$	3.8		$	4.2
Postretirement employee benefits	17.1			15.9
Incentive compensation	4.4			4.3
Inventories	7.6			6.2
Pensions	3.2			7.4
Federal and state credit carryforwards	10.3			10.7
Federal and state net operating losses	8.8			2.0
Deferred interest expense	12.4			2.5
Operating leases	20.5			—
Other	1.6			3.0
Total deferred tax assets	89.7			56.2
Valuation allowance	(5.3		)	(3.8		)
Deferred tax assets, net of valuation allowance	84.4			52.4
Deferred tax liabilities:
Property, plant and equipment, net	(179.2		)	(161.8		)
Operating leases	(18.9		)	—
Intangible assets, net	(3.8		)	(5.6		)
Total deferred tax liabilities	(201.9		)	(167.4		)
Net deferred tax liabilities	$	(117.5	)	$	(115.0	)

Net deferred tax assets (liabilities) consist of:



(In millions)	2019			2018
Non-current deferred tax assets¹	$	3.8		$	6.2
Non-current deferred tax liabilities	(121.3		)	(121.2		)
Net deferred tax liabilities	$	(117.5	)	$	(115.0	)


¹	Included in "Other assets, net" on our accompanying December 31, 2019 and 2018 Consolidated Balance Sheets.

Roll Forward of Unrecognized Tax Benefits and Associated Interest and Penalties Included in the Accrued Taxes line item in non-current liabilities



(In millions)	Gross Unrecognized Tax Benefits, Excluding Interest and Penalties			Interest and Penalties			Total Gross Unrecognized Tax Benefits
Balance at December 31, 2017	$	4.1		$	0.3		$	4.4
Change in prior year tax positions	(0.6		)	0.1			(0.5		)
Reductions as a result of a lapse of the applicable statute of limitations	(0.7		)	(0.1		)	(0.8		)
Change in current year tax positions	0.3			—			0.3
Balance at December 31, 2018	3.1			0.3			3.4
Change in prior year tax positions	0.3			0.1			0.4
Change in current year tax positions	0.3			—			0.3
Balance at December 31, 2019	$	3.7		$	0.4		$	4.1