INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The components of the income tax provision (benefit) from continuing operations were as follows:


($ in millions)	2023		2022
Current
Federal	$	0.4	$	4.1
State	0.4		0.3
Total current income tax expense	0.8		4.4
Deferred
Federal	49.5		(62.5)
State	9.0		(13.9)
Total deferred income tax provision (benefit)	58.5		(76.4)
Income tax provision (benefit)	$	59.3	$	(72.0)

The major components of deferred tax assets and liabilities are as follows:


($ in millions)	2023		2022
Deferred tax assets:
Net operating loss carryforward	$	26.5	$	16.8
Business interest carryforward	21.5		8.8
Stock-based compensation	0.3		0.5
Accounts receivable allowance	0.1		0.5
Lease liabilities	49.4		36.0
Inventory reserve	2.6		1.5
Goodwill and intangible assets	43.8		34.9
Transaction costs	1.2		1.3
Accrued liabilities	0.4		1.8
Total gross deferred tax assets	145.8		102.1
Valuation allowance	(93.6)		(0.7)
Deferred tax assets, net	52.2		101.4
Deferred tax liabilities:
Right-of-use assets	39.0		38.7
Property and equipment	12.5		3.8
Debt issuance costs amortization	0.7		0.8
Other	0.4		—
Deferred tax liabilities	52.6		43.3
Net deferred tax asset (liability)	$	(0.4)	$	58.1

A reconciliation of the statutory U.S. Federal income tax rate of 21% to our effective income tax rate follows:


	2023	2022
U.S. Federal statutory rate	21.0%	21.0%
State and local, net of federal benefit	(4.7)%	3.8%
Executive compensation	(0.3)%	—%
Other	(0.7)%	0.3%
Stock-based compensation	(0.9)%	(0.4)%
Goodwill impairment	—%	(5.6)%
IRC Section 338(h)(10) election	—%	4.7%
Change in valuation allowance	(52.7)%	(0.2)%
Effective tax rate	(38.3)%	23.6%


($ in millions)	2023		2022
Valuation allowance as of beginning of the year	$	0.7	$	—
Increases recorded to income tax provision	92.9		0.7
Decreases recorded as a benefit to income tax provision	—		—
Valuation allowance as of end of year	$	93.6	$	0.7