Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income from continuing operations before income taxes consisted of the following for the years ended December 31 (in millions):



	2019		2018		2017
Domestic	$	237.8	$	113.8	$	103.9
Foreign	20.2		21.4		38.1
Total	$	258.0	$	135.2	$	142.0

Components of income tax expense (benefit) from continuing operations

The components of income tax expense from continuing operations for the years ended December 31 are as follows (in millions):



	2019			2018			2017
Current:
Federal	$	(20.0	)	$	3.3		$	30.0
State	9.0			19.9			5.9
Foreign	3.5			11.0			3.6
Total current expense (benefit)	(7.5		)	34.2			39.5
Deferred:
Federal	24.4			(24.7		)	102.7
State	(0.4		)	(4.7		)	(9.3		)
Foreign	1.5			0.2			(0.1		)
Total deferred expense (benefit)	25.5			(29.2		)	93.3
Total tax expense (benefit)	$	18.0		$	5.0		$	132.8

Reconciliation of effective income tax rate

The reconciliation of the difference between the Company’s U.S. Federal statutory income tax rate and the effective income tax rate for continuing operations for the years ended December 31 is as follows:



	2019		2018		2017
Tax at U.S. federal statutory income tax rate	21.0	%	21.0	%	35.0	%
State income taxes, net of federal benefit	5.5	%	8.1	%	1.7	%
Non-deductible expenses	0.5	%	0.3	%	0.2	%
DTA Deed liability revaluation adjustment	—	%	1.2	%	(12.8	)%
Interest expense	—	%	—	%	(10.2	)%
Adjustment to liabilities for uncertain tax positions	(15.8	)%	(32.5	)%	(1.2	)%
Change in valuation allowance	—	%	(6.3	)%	1.1	%
Write-off of state net operating loss carryforwards	—	%	6.3	%	—	%
Effect of foreign operations	0.3	%	2.7	%	(4.0	)%
Effect of changes in tax law	(0.4	)%	(1.4	)%	86.4	%
Effect of disposal of affiliate	—	%	2.9	%	—	%
Effect of income from non-controlling interest	(1.3	)%	0.9	%	(1.3	)%
Impact of increased state tax obligations to deferred tax assets	(1.4	)%	—	%	—	%
Impact of Redomestication to deferred tax assets	(0.9	)%	—	%	—	%
Other	(0.4	)%	0.5	%	(1.4	)%
Effective income tax rate for continuing operations	7.1	%	3.7	%	93.5	%

Significant components of deferred tax assets and deferred tax liabilities

The significant components of deferred tax assets and deferred tax liabilities for the years ended December 31 are as follows (in millions):



	2019		2018
Deferred tax assets:
Interest expense	$	70.7	$	73.6
Federal net operating loss	0.9		1.4
State net operating loss carry forwards	0.2		—
Investment in partnerships	164.1		182.0
Intangible assets	0.3		0.5
Employee compensation	4.4		6.2
Other	1.8		2.0
Cash flow hedge	6.2		4.7
Total deferred tax assets	248.6		270.4
Deferred tax liabilities:
Investments	5.0		0.3
Net deferred tax assets	$	243.6	$	270.1

Reconciliation of change in gross unrecognized tax benefits

A reconciliation of the change in gross unrecognized tax benefits for the years ended December 31 is as follows (in millions):



	2019			2018			2017
Balance as of January 1	$	46.9		$	88.7		$	91.3
Additions based on current year tax positions	0.1			0.1			0.9
Reductions for tax provisions of prior years	—			(0.9		)	—
Reductions related to lapses of statutes of limitations	(35.7		)	(41.0		)	(3.5		)
Balance as of December 31	$	11.3		$	46.9		$	88.7