INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income tax expense for the years ended December 31, 2016, 2015 and 2014 consisted of the following (in millions):


	Years Ended December 31,
	2016		2015		2014
Current:
Federal	$	10.0	$	22.6	$	45.5
State		(1.3)		2.9		3.7
Total		8.7		25.5		49.2
Deferred:		39.9		49.3		2.7
Total income tax expense	$	48.6	$	74.8	$	51.9

Schedule of effective income tax rate


	Years Ended December 31,
	2016		2015		2014
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	1.8	%	2.5	%	2.2	%
Valuation allowance	0.3	%	1.1	%	3.3	%
Foreign taxes	0.4	%	0.6	%	0.4	%
Deferred tax adjustment	0.1	%	1.1	%	(0.9)	%
Unrecognized tax benefits	(1.0)	%	0.4	%	(0.4)	%
Other — net	1.0	%	1.4	%	2.7	%
Effective income tax rate	37.6	%	42.1	%	42.3	%

Schedule of tax effects of temporary differences

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015, were as follows (in millions):


	As of December 31,
	2016		2015
Deferred tax assets:
Benefit plans	$	78.1	$	79.1
Federal net operating losses		52.1		68.0
Insurance reserves		9.9		15.4
State net operating losses		7.9		7.8
Foreign losses		4.9		5.7
Alternative minimum tax credits		31.0		3.6
Allowance for doubtful accounts		1.3		2.4
Reserves		2.4		—
Other		3.5		1.9
Total deferred tax assets		191.1		183.9
Valuation allowance		(11.9)		(12.6)
Total Deferred tax assets, net of valuation allowance		179.2		171.3

Deferred tax liabilities:
Basis differences for property and equipment		339.0		300.8
Capital Construction Fund		115.8		95.6
Intangibles		53.8		53.0
Deferred revenue		9.5		11.8
Joint ventures and other investments		9.9		10.6
Reserves		—		10.0
Total deferred tax liabilities		528.0		481.8
Deferred tax liability, net	$	348.8	$	310.5

Schedule of company’s net operating losses (“NOLs”) and tax credit carryforwards


(in millions)	Expiration Date	2016		2015
U.S. Federal income tax NOLs	Various dates through December 31, 2034	$	190.0	$	194.2
U.S. State income tax NOLs	Various dates through December 31, 2034	$	192.8	$	192.4
Foreign income tax NOLs	No expiration date	$	17.6	$	20.2
U.S. alternative minimum tax credit	No expiration date	$	31.0	$	3.6

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):


Unrecognized Tax Benefits:	Amount
Balance at December 31, 2013	$	7.2
Changes in tax positions of prior years, net		0.5
Reductions for lapse of statute of limitations		(1.0)
Balance at December 31, 2014		6.7
Changes in tax positions of prior years, net		1.5
Additions from unrecognized tax benefits acquired		14.4
Reductions for lapse of statute of limitations		(0.5)
Balance at December 31, 2015		22.1
Changes in tax positions of prior years, net		(1.1)
Reductions for lapse of statute of limitations		(0.6)
Balance at December 31, 2016	$	20.4