INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income taxes for the years ended December 31, 2017, 2016 and 2015 consisted of the following:


	Years Ended December 31,
(In millions)	2017		2016		2015
Current:
Federal	$	21.6	$	10.5	$	22.6
State		2.2		(1.3)		2.9
Total		23.8		9.2		25.5
Deferred:
Deferred tax expense		24.4		39.9		49.3
Remeasurement and discrete adjustments related to the Tax Act (1)		(155.0)		—		—
Total		(130.6)		39.9		49.3
Total income taxes	$	(106.8)	$	49.1	$	74.8

Schedule of effective income tax rate


	Years Ended December 31,
	2017		2016		2015
Computed federal income tax expense	35.0	%	35.0	%	35.0	%
State income tax	2.6	%	1.8	%	2.5	%
Valuation allowance	1.4	%	0.3	%	1.1	%
Foreign taxes	0.1	%	0.4	%	0.6	%
Remeasurement and discrete adjustments related to the Tax Act (1)	(123.8)	%	—	%	—	%
Share-based payments	(1.4)	%	—	%	—	%
Other — net	0.8	%	0.1	%	2.9	%
Effective income tax rate	(85.3)	%	37.6	%	42.1	%

Effective income tax rate for the year ended December 31, 2017 includes the impact of a non-cash income tax benefit of $155.0 million related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the Tax Act during the year ended December 31, 2017.

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, 2017 and 2016, were as follows:


	As of December 31,
(In millions)	2017		2016
Deferred tax assets:
Benefit plans	$	42.6	$	63.1
Federal net operating losses		21.6		52.1
Insurance reserves		6.8		9.9
State net operating losses		7.4		7.9
Foreign losses		6.6		4.9
Alternative minimum tax credits		4.2		31.0
Allowance for doubtful accounts		0.9		1.3
Reserves		—		2.4
Other		1.9		3.5
Total deferred tax assets		92.0		176.1
Valuation allowance		(13.0)		(11.9)
Total Deferred tax assets, net of valuation allowance		79.0		164.2

Deferred tax liabilities:
Basis differences for property and equipment		254.4		339.0
Capital Construction Fund		54.2		115.8
Intangibles		36.4		53.8
Deferred revenue		6.9		9.5
Joint ventures and other investments		9.6		9.9
Reserves		2.7		—
Total deferred tax liabilities		364.2		528.0
Deferred tax liability, net	$	285.2	$	363.8

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


(In millions)	Expiration Date	2017		2016
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	183.8	$	190.0
U.S. State income tax NOLs	Various dates beginning in 2032	$	192.3	$	192.8
Foreign income tax NOLs	No expiration date	$	23.7	$	17.6
U.S. alternative minimum tax credit (1)	No expiration date	$	4.2	$	31.0

(1)

2017 amounts exclude $50.2 million of federal alternative minimum tax credits which are refundable commencing 2018 in accordance with the Tax Act, and is included in the Company’s other long-term assets in the Consolidated Balance Sheets (see Note 2).

Reconciliation of unrecognized tax benefits

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


Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		1.1
Reductions for lapse of statute of limitations		(0.1)
Revaluation of unrecognized tax benefits due to the Tax Act (1)		(5.5)
Balance at December 31, 2017	$	15.9

Amount relates to the impact of applying the Tax Act during the year ended December 31, 2017.