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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
INCOME TAXES  
Schedule of income tax expense

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​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

 

(In millions)

    

2019

    

2018

    

2017

 

Current:

​

​

​

​

​

​

​

​

​

​

Federal

​

$

0.2

​

$

1.5

​

$

21.1

​

State

​

 

3.2

​

 

2.1

​

 

2.2

​

Foreign

​

​

1.3

​

​

0.9

​

​

0.5

​

Discrete adjustments related to the Tax Act (1)

​

​

(2.9)

​

​

2.9

​

​

—

​

Total

​

 

1.8

​

 

7.4

​

 

23.8

​

Deferred:

​

​

​

​

​

​

​

​

​

​

Deferred tax expense

​

​

23.3

​

​

31.3

​

​

24.4

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Remeasurement and discrete adjustments related to the Tax Act (2)

​

​

—

​

​

—

​

​

(154.0)

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Total

​

 

23.3

​

 

31.3

​

 

(129.6)

​

Total income taxes

​

$

25.1

​

$

38.7

​

$

(105.8)

​

(1)Current income taxes for the years ended December 31, 2019 and 2018 include a non-cash income tax benefit of $2.9 million and a non-cash income tax expense of $2.9 million, respectively, which relates to discrete adjustments as a result of applying the provisions of the Tax Act.
(2)Deferred income taxes for the year ended December 31, 2017 includes a non-cash income tax benefit of $154.0 million, which relates to the remeasurement of the Company’s deferred tax assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.

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Schedule of effective income tax rate

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​

​

​

​

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Years Ended December 31, 

 

​

    

2019

    

2018

    

2017

 

Computed federal income tax expense

 

21.0

%  

21.0

%  

35.0

%

State income tax

 

4.1

%  

3.4

%  

2.6

%

Valuation allowance

 

(0.3)

%  

(0.7)

%  

1.4

%

Foreign taxes

 

1.2

%  

0.6

%  

0.1

%

Remeasurement and discrete adjustments related to the Tax Act (1)

 

(2.7)

%  

2.0

%  

(123.0)

%

Share-based payments

 

(0.1)

%  

0.1

%  

(1.4)

%

Other — net

 

0.1

%  

(0.2)

%  

0.8

%

Effective income tax rate

 

23.3

%  

26.2

%  

(84.5)

%

(1)Effective income tax rate for the years ended December 31, 2019, 2018 and 2017 includes the impact of a non-cash income tax benefit of $2.9 million, or 2.7 percent, a non-cash income tax expense of $2.9 million, or 2.0 percent, and a non-cash income tax benefit of $154.0 million, or 123.0 percent, respectively, related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.
Schedule of tax effects of temporary differences

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The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018, were as follows:

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​

​

​

​

​

​

​

​

​

As of December 31, 

 

(In millions)

    

2019

    

2018

 

Deferred tax assets:

​

​

​

​

​

​

​

Operating lease liabilities

​

$

63.1

​

$

—

​

Pension and post-retirement plans

​

​

19.2

​

​

20.2

​

Multi-employer withdrawal liabilities

​

​

16.1

​

​

16.6

​

Federal net operating losses

​

​

14.3

​

​

15.2

​

State net operating losses

​

​

7.3

​

​

7.4

​

U.S. State alternative minimum tax credits

​

 

6.7

​

 

5.9

​

Insurance reserves

​

 

5.9

​

 

5.6

​

Deferred compensation

​

 

5.8

​

​

7.0

​

Foreign losses

​

 

3.9

​

 

5.1

​

Other

​

 

2.0

​

 

4.7

​

Total deferred tax assets

​

 

144.3

​

 

87.7

​

Valuation allowance

​

​

(10.6)

​

​

(11.5)

​

Total deferred tax assets, net of valuation allowance

​

​

133.7

​

​

76.2

​

​

​

​

​

​

​

​

​

Deferred tax liabilities:

​

​

​

​

​

​

​

Basis differences for property and equipment

​

 

319.2

​

 

302.1

​

Operating lease right of use assets

​

 

61.1

​

 

—

​

Intangibles

​

​

39.7

​

​

38.4

​

Lease financing

​

​

23.7

​

​

26.0

​

Capital Construction Fund

​

 

12.5

​

​

7.0

​

Investment in SSAT

​

 

7.4

​

 

11.4

​

Other

​

​

7.7

​

​

4.0

​

Total deferred tax liabilities

​

 

471.3

​

 

388.9

​

Deferred tax liability, net

​

$

337.6

​

$

312.7

​

Schedule of company's net operating losses ("NOLs") and tax credit carryforwards

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​

​

​

​

​

​

​

​

​

(In millions)

​

Expiration Date

    

2019

    

2018

U.S. Federal income tax NOLs

​

Various dates beginning in 2027

​

$

71.2

​

$

74.5

U.S. State income tax NOLs (1)

​

Various dates beginning in 2032

​

$

184.5

​

$

189.2

U.S. State alternative minimum tax credit

​

No expiration date

​

$

6.7

​

$

5.9

Foreign income tax NOLs (2)

​

No expiration date

​

$

14.0

​

$

18.4

(1)The Company does not expect to benefit from $157.9 million and $152.0 million of U.S. State income tax NOLs as of December 31, 2019 and 2018, respectively.
(2)The Company has recorded a valuation allowance of $14.0 million and $18.4 million against the foreign income tax NOLs as of December 31, 2019 and 2018, respectively.

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Reconciliation of unrecognized tax benefits

​

​

​

​

​

​

Unrecognized Tax Benefits (in millions)

    

Amount

 

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

​

Changes in tax positions of prior years, net

​

 

(0.3)

​

Reductions for lapse of statute of limitations

​

​

(0.5)

​

Balance at December 31, 2018

​

 

15.1

​

Changes in tax positions of prior years, net

​

 

2.1

​

Reductions for lapse of statute of limitations

​

​

(0.8)

​

Balance at December 31, 2019

​

$

16.4

​

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