INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Schedule of income tax expense

	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
Remeasurement and discrete adjustments related to the Tax Act (2)		—		—		(154.0)
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.

Schedule of effective income tax rate

	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

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:

	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

(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.

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.