INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of income tax expense

	Years Ended December 31,
(In millions)	2020		2019		2018
Current:
Federal	$	—	$	0.2	$	1.5
State		8.7		3.2		2.1
Foreign		1.4		1.3		0.9
Discrete adjustments related to the Tax Act (1)		—		(2.9)		2.9
Total		10.1		1.8		7.4
Deferred:
Deferred tax expense		55.8		23.3		31.3
Total income taxes	$	65.9	$	25.1	$	38.7

(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.

Schedule of effective income tax rate

	Years Ended December 31,
	2020		2019		2018
Computed federal income tax expense	21.0	%	21.0	%	21.0	%
State income tax	3.5	%	4.1	%	3.4	%
Valuation allowance	(0.2)	%	(0.3)	%	(0.7)	%
Foreign taxes	0.6	%	1.2	%	0.6	%
Remeasurement and discrete adjustments related to the Tax Act (1)	—	%	(2.7)	%	2.0	%
Share-based payments	(0.5)	%	(0.1)	%	0.1	%
Other — net	1.0	%	0.1	%	(0.2)	%
Effective income tax rate	25.4	%	23.3	%	26.2	%

(1) Effective income tax rate for the years ended December 31, 2019 and 2018 includes the impact of a non-cash income tax benefit of $2.9 million, or 2.7 percent, and a non-cash income tax expense of $2.9 million, or 2.0 percent, respectively, which related to certain 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, 2020 and 2019, were as follows:

	As of December 31,
(In millions)	2020		2019
Deferred tax assets:
Operating lease liabilities	$	63.5	$	63.1
Pension and post-retirement plans		21.7		19.2
Multi-employer withdrawal liabilities		15.6		16.1
Federal net operating losses		0.9		14.3
State net operating losses		7.5		7.3
U.S. State alternative minimum tax credits		4.4		6.7
Insurance reserves		5.3		5.9
Deferred compensation		8.2		5.8
Other		10.4		5.9
Total deferred tax assets		137.5		144.3
Valuation allowance		(10.0)		(10.6)
Total deferred tax assets, net of valuation allowance		127.5		133.7
Deferred tax liabilities:
Basis differences for property and equipment		372.4		319.2
Operating lease right of use assets		61.5		61.1
Intangibles		40.5		39.7
Lease financing		22.0		23.7
Capital Construction Fund		6.7		12.5
Investment in SSAT		7.4		7.4
Other		6.6		7.7
Total deferred tax liabilities		517.1		471.3
Deferred tax liability, net	$	389.6	$	337.6

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

(In millions)	Expiration Date	2020		2019
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	7.6	$	71.2
U.S. State income tax NOLs (1)	Various dates beginning in 2032	$	185.9	$	184.5
U.S. State alternative minimum tax credit	No expiration date	$	4.0	$	6.7
Foreign income tax NOLs	No expiration date	$	11.9	$	14.0

(1) The Company does not expect to benefit from $157.9 million and $157.9 million of U.S. State income tax NOLs as of December 31, 2020 and 2019, respectively.

Reconciliation of unrecognized tax benefits

Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		2.1
Reductions for lapse of statute of limitations		(0.2)
Balance at December 31, 2020	$	18.3