INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of income tax expense

	Years Ended December 31,
(In millions)	2021		2020		2019
Current:
Federal	$	181.2	$	—	$	0.2
State		35.6		8.7		3.2
Foreign		2.5		1.4		1.3
Discrete adjustments related to the Tax Act (1)		—		—		(2.9)
Total		219.3		10.1		1.8
Deferred:
Deferred tax expense		24.6		55.8		23.3
Total income taxes	$	243.9	$	65.9	$	25.1

(1) Current income taxes for the year ended December 31, 2019 include a non-cash income tax benefit of $2.9 million, which relates to discrete adjustments as a result of applying the provisions of the 2017 Tax Cuts and Jobs Act of 2017 (the “Tax Act”).

Schedule of effective income tax rate

	Years Ended December 31,
	2021		2020		2019
Computed federal income tax expense	21.0	%	21.0	%	21.0	%
State income tax	3.1	%	3.5	%	4.1	%
Foreign-derived intangible income (FDII)	(2.5)	%	—	%	—	%
Valuation allowance	(0.3)	%	(0.2)	%	(0.3)	%
Foreign taxes	0.2	%	0.6	%	1.2	%
Remeasurement and discrete adjustments related to the Tax Act (1)	—	%	—	%	(2.7)	%
Share-based payments	(0.2)	%	(0.5)	%	(0.1)	%
Other — net	(0.5)	%	1.0	%	0.1	%
Effective income tax rate	20.8	%	25.4	%	23.3	%

(1) Effective income tax rate for the year ended December 31, 2019 includes the impact of a non-cash income tax benefit of $2.9 million, or 2.7 percent, 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, 2021 and 2020, were as follows:

	As of December 31,
(In millions)	2021		2020
Deferred tax assets:
Operating lease liabilities	$	111.7	$	63.5
Multi-employer withdrawal liabilities		13.8		15.6
Pension and post-retirement plans		11.1		21.7
Deferred compensation		10.4		8.2
Insurance reserves		6.0		5.3
State net operating losses		5.4		7.5
Other		17.8		15.7
Total deferred tax assets		176.2		137.5
Valuation allowance		(5.3)		(10.0)
Total deferred tax assets, net of valuation allowance		170.9		127.5
Deferred tax liabilities:
Basis differences for property and equipment		423.5		372.4
Operating lease right of use assets		109.3		61.5
Intangibles		41.3		40.5
Investment in SSAT		12.4		7.4
Capital Construction Fund		1.3		6.7
Lease financing		—		22.0
Other		6.0		6.6
Total deferred tax liabilities		593.8		517.1
Deferred tax liability, net	$	422.9	$	389.6

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

(In millions)	Expiration Date	2021		2020
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	2.4	$	7.6
U.S. State income tax NOLs (1)	Various dates beginning in 2032	$	159.8	$	185.9
U.S. State alternative minimum tax credit	No expiration date	$	4.4	$	4.0
Foreign income tax NOLs	No expiration date	$	8.8	$	11.9

(1) U.S. State income tax NOLs are presented on a gross tax basis. The Company does not expect to benefit from $157.9 million of U.S. State income tax NOLs as of December 31, 2021 and 2020.

Reconciliation of unrecognized tax benefits

Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		1.1
Reductions for lapse of statute of limitations		(0.2)
Balance at December 31, 2021	$	19.2