INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of income tax expense

	Years Ended December 31,
(In millions)	2022		2021		2020
Current:
Federal	$	171.5	$	181.2	$	—
State		18.3		35.6		8.7
Foreign		1.3		2.5		1.4
Total		191.1		219.3		10.1
Deferred:
Deferred tax expense		97.3		24.6		55.8
Total income taxes	$	288.4	$	243.9	$	65.9

Schedule of effective income tax rate

	Years Ended December 31,
	2022		2021		2020
Computed federal income tax expense	21.0	%	21.0	%	21.0	%
State income tax	2.8	%	3.1	%	3.5	%
Foreign-derived intangible income (FDII)	(2.4)	%	(2.5)	%	—	%
Valuation allowance	—	%	(0.3)	%	(0.2)	%
Foreign taxes	0.1	%	0.2	%	0.6	%
Share-based payments	—	%	(0.2)	%	(0.5)	%
Other — net	(0.2)	%	(0.5)	%	1.0	%
Effective income tax rate	21.3	%	20.8	%	25.4	%

Schedule of tax effects of temporary differences

	As of December 31,
(In millions)	2022		2021
Deferred tax assets:
Operating lease liabilities	$	102.9	$	111.7
Multi-employer withdrawal liabilities		13.3		13.8
Deferred compensation		10.9		10.4
U.S. State alternative minimum tax credits		8.8		4.6
Pension and post-retirement plans		—		11.1
Other		22.7		24.6
Total deferred tax assets		158.6		176.2
Valuation allowance		(7.4)		(5.3)
Total deferred tax assets, net of valuation allowance		151.2		170.9
Deferred tax liabilities:
Basis differences for property and equipment		433.1		423.5
Capital Construction Fund		194.0		1.3
Operating lease right of use assets		100.7		109.3
Intangibles		42.0		41.3
Investment in SSAT		18.7		12.4
Other		9.2		6.0
Total deferred tax liabilities		797.7		593.8
Deferred tax liability, net	$	646.5	$	422.9

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

(In millions)	Expiration Date	2022		2021
U.S. Federal income tax NOLs	Various dates beginning in 2027	$	0.8	$	2.4
U.S. State income tax NOLs (1)	Various dates beginning in 2032	$	157.9	$	159.8
U.S. State alternative minimum tax credit	No expiration date	$	8.6	$	4.4
Foreign income tax NOLs	No expiration date	$	—	$	8.8

(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, 2022 and 2021.

Reconciliation of unrecognized tax benefits

Unrecognized Tax Benefits (in millions)	Amount
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
Changes in tax positions of prior years, net		6.1
Reductions for lapse of statute of limitations		(0.2)
Balance at December 31, 2022	$	25.1