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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
INCOME TAXES  
Schedule of income tax expense

Years Ended December 31, 

 

(In millions)

    

2024

    

2023

    

2022

 

Current:

Federal

$

86.8

$

44.0

$

171.5

State

 

12.4

 

9.2

 

18.3

Foreign

3.5

3.0

1.3

Total current tax expense

 

102.7

 

56.2

 

191.1

Deferred:

Federal

17.9

18.2

71.1

State

2.8

24.3

Foreign

(0.4)

1.5

1.9

Total deferred tax expense

20.3

19.7

97.3

Total income taxes

$

123.0

$

75.9

$

288.4

Schedule of effective income tax rate

Years Ended December 31, 

 

    

2024

    

2023

    

2022

 

U.S. federal income tax rate

 

21.0

%  

21.0

%  

21.0

%

State and local taxes, net of federal benefit

 

2.3

%  

2.6

%  

2.8

%

Foreign-derived intangible income (FDII)

 

(2.6)

%  

(2.0)

%  

(2.4)

%

Foreign taxes

 

0.3

%  

0.4

%  

0.1

%

Share-based payments

 

0.2

%  

0.5

%  

%

Return to provision true-ups

(0.7)

%  

(2.8)

%  

0.1

%

Other, net

 

%  

0.6

%  

(0.3)

%

Effective income tax rate

 

20.5

%  

20.3

%  

21.3

%

Schedule of tax effects of temporary differences

As of December 31, 

 

(In millions)

    

2024

    

2023

 

Deferred tax assets:

Operating lease liabilities

$

84.0

$

77.4

Deferred compensation

 

12.1

11.8

Multi-employer withdrawal liabilities

11.4

12.8

Insurance reserves

7.8

6.3

U.S. state alternative minimum tax credits

5.9

7.4

Other

 

15.8

 

12.9

Total deferred tax assets

 

137.0

 

128.6

Valuation allowance

(5.0)

(5.3)

Total deferred tax assets, net of valuation allowance

132.0

123.3

Deferred tax liabilities:

Basis differences for property and equipment

 

482.7

 

451.4

Capital Construction Fund

 

192.1

206.9

Operating lease right of use assets

 

83.8

 

75.8

Intangibles

40.3

42.3

Other

26.5

16.2

Total deferred tax liabilities

 

825.4

 

792.6

Deferred tax liability, net

$

693.4

$

669.3

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

(In millions)

Expiration Date

    

2024

    

2023

U.S. state income tax NOLs (1)

Various dates beginning in 2032

$

136.5

$

152.3

U.S. state alternative minimum tax credits

No expiration date

$

5.9

$

7.3

(1)U.S. State income tax NOLs were acquired as part of the Horizon acquisition and are presented on a gross tax basis. These U.S. state income tax NOLs are excluded from the Company’s deferred tax assets and deferred tax liabilities above as the Company does not expect to benefit from any of the $136.5 million and $152.3 million balance as of December 31, 2024 and 2023, respectively.

Reconciliation of unrecognized tax benefits

Years Ended December 31, 

Unrecognized Tax Benefits (in millions)

2024

    

2023

    

2022

Balance at beginning of year

$

28.4

$

25.1

$

19.2

Tax position changes in current year

 

(0.7)

 

3.6

 

5.8

Tax position changes in prior years

 

(0.1)

 

(0.1)

 

0.3

Reductions for lapse of statute of limitations

(0.9)

(0.2)

(0.2)

Balance at end of year

$

26.7

$

28.4

$

25.1