
	Year Ended December 31,
	2020		2019		2018

Current (benefit) expense:
Federal	$	(16.5)	$	5.9	$	6.4
State	0.4		0.7		0.6
Foreign	7.4		7.2		9.0
	(8.7)		13.8		16.0
Deferred expense (benefit):
Federal	6.7		1.8		1.3
State	(0.2)		(0.2)		0.1
Foreign	(0.3)		(0.2)		(0.8)
	6.2		1.4		0.6
Income tax (benefit) expense	$	(2.5)	$	15.2	$	16.6

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted on March 27, 2020. The CARES Act was a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. Significant impacts of the CARES Act include the ability to carry back a net operating loss five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income. The Company has recorded a significant benefit for the impact of the net operating loss carryback, which provides for refunds related to tax years in which the U.S. tax rate was 35% versus the current U.S. tax rate of 21%. This additional tax benefit of 14% increased the 2020 tax benefit.


	Year Ended December 31,
	2020		2019		2018

Income tax (benefit) expense at U.S. statutory rate	$	(1.5)	$	11.5	$	15.1
Effect of state income taxes, net	(0.3)		0.3		0.6
Effect of foreign operations	1.5		1.9		3.5
Valuation allowance	0.6		0.6		(3.0)
Uncertain tax positions	(1.0)		0.1		(0.3)
Non-deductible items	1.5		2.5		1.3


Equity compensation	0.6		—		—
CARES Act NOL carryback	(5.3)		—		—
Foreign tax credit	(0.8)		(1.7)		(2.2)
Other tax credits	(0.3)		(0.8)		—
GILTI	1.8		1.9		3.1
FDII	—		(0.8)		(0.6)

Other, net	0.7		(0.3)		(0.9)
Income tax (benefit) expense as recorded	$	(2.5)	$	15.2	$	16.6


	Year Ended December 31,
	2020		2019

Deferred income tax assets:
Postretirement benefit obligation	$	1.7	$	1.7
Inventory	0.8		8.7
Net operating loss and credit carryforwards	16.4		11.6

Operating lease liabilities	15.4		13.8

Compensation	3.9		2.9
Disallowed interest	—		4.6
Other	6.4		4.8
Total deferred income tax assets	44.6		48.1
Deferred income tax liabilities:
Depreciation and amortization	20.1		21.0
Pension	16.3		13.9

Intangible assets	16.8		16.8
Lease right-of-use assets	15.2		13.5
Other	3.0		3.0
Total deferred income tax liabilities	71.4		68.2
Net deferred income tax liabilities prior to valuation allowances	(26.8)		(20.1)
Valuation allowances	(6.2)		(4.8)
Net deferred income tax liability	$	(33.0)	$	(24.9)

At December 31, 2020, the Company has U.S., state and foreign net operating loss carryforwards and U.S. foreign tax credit carryforwards for income tax purposes. The foreign net operating loss carryforward is $34.7 million, of which $15.0 million expires between 2021 and 2040 and the remainder has no expiration date. The Company has a tax benefit from a state net operating loss carryforward of $3.2 million that expires between 2021 and 2040. The Company also has a non-consolidated U.S. net operating loss carryforward of $2.2 million that expires between 2036 and 2037. The foreign tax credit carryforward is $0.5 million and expires in 2029.

As of December 31, 2020 and 2019, the Company was not in a cumulative three-year loss position and it was determined that it was more likely than not that its U.S. deferred tax assets will be realized. The Company reviews all valuation allowances related to deferred tax assets and will reverse these valuation allowances, partially or totally, when appropriate under ASC 740.


	2020		2019		2018

Unrecognized Tax Benefit — January 1	$	3.7	$	0.9	$	1.2
Gross Increases to Tax Positions Related to Current Year	—		0.5		0.1
Gross Increases to Tax Positions Related to Prior Years	0.1		2.6		—
Gross Decreases to Tax Positions Related to Prior Years	(0.5)		—		(0.1)
Gross Decreases related to settlements with taxing authorities	—		—		(0.1)
Expiration of Statute of Limitations	(1.2)		(0.3)		(0.2)

Unrecognized Tax Benefit — December 31	$	2.1	$	3.7	$	0.9

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $0.2 million at December 31, 2020 and $1.0 million at December 31, 2019. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2020 and 2019, the Company recognized a tax benefit of approximately $0.1 million and a tax expense of $0.1 million, respectively, in net interest and penalties due to the expiration of various uncertain tax positions. The Company had approximately $0.2 million for the payment of interest and penalties accrued at both December 31, 2020 and 2019. It is reasonably possible that, within the next twelve months, the amount of gross unrecognized tax benefits could be reduced by approximately $0.2 million as a result of the closure of tax statutes related to existing uncertain tax positions.

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2017 through 2020 remain open for examination by the Internal Revenue Service and 2014 through 2020 remain open for examination by various state and foreign taxing authorities.

As of December 31, 2020, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $201.8 million. Because $135.9 million of such earnings have previously been subject to the one-time transition taxes required by the U.S. Tax Cuts and Jobs Act (the “TCJA”), any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of our foreign investments would generally be limited to foreign withholding and state income taxes. We intend, however, to indefinitely reinvest these earnings and expect future U.S. cash generation to be sufficient to meet future U.S. cash needs.