Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income from continuing operations before income tax expense

(Loss) income before income taxes consists of the following:


	Year Ended December 31,
	2020		2019		2018

United States	$	(27.7)	$	26.2	$	35.1
Outside the United States	20.4		28.7		36.7
	$	(7.3)	$	54.9	$	71.8

Income taxes

Income taxes consists of the following:


	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

Reconciliation of income tax expense

A reconciliation of income tax (benefit) expense computed by applying the statutory federal income tax rate to income tax expense as recorded is as follows:


	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

Significant components of the Company's net deferred tax assets and liabilities

Significant components of the Company’s net deferred income tax assets and liabilities are as follows:


	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)

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	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