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Income Tax Matters (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income before income taxes by geographic area Tax Provision. Income before income taxes by geographic area was as follows (in millions of dollars):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Domestic
$
114.6

 
$
127.9

 
$
143.6

Foreign
5.4

 
5.1

 
3.6

Income before income taxes
$
120.0

 
$
133.0

 
$
147.2
Tax Provision Income tax provision consisted of (in millions of dollars):
 
Federal
 
Foreign
 
State
 
Total
2018
 

 
 

 
 

 
 

Current
$
11.9

 
$
(1.9
)
 
$
(1.5
)
 
$
8.5

Deferred
(34.7
)
 
0.1

 
(1.4
)
 
(36.0
)
Expense applied to increase Retained earnings/ Other comprehensive loss
(0.7
)
 
—

 
(0.1
)
 
(0.8
)
Income tax provision
$
(23.5
)
 
$
(1.8
)
 
$
(3.0
)
 
$
(28.3
)
2017
 
 
 
 
 
 
 
Current
$
3.1

 
$
(0.8
)
 
$
(1.0
)
 
$
1.3

Deferred
(82.0
)
 
(1.0
)
 
(5.7
)
 
(88.7
)
Expense applied to increase Retained earnings/ Other comprehensive loss
(0.1
)
 
(0.1
)
 
—

 
(0.2
)
Income tax provision
$
(79.0
)
 
$
(1.9
)
 
$
(6.7
)
 
$
(87.6
)
2016
 
 
 
 
 
 
 
Current
$
2.7

 
$
0.6

 
$
(1.5
)
 
$
1.8

Deferred
(47.8
)
 
(1.2
)
 
(4.7
)
 
(53.7
)
Expense applied to increase Additional paid in capital/Other comprehensive loss
(3.2
)
 
(0.1
)
 
(0.3
)
 
(3.6
)
Income tax provision
$
(48.3
)
 
$
(0.7
)
 
$
(6.5
)
 
$
(55.5
)
Reconciliation of income tax provision based on effective income tax rate and statutory tax rate A reconciliation between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to Income before income taxes is as follows (in millions of dollars):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Amount of federal income tax provision based on the statutory rate
$
(25.2
)
 
$
(46.5
)
 
$
(51.5
)
Decrease (increase) in federal valuation allowances
1.7

 
0.5

 
(0.3
)
Non-deductible compensation (expense) benefit
(0.6
)
 
(2.3
)
 
0.3

Non-deductible expense
(1.5
)
 
—

 
(0.3
)
State income tax provision, net of federal benefit 1
(2.5
)
 
(4.3
)
 
(4.2
)
Foreign income tax (expense) benefit
(0.5
)
 
(0.1
)
 
0.5

Foreign undistributed earnings
0.4

 
(5.9
)
 
—

Tax rate change
(0.1
)
 
(29.0
)
 
—

Income tax provision
$
(28.3
)
 
$
(87.6
)
 
$
(55.5
)
___________________________
1. 
State income taxes were $4.5 million in 2018, increased by a $0.9 million due to higher tax rate true-ups in various states, offset by a $2.9 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.0 million in 2017, increased by a $2.5 million change in tax rates, offset by a $2.2 million decrease in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.1 million in 2016, offset by a $0.2 million decrease due to lower tax rates in various states and a $0.3 million increase in the valuation allowance relating to certain state net operating losses.
Deferred tax assets and liabilities Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars):
 
Year Ended December 31,
 
2018
 
2017
Deferred income tax assets:
 
 
 
Loss and credit carryforwards
$
48.7

 
$
98.7

Salaried VEBA (see Note 4)
8.0

 
11.6

Other assets
27.2

 
21.0

Inventories
20.0

 
9.3

Valuation allowances
(8.4
)
 
(13.0
)
Total deferred income tax assets
95.5

 
127.6

Deferred income tax liabilities:
 
 
 
Property, plant and equipment
(62.0
)
 
(57.7
)
Undistributed foreign earnings
(1.8
)
 
(2.2
)
Total deferred income tax liabilities
(63.8
)
 
(59.9
)
Net deferred income tax assets 1
$
31.7

 
$
67.7

__________________________
1. 
Of the total net deferred income tax assets of $31.7 million, $35.9 million was presented as Deferred tax assets, net, and $4.2 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2018. Of the total net deferred income tax assets of $67.7 million, $72.0 million was presented as Deferred tax assets, net, and $4.3 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2017.
Reconciliation of changes in the gross unrecognized tax benefits We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars):
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Gross unrecognized tax benefits at beginning of period
 
$
1.5

 
$
1.8

 
$
1.7

Gross increases for tax positions of prior years
 
—

 
—

 
0.1

Gross decreases for tax positions of prior years
 


 
(0.3
)
 
—

Gross unrecognized tax benefits at end of period
 
$
1.5

 
$
1.5

 
$
1.8