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Income Tax Matters (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income before income taxes by geographic area ncome before income taxes by geographic area for the periods presented (in millions of dollars):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Domestic
$
76.3

 
$
114.6

 
$
127.9

Foreign
4.1

 
5.4

 
5.1

Income before income taxes
$
80.4

 
$
120.0

 
$
133.0
Tax Provision
Income tax provision consisted of the following for the periods presented (in millions of dollars):
 
Federal
 
Foreign
 
State
 
Total
Year Ended December 31, 2019
 

 
 

 
 

 
 

Current
$
5.7

 
$
(1.1
)
 
$
(1.8
)
 
$
2.8

Deferred
(19.6
)
 
(0.3
)
 
(4.5
)
 
(24.4
)
Benefit (expense) applied to decrease (increase) Retained earnings/Other comprehensive income
2.7

 
(0.1
)
 
0.6

 
3.2

Income tax provision
$
(11.2
)
 
$
(1.5
)
 
$
(5.7
)
 
$
(18.4
)
Year Ended December 31, 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
)
Year Ended December 31, 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 income
(0.1
)
 
(0.1
)
 
—

 
(0.2
)
Income tax provision
$
(79.0
)
 
$
(1.9
)
 
$
(6.7
)
 
$
(87.6
)
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 for the periods presented (in millions of dollars):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Amount of federal income tax provision based on the statutory rate
$
(16.9
)
 
$
(25.2
)
 
$
(46.5
)
(Increase) decrease in federal valuation allowances
(0.1
)
 
1.7

 
0.5

Non-deductible compensation expense
(1.7
)
 
(0.6
)
 
(2.3
)
Non-deductible benefit (expense)
0.1

 
(1.5
)
 
—

State income tax provision, net of federal benefit 1
(4.5
)
 
(2.5
)
 
(4.3
)
Research and development credit
7.7

 
—

 
—

Gross increases for tax positions from current year
(0.3
)
 
—

 
—

Gross increases for tax positions from prior years
(2.4
)
 
—

 
—

Foreign income tax expense
(0.1
)
 
(0.5
)
 
(0.1
)
Foreign undistributed (earnings) loss
(0.2
)
 
0.4

 
(5.9
)
Tax rate change
—

 
(0.1
)
 
(29.0
)
Income tax provision
$
(18.4
)
 
$
(28.3
)
 
$
(87.6
)
___________________________
1. 
State income taxes were $3.8 million in 2019, decreased by a $0.7 million due to lower tax rate true-ups in various states and increased by a $1.4 million change in the valuation allowance relating to certain state net operating losses. The 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.
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 following table presents the components of our net deferred income tax assets as of the periods presented (in millions of dollars):
 
December 31,
 
2019
 
2018
Deferred income tax assets:
 
 
 
Loss and credit carryforwards
$
48.7

 
$
48.7

Salaried VEBA (see Note 5)
8.7

 
8.0

Other assets
30.1

 
27.2

Leased asset
7.1

 
—

Inventories
9.4

 
20.0

Valuation allowances
(9.9
)
 
(8.4
)
Total deferred income tax assets
94.1

 
95.5

Deferred income tax liabilities:
 
 
 
Property, plant and equipment
(78.5
)
 
(62.0
)
Leased liability
(6.3
)
 
—

Undistributed foreign earnings
(2.0
)
 
(1.8
)
Total deferred income tax liabilities
(86.8
)
 
(63.8
)
Net deferred income tax assets 1
$
7.3

 
$
31.7

__________________________
1. 
Of the total net deferred income tax assets of $7.3 million, $11.8 million was presented as Deferred tax assets, net, and $4.5 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2019. 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.
Reconciliation of changes in the gross unrecognized tax benefits
We have gross unrecognized benefits relating to uncertain tax positions. The following table presents a reconciliation of changes in the gross unrecognized tax benefits for the periods presented (in millions of dollars):
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Gross unrecognized tax benefits at beginning of period
 
$
1.5

 
$
1.5

 
$
1.8

Gross increases for tax positions of current year
 
0.3

 
—

 
—

Gross increases for tax positions of prior years
 
2.3

 
—

 
—

Gross decreases for tax positions of prior years
 
—

 
—

 
(0.3
)
Gross unrecognized tax benefits at end of period
 
$
4.1

 
$
1.5

 
$
1.5