Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

(Loss) Income Before Income Taxes by Geographic Area

The following table presents (Loss) income before income taxes by geographic area (in millions of dollars):

	Year Ended December 31,
	2022			2021			2020
Domestic	$	(44.6	)	$	(30.2	)	$	35.2
Foreign		6.7			6.2			3.6
(Loss) income before income taxes	$	(37.9	)	$	(24.0	)	$	38.8

Income Tax Benefit (Provision)

The following table presents the components of Income tax benefit (provision) (in millions of dollars):

	Federal			Foreign			State			Total
Year Ended December 31, 2022
Current	$	—		$	(1.1	)	$	(2.5	)	$	(3.6	)
Deferred		8.9			(0.8	)		1.6			9.7
Benefit applied to decrease AOCI		1.7			0.2			0.3			2.2
Income tax benefit (provision)	$	10.6		$	(1.7	)	$	(0.6	)	$	8.3
Year Ended December 31, 2021
Current	$	—		$	(2.4	)	$	(3.5	)	$	(5.9	)
Deferred		2.1			0.5			4.2			6.8
Benefit applied to decrease AOCI		3.7			0.3			0.6			4.6
Income tax benefit (provision)	$	5.8		$	(1.6	)	$	1.3		$	5.5
Year Ended December 31, 2020
Current	$	6.1		$	(0.4	)	$	(0.6	)	$	5.1
Deferred		(18.8	)		(0.1	)		(2.3	)		(21.2	)
Benefit (expense) applied to decrease (increase) AOCI		5.1			(0.1	)		1.1			6.1
Income tax provision	$	(7.6	)	$	(0.6	)	$	(1.8	)	$	(10.0	)

Reconciliation of Income Tax Benefit (Provision) based on Effective Income Tax Rate and Statutory Tax Rate

The following table presents a reconciliation between the benefit (provision) for income taxes and the amount computed by applying the federal statutory income tax rate to (Loss) income before income taxes (in millions of dollars):

	Year Ended December 31,
	2022			2021			2020
Amount of federal income tax benefit (provision) based on the statutory rate	$	8.0		$	5.0		$	(8.1	)
Decrease in federal valuation allowances		1.1			0.2			—
Non-deductible compensation expense		(0.9	)		(0.5	)		(1.1	)
Non-deductible (expense) benefit		(1.0	)		(0.2	)		0.4
State income tax (provision) benefit, net of federal benefit1		(0.5	)		1.0			(1.5	)
Research and development credit		2.2			0.6			0.4
Gross decreases for tax positions from prior years		—			—			0.4
Foreign income tax expense		(0.3	)		(0.3	)		(0.4	)
Foreign undistributed earnings		(0.3	)		(0.3	)		(0.1	)
Income tax benefit (provision)	$	8.3		$	5.5		$	(10.0	)

1.The state income tax benefit was $1.1 million in 2022, reflecting an increase of $1.5 million due to state net operating loss (“NOL”) carryforward expirations and tax rate true-ups in various states and a $0.1 million increase in the valuation allowance relating to certain state net operating losses. The state income tax benefit was $0.7 million in 2021, reflecting an increase of $1.3 million due to state NOL carryforward expirations and tax rate true-ups in various states, offset by a $1.6 million decrease in the valuation allowance relating to certain state net operating losses. State income taxes were $1.3 million in 2020, reflecting an increase of $3.7 million due to state NOL carryforward expirations and tax rate true-ups in various states, partially offset by a $3.5 million decrease in the valuation allowance relating to certain state net operating losses.

Deferred Tax Assets and Liabilities

The following table presents the components of our net deferred income tax assets and liabilities (in millions of dollars):

	As of December 31,
	2022			2021
Deferred income tax assets:
Loss and credit carryforwards	$	47.7		$	51.5
Pension benefits		2.9			7.1
Other assets		36.3			29.0
Lease assets		10.6			11.7
Inventories		46.9			50.4
Excess interest carryforward		12.2			—
Research & development capitalization		8.7			—
Valuation allowances		(3.7	)		(4.6	)
Total deferred income tax assets		161.6			145.1
Deferred income tax liabilities:
Property, plant and equipment		(147.0	)		(138.9	)
Lease liability		(9.3	)		(10.9	)
Undistributed foreign earnings		(2.7	)		(2.4	)
Total deferred income tax liabilities		(159.0	)		(152.2	)
Net deferred income tax assets (liabilities)	$	2.6		$	(7.1	)

Reconciliation of Changes in 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 (in millions of dollars):

	Year Ended December 31,
	2022			2021			2020
Gross unrecognized tax benefits at beginning of period	$	4.1		$	3.8		$	4.1
Gross increases for tax positions of current year		0.9			0.3			0.1
Gross increases for tax positions of prior years		0.1			0.4			—
Gross decreases for tax positions of prior years		(0.1	)		(0.3	)		(0.4	)
Settlements		—			(0.1	)		—
Gross unrecognized tax benefits at end of period	$	5.0		$	4.1		$	3.8