Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Before Income Taxes by Geographic Area

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

	Year Ended December 31,
	2020		2019		2018
Domestic	$	35.2	$	76.3	$	114.6
Foreign		3.6		4.1		5.4
Income before income taxes	$	38.8	$	80.4	$	120.0

Income Tax Provision

Income tax provision consisted of the following (in millions of dollars):

	Federal			Foreign			State			Total
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)    Retained earnings/Other comprehensive income		5.1			(0.1	)		1.1			6.1
Income tax provision	$	(7.6	)	$	(0.6	)	$	(1.8	)	$	(10.0	)
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	)

Reconciliation of Income Tax Provision based on Effective Income Tax Rate and Statutory Tax Rate

The following table presents 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 (in millions of dollars):

	Year Ended December 31,
	2020			2019			2018
Amount of federal income tax provision based on the statutory rate	$	(8.1	)	$	(16.9	)	$	(25.2	)
(Increase) decrease in federal valuation allowances		—			(0.1	)		1.7
Non-deductible compensation expense		(1.1	)		(1.7	)		(0.6	)
Non-deductible benefit (expense)		0.4			0.1			(1.5	)
State income tax provision, net of federal benefit 1		(1.5	)		(4.5	)		(2.5	)
Research and development credit		0.4			7.7			—
Gross increases for tax positions from current year		—			(0.3	)		—
Gross decreases (increases) for tax positions from prior years		0.4			(2.4	)		—
Foreign income tax expense		(0.4	)		(0.1	)		(0.5	)
Foreign undistributed (earnings) loss		(0.1	)		(0.2	)		0.4
Tax rate change		—			—			(0.1	)
Income tax provision	$	(10.0	)	$	(18.4	)	$	(28.3	)

^1. State income taxes were $1.3 million in 2020, reflecting an increase of $3.7 million due to state net operating loss (“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. State income taxes were $3.8 million in 2019, reflecting a decrease of

$0.7 million due to lower tax rate true-ups in various states, partially offset by an increase of $1.4 million due to a change in the valuation allowance relating to certain state net operating losses. The state income taxes were $4.5 million in 2018, reflecting an increase of $0.9 million due to higher tax rate true-ups in various states, partially offset by a $2.9 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 (in millions of dollars):

	As of December 31,
	2020			2019
Deferred income tax assets:
Loss and credit carryforwards	$	33.4		$	48.7
Salaried VEBA (see Note 5)		4.8			8.7
Other assets		29.4			30.1
Leased assets		7.3			7.1
Inventories		6.9			9.4
Valuation allowances		(6.4	)		(9.9	)
Total deferred income tax assets		75.4			94.1
Deferred income tax liabilities:
Property, plant and equipment		(80.8	)		(78.5	)
Leased liability		(6.4	)		(6.3	)
Undistributed foreign earnings		(2.1	)		(2.0	)
Total deferred income tax liabilities		(89.3	)		(86.8	)
Net deferred income tax (liabilities) assets 1	$	(13.9	)	$	7.3

^1. Of the total net deferred income tax assets of $7.3 million at December 31, 2019, $11.8 million was presented as Deferred tax assets, net, and $4.5 million was presented as Deferred tax liabilities.

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,
	2020			2019		2018
Gross unrecognized tax benefits at beginning of period	$	4.1		$	1.5	$	1.5
Gross increases for tax positions of current year		0.1			0.3		—
Gross increases for tax positions of prior years		—			2.3		—
Gross decreases for tax positions of prior years		(0.4	)		—		—
Gross unrecognized tax benefits at end of period	$	3.8		$	4.1	$	1.5