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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12 – Income Taxes The components of income before income taxes for the periods indicated were as follows (in millions):
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Domestic | $ | 435.9 |  |  | $ | 452.2 |  |  | $ | 341.1 |
Foreign | (10.7) |  |  | 58.7 |  |  | 24.2 |
Total | $ | 425.2 |  |  | $ | 510.9 |  |  | $ | 365.3 |
The provision for income taxes for the periods indicated were as follows (in millions):
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 70.6 |  |  | $ | 77.4 |  |  | $ | 26.7 |
Foreign | 2.1 |  |  | 6.2 |  |  | 9.4 |
State and local | 22.6 |  |  | 15.6 |  |  | 10.5 |
| $ | 95.3 |  |  | $ | 99.2 |  |  | $ | 46.6 |
Deferred: |  |  |  |  |
Federal | $ | 14.8 |  |  | $ | 22.4 |  |  | $ | 43.9 |
Foreign | (9.8) |  |  | (2.8) |  |  | 3.3 |
State and local | 2.2 |  |  | (2.0) |  |  | 12.3 |
| $ | 7.2 |  |  | $ | 17.6 |  |  | $ | 59.5 |
Provision for income taxes | $ | 102.5 |  |  | $ | 116.8 |  |  | $ | 106.1 |
The tax effects of significant items comprising the Company’s net deferred tax liability as of the dates indicated were as follows (in millions):
| December 31,
| 2020 |  | 2019
Deferred tax assets: |  |  |
Accrued insurance | $ | 31.1 |  |  | $ | 28.6 |
Operating loss carryforwards and tax credits | 82.1 |  |  | 70.5 |
Compensation and benefits | 32.8 |  |  | 16.8 |
Bad debt | 3.7 |  |  | 0.9 |
Other | 12.3 |  |  | 11.5 |
Valuation allowance | (45.8) |  |  | (48.8) |
Total deferred tax assets | $ | 116.2 |  |  | $ | 79.5 |
Deferred tax liabilities: |  |  |
Property and equipment | $ | 205.0 |  |  | $ | 179.5 |
Goodwill | 58.7 |  |  | 49.6 |
Other intangible assets | 30.7 |  |  | 35.0 |
Gain on remeasurement of equity investee | 7.0 |  |  | 7.0 |
Revenue recognition | 22.4 |  |  | 20.6 |
Investments in unconsolidated entities | 79.8 |  |  | 74.0 |
Other | 15.5 |  |  | 10.1 |
Total deferred tax liabilities | $ | 419.1 |  |  | $ | 375.8 |
Net deferred tax liabilities | $ | (302.9) |  |  | $ | (296.3) |
In assessing the ability to realize the Company’s deferred tax assets, management considers whether it is more likely than not that some portion, or all, of its deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which these temporary differences become deductible. Management considers the Company’s projected future taxable income and prudent and feasible tax planning strategies in making this assessment. The Company’s valuation allowances as of December 31, 2020 and 2019 are related primarily to foreign net operating losses and deferred tax assets. The Company’s deferred tax assets for its state net operating loss carryforwards, which may be carried forward from 5 years to indefinitely depending on the jurisdiction, totaled approximately $15.7 million and $11.5 million as of December 31, 2020 and 2019, respectively. The Company’s deferred tax assets for its foreign net operating loss carryforwards, which are primarily related to the Company’s Canadian operations, totaled approximately $66.0 million and $57.4 million as of December 31, 2020 and 2019, respectively. The Canadian net operating loss carryforwards, which make up the majority of the foreign net operating loss carryforwards, begin to expire in 2030. The Company’s deferred tax assets for its federal net operating loss carryforwards, which begin to expire in 2022, totaled $0.1 million as of both December 31, 2020 and 2019. The 2017 Tax Act included broad tax reform that was applicable to the Company. The Company recognized a net tax benefit of approximately $16.4 million for the year ended December 31, 2018 related to revisions of its initial estimates under the 2017 Tax Act, primarily from finalization of its 2017 tax return, as well as from certain tax accounting method changes and other adjustments. However, since many provisions of the 2017 Tax Act still do not have final guidance issued, it may be necessary for the Company to make future adjustments based on such new guidance. The Company is generally free of additional U.S. federal tax consequences on distributed foreign subsidiary earnings due to a dividends received deduction implemented as part of the move to a territorial tax system in connection with the 2017 Tax Act. The Company has generally not made a provision for income taxes on unremitted foreign earnings because such earnings are insignificant and are intended to be indefinitely reinvested outside the United States. The Company expects that domestic cash resources will be sufficient to fund its domestic operations and cash commitments in the future. A reconciliation of the U.S. statutory federal income tax rate related to pretax income to the effective tax rate for the periods indicated is as follows:
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
U.S. statutory federal rate applied to pretax income | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal benefit | 4.3 |  |  | 3.2 |  |  | 4.2 |
Foreign tax rate differential | (0.2) |  |  | 0.2 |  |  | 1.5 |
Non-deductible expenses | 1.5 |  |  | 1.7 |  |  | 1.7 |
Goodwill and intangible assets | (0.2) |  |  | (0.5) |  |  | 3.6 |
Change in tax rate | 0.6 |  |  | (1.5) |  |  | (2.8) |
Other | (0.6) |  |  | (1.0) |  |  | (2.4) |
Tax credits | (1.2) |  |  | (0.6) |  |  | (0.4) |
Stock basis adjustment | 0.0 |  |  | (1.8) |  |  | 0.0 |
Valuation allowance for deferred tax assets | (1.1) |  |  | 2.2 |  |  | 2.6 |
Effective income tax rate | 24.1 | % |  | 22.9 | % |  | 29.0 | %
A reconciliation of the beginning and ending amount of uncertain tax positions including interest and penalties is as follows (in millions):
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Beginning balance | $ | 13.5 |  |  | $ | 9.4 |  |  | $ | 8.1 |
Additions based on tax positions related to the current year | 1.5 |  |  | 3.7 |  |  | 2.7 |
Additions for tax positions of prior years | 3.4 |  |  | 0.7 |  |  | — |
Reductions for tax positions of prior years | — |  |  | (0.3) |  |  | (1.4) |
Ending balance | $ | 18.4 |  |  | $ | 13.5 |  |  | $ | 9.4 |
The Company classifies interest and penalties on uncertain tax positions as a component of income tax expense in the consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018, income tax expense included interest and penalties related to uncertain tax positions of $1.4 million, $0.5 million and $0.7 million, respectively. Accrued interest and penalties related to uncertain tax positions were $2.6 million and $1.3 million as of December 31, 2020 and 2019, respectively. The effect on the Company’s tax rate if it were to recognize its gross unrecognized tax benefits as of December 31, 2020 approximates $18.4 million, including interest and penalties. The IRS is examining the Company’s 2016 and 2017 federal income tax returns. Certain foreign and state taxing authorities are examining various years. The final outcome of these examinations is not yet determinable. With few exceptions, as of December 31, 2020, the Company is no longer subject to state examinations by taxing authorities for years before 2017.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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