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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The following table summarizes the income tax expense from continuing operations:
(in millions) | 2020 |  | 2019 |  | 2018
Current tax expense (benefit): |  |  |  |  |
Federal | $ | 16.4 |  |  | $ | 20.7 |  |  | $ | 17.8 |
Foreign | 1.4 |  |  | 0.4 |  |  | (0.1) |
State and local | 5.1 |  |  | 6.0 |  |  | 5.7 |
Total current tax expense | 22.9 |  |  | 27.1 |  |  | 23.4 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | 2.7 |  |  | 2.8 |  |  | 0.6 |
Foreign | 3.1 |  |  | 2.2 |  |  | (6.5) |
State and local | (0.2) |  |  | (1.9) |  |  | 0.4 |
Total deferred tax expense (benefit) | 5.6 |  |  | 3.1 |  |  | (5.5) |
Total income tax expense | $ | 28.5 |  |  | $ | 30.2 |  |  | $ | 17.9 |
The following table summarizes the differences between the statutory federal income tax rate and the effective income tax rate from continuing operations:
| 2020 |  | 2019 |  | 2018
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 3.5 |  |  | 3.2 |  |  | 4.5 |
Valuation allowance | 0.1 |  |  | (0.6) |  |  | — |
Tax planning benefits, excluding valuation allowance effects | — |  |  | — |  |  | (8.1) |
Tax reserves | (0.1) |  |  | (0.4) |  |  | (0.3) |
Tax credits | (0.3) |  |  | (0.4) |  |  | (0.3) |
Foreign tax rate effects | 0.8 |  |  | 0.4 |  |  | 0.3 |
Excess tax benefits from stock compensation activity | (2.9) |  |  | (1.2) |  |  | (0.8) |
Other, net | 0.8 |  |  | (0.2) |  |  | (0.3) |
Effective income tax rate | 22.9 | % |  | 21.8 | % |  | 16.0 | %
The following table summarizes income before income taxes from continuing operations:
(in millions) | 2020 |  | 2019 |  | 2018
U.S. | $ | 107.4 |  |  | $ | 126.0 |  |  | $ | 100.6 |
Non-U.S. | 17.2 |  |  | 12.6 |  |  | 11.0 |
Income before income taxes | $ | 124.6 |  |  | $ | 138.6 |  |  | $ | 111.6 |
Summary The Company recognized income tax expense of $28.5 million for the year ended December 31, 2020, compared to $30.2 million for the year ended December 31, 2019. The reduction in income tax expense in the current year was primarily due to lower earnings and a $1.9 million increase in excess tax benefits from stock compensation activity, partially offset by the non-recurrence of a $0.8 million tax benefit from the release of state deferred tax valuation allowance recognized in the prior year. The Company’s effective tax rate for the year ended December 31, 2020 was 22.9%, compared to 21.8% in 2019. The Company recognized income tax expense of $30.2 million for the year ended December 31, 2019, compared to $17.9 million for the year ended December 31, 2018. The increase in income tax expense in the current year was primarily due to higher earnings and the non-recurrence of an $8.6 million tax planning benefit that was recognized in the prior year, partially offset by the recognition of a $0.8 million tax benefit from the release of state deferred tax valuation allowance, and a $0.8 million increase in excess tax benefits from stock compensation activity. The Company’s effective tax rate for the year ended December 31, 2019 was 21.8%, compared to 16.0% in 2018. The Company paid income taxes of $22.3 million in 2020, $25.7 million in 2019 and $21.6 million in 2018. Deferred Taxes The following table summarizes deferred income tax assets and liabilities of the Company’s continuing operations:
(in millions) | 2020 |  | 2019
Deferred tax assets: |  |  |
Properties and equipment | $ | 2.6 |  |  | $ | 0.7 |
Accrued expenses | 27.5 |  |  | 28.6 |
Stock-based compensation | 3.7 |  |  | 3.9 |
Net operating loss and tax credit carryforwards | 21.0 |  |  | 21.6 |
Goodwill and intangibles | 1.7 |  |  | 1.5 |
Pension benefits | 21.8 |  |  | 18.5 |
Gross deferred tax assets | 78.3 |  |  | 74.8 |
Valuation allowance | (8.8) |  |  | (8.2) |
Total deferred tax assets | 69.5 |  |  | 66.6 |
Deferred tax liabilities: |  |  |
Properties and equipment | (32.5) |  |  | (24.4) |
Pension benefits | (12.1) |  |  | (11.3) |
Goodwill and intangibles | (67.8) |  |  | (72.4) |
Other | (1.2) |  |  | (1.1) |
Gross deferred tax liabilities | (113.6) |  |  | (109.2) |
Net deferred tax liabilities | $ | (44.1) |  |  | $ | (42.6) |
The deferred tax asset for tax loss and tax credit carryforwards at December 31, 2020 includes state net operating loss carryforwards of $6.6 million and state income tax credits of $0.2 million, both of which will begin to expire in 2021, foreign net operating loss carryforwards of $11.1 million, which will begin to expire in 2025, and U.S. foreign tax credits of $3.1 million, which will begin to expire in 2023. The deferred tax asset for tax loss and tax credit carryforwards at December 31, 2019, included federal net operating loss carryforwards of $0.1 million, state net operating loss carryforwards of $6.7 million, foreign net operating loss carryforwards of $11.7 million, and U.S. foreign tax credits of $3.1 million. The $69.5 million of deferred tax assets at December 31, 2020, for which no valuation allowance is recorded, is anticipated to be realized through future taxable income or the future reversal of existing taxable temporary differences recorded as deferred tax liabilities at December 31, 2020. Should the Company determine that it would not be able to realize its remaining deferred tax assets in the future, an adjustment to the valuation allowance would be recorded in the period such determination is made. Generally, the Company has considered cash and cash equivalents held by subsidiaries outside the U.S. to be permanently reinvested in its foreign operations and the Company’s current plans do not demonstrate a need to repatriate such cash to fund U.S. operations. However, in the event that these funds were needed to fund U.S. operations or to satisfy U.S. obligations, they generally could be repatriated. The repatriation of these funds may cause the Company to incur additional U.S. income tax expense, dependent on income tax laws and other circumstances at the time any such amounts were repatriated. As of December 31, 2020, the Company continues to assert that its undistributed earnings of certain foreign subsidiaries are indefinitely reinvested. It is not practicable to determine the income tax liability that would be payable if such earnings were not permanently reinvested. Valuation Allowances ASC 740, Income Taxes, requires that the future realization of deferred tax assets depends on the existence of sufficient taxable income in future periods. Possible sources of taxable income include taxable income in carryback periods, the future reversal of existing taxable temporary differences recorded as a deferred tax liability, tax-planning strategies that generate future income or gains in excess of anticipated losses in the carryforward period and projected future taxable income. If, based upon all available evidence, both positive and negative, it is more likely than not such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three-year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable and the accounting guidance restricts the amount of reliance the Company can place on projected taxable income to support the recovery of the deferred tax assets. We continually evaluate the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. At December 31, 2020, the total valuation allowance recorded against the Company’s deferred tax assets was $8.8 million, comprised of a $4.2 million valuation allowance recorded against state net operating loss carryforwards, a $3.1 million valuation allowance recorded against U.S. foreign tax credits, a $1.3 million valuation allowance recorded against foreign net deferred tax assets, and a $0.2 million valuation allowance recorded against other deferred tax assets. Unrecognized Tax Benefits The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(in millions) | 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 1.3 |  |  | $ | 1.6 |  |  | $ | 1.9 |
Increases related to current year tax | — |  |  | — |  |  | 0.2 |
Increases from prior period positions | — |  |  | 0.2 |  |  | — |
Decreases from settlements with tax authorities | — |  |  | (0.2) |  |  | — |
Decreases due to lapse of statute of limitations | (0.1) |  |  | (0.3) |  |  | (0.5) |
Balance at December 31 | $ | 1.2 |  |  | $ | 1.3 |  |  | $ | 1.6 |
The Company’s accounting policy is to recognize interest and penalties related to income tax matters in income tax expense. At December 31, 2020 and 2019, accruals for interest and penalties amounting to $0.4 million are included in the Consolidated Balance Sheets but are not included in the table above. At December 31, 2020 and 2019, liabilities for unrecognized tax benefits, including interest and penalties of $1.5 million were included within Other long-term liabilities on the Consolidated Balance Sheets. At December 31, 2020 and 2019, unrecognized tax benefits of $0.1 million were included as a component of Deferred tax liabilities on the Consolidated Balance Sheets. All of the unrecognized tax benefits of $1.2 million and $1.3 million at December 31, 2020 and 2019, respectively, would impact our annual effective tax rate, if recognized. We do not expect any significant change to our unrecognized tax benefits as a result of potential expiration of statute of limitations or settlements with tax authorities within the next twelve months. Status of Tax Returns We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2017 through 2019 tax years generally remain subject to examination by federal tax authorities, whereas the 2016 through 2019 tax years generally remain subject to examination by most state tax authorities. In significant foreign jurisdictions, the tax years from 2016 through 2019 generally remain subject to examination by their respective tax authorities.

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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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