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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Components of the provision for income taxes are as follows:
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Current provision: |  |  |  |  |
Federal | $ | 10.1 |  |  | $ | 29.5 |  |  | $ | 33.6 |
State and local | 3.8 |  |  | 3.0 |  |  | 3.3 |
| 13.9 |  |  | 32.5 |  |  | 36.9 |
Deferred provision (benefit): |  |  |  |  |
Federal | 35.0 |  |  | (53.0 | ) |  | 12.7 |
State and local | 2.5 |  |  | 0.8 |  |  | 1.1 |
Foreign | (0.1 | ) |  | (0.2 | ) |  | — |
| 37.4 |  |  | (52.4 | ) |  | 13.8 |
| $ | 51.3 |  |  | $ | (19.9 | ) |  | $ | 50.7 |
Income from operations before provision for income taxes were as follows:
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Domestic | $ | 234.2 |  |  | $ | 102.2 |  |  | $ | 146.4 |
Foreign | (0.3 | ) |  | 0.3 |  |  | 1.0 |
| $ | 233.9 |  |  | $ | 102.5 |  |  | $ | 147.4 |
Our income tax expense is different from the amount computed by applying the federal statutory income tax rate to income before taxes as follows:
| Years Ended December 31,
(in millions) | 2018 |  | 2017 |  | 2016
Federal statutory tax on earnings before income taxes | $ | 49.1 |  |  | $ | 35.9 |  |  | $ | 51.6 |
State income taxes, net of federal income tax benefit | 5.4 |  |  | 2.5 |  |  | 4.0 |
Non-deductible officer's compensation | 2.6 |  |  | 4.7 |  |  | 2.3 |
Change in enacted tax rates | — |  |  | (57.7 | ) |  | 0.1 |
Windfall deduction from equity compensation | (4.7 | ) |  | (5.2 | ) |  | (4.9 | )
Other | (1.1 | ) |  | (0.1 | ) |  | (2.4 | )
| $ | 51.3 |  |  | $ | (19.9 | ) |  | $ | 50.7 |
On December 22, 2017, the Tax Act was signed into law, which significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a one-time tax on accumulated earnings of foreign subsidiaries as of 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. In 2017, the Company recognized $56.9 million of future tax benefits from the re-measurement of its deferred tax assets and liabilities at December 22, 2017, using the maximum U.S. federal tax rate of 21%, and $0.8 million of tax benefits in relation to the mandatory deemed repatriation of its foreign earnings and profits pursuant to the Tax Act in combination with the reversal of deferred tax liabilities that had been maintained on foreign earnings. In 2018, the Company’s federal income tax expense was based on the new 21% corporate tax rate. In accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), the Company recorded provisional tax expense of $5.6 million in 2017 related to non-deductible officer’s compensation and the tax consequences of mandatory deemed repatriation required by the Tax Act. The Company also recorded a provisional tax benefit of $19.7 million for the accelerated cost recovery allowance granted by the Tax Act, effective September 27, 2017. In the fourth quarter of 2018, the Company has finalized its accounting for these estimates and recorded immaterial adjustments as of December 31, 2018, including any subsequent impact to the re-measurement of deferred taxes at a reduced tax rate of 21%. Components of our deferred tax assets and liabilities were as follows:
| As of December 31,
(in millions) | 2018 |  | 2017
Deferred tax assets: |  |  |
Deferred compensation plans | $ | 5.8 |  |  | $ | 6.5 |
Deferred income | 5.6 |  |  | 4.7 |
Allowance for uncollectible receivables | 0.9 |  |  | 0.8 |
Deferred liabilities | 2.2 |  |  | 2.1 |
Net operating losses and credit carryforward | 3.7 |  |  | 5.1 |
Deferred tax assets | 18.2 |  |  | 19.2 |
Valuation allowance | (0.2 | ) |  | (0.2 | )
Net deferred tax asset | 18.0 |  |  | 19.0 |
Deferred tax liabilities: |  |  |
Intangible assets in excess of tax basis | 49.3 |  |  | 29.2 |
Property and equipment in excess of tax basis | 38.7 |  |  | 22.4 |
Equity investments in excess of tax basis | 6.9 |  |  | 6.8 |
Other | 1.3 |  |  | 1.2 |
Deferred tax liabilities | 96.2 |  |  | 59.6 |
Net deferred tax liability | $ | (78.2 | ) |  | $ | (40.6 | )
As of December 31, 2018, we had federal net operating losses of $4.6 million which were acquired in conjunction with the acquisition of Youbet.com. The utilization of these losses, which expire between 2024 and 2026, is limited on an annual basis pursuant to Internal Revenue Code ("IRC") § 382. We believe that we will be able to fully utilize all of these losses. In addition, we have state net operating losses valued at $1.2 million. We have recorded a valuation allowance of $0.2 million against the state net operating losses due to the fact that it is unlikely that we will generate income in certain states which is necessary to utilize the assets. The Internal Revenue Service has completed audits through 2012. Tax years 2015 and after are open to examination. State and local tax years open for examination vary by jurisdiction. As of December 31, 2018, we had approximately $2.8 million of total gross unrecognized tax benefits, excluding interest of $0.1 million. If the total gross unrecognized tax benefits were recognized, there would be a $2.7 million effect to the annual effective tax rate. We anticipate a decrease in our unrecognized tax positions of approximately $0.5 million during the next twelve months primarily due to the expiration of statutes of limitation. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in millions) | 2018 |  | 2017 |  | 2016
Balance as of January 1 | $ | 2.9 |  |  | $ | 2.3 |  |  | $ | 1.8 |
Additions for tax positions related to the current year | 0.1 |  |  | 0.5 |  |  | 0.5 |
Additions for tax positions of prior years | 0.1 |  |  | 0.3 |  |  | 0.1 |
Reductions for tax positions of prior years | (0.3 | ) |  | (0.2 | ) |  | (0.1 | )
Balance as of December 31 | $ | 2.8 |  |  | $ | 2.9 |  |  | $ | 2.3 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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