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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Components of the provision (benefit) for income taxes are as follows:
| Years Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Current provision (benefit): |  |  |  |  |
Federal | $ | 66.1 |  |  | $ | (38.7) |  |  | $ | 19.2 |
State and local | 18.5 |  |  | 3.0 |  |  | 6.0 |
Foreign | 0.1 |  |  | 0.1 |  |  | — |
| 84.7 |  |  | (35.6) |  |  | 25.2 |
Deferred provision: |  |  |  |  |
Federal | 7.5 |  |  | 28.7 |  |  | 16.1 |
State and local | 2.3 |  |  | 1.5 |  |  | 15.5 |
Foreign | — |  |  | 0.1 |  |  | — |
| 9.8 |  |  | 30.3 |  |  | 31.6 |
Income tax provision (benefit) | $ | 94.5 |  |  | $ | (5.3) |  |  | $ | 56.8 |
Income from continuing operations before provision for income taxes were as follows:
| Years Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Domestic | $ | 343.7 |  |  | $ | 8.2 |  |  | $ | 196.4 |
Foreign | (0.1) |  |  | (0.2) |  |  | — |
Income from continuing operations before provision for income taxes | $ | 343.6 |  |  | $ | 8.0 |  |  | $ | 196.4 |
Our income tax provision (benefit) is different from the amount computed by applying the federal statutory income tax rate to income from continuing operations before taxes as follows:
| Years Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Federal statutory tax on earnings before income taxes | $ | 72.1 |  |  | $ | 1.7 |  |  | $ | 41.2 |
State income taxes, net of federal income tax benefit | 15.8 |  |  | (0.6) |  |  | 8.0 |
Non-deductible officer's compensation | 6.4 |  |  | 3.5 |  |  | 4.5 |
Valuation allowance - state and foreign net operating losses | 1.8 |  |  | 1.1 |  |  | — |
Uncertain tax positions | 0.1 |  |  | 1.7 |  |  | (1.0) |
Re-measurement of deferred taxes | (1.5) |  |  | 1.9 |  |  | 8.3 |
Windfall deduction from equity compensation | (1.4) |  |  | (1.3) |  |  | (4.2) |
Net operating loss carry back - CARES Act | — |  |  | (13.3) |  |  | — |
Other | 1.2 |  |  | — |  |  | — |
Income tax provision (benefit) | $ | 94.5 |  |  | $ | (5.3) |  |  | $ | 56.8 |
The CARES Act provided, among other things, that any net operating loss arising in a tax year beginning in 2018, 2019 or 2020 may be carried back five years or carried forward indefinitely, offsetting up to 100% of taxable income in tax years beginning before 2021. The Company filed a refund claim in 2021 from carrying back our 2020 net operating loss to a year before the statutory corporate tax rate was reduced from 35% to 21% by the Tax Act. Due to the higher statutory rate applied to this net operating loss, the Company recognized an income tax benefit of $13.3 million for the year ended December 31, 2020. The Company recognized income tax expense of $8.3 million during 2019 from the re-measurement of our net deferred tax liabilities based on an increase in income attributable to states with higher tax rates compared to the prior period. The Company reclassified a $29.0 million deferred tax asset related to the capital loss associated with the Kater litigation as a tax receivable due to the settlement payment made in 2021. We fully expect to be able to offset the capital loss with previously recognized capital gains. Components of our deferred tax assets and liabilities were as follows:
| December 31,
(in millions) | 2021 |  | 2020
Deferred tax assets: |  |  |
Lease liabilities | $ | 10.2 |  |  | $ | 7.7 |
Net operating losses and credits carryforward | 8.8 |  |  | 9.3 |
Deferred compensation plans | 6.9 |  |  | 6.7 |
Deferred income | 4.7 |  |  | 5.5 |
Deferred liabilities | 3.8 |  |  | 2.8 |
Allowance for uncollectible receivables | 1.3 |  |  | 1.2 |
Capital loss | — |  |  | 29.0 |
Deferred tax assets | 35.7 |  |  | 62.2 |
Valuation allowance | (3.2) |  |  | (1.4) |
Net deferred tax asset | 32.5 |  |  | 60.8 |
Deferred tax liabilities: |  |  |
Equity investments in excess of tax basis | 128.9 |  |  | 121.6 |
Intangible assets in excess of tax basis | 74.1 |  |  | 65.6 |
Property and equipment in excess of tax basis | 69.7 |  |  | 77.9 |
Right-of-use assets | 9.9 |  |  | 7.4 |
Other | 2.8 |  |  | 2.2 |
Deferred tax liabilities | 285.4 |  |  | 274.7 |
Net deferred tax liability | $ | (252.9) |  |  | $ | (213.9) |
As of December 31, 2021, we had U.S. state and foreign net operating losses with tax values of $6.6 million and $0.4 million, respectively. We have recorded a valuation allowance of $3.2 million due to the fact that it is unlikely that we will generate income in certain state and foreign jurisdictions which is necessary to utilize the deferred tax assets. We also had U.S. state tax credits with a tax value of $1.8 million that do not expire which we expect to fully utilize. The Internal Revenue Service has completed audits through 2012. Tax years 2018 and after are open to examination. Tax year 2015 is open to examination as a result of the Company's claim for refund of 2015 tax from carrying back its 2020 net operating loss pursuant to the CARES Act. As of December 31, 2021, we had approximately $3.9 million of total gross unrecognized tax benefits, excluding interest of $0.2 million. If the total gross unrecognized tax benefits were recognized, there would be a $3.5 million effect to the annual effective tax rate. We anticipate a decrease in our unrecognized tax positions of approximately $0.7 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) | 2021 |  | 2020 |  | 2019
Balance as of January 1 | $ | 3.9 |  |  | $ | 1.8 |  |  | $ | 2.8 |
Additions for tax positions related to the current year | 0.1 |  |  | 0.1 |  |  | 0.1 |
Additions for tax positions of prior years | 1.0 |  |  | 2.6 |  |  | — |
Reductions for tax positions of prior years | (1.1) |  |  | (0.6) |  |  | (1.1) |
Balance as of December 31 | $ | 3.9 |  |  | $ | 3.9 |  |  | $ | 1.8 |

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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