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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income from continuing operations before income taxes by geographic area was as follows (in millions):
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Domestic |  | $ | 897.4 |  |  | $ | 721.8 |  |  | $ | 366.6 |
Foreign |  | 87.9 |  |  | 79.2 |  |  | 14.2 |
Total income before income taxes |  | $ | 985.3 |  |  | $ | 800.9 |  |  | $ | 380.8 |
Federal, state and foreign income tax provisions from continuing operations were as follows (in millions):
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Federal: |  |  |  |  |  |
Current |  | $ | 160.7 |  |  | $ | 116.4 |  |  | $ | 70.8 |
Deferred |  | 24.6 |  |  | 30.7 |  |  | 5.5 |
State: |  |  |  |  |  |
Current |  | 24.5 |  |  | 13.8 |  |  | 7.0 |
Deferred |  | 5.9 |  |  | 1.6 |  |  | (1.3) |
Foreign: |  |  |  |  |  |
Current |  | 18.0 |  |  | 14.8 |  |  | 6.3 |
Deferred |  | (2.6) |  |  | (1.8) |  |  | (4.1) |
Provision for income taxes |  | $ | 231.1 |  |  | $ | 175.5 |  |  | $ | 84.2 |
A reconciliation of the statutory federal rate to the effective tax rate on income before income taxes from continuing operations, was as follows (in millions):
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Provision at the U.S. federal statutory rate |  | $ | 206.9 |  |  | $ | 168.1 |  |  | $ | 79.9 |
Increase (decrease) resulting from: |  |  |  |  |  |
State income tax, net of benefit for federal deduction |  | 22.3 |  |  | 15.3 |  |  | 5.8 |
Foreign income tax rate differential |  | (2.3) |  |  | (1.0) |  |  | — |
Change in enacted tax rate — U.K. |  | — |  |  | (1.9) |  |  | — |
Tax Credits |  | (0.4) |  |  | (0.8) |  |  | (0.3) |
Changes in valuation allowances |  | (2.1) |  |  | (2.9) |  |  | (0.7) |
Stock-based compensation |  | (1.6) |  |  | (2.2) |  |  | (0.8) |
Uncertain tax benefits |  | — |  |  | — |  |  | (0.3) |
Deferred state tax effect |  | 4.3 |  |  | — |  |  | — |
Other |  | 4.0 |  |  | 0.9 |  |  | 0.6 |
Provision for income taxes |  | $ | 231.1 |  |  | $ | 175.5 |  |  | $ | 84.2 |
The components of deferred tax assets and liabilities were as follows (in millions):
|  | December 31,
|  | 2022 |  | 2021
Deferred tax assets: |  |  |  |
Accrued liabilities |  | $ | 56.4 |  |  | $ | 53.5 |
U.S. state NOL carryforwards |  | 18.9 |  |  | 30.8 |
Operating lease liabilities |  | 71.1 |  |  | 79.5 |
Other |  | 2.5 |  |  | 2.8 |
Deferred tax assets |  | 148.9 |  |  | 166.6 |
Less: valuation allowance on deferred tax assets |  | 10.2 |  |  | 24.2 |
Net deferred tax assets |  | $ | 138.7 |  |  | $ | 142.4 |
Deferred tax liabilities: |  |  |  |
Goodwill and intangible franchise rights |  | $ | 171.2 |  |  | $ | 152.2 |
Depreciation expense |  | 110.0 |  |  | 99.4 |
Interest rate swaps |  | 26.1 |  |  | 0.6 |
Operating lease ROU assets |  | 59.6 |  |  | 63.5 |
Other |  | 1.7 |  |  | 1.7 |
Deferred tax liabilities |  | 368.6 |  |  | 317.4 |
Net deferred tax liability |  | $ | 229.9 |  |  | $ | 175.0 |
The classification of the continued operations of the Company’s net deferred tax liability within the Consolidated Balance Sheets is as follows (in millions):
|  | December 31,
|  | 2022 |  | 2021
Deferred tax asset, included in Other long-term assets |  | $ | 8.2 |  |  | $ | 5.9 |
Deferred tax liability, included in Deferred income taxes |  | 238.1 |  |  | 180.9 |
Net deferred tax liability |  | $ | 229.9 |  |  | $ | 175.0 |
As of December 31, 2022, the Company had state pre-tax NOL carryforwards in the U.S. of $368.6 million that will expire between 2023 and 2042 in certain states while some may be carried forward indefinitely. To the extent that the Company expects that net income will not be sufficient to realize these NOLs in certain jurisdictions, a valuation allowance has been established. The Company believes it is more-likely-than-not that its deferred tax assets, net of valuation allowances provided, will be realized, based primarily on its expectation of future taxable income, considering future reversals of existing taxable temporary differences. As of December 31, 2022, subsequent to the Brazil disposition and the resulting company structure, we maintain a permanent reinvestment assertion on our foreign subsidiaries. An immaterial amount of tax would be payable upon any distribution of unremitted earnings or a recognition of any outside basis difference. Based on the statutes of limitations in the applicable jurisdiction in which the Company operates, the Company is generally no longer subject to examinations by tax authorities in years prior to 2017. A reconciliation of the Company’s unrecognized tax benefits is as follows (in millions):
| 2022 |  | 2021 |  | 2020
Balance at January 1 | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | 2.4 |
Additions for current tax | 0.5 |  |  | 0.5 |  |  | 0.5 |
Additions based on tax positions in prior years | — |  |  | — |  |  | — |
Reductions for tax positions | — |  |  | — |  |  | (0.4) |
Settlements with tax authorities | — |  |  | — |  |  | — |
Reductions due to lapse of statutes of limitations | (0.5) |  |  | (0.5) |  |  | (0.5) |
Balance at December 31 | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | 2.0 |
Included in the balance of unrecognized tax benefits as of December 31, 2022, 2021 and 2020, are $1.7 million, $1.6 million and $1.7 million, respectively, of tax benefits that would affect the effective tax rate if recognized. For the years ended December 31, 2022, 2021 and 2020 the Company recorded approximately $0.3 million, $0.3 million and $0.3 million, respectively, of interest and penalty related to its uncertain tax positions. Consistent with prior practice, the Company recognizes interest and penalties related to uncertain tax positions in income tax expense in the Consolidated Statements of Operations.

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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