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INCOME TAXES | 12 Months Ended
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Dec. 31, 2023
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,
|  | 2023 |  | 2022 |  | 2021
Domestic |  | $ | 732.1 |  |  | $ | 897.4 |  |  | $ | 721.8 |
Foreign |  | 68.1 |  |  | 87.9 |  |  | 79.2 |
Total income before income taxes |  | $ | 800.2 |  |  | $ | 985.3 |  |  | $ | 800.9 |
Federal, state and foreign income tax provisions from continuing operations were as follows (in millions):
|  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Federal: |  |  |  |  |  |
Current |  | $ | 142.9 |  |  | $ | 160.7 |  |  | $ | 116.4 |
Deferred |  | 11.8 |  |  | 24.6 |  |  | 30.7 |
State: |  |  |  |  |  |
Current |  | 23.8 |  |  | 24.5 |  |  | 13.8 |
Deferred |  | 4.6 |  |  | 5.9 |  |  | 1.6 |
Foreign: |  |  |  |  |  |
Current |  | 12.8 |  |  | 18.0 |  |  | 14.8 |
Deferred |  | 2.3 |  |  | (2.6) |  |  | (1.8) |
Provision for income taxes |  | $ | 198.2 |  |  | $ | 231.1 |  |  | $ | 175.5 |
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,
|  | 2023 |  | 2022 |  | 2021
Provision at the U.S. federal statutory rate |  | $ | 168.0 |  |  | $ | 206.9 |  |  | $ | 168.1 |
Increase (decrease) resulting from: |  |  |  |  |  |
State income tax, net of benefit for federal deduction |  | 25.2 |  |  | 22.3 |  |  | 15.3 |
Foreign income tax rate differential |  | 0.6 |  |  | (2.3) |  |  | (1.0) |
Change in enacted tax rate — U.K. |  | — |  |  | — |  |  | (1.9) |
Tax credits |  | (0.5) |  |  | (0.4) |  |  | (0.8) |
Change in valuation allowance |  | (2.6) |  |  | (2.1) |  |  | (2.9) |
Stock-based compensation |  | (3.6) |  |  | (1.6) |  |  | (2.2) |
Deferred state tax effect |  | (1.1) |  |  | 4.3 |  |  | — |
Gain on dispositions |  | 5.5 |  |  | — |  |  | — |
Other |  | 6.7 |  |  | 4.0 |  |  | 0.9 |
Provision for income taxes |  | $ | 198.2 |  |  | $ | 231.1 |  |  | $ | 175.5 |
The components of deferred tax assets and liabilities were as follows (in millions):
|  | December 31,
|  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Accrued liabilities |  | $ | 62.6 |  |  | $ | 56.4 |
Net operating losses |  | 13.0 |  |  | 18.9 |
Operating lease liabilities |  | 65.5 |  |  | 71.1 |
Other |  | — |  |  | 2.5 |
Deferred tax assets |  | 141.1 |  |  | 148.9 |
Less: valuation allowance on deferred tax assets |  | 7.6 |  |  | 10.2 |
Net deferred tax assets |  | $ | 133.5 |  |  | $ | 138.7 |
Deferred tax liabilities: |  |  |  |
Goodwill and intangible franchise rights |  | $ | 195.9 |  |  | $ | 171.2 |
Fixed asset basis differences |  | 114.7 |  |  | 110.0 |
Interest rate swaps |  | 21.3 |  |  | 26.1 |
Operating lease ROU assets |  | 53.8 |  |  | 59.6 |
Other |  | 0.3 |  |  | 1.7 |
Deferred tax liabilities |  | 386.0 |  |  | 368.6 |
Net deferred tax liability |  | $ | 252.5 |  |  | $ | 229.9 |
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,
|  | 2023 |  | 2022
Deferred tax asset, included in Other long-term assets |  | $ | 4.1 |  |  | $ | 8.2 |
Deferred tax liability, included in Deferred income taxes |  | 256.6 |  |  | 238.1 |
Net deferred tax liability |  | $ | 252.5 |  |  | $ | 229.9 |
As of December 31, 2023, the Company had state pre-tax NOL carryforwards in the U.S. of $247.9 million that will expire between 2024 and 2043 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 and considering future reversals of existing taxable temporary differences. As of December 31, 2023, the Company maintains a permanent reinvestment assertion on the Company’s 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 jurisdictions in which the Company operates, the Company is generally no longer subject to examinations by tax authorities in years prior to 2018. A reconciliation of the Company’s unrecognized tax benefits is as follows (in millions):
| 2023 |  | 2022 |  | 2021
Balance at January 1 | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | 2.0 |
Additions for current tax | 0.6 |  |  | 0.5 |  |  | 0.5 |
Additions based on tax positions in prior years | — |  |  | — |  |  | — |
Reductions for tax positions | — |  |  | — |  |  | — |
Settlements with tax authorities | — |  |  | — |  |  | — |
Reductions due to lapse of statutes of limitations | (0.4) |  |  | (0.5) |  |  | (0.5) |
Balance at December 31 | $ | 2.2 |  |  | $ | 2.0 |  |  | $ | 2.0 |
Included in the balance of unrecognized tax benefits as of December 31, 2023, 2022 and 2021, are $1.9 million, $1.7 million and $1.6 million, respectively, of tax benefits that would affect the effective tax rate if recognized. For the years ended December 31, 2023, 2022 and 2021 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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