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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes Income from continuing operations before income taxes for the periods presented below consisted of the following:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
U.S. | $ | 77.8 |  |  | $ | 59.7 |  |  | $ | (55.0) |
Non-U.S. | 1,047.0 |  |  | 1,218.9 |  |  | 425.2 |
Total | $ | 1,124.8 |  |  | $ | 1,278.6 |  |  | $ | 370.2 |
Total income tax provision (benefit) for the periods presented below consisted of the following:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
Current: |  |  |  |  |
U.S. federal | $ | (0.1) |  |  | $ | (0.2) |  |  | $ | (0.5) |
Non-U.S. | 225.9 |  |  | 42.9 |  |  | 30.8 |
State | 0.1 |  |  | 0.1 |  |  | — |
Total current | 225.9 |  |  | 42.8 |  |  | 30.3 |
Deferred: |  |  |  |  |
Non-U.S. | 82.9 |  |  | (81.6) |  |  | (7.5) |
Total deferred | 82.9 |  |  | (81.6) |  |  | (7.5) |
Total income tax provision (benefit) | $ | 308.8 |  |  | $ | (38.8) |  |  | $ | 22.8 |
The following is a reconciliation of the expected statutory federal income tax expense to the Company’s income tax provision (benefit) for the periods presented below:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
Expected income tax expense at U.S. federal statutory rate | $ | 236.2 |  |  | $ | 268.5 |  |  | $ | 77.7 |
Changes in valuation allowance, income tax | (11.1) |  |  | (595.6) |  |  | (101.3) |
Changes in tax reserves | (0.8) |  |  | (1.5) |  |  | 1.9 |
Excess depletion | (15.0) |  |  | (17.2) |  |  | (13.7) |
Foreign earnings repatriation | — |  |  | 42.3 |  |  | — |
Foreign earnings provision differential | 91.6 |  |  | 80.7 |  |  | 17.3 |
Global intangible low-taxed income | — |  |  | 197.2 |  |  | 67.0 |
Tax credits | — |  |  | — |  |  | (26.5) |
Remeasurement of foreign income tax accounts | (0.9) |  |  | (2.6) |  |  | (1.8) |
State income taxes, net of federal tax benefit | 6.3 |  |  | 1.1 |  |  | (1.1) |
Other, net | 2.5 |  |  | (11.7) |  |  | 3.3 |
Total income tax provision (benefit) | $ | 308.8 |  |  | $ | (38.8) |  |  | $ | 22.8 |
Certain reconciliation items included in the above table exclude the remeasurement of foreign income tax accounts as these foreign currency effects are separately presented. The Company recognizes the tax on global intangible low-taxed income (GILTI) as a period expense. The Company recorded provisions of $197.2 million and $67.0 million for the years ended December 31, 2022 and 2021, respectively, which was fully offset by the release of valuation allowance associated with the net operating losses (NOLs) that absorbed the GILTI inclusion. No provision for GILTI was recorded for the year ended December 31, 2023. On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law and contained numerous tax provisions including a 15% minimum tax on book income of certain large corporations. This act did not have a material impact on the Company’s tax provision. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31, 2023 and 2022 consisted of the following:
| December 31,
| 2023 |  | 2022
| (Dollars in millions)
Deferred tax assets: |  |  |
Tax loss carryforwards and credits | $ | 745.6 |  |  | $ | 740.1 |
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments | 550.1 |  |  | 550.8 |
Accrued postretirement benefit obligations | 38.6 |  |  | 41.4 |
Asset retirement obligations | 99.1 |  |  | 95.1 |
Employee benefits | 20.1 |  |  | 22.1 |
Take-or-pay obligations | 6.7 |  |  | 8.2 |
Hedge activities | — |  |  | 49.1 |
Investments and other assets | 40.8 |  |  | 37.0 |
Workers’ compensation obligations | 7.3 |  |  | 7.1 |
Operating lease liabilities | 17.2 |  |  | 7.8 |
Other | 30.6 |  |  | 28.3 |
Total gross deferred tax assets | 1,556.1 |  |  | 1,587.0 |
Valuation allowance, income tax | (1,473.5) |  |  | (1,451.0) |
Total deferred tax assets | 82.6 |  |  | 136.0 |
Deferred tax liabilities: |  |  |
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments | 84.9 |  |  | 67.5 |
Operating lease right-of-use assets | 16.3 |  |  | 7.6 |
Investments and other assets | 10.0 |  |  | 6.6 |
Total deferred tax liabilities | 111.2 |  |  | 81.7 |
Net deferred tax (liability) asset | $ | (28.6) |  |  | $ | 54.3 |
Deferred taxes are classified as follows: |  |  |
Noncurrent deferred income tax asset | $ | — |  |  | $ | 74.7 |
Noncurrent deferred income tax liability | (28.6) |  |  | (20.4) |
Net deferred tax (liability) asset | $ | (28.6) |  |  | $ | 54.3 |
As of December 31, 2023, the Company had gross U.S. federal NOLs of $1.7 billion. The Company’s tax loss carryforwards and credits of $745.6 million as of December 31, 2023 were comprised primarily of net federal NOLs of $366.8 million, tax general business credits (GBCs) of $139.1 million, net Australia NOLs and capital tax loss carryforwards of $138.7 million, state NOLs of $80.3 million and other foreign NOLs of $19.1 million. The foreign tax loss carryforwards have no expiration date. The federal NOLs begin to expire in 2037, the state NOLs begin to expire in 2024 and the GBCs begin to expire in 2027. In assessing the near-term use of NOLs and tax credits and corresponding valuation allowance adjustments, the Company evaluated the expected level of future taxable income, available tax planning strategies, reversals of existing taxable temporary differences and taxable income in carryback years. The Company maintained valuation allowances of $1.5 billion against the U.S net deferred tax asset position of $1.0 billion and against certain foreign deferred tax assets, primarily in Australia, of $469.1 million. Recognition of the U.S. valuation allowances was driven by recent cumulative book losses, as determined by considering all sources of available income (including items classified as discontinued operations or recorded directly to “Accumulated other comprehensive income”) and availability of future taxable income in assessing the realizability of the related assets. The valuation allowance against certain foreign deferred tax assets continues to be recorded due to unlikely realization. Unrecognized Tax Benefits Net unrecognized tax benefits (excluding interest and penalties) were recorded as follows in the consolidated balance sheets as of December 31, 2023 and 2022:
| December 31,
| 2023 |  | 2022
| (Dollars in millions)
Deferred income taxes | $ | 7.4 |  |  | $ | 8.2 |
Other noncurrent liabilities | 1.3 |  |  | 1.3 |
Net unrecognized tax benefits | $ | 8.7 |  |  | $ | 9.5 |
Gross unrecognized tax benefits | $ | 8.7 |  |  | $ | 9.5 |
The amount of the Company’s gross unrecognized tax benefits decreased by $0.8 million since December 31, 2022 due primarily to adjustments for prior year positions partially offset by additions for current positions. The amount of the net unrecognized tax benefits that, if recognized, would directly affect the effective tax rate was $8.7 million and $9.5 million at December 31, 2023 and 2022, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for the periods presented below is as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
Balance at beginning of period | $ | 9.5 |  |  | $ | 11.0 |  |  | $ | 9.1 |
Additions for current year tax positions | 0.9 |  |  | 0.8 |  |  | 3.0 |
Reductions for prior year tax positions | (1.7) |  |  | (2.3) |  |  | (1.1) |
Balance at end of period | $ | 8.7 |  |  | $ | 9.5 |  |  | $ | 11.0 |
The Company recognizes interest and penalties related to unrecognized tax benefits in its income tax provision. The Company recorded $0.2 million of gross interest and penalties in each of the years ended December 31, 2023, 2022, and 2021. The Company had $6.1 million, $5.9 million and $5.7 million of accrued gross interest and penalties related to unrecognized tax benefits at December 31, 2023, 2022 and 2021, respectively. The Company expects a decrease in its net unrecognized tax benefits of $1.3 million during the next twelve months due to expiration of statutes. Tax Returns Subject to Examination The Company’s federal income tax returns for the 2020, 2021 and 2022 tax years are subject to potential examinations by the Internal Revenue Service. The Company’s state income tax returns for the tax years 2016 and thereafter remain potentially subject to examination by various state taxing authorities due to NOL carryforwards. Australian income tax returns for tax years 2019 through 2022 continue to be subject to potential examinations by the Australian Taxation Office. Foreign Earnings As of December 31, 2023, the Company has unremitted earnings relating to certain wholly owned subsidiaries that are not permanently reinvested, but there are no residual cash taxes on the unremitted earnings. The Company has an earnings deficit for remaining investments outside the U.S. and continues to be permanently reinvested with respect to its historical earnings. However, when appropriate, the Company has the ability to access foreign cash without incurring residual cash taxes due to the existence of NOLs. Tax Payments and Refunds The following table summarizes the Company’s income tax payments, net for the periods presented below:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
U.S. — federal | $ | (0.2) |  |  | $ | (0.3) |  |  | $ | (1.3) |
U.S. — state and local | 0.1 |  |  | — |  |  | — |
Non-U.S. | 130.7 |  |  | 36.9 |  |  | 12.9 |
Total income tax payments, net | $ | 130.6 |  |  | $ | 36.6 |  |  | $ | 11.6 |
The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the tax challenges arising from the digitalization of the global economy. Pillar Two legislation has been enacted or substantially enacted in certain jurisdictions in which the Company operates, effective for the financial year beginning January 1, 2024. Based on an assessment performed, the Pillar Two effective tax rates in all jurisdictions in which the Company operates are above 15% and the Company is not currently aware of any circumstances under which this might change. Therefore, the Company does not expect a potential exposure to Pillar Two top-up taxes.

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