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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2018
INCOME TAXES |
Schedule of income tax expense |
|  | Years Ended December 31, |
(In millions) |  | 2018 |  | 2017 |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2.4 |  | $ | 21.6 |  | $ | 10.5 |
State |  |  | 2.1 |  |  | 2.2 |  |  | (1.3) |
Discrete adjustments related to the Tax Act (1) |  |  | 2.9 |  |  | — |  |  | — |
Total |  |  | 7.4 |  |  | 23.8 |  |  | 9.2 |
Deferred: |  |  |  |  |  |  |  |  |  |
Deferred tax expense |  |  | 31.3 |  |  | 24.4 |  |  | 39.9 |
Remeasurement and discrete adjustments related to the Tax Act (2) |  |  | — |  |  | (154.0) |  |  | — |
Total |  |  | 31.3 |  |  | (129.6) |  |  | 39.9 |
Total income taxes |  | $ | 38.7 |  | $ | (105.8) |  | $ | 49.1 |
| (1) |  | Current income taxes for the year ended December 31, 2018 includes a non-cash income tax expense of $2.9 million, which relates to discrete adjustments as a result of applying the provisions of the Tax Act.
| (2) |  | Deferred income taxes for the year ended December 31, 2017 includes a non-cash income tax benefit of $154.0 million, which relates to the remeasurement of the Company’s deferred tax assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.
Schedule of effective income tax rate |
|  | Years Ended December 31, |
|  | 2018 |  | 2017 |  | 2016 |
Computed federal income tax expense |  | 21.0 | % | 35.0 | % | 35.0 | %
State income tax |  | 3.4 | % | 2.6 | % | 1.8 | %
Valuation allowance |  | (0.7) | % | 1.4 | % | 0.3 | %
Foreign taxes |  | 0.6 | % | 0.1 | % | 0.4 | %
Remeasurement and discrete adjustments related to the Tax Act (1) |  | 2.0 | % | (123.0) | % | — | %
Share-based payments |  | 0.1 | % | (1.4) | % | — | %
Other — net |  | (0.2) | % | 0.8 | % | 0.1 | %
Effective income tax rate |  | 26.2 | % | (84.5) | % | 37.6 | %
Effective income tax rate for the year ended December 31, 2018 and 2017 includes the impact of a non-cash income tax expense of $2.9 million, or 2.0 percent, and a non-cash income tax benefit of $154.0 million, or (123.0 percent), respectively, related to the remeasurement of the Company’s deferred assets and liabilities and other discrete adjustments as a result of applying the provisions of the Tax Act.
Schedule of tax effects of temporary differences | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017, were as follows:
|  | As of December 31, |
(In millions) |  | 2018 |  | 2017 |
Deferred tax assets: |  |  |  |  |  |  |
Benefit plans |  | $ | 45.6 |  | $ | 44.2 |
Federal net operating losses |  |  | 15.2 |  |  | 21.6 |
Insurance reserves |  |  | 5.6 |  |  | 6.8 |
State net operating losses |  |  | 7.4 |  |  | 7.4 |
Foreign losses |  |  | 5.1 |  |  | 6.6 |
U.S. State alternative minimum tax credits |  |  | 5.9 |  |  | 4.2 |
Allowance for doubtful accounts |  |  | 1.1 |  |  | 0.9 |
Other |  |  | 1.8 |  |  | 1.9 |
Total deferred tax assets |  |  | 87.7 |  |  | 93.6 |
Valuation allowance |  |  | (11.5) |  |  | (13.0) |
Total deferred tax assets, net of valuation allowance |  |  | 76.2 |  |  | 80.6 |
Deferred tax liabilities: |  |  |  |  |  |  |
Basis differences for property and equipment |  |  | 302.1 |  |  | 254.4 |
Lease financing |  |  | 26.0 |  |  | — |
Capital Construction Fund |  |  | 7.0 |  |  | 54.2 |
Intangibles |  |  | 38.4 |  |  | 36.4 |
Deferred revenue |  |  | 3.0 |  |  | 6.9 |
Terminal Joint Venture investment |  |  | 11.4 |  |  | 9.6 |
Reserves |  |  | 1.0 |  |  | 2.7 |
Total deferred tax liabilities |  |  | 388.9 |  |  | 364.2 |
Deferred tax liability, net |  | $ | 312.7 |  | $ | 283.6 |
Schedule of company’s net operating losses (“NOLs”) and tax credit carryforwards |
(In millions) |  | Expiration Date |  | 2018 |  | 2017
U.S. Federal income tax NOLs |  | Various dates beginning in 2027 |  | $ | 74.5 |  | $ | 183.8
U.S. State income tax NOLs |  | Various dates beginning in 2032 |  | $ | 189.2 |  | $ | 192.3
Foreign income tax NOLs |  | No expiration date |  | $ | 18.4 |  | $ | 23.7
U.S. State alternative minimum tax credit |  | No expiration date |  | $ | 5.9 |  | $ | 4.2
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
Unrecognized Tax Benefits (in millions) |  | Amount |
Balance at December 31, 2015 |  | $ | 22.1 |
Changes in tax positions of prior years, net |  |  | (1.1) |
Reductions for lapse of statute of limitations |  |  | (0.6) |
Balance at December 31, 2016 |  |  | 20.4 |
Changes in tax positions of prior years, net |  |  | 1.1 |
Reductions for lapse of statute of limitations |  |  | (0.1) |
Revaluation of unrecognized tax benefits due to the Tax Act (1) |  |  | (5.5) |
Balance at December 31, 2017 |  |  | 15.9 |
Changes in tax positions of prior years, net |  |  | (0.3) |
Reductions for lapse of statute of limitations |  |  | (0.5) |
Balance at December 31, 2018 |  | $ | 15.1 |
Amount relates to the impact of applying the Tax Act during the year ended December 31, 2017.

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