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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
INCOME TAXES |
INCOME TAXES |
10. | INCOME TAXES
​ Income Taxes: ​ Income taxes consist of the following for the years ended December 31, 2022, 2021 and 2020: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended December 31, |
(In millions) |  | 2022 |  | 2021 |  | 2020 |
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 171.5 | ​ | $ | 181.2 | ​ | $ | — | ​
State | ​ |  | 18.3 | ​ |  | 35.6 | ​ |  | 8.7 | ​
Foreign | ​ | ​ | 1.3 | ​ | ​ | 2.5 | ​ | ​ | 1.4 | ​
Total | ​ |  | 191.1 | ​ |  | 219.3 | ​ |  | 10.1 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax expense | ​ | ​ | 97.3 | ​ | ​ | 24.6 | ​ | ​ | 55.8 | ​
Total income taxes | ​ | $ | 288.4 | ​ | $ | 243.9 | ​ | $ | 65.9 | ​
​ Income taxes for the years ended December 31, 2022, 2021 and 2020 differ from amounts computed by applying the statutory federal rate to income before income taxes for the following reasons: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years Ended December 31, |
​ |  | 2022 |  | 2021 |  | 2020 |
Computed federal income tax expense |  | 21.0 | % | 21.0 | % | 21.0 | %
State income tax |  | 2.8 | % | 3.1 | % | 3.5 | %
Foreign-derived intangible income (FDII) |  | (2.4) | % | (2.5) | % | — | %
Valuation allowance |  | — | % | (0.3) | % | (0.2) | %
Foreign taxes |  | 0.1 | % | 0.2 | % | 0.6 | %
Share-based payments |  | — | % | (0.2) | % | (0.5) | %
Other — net |  | (0.2) | % | (0.5) | % | 1.0 | %
Effective income tax rate |  | 21.3 | % | 20.8 | % | 25.4 | %
​ The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, |
(In millions) |  | 2022 |  | 2021 |
Deferred tax assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease liabilities | ​ | $ | 102.9 | ​ | $ | 111.7 | ​
Multi-employer withdrawal liabilities | ​ | ​ | 13.3 | ​ | ​ | 13.8 | ​
Deferred compensation | ​ |  | 10.9 | ​ | ​ | 10.4 | ​
U.S. State alternative minimum tax credits | ​ |  | 8.8 | ​ |  | 4.6 | ​
Pension and post-retirement plans | ​ | ​ | — | ​ | ​ | 11.1 | ​
Other | ​ |  | 22.7 | ​ |  | 24.6 | ​
Total deferred tax assets | ​ |  | 158.6 | ​ |  | 176.2 | ​
Valuation allowance | ​ | ​ | (7.4) | ​ | ​ | (5.3) | ​
Total deferred tax assets, net of valuation allowance | ​ | ​ | 151.2 | ​ | ​ | 170.9 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basis differences for property and equipment | ​ |  | 433.1 | ​ |  | 423.5 | ​
Capital Construction Fund | ​ |  | 194.0 | ​ | ​ | 1.3 | ​
Operating lease right of use assets | ​ |  | 100.7 | ​ |  | 109.3 | ​
Intangibles | ​ | ​ | 42.0 | ​ | ​ | 41.3 | ​
Investment in SSAT | ​ |  | 18.7 | ​ |  | 12.4 | ​
Other | ​ | ​ | 9.2 | ​ | ​ | 6.0 | ​
Total deferred tax liabilities | ​ |  | 797.7 | ​ |  | 593.8 | ​
Deferred tax liability, net | ​ | $ | 646.5 | ​ | $ | 422.9 | ​
​ Valuation Allowance: Valuation allowances are recorded against the Company’s foreign income tax net operating losses (“NOLs”), unusable state income tax NOLs and alternative minimum tax credits, and were $7.4 million and $5.3 million as of December 31, 2022 and 2021, respectively. The Company believes that it is more likely than not that the benefit from these deferred assets will not be realized. ​ Net Operating Losses and Tax Credit Carryforwards: The Company’s NOLs and tax credit carryforwards consist of the following at December 31, 2022 and 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In millions) | ​ | Expiration Date |  | 2022 |  | 2021
U.S. Federal income tax NOLs | ​ | Various dates beginning in 2027 | ​ | $ | 0.8 | ​ | $ | 2.4
U.S. State income tax NOLs (1) | ​ | Various dates beginning in 2032 | ​ | $ | 157.9 | ​ | $ | 159.8
U.S. State alternative minimum tax credit | ​ | No expiration date | ​ | $ | 8.6 | ​ | $ | 4.4
Foreign income tax NOLs | ​ | No expiration date | ​ | $ | — | ​ | $ | 8.8
(1) | U.S. State income tax NOLs are presented on a gross tax basis. The Company does not expect to benefit from $157.9 million of U.S. State income tax NOLs as of December 31, 2022 and 2021.
​ The U.S. federal and state income tax NOLs in the Company’s filed income tax returns include unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits. As a result of changes in tax legislation, the use of a portion of the Company’s domestic NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the federal and state income tax NOLs and tax credit carryforwards may expire before being applied to reduce future income tax liabilities. ​ Unrecognized Tax Benefits: Total unrecognized benefits represent the amount that, if recognized, would favorably affect the Company’s incomes taxes and effective tax rate in future periods. The Company does not expect a material change in gross unrecognized benefits in the next twelve months. 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, 2019 | ​ | $ | 16.4 | ​
Changes in tax positions of prior years, net | ​ |  | 2.1 | ​
Reductions for lapse of statute of limitations | ​ | ​ | (0.2) | ​
Balance at December 31, 2020 | ​ |  | 18.3 | ​
Changes in tax positions of prior years, net | ​ |  | 1.1 | ​
Reductions for lapse of statute of limitations | ​ | ​ | (0.2) | ​
Balance at December 31, 2021 | ​ |  | 19.2 | ​
Changes in tax positions of prior years, net | ​ |  | 6.1 | ​
Reductions for lapse of statute of limitations | ​ | ​ | (0.2) | ​
Balance at December 31, 2022 | ​ | $ | 25.1 | ​
​ Included in the balance of unrecognized tax benefits at December 31, 2022 are potential benefits of $25.1 million that, if recognized, would affect the Company’s income taxes and effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income taxes. To the extent interest and penalties are not ultimately assessed with respect to the settlement of uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the Company’s income taxes. Interest accrued related to the balance of unrecognized tax benefits were nominal as of December 31, 2022 and 2021. ​ The Company is no longer subject to U.S. federal income tax audits for years before 2015. The Company is routinely involved in federal, state, local income and excise tax audits, and foreign tax audits. ​ Recent U.S. Tax Legislation: On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law in the United States. The new provisions impose a one percent excise tax on the fair market value of share repurchases after December 31, 2022. The Company does not expect the one percent excise tax to have a material impact on the Company’s financial statements in future periods. Because the excise tax is not an income tax, any amount paid by the Company will be recorded as a component of shareholders’ equity. ​ The provisions of the IRA also include a 15 percent alternative minimum tax rate that generally applies to U.S. corporations with three-year average adjusted financial statement income in excess of $1 billion, and is effective in taxable years beginning after December 31, 2022. The Company continues to review the provisions of the IRA and monitor the issuance of any guidance related to these provisions. However, based upon its preliminary assessment, the Company does not expect these provisions to have a material impact on the Company’s tax provision in future periods.

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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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