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INCOME TAXES | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAX The following table summarizes our U.S. and foreign components of income (loss) from continuing operations before income taxes (in millions):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
United States | $ | 65.8 |  |  | $ | 62.8 |  |  | $ | 45.6 |
Foreign | 0.3 |  |  | 0.1 |  |  | (0.1 | )
Total | $ | 66.1 |  |  | $ | 62.9 |  |  | $ | 45.5 |
The following table summarizes the (benefit) provision for income taxes from continuing operations (in millions):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | 12.5 |  |  | $ | 2.6 |  |  | $ | 0.7 |
State | 2.1 |  |  | 2.4 |  |  | 1.1 |
Foreign | 0.1 |  |  | 0.0 |  |  | 0.1 |
Total current | $ | 14.7 |  |  | $ | 5.0 |  |  | $ | 1.9 |
Deferred: |  |  |  |  |  |  |  |
Federal | $ | 1.1 |  |  | $ | 7.7 |  |  | $ | (18.3 | )
State | 0.3 |  |  | 0.6 |  |  | (3.6 | )
Foreign | 0.0 |  |  | 0.1 |  |  | 0.0 |
Total deferred | $ | 1.4 |  |  | $ | 8.4 |  |  | $ | (21.9 | )
TOTAL | $ | 16.1 |  |  | $ | 13.4 |  |  | $ | (20.0 | )
Tax expense from discontinued operations was $(0.6) million, $23.0 million and $11.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Income taxes are accrued and paid by each foreign entity in accordance with applicable local regulations. A reconciliation of the difference between the income tax expense and the computed income tax expense based on the Federal statutory corporate rate is as follows (in millions):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Income tax at Federal statutory rate | $ | 13.9 |  |  | 21.0 | % |  | $ | 13.2 |  |  | 21.0 | % |  | $ | 15.9 |  |  | 35.0 | %
State and local income taxes, net of federal tax benefit | 2.4 |  |  | 3.7 | % |  | 2.6 |  |  | 4.1 | % |  | 5.0 |  |  | 11.0 | %
Impact of state rate changes | 0.1 |  |  | 0.1 | % |  | (0.1 | ) |  | (0.2 | )% |  | 0.3 |  |  | 0.7 | %
Changes in valuation allowances | 0.0 |  |  | — | % |  | 0.0 |  |  | — | % |  | (21.7 | ) |  | (47.7 | )%
Reversal of valuation allowances | (0.3 | ) |  | (0.4 | )% |  | (0.2 | ) |  | (0.3 | )% |  | (29.4 | ) |  | (64.6 | )%
2017 TCJA, net deferred tax remeasurement and repatriation tax impacts | 0.0 |  |  | — | % |  | 0.0 |  |  | — | % |  | 10.4 |  |  | 22.9 | %
Stock based compensation | (0.5 | ) |  | (0.8 | )% |  | (1.5 | ) |  | (2.4 | )% |  | 0.0 |  |  | — | %
Non-deductible items | 0.8 |  |  | 1.2 | % |  | 0.1 |  |  | 0.2 | % |  | 0.1 |  |  | 0.2 | %
Other items, net | (0.3 | ) |  | (0.4 | )% |  | (0.7 | ) |  | (1.1 | )% |  | (0.6 | ) |  | (1.5 | )%
Income tax | $ | 16.1 |  |  | 24.4 | % |  | $ | 13.4 |  |  | 21.3 | % |  | $ | (20.0 | ) |  | (44.0 | )%
The deferred tax assets and liabilities are comprised of the following (in millions):
| December 31,
| 2019 |  | 2018
Assets: |  |  |
Accrued expenses and other liabilities | $ | 1.3 |  |  | $ | 3.5 |
Inventory | 1.3 |  |  | 1.3 |
Operating lease obligations | 16.5 |  |  | 0.0 |
Intangible & other | 1.3 |  |  | 3.1 |
Net operating loss and credit carryforwards | 17.7 |  |  | 19.3 |
Valuation allowances | (16.8 | ) |  | (18.3 | )
Total deferred tax assets | $ | 21.3 |  |  | $ | 8.9 |
Liabilities: |  |  |  |  |
Operating lease right-of-use assets | $ | 14.0 |  |  | $ | 0.0 |
Other | 0.1 |  |  | 0.1 |
Total deferred tax liabilities | $ | 14.1 |  |  | $ | 0.1 |
During 2019 the Company utilized approximately $2.8 million in state NOLs to offset state pretax income. As of December 31, 2019, the Company has foreign NOLs of $9.0 million which expire through 2032 and foreign tax credit carryforwards of $1.7 million expiring in years through 2027. The Company has recorded valuation allowances of approximately $16.8 million, including valuations against state net operating loss carryforwards of $5.8 million, foreign NOLs of $9.0 million, $0.3 million against the deductibility of state and foreign temporary tax differences and $1.7 million against foreign tax carryforwards. Valuation allowances have been recorded against these assets as the Company believes it is more likely than not that these NOLs, temporary differences and foreign tax credits will not be utilized in the near future. The Company has not provided for federal income taxes applicable to the undistributed earnings of its foreign subsidiary in India and Canada of approximately $0.2 million as of December 31, 2019, since these earnings are considered permanently reinvested in the subsidiaries. The Company's permanent reinvestment assertion has not changed following the enactment of the TCJA. If the Company ceases to be permanently reinvested in its foreign subsidiaries, the Company may be subject to foreign withholding and other taxes on undistributed earnings and may need to record a deferred tax liability for any outside basis difference in its investments in its foreign subsidiaries. The Company recorded a tax benefit in discontinued operations of approximately $0.6 million primarily from the Company's former NATG operations. Under the TCJA each U.S. shareholder of a controlled foreign corporation ("CFC") must include in its gross taxable income in any tax year the aggregate net GILTI, or net income, of its CFCs. In 2019 the Company has included in taxable income the net income of its subsidiaries in the Netherlands, India, and Canada. The Company has elected to treat GILTI expense as a period cost when incurred. The Company is routinely audited by federal, state and foreign tax authorities with respect to its income taxes. The Company regularly reviews and evaluates the likelihood of audit assessments. The Company’s federal income tax returns have been audited through 2013. The Company has not signed any consent to extend the statute of limitations for any subsequent years. The Company’s significant state tax returns have been audited through 2009. The Company considers its significant tax jurisdictions in foreign locations to be Canada and India. The Company remains subject to examination in France for years after 2013 and in Canada for years after 2013. As of December 31, 2019, the Company had no uncertain tax positions. Interest and penalties, if any, are recorded in income tax expense. There were no accrued interest or penalty charges related to unrecognized tax benefits recorded in income tax expense in 2019, 2018 or 2017.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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