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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We are subject to corporate level federal and state income taxes in the United States. On March 27, 2020, the "Coronavirus Aid, Relief and Economic Security (CARES) Act" was signed. The CARES Act, among other things, included provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carry back periods, alternative minimum tax credit refunds, modifications to net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvements property. During 2020, we recognized a $7.0 million million benefit from the provisions of the Act. During 2018, we recorded $41.0 million of tax expense related to impairment of non-deductible goodwill. The income tax provision (benefit) is comprised of the following:
|  | For The Years Ended December 31,
(In millions) |  | 2020 |  | 2019 |  | 2018
Current |  |  |  |  |  |
Federal |  | $ | (17.4) |  |  | $ | (2.1) |  |  | $ | 1.1 |
State |  | 1.8 |  |  | 0.1 |  |  | 2.1 |
Total current |  | (15.6) |  |  | (2.0) |  |  | 3.2 |
Deferred |  |  |  |  |  |
Federal |  | 32.5 |  |  | (0.6) |  |  | 3.6 |
State |  | 4.2 |  |  | 0.3 |  |  | 3.5 |
Total deferred |  | 36.7 |  |  | (0.3) |  |  | 7.1 |
Income tax provision (benefit) |  | $ | 21.1 |  |  | $ | (2.3) |  |  | $ | 10.3 |
The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes due to the following:
|  | For The Years Ended December 31,
(In millions) |  | 2020 |  | 2019 |  | 2018
Tax at the statutory rate |  | $ | 20.6 |  |  | $ | (1.7) |  |  | $ | (28.0) |
Goodwill impairment |  | — |  |  | — |  |  | 41.0 |
State and local taxes, net of federal income tax impact |  | 5.6 |  |  | (0.9) |  |  | 4.4 |
Adjustment for state deferred tax rate |  | (0.3) |  |  | (1.2) |  |  | 0.1 |
CARES Act net operating loss carryback |  | (7.0) |  |  | — |  |  | — |
Federal credits |  | (1.3) |  |  | (2.3) |  |  | (10.9) |
Uncertain tax positions |  | 2.2 |  |  | 0.7 |  |  | — |
Stock compensation |  | 1.2 |  |  | 0.6 |  |  | 0.7 |
Non-deductible expenses |  | 1.1 |  |  | 0.4 |  |  | 0.2 |
Change in valuation allowances |  | 0.1 |  |  | 2.3 |  |  | — |
Other, net 1 |  | (1.1) |  |  | (0.2) |  |  | 2.8 |
Income tax provision (benefit) |  | $ | 21.1 |  |  | $ | (2.3) |  |  | $ | 10.3 |
1 Includes $2.9 million of expense associated with the write-off of goodwill as part of our divestiture discussed in Note 10, "Other Operating Charges, net" for the year ended December 31, 2018. During 2020, the valuation allowance for deferred tax assets increased by $0.1 million and during 2019 the valuation allowance for deferred tax assets increased by $2.3 million comparable to 2018. For the year ended December 31, 2019, the increase of $2.3 million was offset by a release of state valuation allowances of $0.8 million due to the lapse of statutes. The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:
(In millions) |  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Employee benefits |  | $ | 3.4 |  |  | $ | 3.8 |
Postretirement employee benefits |  | 19.2 |  |  | 17.1 |
Incentive compensation |  | 5.2 |  |  | 4.4 |
Inventories |  | 0.6 |  |  | 7.6 |
Pensions |  | 0.2 |  |  | 3.2 |
Federal and state credit carryforwards |  | 16.2 |  |  | 10.3 |
Federal and state net operating losses |  | 3.9 |  |  | 8.8 |
Deferred interest expense |  | — |  |  | 12.4 |
Operating leases |  | 18.0 |  |  | 20.5 |
Other |  | 1.8 |  |  | 1.6 |
Total deferred tax assets |  | 68.5 |  |  | 89.7 |
Valuation allowance |  | (5.4) |  |  | (5.3) |
Deferred tax assets, net of valuation allowance |  | 63.1 |  |  | 84.4 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment, net |  | (199.7) |  |  | (179.2) |
Operating leases |  | (16.4) |  |  | (18.9) |
Intangible assets, net |  | (3.0) |  |  | (3.8) |
Total deferred tax liabilities |  | (219.1) |  |  | (201.9) |
Net deferred tax liabilities |  | $ | (156.0) |  |  | $ | (117.5) |
Net deferred tax assets (liabilities) consist of:
(In millions) |  | 2020 |  | 2019
Non-current deferred tax assets 1 |  | $ | 2.1 |  |  | $ | 3.8 |
Non-current deferred tax liabilities |  | (158.1) |  |  | (121.3) |
Net deferred tax liabilities |  | $ | (156.0) |  |  | $ | (117.5) |
1 Included in "Other assets, net" on our accompanying December 31, 2020 and 2019 Consolidated Balance Sheets. We have tax benefits associated with state jurisdictions totaling $8.8 million which expire between 2021 and 2039. We use the flow-through method to account for investment tax credits earned on eligible expenditures. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned. During 2020 and 2019, we recognized $0.3 million and $1.3 million related to energy investment tax credits. The following table provides a roll forward of our unrecognized tax benefits and associated interest and penalties.
(In millions) |  | Gross Unrecognized Tax Benefits, Excluding Interest and Penalties |  | Interest and Penalties |  | Total Gross Unrecognized Tax Benefits
Balance at December 31, 2018 |  | $ | 3.1 |  |  | $ | 0.3 |  |  | $ | 3.4 |
Change in prior year tax positions |  | 0.3 |  |  | 0.1 |  |  | 0.4 |
Change in current year tax positions |  | 0.3 |  |  | — |  |  | 0.3 |
Balance at December 31, 2019 |  | 3.7 |  |  | 0.4 |  |  | 4.1 |
Change in prior year tax positions |  | 2.0 |  |  | (0.1) |  |  | 1.9 |
Change in current year tax positions |  | 0.4 |  |  | — |  |  | 0.4 |
Balance at December 31, 2020 |  | $ | 6.1 |  |  | $ | 0.3 |  |  | $ | 6.4 |
Unrecognized tax benefits are included in our Consolidated Balance Sheets within the following line items:
|  | December 31,
(In millions) |  | 2020 |  | 2019
Receivables, net |  | $ | 0.4 |  |  | $ | — |
Deferred tax liabilities |  | 5.0 |  |  | 0.7 |
Other long-term obligations |  | 1.0 |  |  | 3.4 |
|  | $ | 6.4 |  |  | $ | 4.1 |
Unrecognized tax benefits net of related deferred tax assets at December 31, 2020, if recognized, would have favorably impacted our effective tax rate by decreasing our tax provision by $6.4 million. For each of the years ended December 31, 2019 and 2018, if recognized, the balance of unrecognized tax benefits would have favorably impacted our effective tax rate by $3.5 million and $2.8 million. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For each of the years ended December 31, 2020, 2019, and 2018, we accrued interest of less than $0.1 million each year in our income tax provision and no penalties in our income tax provision. We have operations in many states within the U.S. and are subject, at times, to tax audits in these jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2015. We expect that the outcome of any examination will not have a material effect on our consolidated financial statements. Although the timing of resolution of audits is not certain, we evaluate all audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimate that it is reasonably possible the total gross unrecognized tax benefits could decrease by approximately $1.5 million within the next 12 months.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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