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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes INCOME TAX PROVISION (BENEFIT) The components of income tax provision (benefit) is comprised of the following:
| For The Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal | $ | 31.2 |  |  | $ | 1.3 |  |  | $ | (17.4) |
State | 3.8 |  |  | 0.7 |  |  | 1.8 |
Total current | 34.9 |  |  | 2.0 |  |  | (15.6) |
Deferred |  |  |  |  |
Federal | (7.6) |  |  | (8.8) |  |  | 32.5 |
State | (0.3) |  |  | (0.9) |  |  | 4.2 |
Total deferred | (7.9) |  |  | (9.7) |  |  | 36.7 |
Income tax provision (benefit) | $ | 27.0 |  |  | $ | (7.7) |  |  | $ | 21.1 |
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,
|  | 2022 |  | 2021 |  | 2020
Tax at the statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local taxes, net of federal income tax impact |  | 3.3 | % |  | (0.5) | % |  | 5.7 | %
Adjustment for state deferred tax rate 1 |  | (7.8) | % |  | 1.2 | % |  | (0.3) | %
CARES Act net operating loss carryback |  | — | % |  | — | % |  | (7.1) | %
Federal credits 2 |  | 10.1 | % |  | (0.2) | % |  | (1.3) | %
Uncertain tax positions |  | (0.8) | % |  | 0.5 | % |  | 2.2 | %
Worthless stock deduction |  | (93.6) | % |  | — | % |  | — | %
Uncertain tax position - worthless stock deduction |  | 93.6 | % |  | — | % |  | — | %
Non-deductible expenses |  | 2.2 | % |  | (0.6) | % |  | 2.3 | %
Change in valuation allowances 1 |  | 8.1 | % |  | 0.1 | % |  | 0.1 | %
Other, net |  | 0.8 | % |  | 0.2 | % |  | (1.1) | %
Income tax provision (benefit) |  | 37.0 | % |  | 21.6 | % |  | 21.5 | %
1 In 2022, Idaho revised their state income tax rate. Given our expected utilization, we recorded an offset to our valuation allowances for the amount of this reduction. 2 In 2022, we adjusted our tax positions under audit related to the disallowance of a previously taken federal tax credits based upon interpretation of the law. DEFERRED TAXES The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:
| 2022 |  | 2021
Deferred tax assets: |  |  |
Employee benefits | $ | 3.2 |  |  | $ | 3.4 |
Postretirement employee benefits | 12.9 |  |  | 18.5 |
Incentive compensation | 3.5 |  |  | 6.6 |
Inventories | 2.2 |  |  | 0.2 |
Pensions | 0.9 |  |  | — |
Federal and state credit carryforwards | 10.1 |  |  | 13.5 |
Federal and state net operating losses | 3.3 |  |  | 4.1 |
Operating leases | 12.0 |  |  | 15.2 |
Other | 1.5 |  |  | — |
Total deferred tax assets | 49.6 |  |  | 61.5 |
Valuation allowance | (10.8) |  |  | (5.4) |
Deferred tax assets, net of valuation allowance | 38.8 |  |  | 56.1 |
Deferred tax liabilities: |  |  |
Property, plant and equipment, net | (168.3) |  |  | (185.5) |
Operating leases | (10.8) |  |  | (13.8) |
Pensions | — |  |  | (1.5) |
Intangible assets, net | (1.8) |  |  | (2.3) |
Other | — |  |  | (0.6) |
Total deferred tax liabilities | (180.9) |  |  | (203.7) |
Net deferred tax liabilities | $ | (142.1) |  |  | $ | (147.6) |
Net deferred tax assets (liabilities) consist of:
| December 31,
| 2022 |  | 2021
Non-current deferred tax assets 1 | $ | 0.6 |  |  | $ | 2.2 |
Non-current deferred tax liabilities | (142.7) |  |  | (149.9) |
Net deferred tax liabilities | $ | (142.1) |  |  | $ | (147.6) |
1 Included in "Other assets, net" on our accompanying December 31, 2022 and 2021 Consolidated Balance Sheets. We have tax benefits associated with state jurisdictions totaling $2.7 million which expire between 2023 and 2042. UNCERTAIN TAX POSITIONS The following table provides a roll forward of our unrecognized tax benefits and associated interest and penalties.
| For The Years Ended December 31,
| 2022 | 2021 | 2020
Beginning balance | $ | 5.9 |  | $ | 6.4 |  | $ | 4.1 |
Increases: |  |  |
Tax position taken in current year | 68.6 |  | 0.2 |  | 0.4 |
Tax position taken in prior years | (0.1) |  | (0.7) |  | 1.9 |
Decreases: |  |  |
Settlements during the year | (3.1) |  | — |  | — |
Lapse of statues in current year | (0.9) |  | — |  | — |
Ending balance | $ | 70.4 |  | $ | 5.9 |  | $ | 6.4 |
Unrecognized tax benefits net of related deferred tax assets at December 31, 2022, if recognized, would have favorably impacted our effective tax rate by decreasing our tax provision by $70.0 million while the remaining $0.4 million is not expected to have a rate impact if recognized. We reflect accrued interest related to tax obligations, as well as penalties, in our provision for income taxes. For years ended December 31, 2022, 2021, and 2020, we accrued interest of less than $0.4 million each year in our income tax provision and no penalties in our income tax provision. During 2022, we ceased operations in our wholly owned subsidiary, Cellu Tissue Holdings, Inc. and recorded a $68.4 million reserve for an estimated uncertain tax position relating to a worthless stock deduction for our investment. We have requested a ruling from the IRS in connection with the worthless stock deduction and expect a determination in 2023. It is reasonably possible that a decrease of $68.4 million in unrecognized tax benefits may occur within the next twelve months related to a favorable ruling. We have operations in many states within the U.S. and are subject, at times, to tax audits in these jurisdictions. During 2022, we effectively settled federal tax years 2015 through 2019, however such years remain subject to exam until the U.S. federal exam is formally closed. With a few exceptions, we are no longer subject to state and local tax examination for years prior to 2018.

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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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