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Income Taxes
 12 Months Ended
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,
202220212020
Current
Federal$31.2 $1.3 $(17.4)
State3.8 0.7 1.8 
    Total current34.9 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,
202220212020
Tax at the statutory rate21.0 %21.0 %21.0 %
State and local taxes, net of federal income tax impact3.3 %(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 deduction93.6 %— %— %
Non-deductible expenses2.2 %(0.6)%2.3 %
Change in valuation allowances1
8.1 %0.1 %0.1 %
Other, net0.8 %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:
20222021
Deferred tax assets:
Employee benefits$3.2 $3.4 
Postretirement employee benefits12.9 18.5 
Incentive compensation3.5 6.6 
Inventories2.2 0.2 
Pensions0.9 — 
Federal and state credit carryforwards10.1 13.5 
Federal and state net operating losses3.3 4.1 
Operating leases12.0 15.2 
Other1.5 — 
Total deferred tax assets49.6 61.5 
Valuation allowance(10.8)(5.4)
Deferred tax assets, net of valuation allowance38.8 56.1 
Deferred tax liabilities:
Property, plant and equipment, net(168.3)(185.5)
Operating leases(10.8)(13.8)
Pensions— (1.5)
Intangible assets, net(1.8)(2.3)
Other— (0.6)
Total deferred tax liabilities(180.9)(203.7)
Net deferred tax liabilities$(142.1)$(147.6)
Net deferred tax assets (liabilities) consist of:
December 31,
20222021
Non-current deferred tax assets1
$0.6 $2.2 
Non-current deferred tax liabilities(142.7)(149.9)
Net deferred tax liabilities$(142.1)$(147.6)
1Included 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,
202220212020
Beginning balance$5.9 $6.4 $4.1 
Increases:
Tax position taken in current year68.6 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.