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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income taxes from continuing operations have been based on the following components of earnings (loss) from continuing operations before income taxes and equity in (earnings) loss of unconsolidated entity for the years ended December 31, 2021 and 2020:
20212020
United States$52.4 $(108.8)
Foreign(5.4)2.7 
Total$47.0 $(106.1)

The components of income tax expense (benefit) from continuing operations for the years ended December 31, 2021, and 2020, were as follows:
20212020
Federal:
Current$0.9 $(47.3)
Deferred3.2 32.3 
State:
Current— (1.5)
Deferred— 17.0 
Foreign:
Current3.3 0.6 
Deferred2.1 (0.8)
Total income tax expense$9.5 $0.3 
The following table outlines the reconciliation of differences between the Federal statutory tax rate and the Company’s income tax expense (benefit) from continuing operations for the years ended December 31, 2021 and 2020:
20212020
Federal statutory rate$9.9 $(22.3)
Adjustment to valuation allowances(17.1)13.1 
Impairment on investment in Plural6.2 — 
Impact from foreign branches4.5 2.1 
Adjustment of deferred tax liabilities3.5 2.0 
Foreign rate differential(1.9)(1.3)
Adjustment of uncertain tax positions0.2 0.8 
State taxes, net of federal benefit(0.1)15.4 
Benefit of Net Operating Loss Carryback— (14.3)
Other4.3 4.8 
Income tax expense (benefit)$9.5 $0.3 

The $17.1 million adjustment to valuation allowance in 2021 primarily relates to releasing reserves related to deferred tax assets for net operating losses and interest limitation. The $13.1 million adjustment to valuation allowance in 2020 primarily relates to establishing reserves related to deferred tax assets for net operating losses, credits and interest limitation that were not expected to be realized in the future for federal income tax purposes. The $0.1 million effective rate reconciling item for State taxes, net of federal benefit, in 2021 includes a $4.8 million adjustment for partial release of valuation allowance reserves. The $15.4 million effective rate reconciling item for State taxes, net of federal benefit, in 2020 includes a $19.1 million adjustment to valuation allowance primarily related to net operating losses and credits that are not expected to be realized in the future for state income tax purposes.

On March 27, 2020, the United States government passed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES act”). This legislation included significant tax provisions and other measures to assist individuals and businesses impacted by the economic effects of the COVID-19 pandemic. The $14.3 million rate reconciling item for Benefit of Net Operating Loss Carryback in 2020, primarily relates to the provision from the CARES act allowing a net operating loss (“NOL”) generated in 2019 and 2020 to be carried back five years to years when the federal statutory tax rate was 35%. The amount of NOL available to be carried back was increased by other provisions in the CARES act that temporarily increased the amount of interest expense businesses were allowed to deduct in 2019 and 2020.
Deferred Income Taxes

The significant deferred tax assets and liabilities as of December 31, 2021 and 2020, were as follows:
20212020
Deferred tax assets:
Net operating loss and other tax carryforwards$125.2 $145.9 
Goodwill and intangible assets24.4 19.0 
Pension and workers compensation benefits21.9 33.2 
Accrued liabilities12.9 20.5 
Interest limitation11.5 18.2 
Accrued compensation8.1 10.1 
Allowance for doubtful accounts6.5 7.2 
Other10.8 9.8 
Total deferred tax assets221.3 263.9 
Valuation allowance(116.3)(143.9)
Net deferred tax assets$105.0 $120.0 
Deferred tax liabilities:
Property, plant and equipment$(99.2)$(103.8)
Other(5.9)(4.2)
Total deferred tax liabilities(105.1)(108.0)
Net deferred tax assets (liabilities)$(0.1)$12.0 

The Company has recorded deferred income tax liabilities of $11.9 million and $4.2 million as of December 31, 2021 and 2020, respectively, which were included in deferred income taxes in the consolidated balance sheets. The Company has also recorded deferred income tax assets of $11.8 million and $16.2 million as of December 31, 2021 and 2020, respectively, which were included in other long-term assets in the consolidated balance sheets.

At December 31, 2021, the Company had the following gross amounts of tax-related carryforwards:

•Net operating loss carryforwards of $46.5 million, $42.6 million and $612.1 million for federal, foreign and state, respectively. The federal net operating loss carryforward was generated in 2020 and is available without expiration. Of the foreign net operating loss carryforwards, $11.8 million is available without expiration, while the remainder expires through 2041. The state net operating loss carryforwards expire in varying amounts through 2041.

•Various credit carryforwards of $9.0 million, $26.5 million and $35.8 million for federal, foreign and state, respectively. The federal carryforward expires in 2040, the foreign credit carryforward expires in 2026, and the state credit carryforwards include $25.4 million that is available without expiration, while the remainder expires through 2041.
As of December 31, 2021, the Company has recorded a valuation allowance of $116.3 million on its consolidated balance sheet primarily related to the tax-affected amounts of the above carryforwards. The valuation allowance includes $6.4 million, $39.3 million and $70.6 million of federal, foreign and state deferred tax assets, respectively, that are not expected to be realized.

Uncertain Tax Positions

The following table summarizes the activity of the Company’s liability for unrecognized tax benefits at December 31, 2021 and 2020:
20212020
Balance at beginning of period$11.6 $17.8 
Additions for tax positions of prior years0.5 0.9 
Reductions for tax positions of prior years(0.3)(6.1)
Lapses of applicable statutes of limitations(0.1)(1.0)
Balance at end of period$11.7 $11.6 

As of December 31, 2021, $5.2 million of unrecognized tax benefits would impact the Company’s effective tax rate, if recognized. Of that amount, it is reasonably possible that $0.5 million of the total amount of unrecognized tax benefits will decrease within the next twelve months due to resolution of income tax audits or statute expirations.

The Company classified interest income and any related refunds related to income tax uncertainties as a component of income tax expense. The following table summarizes the Company’s interest income related to tax uncertainties and refunds recognized during the years ended December 31, 2021 and 2020:
20212020
Interest income$(0.5)$(0.3)
Refunds(0.1)— 

Accrued interest and penalties related to income tax uncertainties are reported as components of other current liabilities and other long-term liabilities in the consolidated balance sheets. The following table summarizes the Company’s liabilities for accrued interest and penalties related to income tax uncertainties at December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Accrued interestAccrued penaltiesAccrued interestAccrued penalties
Other current liabilities$— $— $0.5 $0.1 
Other long-term liabilities0.2 — 0.1 — 
Total liabilities$0.2 $— $0.6 $0.1 

The Company has tax years from 2013 through 2021 that remain open and subject to examination by the Internal Revenue Service. Tax years from 2013 through 2021 remain open and subject to examination in the Company’s various major state jurisdictions within the United States.

The Company’s practice and intention is to reinvest certain earnings of its non-U.S. subsidiaries in those operations. The Company has analyzed its global working capital and cash requirements and the potential tax liabilities attributable to repatriation of earnings, and has determined not to change its permanent reinvestment assertion. The Company does not have significant prior year untaxed, undistributed earnings from its foreign operations at
December 31, 2021, and the Company does not provide for, nor expect to incur, any significant, additional taxes which could become payable upon repatriation of such amounts.