Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Before Provision for Income Taxes and Equity Income
Income before provision for income taxes and equity income is comprised of the following:
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Domestic
$
69.6

 
$
77.4

 
$
40.8

Foreign
6.3

 
8.2

 
8.7

Total
$
75.9

 
$
85.6

 
$
49.5

Provision for Income Taxes
The provision for income taxes is summarized as follows:
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Current tax provision
 
 
 
 
 
U.S. federal
$
7.0

 
$
11.2

 
$
8.0

State and local
3.3

 
1.8

 
1.2

Foreign
1.7

 
2.9

 
2.8

Total current
12.0

 
15.9

 
12.0

Deferred tax provision
 
 
 
 
 
U.S. federal
3.9

 
16.7

 
4.1

State and local
1.3

 
1.6

 
0.8

Foreign
0.1

 
(0.3
)
 
(0.2
)
Total deferred
5.3

 
18.0

 
4.7

Total provision
$
17.3

 
$
33.9

 
$
16.7

Summary of Effective Income Tax Rate
The effective income tax rate differs from the amount determined by applying the applicable U.S. statutory federal income tax rate to pretax results primarily as a result of the following:
 
Year Ended December 31,
 
2018
 
2017
 
2016
Statutory provision rate
21.0
 %
 
35.0
 %
 
35.0
 %
Permanent differences and other items
 
 
 
 
 
State tax provision
4.3
 %
 
2.6
 %
 
2.4
 %
Section 199 manufacturing credit
 %
 
(2.6
)%
 
(2.0
)%
Incremental tax effects of foreign earnings
0.7
 %
 
(0.4
)%
 
(0.2
)%
Valuation allowance
(0.8
)%
 
 %
 
(2.0
)%
Stock compensation
0.4
 %
 
(3.2
)%
 
 %
Tax reform adjustment
 %
 
8.6
 %
 
 %
Return-to-provision adjustment
(2.5
)%
 
0.6
 %
 
0.3
 %
Other
(0.3
)%
 
(1.0
)%
 
0.2
 %
Effective income tax rate
22.8
 %
 
39.6
 %
 
33.7
 %
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are comprised of the following:
 
As of December 31,
(in millions)
2018
 
2017
Deferred tax assets
 
 
 
Inventory
$
26.2

 
$
27.9

Accounts receivable
1.0

 
1.4

UNICAP adjustment
2.0

 
1.9

Derivative contracts
1.5

 
0.3

Other
4.3

 
5.0

Valuation allowance

 
(0.6
)
Total deferred tax assets, net of valuation allowance
$
35.0

 
$
35.9

Deferred tax liabilities
 
 
 
Fixed assets and intangibles
$
21.0

 
$
16.8

Accruals and other reserves
0.2

 
0.2

Investments in foreign entities
1.5

 
1.3

Financing fees
1.0

 
1.5

Total deferred tax liabilities
23.7

 
19.8

Net deferred tax asset
$
11.3

 
$
16.1

Reconciliation of Summary of Activity of Uncertain Tax Positions
A reconciliation of the summary of activity of our uncertain tax positions is summarized as follows:
(in millions)
 
Balance at January 1, 2017
$
25.2

Additions for tax positions related to prior years

Reductions for tax positions related to prior years

Reductions due to tax settlements

Reductions due to tax statute of limitations

Balance at December 31, 2017
$
25.2

Additions for tax positions related to prior years

Reductions for tax positions related to prior years
(1.3
)
Reductions due to tax settlements

Reductions due to tax statute of limitations

Balance at December 31, 2018
$
23.9