Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

(Loss) income from continuing operations before income taxes

(Loss) income from continuing operations before income taxes for the periods presented below consisted of the following:


	Year Ended December 31,
	2020		2019		2018
	(Dollars in millions)
U.S.	$	(1,771.5)	$	(374.2)	$	(43.4)
Non-U.S.	(80.3)		231.9		707.5
Total	$	(1,851.8)	$	(142.3)	$	664.1

Components of income tax provision (benefit)

Total income tax provision for the periods presented below consisted of the following:


	Year Ended December 31,
	2020		2019		2018
	(Dollars in millions)
Current:
U.S. federal	$	(23.9)	$	(21.5)	$	(46.8)
Non-U.S.	2.4		28.4		29.8
State	1.7		(0.3)		(0.1)
Total current	(19.8)		6.6		(17.1)
Deferred:
U.S. federal	23.4		20.3		30.4
Non-U.S.	4.4		19.3		5.7
State	—		(0.2)		(0.6)
Total deferred	27.8		39.4		35.5
Total income tax provision	$	8.0	$	46.0	$	18.4

Reconciliation of the expected statutory federal income tax provision (benefit) to the Company's actual income tax provision

The following is a reconciliation of the expected statutory federal income tax (benefit) expense to the Company’s income tax provision for the periods presented below:


	Year Ended December 31,
	2020		2019		2018
	(Dollars in millions)
Expected income tax (benefit) expense at U.S. federal statutory rate	$	(388.9)	$	(29.9)	$	139.5
Changes in valuation allowance, income tax	410.1		(32.0)		(284.6)
Remeasurement due to the Tax Cuts and Jobs Act	—		—		9.5



Changes in tax reserves	(7.7)		3.0		2.1
Excess depletion	(14.5)		(19.3)		(28.5)
Foreign earnings repatriation	—		76.1		—
Foreign earnings provision differential	16.4		45.6		97.1
Global intangible low-taxed income	—		6.1		68.2


Remeasurement of foreign income tax accounts	2.9		(0.1)		(0.2)
State income taxes, net of federal tax benefit	(6.8)		(13.2)		3.2
Other, net	(3.5)		9.7		12.1
Total income tax provision	$	8.0	$	46.0	$	18.4

Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31, 2020 and 2019 consisted of the following:


	December 31,
	2020		2019
	(Dollars in millions)
Deferred tax assets:
Tax loss carryforwards and credits	$	1,377.4	$	1,530.9
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	573.7		276.6
Accrued postretirement benefit obligations	93.8		142.6
Asset retirement obligations	95.5		86.6

Employee benefits	22.8		25.3
Take-or-pay obligations	11.0		12.0

Investments and other assets	88.0		89.0
Workers’ compensation obligations	7.8		7.6
Operating lease liabilities	17.5		20.8
Other	24.1		16.7
Total gross deferred tax assets	2,311.6		2,208.1
Valuation allowance, income tax	(2,287.3)		(2,068.4)
Total deferred tax assets	24.3		139.7
Deferred tax liabilities:
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	36.2		100.9

Operating lease right-of-use assets	13.5		20.8
Coal supply agreements	3.1		3.1
Investments and other assets	1.6		15.4
Total deferred tax liabilities	54.4		140.2
Net deferred tax liability	$	(30.1)	$	(0.5)
Deferred taxes are classified as follows:

Noncurrent deferred income tax asset	$	4.9	$	28.3
Noncurrent deferred income tax liability	(35.0)		(28.8)
Net deferred tax liability	$	(30.1)	$	(0.5)

Summary of Income Tax Contingencies

Net unrecognized tax benefits (excluding interest and penalties) were recorded as follows in the consolidated balance sheets as of December 31, 2020 and 2019:


	December 31,
	2020		2019
	(Dollars in millions)
Deferred income taxes	$	7.8	$	15.5
Other noncurrent liabilities	1.3		1.0
Net unrecognized tax benefits	$	9.1	$	16.5
Gross unrecognized tax benefits	$	9.1	$	16.5

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for the periods presented below is as follows:


	Year Ended December 31,
	2020		2019		2018
	(Dollars in millions)
Balance at beginning of period	$	16.5	$	14.0	$	12.7
Additions for current year tax positions	1.9		2.2		1.8
(Reductions) additions for prior year tax positions	(9.3)		0.3		—
Reductions for settlements with tax authorities	—		—		(0.5)
Balance at end of period	$	9.1	$	16.5	$	14.0

Summary of Company tax (refunds) payments

The following table summarizes the Company’s income tax refunds, net for the periods presented below:


	Year Ended December 31,
	2020		2019		2018
	(Dollars in millions)
U.S. — federal	$	(44.6)	$	(45.7)	$	(103.1)
U.S. — state and local	1.6		0.3		(1.6)
Non-U.S.	3.1		36.3		40.7
Total income tax refunds, net	$	(39.9)	$	(9.1)	$	(64.0)