Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income (loss) from continuing operations before income taxes

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


	Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
U.S.	$	(55.0)	$	(1,771.5)	$	(374.2)
Non-U.S.	425.2		(80.3)		231.9
Total	$	370.2	$	(1,851.8)	$	(142.3)

Components of income tax provision (benefit)

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


	Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Current:
U.S. federal	$	(0.5)	$	(23.9)	$	(21.5)
Non-U.S.	30.8		2.4		28.4
State	—		1.7		(0.3)
Total current	30.3		(19.8)		6.6
Deferred:
U.S. federal	—		23.4		20.3
Non-U.S.	(7.5)		4.4		19.3
State	—		—		(0.2)
Total deferred	(7.5)		27.8		39.4
Total income tax provision	$	22.8	$	8.0	$	46.0

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 expense (benefit) to the Company’s income tax provision for the periods presented below:


	Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
Expected income tax expense (benefit) at U.S. federal statutory rate	$	77.7	$	(388.9)	$	(29.9)
Changes in valuation allowance, income tax	(101.3)		410.1		(32.0)


Changes in tax reserves	1.9		(7.7)		3.0
Excess depletion	(13.7)		(14.5)		(19.3)
Foreign earnings repatriation	—		—		76.1
Foreign earnings provision differential	17.3		16.4		45.6
Global intangible low-taxed income	67.0		—		6.1
Tax credits	(26.5)		—		—
Remeasurement of foreign income tax accounts	(1.8)		2.9		(0.1)
State income taxes, net of federal tax benefit	(1.1)		(6.8)		(13.2)
Other, net	3.3		(3.5)		9.7
Total income tax provision	$	22.8	$	8.0	$	46.0

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, 2021 and 2020 consisted of the following:


	December 31,
	2021		2020
	(Dollars in millions)
Deferred tax assets:
Tax loss carryforwards and credits	$	1,267.6	$	1,377.4
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	571.9		573.7
Accrued postretirement benefit obligations	48.9		93.8
Asset retirement obligations	91.4		95.5

Employee benefits	19.9		22.8
Take-or-pay obligations	9.5		11.0
Hedge activities	36.8		2.4
Interest limitation	7.9		—
Investments and other assets	81.8		88.0
Workers’ compensation obligations	7.2		7.8
Operating lease liabilities	11.3		17.5
Other	22.7		21.7
Total gross deferred tax assets	2,176.9		2,311.6
Valuation allowance, income tax	(2,120.8)		(2,287.3)
Total deferred tax assets	56.1		24.3
Deferred tax liabilities:
Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments	66.4		36.2
Operating lease right-of-use assets	9.4		13.5

Investments and other assets	7.6		4.7
Total deferred tax liabilities	83.4		54.4
Net deferred tax liability	$	(27.3)	$	(30.1)
Deferred taxes are classified as follows:

Noncurrent deferred income tax asset	$	—	$	4.9
Noncurrent deferred income tax liability	(27.3)		(35.0)
Net deferred tax liability	$	(27.3)	$	(30.1)

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, 2021 and 2020:


	December 31,
	2021		2020
	(Dollars in millions)
Deferred income taxes	$	9.7	$	7.8
Other noncurrent liabilities	1.3		1.3
Net unrecognized tax benefits	$	11.0	$	9.1
Gross unrecognized tax benefits	$	11.0	$	9.1

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,
	2021		2020		2019
	(Dollars in millions)
Balance at beginning of period	$	9.1	$	16.5	$	14.0
Additions for current year tax positions	3.0		1.9		2.2
(Reductions) additions for prior year tax positions	(1.1)		(9.3)		0.3

Balance at end of period	$	11.0	$	9.1	$	16.5

Summary of Company tax (refunds) payments

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


	Year Ended December 31,
	2021		2020		2019
	(Dollars in millions)
U.S. — federal	$	(1.3)	$	(44.6)	$	(45.7)
U.S. — state and local	—		1.6		0.3
Non-U.S.	12.9		3.1		36.3
Total income tax payments (refunds), net	$	11.6	$	(39.9)	$	(9.1)