Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of income tax benefit (expense)

	Year ended December 31,
	2022		2021		2020
	(in millions)
Current tax (expense) benefit
Federal	$	(16.1)	$	—	$	—
State		4.2		(1.6)		(1.9)
Total current tax		(11.9)		(1.6)		(1.9)
Deferred tax benefit (expense)
Federal		23.7		22.2		34.2
State		8.5		(6.8)		(1.7)
Total deferred tax		32.2		15.4		32.5
Income tax benefit	$	20.3	$	13.8	$	30.6

Schedule of reconciliation of income tax provision computed at statutory tax rates to effective tax rate

	Year ended December 31,
	2022		2021		2020
	(in millions)
Statutory federal income taxes	$	4.8	$	17.3	$	29.2
State income taxes		(0.3)		0.6		4.8
Tax status & tax rate change		(0.3)		0.1		0.8
Other true-ups		0.5		0.3		(2.5)
Equity compensation		2.9		3.8		(1.0)
Other permanent differences		(2.6)		(2.4)		(0.4)
Research and development tax credits		3.4		2.5		2.2
Uncertain tax positions		2.9		(0.1)		(0.2)
Change in valuation allowance		9.0		(8.3)		(2.3)
Income tax benefit	$	20.3	$	13.8	$	30.6

Schedule of components of deferred tax assets and deferred tax liabilities

	December 31,
	2022		2021
	(in millions)
Deferred tax assets
Allowances and other reserves	$	3.1	$	2.2
Net operating loss carryforwards		76.7		82.1
Capitalized research expenses(1)		24.7		—
Other		—		0.9
Total deferred tax assets		104.5		85.2
Less: valuation allowance		(26.6)		(35.5)
Deferred tax asset	$	77.9	$	49.7
Deferred tax liabilities
Depreciation and amortization	$	(149.1)	$	(145.8)
Franchise operating rights		(151.8)		(161.5)
Other		(2.3)		—
Total deferred tax liabilities		(303.2)		(307.3)
Net deferred tax liabilities	$	(225.3)	$	(257.6)

(1) Under the Tax Cut and Jobs Act of 2017, research and development costs are no longer fully deductible and are required to be capitalized and amortized for U.S tax purposes effective January 1, 2022. The mandatory capitalization requirement increases our deferred tax assets and cash tax liabilities.

Summary of changes in valuation allowance for deferred tax assets

	2022		2021		2020
	(in millions)
Balance at beginning of period	$	35.5	$	30.8	$	26.5
Additions charged to income tax expense and other accounts		0.3		6.6		4.3
Deductions from reserves		(9.2)		(1.9)		—
Balance at end of period	$	26.6	$	35.5	$	30.8

Schedule of reconciliation of unrecognized tax benefits

	Year ended December 31,
	2022		2021		2020
	(in millions)
Unrecognized tax benefits—January 1st	$	14.2	$	13.7	$	11.4
Gross increases—tax positions in prior period		0.1		—		0.7
Gross decreases—tax positions in prior period		(0.4)		(0.7)		—
Gross increases—tax positions in current period		1.0		1.2		1.6
Settlements		(2.7)		—		—
Unrecognized tax benefits—December 31st	$	12.2	$	14.2	$	13.7