INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income taxes attributable to continuing operations consist of the following (amounts in millions):



	For the Years Ended December 31,
	2018		2017			2016
Current income tax expense/(benefit):
Federal	$	16.4	$	(2.0	)	$	(0.5	)
State and local	2.1		(0.1		)	(0.1		)
	18.5		(2.1		)	(0.6		)
Deferred income tax expense/(benefit):
Federal	14.5		51.2			22.1
State and local	5.8		1.0			2.4
	20.3		52.2			24.5
Income tax expense	$	38.8	$	50.1		$	23.9

Total income tax expense for the years ended December 31, 2018, 2017 and 2016 was allocated as follows (amounts in millions):



	For the Years Ended December 31,
	2018		2017			2016
Income from continuing operations	$	38.8	$	50.1		$	23.9
Interest expense	0.1		—			(0.1		)
Stockholders’ equity	—		(0.3		)	(7.2		)
	$	38.9	$	49.8		$	16.6

Schedule of Sources of Tax Effects

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent in 2018 and 35 percent in 2017 and 2016 to income before taxes is as follows:



	For the Years Ended December 31,
	2018		2017		2016
Income tax expense at U.S. federal statutory rate (1)	21.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefit	4.8		3.8		4.8
Excess tax benefits from share-based compensation (2)	(1.6	)	(3.5	)	—
Tax rate change (3)	—		26.5		—
Other items, net (4)	0.2		0.2		(0.9	)
Income tax expense/(benefit)	24.4	%	62.0	%	38.9	%


(1)	On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act was enacted, which eliminated the progressive U.S. federal corporate tax rate structure with a maximum corporate tax rate of 35% and replaced it with a flat tax rate of 21%, effective January 1, 2018.

(2)

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified the accounting for share-based payment award transactions, including income tax consequences. The new guidelines required excess tax benefits and tax deficiencies to be recorded in the income statement when stock awards vest or are settled. As a result, the Company recognized a $2.5 million and $2.9 million federal income tax benefit in the consolidated statement of operations (rather than additional paid-in capital) for the years ended December 31, 2018 and December 31, 2017, respectively, from share-based compensation excess tax benefits.

(3)

According to Accounting Standard Codification ("ASC") 740, Income Taxes, deferred tax assets and liabilities are remeasured to reflect the effects of enacted changes in tax rates at the date of enactment, even though the tax rate changes are not effective until a future period. The Company's remeasurement of its deferred tax assets and liabilities to reflect the enacted reduced tax rate, pursuant to the Tax Cuts and Jobs Act, resulted in a $21.4 million deferred income tax expense during the three-month period ended December 31, 2017.


(4)	Includes various items such as, non-deductible expenses, non-taxable income, tax credits, valuation allowance, uncertain tax positions and return-to-accrual adjustments.

Schedule of Net Deferred Tax Assets

Deferred tax assets (liabilities) consist of the following components (amounts in millions):



	As of December 31,
	2018			2017 (1)
Deferred tax assets:
Allowance for doubtful accounts	$	5.6		$	5.3
Accrued payroll & employee benefits	11.2			9.0
Workers’ compensation	8.3			7.9
Amortization of intangible assets	14.7			26.0
Share-based compensation	6.9			6.1
Net operating loss carryforwards (2)	5.9			20.1
Tax credit carryforwards (3)	2.8			4.6
Other	2.9			2.4
Gross deferred tax assets	58.3			81.4
Less: valuation allowance	(0.7		)	(0.7		)
Net deferred tax assets	57.6			80.7
Deferred tax (liabilities):
Property and equipment	(4.4		)	(4.0		)
Deferred revenue	(13.5		)	(18.0		)
Investment in partnerships	(3.1		)	(2.1		)
Other liabilities	(0.8		)	(0.5		)
Gross deferred tax liabilities	(21.8		)	(24.6		)
Net deferred tax assets (liabilities)	$	35.8		$	56.1

(1)

According to ASC 740, Income Taxes, deferred tax assets and liabilities are remeasured to reflect the effects of enacted changes in tax rates at the date of enactment, even though the tax rate changes are not effective until a future period. The Company's remeasurement of its deferred tax assets and liabilities to reflect the enacted reduced tax rate, pursuant to the Tax Cuts and Jobs Act, resulted in a $21.4 million deferred income tax expense during the three-month period ended December 31, 2017.

(2)

According to ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an unrecognized tax benefit is presented in the financial statements as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available to settle taxes that would result from the disallowance of the tax position. Otherwise, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional incomes taxes that would result from the disallowance of a tax position, the unrecognized tax benefit is presented in the financial statements as a liability and is not combined with deferred tax assets. As of December 31, 2017, the net operating loss (“NOL”) carryforwards in the income tax returns include unrecognized tax benefits resulting from uncertain tax positions. Accordingly, the deferred tax assets recognized for the NOL carryforwards, as of December 31, 2017, were presented net of unrecognized tax benefits of $2.1 million. As of December 31, 2018, however, the unrecognized tax benefits of $2.1 million were reclassified to other long-term obligations, since the Company utilized its remaining federal NOL carryforward and much of its remaining state NOL carryforwards in 2018.

(3)

According to ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an unrecognized tax benefit is presented in the financial statements as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is available to settle taxes that would result from the disallowance of the tax position. Otherwise, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional incomes taxes that would result from the disallowance of a tax position, the unrecognized tax benefit is presented in the financial statements as a liability and is not combined with deferred tax assets. As of December 31, 2017, the tax credit carryforwards in the income tax returns include unrecognized tax benefits resulting from uncertain tax positions. Accordingly, the deferred tax assets recognized for the tax credit carryforwards, as of December 31, 2017, were presented net of unrecognized tax benefits of $0.7 million. As of December 31, 2018

Schedule of Uncertain Tax Positions

Uncertain Tax Positions

We account for uncertain tax positions in accordance with the authoritative guidance for uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (amounts in millions):



	For the Years Ended December 31,
	2018		2017
Balance at beginning of period	$	2.7	$	4.1
Additions for tax positions related to current year	—		—
Additions for tax positions related to prior year	—		—
Reductions for tax positions related to prior years	—		—
Lapse of statute of limitations	—		(0.3		)
Change in statutory tax rate (1)	—		(1.1		)
Settlements	—		—
Balance at end of period	$	2.7	$	2.7

(1) The Company's remeasurement of its deferred tax assets and liabilities to reflect the enacted reduced tax rate as a result of the recent tax reform resulted in a $1.1 million reduction in its uncertain tax positions recorded in net deferred tax assets at December 31, 2017.