Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense From Continuing Operations

The components of the Company’s income tax expense from continuing operations are as follows:

years ended December 31 (in millions)	2022		2021		2020
Federal income taxes:
Current	$	174.9	$	66.3	$	91.9
Deferred		18.0		61.4		45.4
Total federal income taxes		192.9		127.7		137.3
State income taxes:
Current		35.1		18.7		21.0
Deferred		5.3		6.5		8.7
Total state income taxes		40.4		25.2		29.7
Foreign income taxes:
Current		1.2		—		1.2
Deferred		0.3		0.3		—
Total foreign income taxes		1.5		0.3		1.2
Income tax expense	$	234.8	$	153.2	$	168.2

Summary of Effective Income Tax Rate On Continuing Operations

The Company’s effective income tax rate on continuing operations varied from the statutory United States income tax rate because of the following tax differences:

years ended December 31	2022			2021			2020
Statutory income tax rate		21.0	%		21.0	%		21.0	%
(Reduction) increase resulting from:
Effect of statutory depletion		(2.4	)		(3.5	)		(2.8	)
State income taxes, net of federal tax benefit		2.9			2.3			2.6
Federal tax credits		(0.9	)		(1.4	)		(1.3	)
Other items		0.9			(0.5	)		(0.6	)
Effective income tax rate		21.5	%		17.9	%		18.9	%

The higher 2022 effective tax rate versus 2021 and 2020 was primarily driven by the impact of the divestiture of the Colorado and Central Texas ready mixed concrete businesses.

Components of Deferred Tax Assets and Liabilities

The principal components of the Company’s deferred tax assets and liabilities are as follows:

December 31	Deferred Assets (Liabilities)
(in millions)	2022			2021
Deferred tax assets related to:
Inventories	$	85.5		$	100.2
Valuation and other reserves		30.9			23.3
Net operating loss carryforwards		3.6			2.6
Accumulated other comprehensive loss		50.1			69.7
Lease liabilities		139.6			150.1
Other items, net		1.9			2.2
Gross deferred tax assets		311.6			348.1
Valuation allowance on deferred tax assets		(2.6	)		(2.8	)
Total net deferred tax assets		309.0			345.3
Deferred tax liabilities related to:
Property, plant and equipment		(843.8	)		(840.6	)
Goodwill and other intangibles		(143.9	)		(160.2	)
Right-of-use assets		(140.8	)		(155.2	)
Partnerships and joint ventures		(32.5	)		(29.1	)
Employee benefits		(62.3	)		(55.5	)
Total deferred tax liabilities		(1,223.3	)		(1,240.6	)
Deferred income taxes, net	$	(914.3	)	$	(895.3	)

Schedule of Unrecognized Tax Benefits Excluding Interest Correlative Effects

The following table summarizes the Company’s unrecognized tax benefits, excluding interest and correlative effects of $0.2 million for the years ended December 31, 2022, 2021 and 2020:

years ended December 31 (in millions)	2022			2021			2020
Unrecognized tax benefits at beginning of year	$	5.4		$	8.2		$	25.5
Gross increases – tax positions in prior years		—			0.5			0.2
Gross decreases – tax positions in prior years		—			—			—
Gross increases – tax positions in current year		0.2			0.1			0.1
Gross decreases – tax positions in current year		—			—			(0.2	)
Lapse of statute of limitations		(2.0	)		(3.4	)		(17.4	)
Unrecognized tax benefits at end of year	$	3.6		$	5.4		$	8.2
Amount that, if recognized, would favorably impact    the effective tax rate	$	3.7		$	5.5		$	6.4