Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The components of income tax provision (benefit) from continuing operations is comprised of the following:


	For The Years Ended December 31,
	2024		2023		2022
Current
Federal	$	(73.9)	$	17.4	$	19.8
State	(1.1)		3.0		1.9

Total current	(75.0)		20.5		21.7
Deferred
Federal	50.9		(3.7)		3.2
State	(3.0)		0.1		4.3

Total deferred	47.9		(3.6)		7.5
Income tax provision (benefit)	$	(27.1)	$	16.9	$	29.2

Income Tax Reconciliation

The income tax provision (benefit) from continuing operations differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes due to the following:


	For The Years Ended December 31,
	2024		%		2023		%		2022		%
Tax at the statutory rate	$	(21.2)	21.0	%	$	13.8	21.0	%	$	17.2	21.0	%

State and local taxes, net of federal income tax impact	(4.5)		4.5	%	2.6		4.0	%	3.2		3.9	%
Adjustment for state deferred tax rate 1	(0.1)		0.1	%	(0.2)		(0.2)	%	(4.7)		(5.7)	%

Federal credits 2	(3.0)		3.0	%	(1.0)		(1.6)	%	7.5		9.2	%
Uncertain tax positions	0.1		(0.1)	%	2.2		3.3	%	(0.6)		(0.7)	%

Non-deductible expenses	0.7		(0.7)	%	1.3		1.9	%	1.6		1.9	%
Change in valuation allowances1	0.4		(0.4)	%	(0.7)		(1.1)	%	4.2		5.1	%
Other, net	0.6		(0.6)	%	(1.0)		(1.5)	%	0.6		0.8	%
Income tax provision (benefit)	$	(27.1)	26.8	%	$	16.9	25.8	%	$	29.2	35.5	%

1 In 2022, Idaho revised their state income tax rate. Given our expected utilization, we recorded an offset to our valuation allowances for the amount of this reduction.

2 In 2022, we adjusted our tax positions under audit related to the disallowance of a previously taken federal tax credits

based upon interpretation of the law.

Tax Effects of Significant Temporary Differences Creating Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences creating deferred tax assets and liabilities at December 31 were:


	2024		2023
Deferred tax assets:
Employee benefits	$	2.2	$	2.1
Postretirement employee benefits	11.4		13.0
Incentive compensation	2.6		3.7
Inventories	5.2		0.9
Pensions	0.9		—
Federal and state credit carryforwards	9.6		8.6
Federal and state net operating losses	1.0		1.4
Operating leases	6.9		8.1
Capitalized research credits	10.7		4.4
Other	1.7		—
Total deferred tax assets	52.1		42.2
Valuation allowance	(8.0)		(7.6)
Deferred tax assets, net of valuation allowance	44.2		34.6
Deferred tax liabilities:
Property, plant and equipment, net	(124.6)		(59.0)
Operating leases	(6.8)		(7.9)
Pensions	—		(0.5)
Intangible assets, net	—		(1.3)
Other	(0.7)		(1.2)
Total deferred tax liabilities	(132.1)		(69.8)
Net deferred tax liabilities	$	(88.0)	$	(35.2)

Net deferred tax assets (liabilities) consist of:


	December 31,
	2024		2023



Non-current deferred tax assets1	$	1.7	$	0.8
Non-current deferred tax liabilities	(89.7)		(36.0)

Net deferred tax liabilities	$	(88.0)	$	(35.2)

1Included in "Other assets, net" on our accompanying December 31, 2024 and 2023 Consolidated Balance Sheets.

Schedule of Unrecognized Tax Benefits Roll Forward


	For The Years Ended December 31,
	2024		2023		2022
Beginning balance	$	80.9	$	70.4	$	5.9
Increases:
Tax position taken in current year	0.9		0.4		68.6
Tax position taken in prior years	—		10.4		(0.1)
Decreases:
Settlements during the year	—		(0.3)		(3.1)
Tax position taken in prior years	(78.4)		—		—
Lapse of statutes in current year	(1.0)		—		(0.9)
Ending balance	$	2.4	$	80.9	$	70.4

Clearwater Paper Corp 10-K