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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of the income tax provision from continuing operations for the years ended December 31 are as follows:
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | 86.0 |  |  | $ | 93.0 |  |  | $ | 190.6 |
State | 29.4 |  |  | 26.8 |  |  | 29.4 |
Federal and state deferred | 45.8 |  |  | 10.9 |  |  | (22.1 | )
Change in valuation allowance, net | 0.2 |  |  | 3.5 |  |  | 3.3 |
Adjustments and settlements | 0.4 |  |  | (0.7 | ) |  | 0.3 |
Income tax provision | $ | 161.8 |  |  | $ | 133.5 |  |  | $ | 201.5 |
A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows:
| 2019 |  | % |  | 2018 |  | % |  | 2017 |  | %
Income tax provision at statutory rate | $ | 128.7 |  |  | 21.0 |  |  | $ | 111.2 |  |  | 21.0 |  |  | $ | 222.8 |  |  | 35.0 |
Non-deductible expenses, net | 10.3 |  |  | 1.7 |  |  | 4.9 |  |  | 0.9 |  |  | 5.9 |  |  | 0.9 |
State income taxes, net of federal benefit | 25.7 |  |  | 4.2 |  |  | 22.8 |  |  | 4.3 |  |  | 19.7 |  |  | 3.1 |
| 164.7 |  |  | 26.9 |  |  | 138.9 |  |  | 26.2 |  |  | 248.4 |  |  | 39.0 |
Change in tax rate | — |  |  | — |  |  | (5.0 | ) |  | (0.9 | ) |  | (44.2 | ) |  | (6.9 | )
Change in valuation allowance, net | 0.2 |  |  | — |  |  | 3.5 |  |  | 0.7 |  |  | 3.3 |  |  | 0.5 |
Adjustments and settlements | 0.4 |  |  | 0.1 |  |  | (0.7 | ) |  | (0.1 | ) |  | 0.3 |  |  | 0.1 |
Federal and state tax credits | (0.9 | ) |  | (0.2 | ) |  | (1.0 | ) |  | (0.2 | ) |  | (3.7 | ) |  | (0.6 | )
Other, net | (2.6 | ) |  | (0.4 | ) |  | (2.2 | ) |  | (0.5 | ) |  | (2.6 | ) |  | (0.4 | )
Income tax provision | $ | 161.8 |  |  | 26.4 |  |  | $ | 133.5 |  |  | 25.2 |  |  | $ | 201.5 |  |  | 31.7 |
Deferred income tax asset and liability components at December 31 are as follows:
| 2019 |  | 2018
Deferred income tax assets: |  |  |
Inventory | $ | 25.7 |  |  | $ | 23.3 |
Receivable allowances | 0.2 |  |  | 1.4 |
Warranty, chargeback, and self-insurance liabilities | 50.7 |  |  | 48.4 |
Other accrued liabilities | 27.7 |  |  | 30.0 |
Deferred compensation | 20.9 |  |  | 19.0 |
Stock-based compensation | 14.9 |  |  | 21.2 |
Loss carryforwards—federal and state | 6.8 |  |  | 7.0 |
Other, net | 9.5 |  |  | 8.8 |
Total deferred income tax assets | 156.4 |  |  | 159.1 |
Valuation allowance | (4.5 | ) |  | (8.9 | )
Deferred income tax assets, net of valuation allowance | 151.9 |  |  | 150.2 |
Deferred income tax liabilities: |  |  |
Long-lived assets (intangible assets and property) | (269.6 | ) |  | (225.1 | )
Other, net | (17.4 | ) |  | (14.9 | )
Total deferred income tax liabilities | (287.0 | ) |  | (240.0 | )
Net deferred income tax liabilities | $ | (135.1 | ) |  | $ | (89.8 | )
Our net deferred tax liability of $135.1 million as of December 31, 2019 and $89.8 million as of December 31, 2018 is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. Income taxes receivables included in Receivables, net totaled $1.5 million at December 31, 2019 and $8.1 million at December 31, 2018. At December 31, 2019, we had $96.6 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $2.9 million of state tax credits, all of which result in a deferred tax asset of $6.8 million and expire from 2020 through 2039. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. At December 31, 2019, we had $4.5 million of valuation allowance related to state net operating loss carryforwards. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2014 to 2017 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2019 |  | 2018 |  | 2017
Balance at January 1 | $ | 4.3 |  |  | $ | 6.4 |  |  | $ | 5.8 |
Additions based on tax positions related to the current year | — |  |  | — |  |  | — |
Additions for tax positions of prior years | 1.4 |  |  | 0.6 |  |  | 0.8 |
Reductions for tax positions of prior years | — |  |  | — |  |  | — |
Reductions for expirations of statute of limitations | (0.4 | ) |  | (0.9 | ) |  | (0.2 | )
Settlements | — |  |  | (1.8 | ) |  | — |
Balance at December 31 | $ | 5.3 |  |  | $ | 4.3 |  |  | $ | 6.4 |
We had accumulated interest and penalties associated with these unrecognized tax benefits of $7.5 million at December 31, 2019, $6.6 million at December 31, 2018, and $6.8 million at December 31, 2017. We additionally had a deferred tax asset of $2.8 million at December 31, 2019, $2.4 million at December 31, 2018, and $2.8 million at December 31, 2017, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $10.0 million at December 31, 2019, $8.5 million at December 31, 2018, and $10.4 million at December 31, 2017, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets. It is our policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.7 million during 2019, $0.6 million during 2018, and $0.4 million during 2017 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income. We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2020. Tax Reform On December 22, 2017, H.R. 1 formerly known as the “Tax Cuts and Jobs Act,” was enacted into law. This new tax legislation, among other things, reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. At December 31, 2017, we made a reasonable estimate of the effects of the new tax legislation on our deferred tax balances and recognized a provisional benefit of $41.3 million. As of December 31, 2018, we completed our accounting for the tax effects of the new tax legislation. In 2018, and in preparation of our federal and state income tax returns, we refined our calculations remeasuring deferred tax assets and liabilities and recorded a $5.0 million reduction to income tax expense related to our provisional estimate recorded as of December 31, 2017. The reduction was recorded as a component of income tax expense from continuing operations and had an impact of 0.9 percentage points on our effective income tax rate for the full year 2018.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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