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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Reconciliations of statutory U.S. federal income tax rates to our effective tax rate | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow:
|  | Years Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State tax, net of federal benefit |  | 2.9 |  |  | 3.9 |  |  | 3.8 |
Business tax credits |  | (2.2) |  |  | (3.5) |  |  | (0.5) |
Reverse federal impact of indemnification adjustments |  | 0.2 |  |  | 0.3 |  |  | 3.5 |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit |  | 0.7 |  |  | (0.1) |  |  | (15.9) |
Other, net |  | 1.1 |  |  | 0.7 |  |  | 1.0 |
Effective tax rate |  | 23.7 | % |  | 22.3 | % |  | 12.9 | %
Components of provision for income tax expense (benefit) | Income tax expense consists of:
|  | December 31,
|  | 2020 |  | 2019 |  | 2018
Current provision: |  |  |  |  |  |
Federal |  | $ | 172,153 |  |  | $ | 150,800 |  |  | $ | 102,516 |
State |  | 28,387 |  |  | 24,378 |  |  | 32,638 |
Total current provision |  | 200,540 |  |  | 175,178 |  |  | 135,154 |
Deferred benefit: |  |  |  |  |  |
Federal |  | 58,003 |  |  | (8,240) |  |  | (57,076) |
State |  | 14,773 |  |  | (1,474) |  |  | (6,225) |
Total deferred benefit |  | 72,776 |  |  | (9,714) |  |  | (63,301) |
Provision for income tax expense |  | $ | 273,316 |  |  | $ | 165,464 |  |  | $ | 71,853 |
Schedule of deferred tax assets and liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below.
|  | December 31,
|  | 2020 |  | 2019
Deferred tax assets: |  |  |  |
Loan reserves |  | $ | 356,296 |  |  | $ | 109,369 |
Stock-based compensation plans |  | 10,914 |  |  | 10,022 |
Deferred revenue |  | 1,441 |  |  | 1,017 |
Operating loss carryovers |  | 83 |  |  | — |
Accrued expenses not currently deductible |  | 13,139 |  |  | 12,599 |
Net unrealized losses |  | 9,047 |  |  | 2,124 |
Unrecorded tax benefits |  | 6,997 |  |  | 6,049 |
Market value adjustments on student loans, investments and derivatives |  | — |  |  | — |
Other |  | 1,003 |  |  | 874 |
Total deferred tax assets |  | 398,920 |  |  | 142,054 |
Deferred tax liabilities: |  |  |  |
Fixed assets |  | 11,098 |  |  | 10,475 |
Acquired intangible assets |  | 7,767 |  |  | 5,453 |
Market value adjustments on student loans, investments and derivatives |  | 5,651 |  |  | 3,175 |
Net unrealized gains |  | — |  |  | — |
Federal deferred for state receivable |  | 7,456 |  |  | 5,368 |
Student loan premiums and discounts, net |  | 11,336 |  |  | 3,398 |
Other |  | 307 |  |  | 285 |
Total deferred tax liabilities |  | 43,615 |  |  | 28,154 |
Net deferred tax assets |  | $ | 355,305 |  |  | $ | 113,900 |
Summary of changes in unrecognized tax benefits | The following table summarizes changes in unrecognized tax benefits:
|  | December 31,
|  | 2020 |  | 2019 |  | 2018
Unrecognized tax benefits at beginning of year |  | $ | 53,509 |  |  | $ | 52,159 |  |  | $ | 131,608 |
Increases resulting from tax positions taken during a prior period |  | 12,723 |  |  | 12,333 |  |  | 4,121 |
Decreases resulting from tax positions taken during a prior period |  | (817) |  |  | (851) |  |  | — |
Increases resulting from tax positions taken during the current period |  | 7,815 |  |  | 4,572 |  |  | 3,169 |
Decreases related to settlements with taxing authorities |  | (148) |  |  | (8,670) |  |  | (601) |
Reductions related to the lapse of statute of limitations |  | (9,948) |  |  | (6,034) |  |  | (86,138) |
Unrecognized tax benefits at end of year |  | $ | 63,134 |  |  | $ | 53,509 |  |  | $ | 52,159 |

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