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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
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, |  | 2022 |  | 2021 |  | 2020
Statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State tax, net of federal benefit |  | 4.1 |  |  | 3.1 |  |  | 2.9 |
Business credits |  | (1.5) |  |  | (0.8) |  |  | (2.2) |
Other, net |  | 2.0 |  |  | 1.4 |  |  | 2.0 |
Effective tax rate |  | 25.6 | % |  | 24.7 | % |  | 23.7 | %
Components of Provision for Income Tax Expense (Benefit) | Income tax expense consists of:
As of December 31, (dollars in thousands) |  | 2022 |  | 2021 |  | 2020
Current provision (benefit): |  |  |  |  |  |
Federal |  | $ | 205,954 |  |  | $ | 259,536 |  |  | $ | 172,153 |
State |  | 49,427 |  |  | 64,843 |  |  | 28,387 |
Total current provision (benefit) |  | 255,381 |  |  | 324,379 |  |  | 200,540 |
Deferred provision (benefit): |  |  |  |  |  |
Federal |  | (75,978) |  |  | 47,240 |  |  | 58,003 |
State |  | (17,692) |  |  | 8,132 |  |  | 14,773 |
Total deferred provision (benefit) |  | (93,670) |  |  | 55,372 |  |  | 72,776 |
Provision for income tax expense |  | $ | 161,711 |  |  | $ | 379,751 |  |  | $ | 273,316 |
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.
As of December 31, (dollars in thousands) |  | 2022 |  | 2021
Deferred tax assets: |  |  |  |
Loan reserves |  | $ | 362,368 |  |  | $ | 300,538 |
Net unrealized losses |  | 30,160 |  |  | — |
Accrued expenses not currently deductible |  | 12,949 |  |  | 14,307 |
Unrecorded tax benefits |  | 12,916 |  |  | 11,016 |
Research and development costs |  | 10,929 |  |  | — |
Stock-based compensation plans |  | 9,624 |  |  | 10,174 |
Operating loss carryovers |  | 300 |  |  | 394 |
Other |  | 4,618 |  |  | 2,415 |
Total deferred tax assets |  | 443,864 |  |  | 338,844 |
Deferred tax liabilities: |  |  |  |
Student loan premiums and discounts, net |  | 14,065 |  |  | 12,396 |
Fixed assets |  | 9,347 |  |  | 10,131 |
Federal deferred for state receivable |  | 2,111 |  |  | 1,921 |
Research and development costs |  | — |  |  | 8,710 |
Net unrealized gains |  | — |  |  | 6,459 |
Other |  | 397 |  |  | 396 |
Total deferred tax liabilities |  | 25,920 |  |  | 40,013 |
Net deferred tax assets |  | $ | 417,944 |  |  | $ | 298,831 |
Summary of Changes in Unrecognized Tax Benefits | The following table summarizes changes in unrecognized tax benefits:
As of December 31, (dollars in thousands) |  | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits at beginning of year |  | $ | 75,328 |  |  | $ | 63,134 |  |  | $ | 53,509 |
Increases resulting from tax positions taken during a prior period |  | 6,049 |  |  | 1,496 |  |  | 12,723 |
Decreases resulting from tax positions taken during a prior period |  | (1,327) |  |  | (1,481) |  |  | (817) |
Increases resulting from tax positions taken during the current period |  | 11,032 |  |  | 20,743 |  |  | 7,815 |
Decreases related to settlements with taxing authorities |  | (4,666) |  |  | (3,682) |  |  | (148) |
Increases related to settlements with taxing authorities |  | — |  |  | 96 |  |  | — |
Reductions related to the lapse of statute of limitations |  | (7,050) |  |  | (4,978) |  |  | (9,948) |
Unrecognized tax benefits at end of year |  | $ | 79,366 |  |  | $ | 75,328 |  |  | $ | 63,134 |

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