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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income Tax Provision The income tax provision consists of the following:
(In millions) | For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Income before provision for income taxes: | $ | 549.5 |  |  | $ | 855.9 |  |  | $ | 755.1 |
Current provision for income taxes: |  |  |  |  |
Federal | 53.8 |  |  | 94.1 |  |  | 110.9 |
State | 6.6 |  |  | 18.7 |  |  | 19.5 |
| 60.4 |  |  | 112.8 |  |  | 130.4 |
Deferred provision for income taxes: |  |  |  |  |
Federal | 57.3 |  |  | 70.7 |  |  | 35.0 |
State | 11.0 |  |  | 14.8 |  |  | 14.3 |
| 68.3 |  |  | 85.5 |  |  | 49.3 |
Interest and penalties expense: |  |  |  |  |
Interest | (0.2) |  |  | 1.5 |  |  | 1.4 |
Penalties | — |  |  | — |  |  | — |
| (0.2) |  |  | 1.5 |  |  | 1.4 |
Provision for income taxes | $ | 128.5 |  |  | $ | 199.8 |  |  | $ | 181.1 |
Deferred Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities consist of the following:
(In millions) | As of December 31,
| 2020 |  | 2019
Deferred tax assets: |  |  |
Allowance for credit losses | $ | 801.4 |  |  | $ | 128.3 |
Stock-based compensation | 15.8 |  |  | 15.5 |
Deferred state net operating loss | 4.3 |  |  | 3.6 |
Other, net | 12.3 |  |  | 13.2 |
Total deferred tax assets | 833.8 |  |  | 160.6 |
Deferred tax liabilities: |  |  |
Valuation of Loans receivable | 1,208.5 |  |  | 471.3 |
Deferred Loan origination costs | 1.6 |  |  | 1.6 |
Other, net | 14.7 |  |  | 10.2 |
Total deferred tax liabilities | 1,224.8 |  |  | 483.1 |
Net deferred tax liability | $ | 391.0 |  |  | $ | 322.5 |
The increases in our deferred tax assets and deferred tax liabilities from 2019 to 2020 were primarily due to the adoption of CECL on January 1, 2020, which significantly increased the outstanding balances of Loans receivable and the related allowance for credit losses. The deferred state net operating loss tax asset arising from the operating loss carryforward for state income tax purposes is expected to expire at various times beginning in 2028, if not utilized. During 2018, we wrote off $3.4 million of this deferred tax asset as we determined that we would not be able to utilize a state net operating loss carryforward prior to its expiration. We do not anticipate expiration of the remaining net operating loss carryforwards prior to their utilization. Effective Income Tax Rate A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
U.S. federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes | 2.7 | % |  | 3.1 | % |  | 3.5 | %
Excess tax benefits from stock-based compensation plans | -0.5 | % |  | -0.9 | % |  | -0.1 | %
Effect of the 2017 Tax Act | — | % |  | — | % |  | -0.7 | %
Other | 0.2 | % |  | 0.1 | % |  | 0.3 | %
Effective income tax rate | 23.4 | % |  | 23.3 | % |  | 24.0 | %
State income taxes The decrease in our state income tax rate from 2019 to 2020 was primarily the result of the settlement of an uncertain tax position for state income taxes during 2020. The decrease in our state income tax rate from 2018 to 2019 was primarily the result of the write-off of a deferred state net operating loss tax asset during 2018. Excess tax benefits from stock-based compensation plans During the first quarter of each year, we receive a tax benefit upon the vesting of restricted stock and the conversion of restricted stock units to common stock based on the fair value of the shares. The amount by which this tax benefit exceeds the grant-date fair value that was recognized as stock-based compensation expense is referred to as an excess tax benefit. Excess tax benefits are recognized in provision for income taxes and reduce our effective income tax rate. The impact of excess tax benefits on our effective income tax rate decreased in magnitude from 2019 to 2020, and increased in magnitude from 2018 to 2019, primarily due to the number of restricted stock units that were converted to common stock in each period, due to the timing of our long-term stock award grants. Effect of the 2017 Tax Act In 2018, we reversed a provisional valuation allowance related to stock-based compensation that we had established in 2017 upon enactment of the 2017 Tax Act, which resulted in a $5.5 million reversal of provision for income taxes in 2018. Unrecognized Tax Benefits The following table is a summary of changes in gross unrecognized tax benefits:
(In millions) | For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Unrecognized tax benefits at January 1, | $ | 41.7 |  |  | $ | 38.7 |  |  | $ | 31.9 |
Additions for tax positions of the current year | 10.2 |  |  | 10.0 |  |  | 10.2 |
Additions for tax positions of prior years | 0.1 |  |  | — |  |  | — |
Reductions for tax positions of prior years | — |  |  | — |  |  | — |
Settlements | (4.6) |  |  | (2.3) |  |  | — |
Reductions as a result of a lapse of the statute of limitations | (5.6) |  |  | (4.7) |  |  | (3.4) |
Unrecognized tax benefits at December 31, | $ | 41.8 |  |  | $ | 41.7 |  |  | $ | 38.7 |
The total amount of gross unrecognized tax benefit that, if recognized, would favorably affect our effective income tax rate in future periods, was $41.8 million as of December 31, 2020. Accrued interest related to uncertain tax positions was $9.2 million and $8.9 million as of December 31, 2020 and 2019, respectively. We are subject to income tax in federal and state jurisdictions. We are generally no longer subject to tax examinations on federal returns filed for years prior to 2017 and state returns filed for years prior to 2013.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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