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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Note H — Income Taxes A reconciliation of the federal statutory rate of 35% to actual follows:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
Tax at statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit |  | 1.8 | % |  | 2.6 | % |  | 1.5 | %
Effect of foreign operations, net of foreign tax credits |  | 0.3 | % |  | 0.4 | % |  | (0.2 | )%
Effect of prior year credits |  | (2.0 | )% |  | — | % |  | — | %
Adjustments to deferred taxes |  | (2.4 | )% |  | — | % |  | — | %
Other, net |  | (0.4 | )% |  | 0.2 | % |  | (0.2 | )%
Total |  | 32.3 | % |  | 38.2 | % |  | 36.1 | %
The components of income tax expense are as follows:
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
|  | (In thousands)
Current expense |  |  |  |  |  |
Federal |  | $ | 14,943 |  |  | $ | 45,784 |  |  | $ | 86,839 |
State |  | 4,032 |  |  | 5,888 |  |  | 10,428 |
Foreign |  | 1,673 |  |  | 5,659 |  |  | 3,100 |
Total current |  | 20,648 |  |  | 57,331 |  |  | 100,367 |
Deferred expense |  |  |  |  |  |
Federal |  | 24,556 |  |  | 20,721 |  |  | 5,663 |
State |  | (90 | ) |  | 2,521 |  |  | (4,100 | )
Foreign |  | 817 |  |  | (1,134 | ) |  | (142 | )
Total deferred |  | 25,283 |  |  | 22,108 |  |  | 1,421 |
Total |  | $ | 45,931 |  |  | $ | 79,439 |  |  | $ | 101,788 |
Deferred tax assets (liabilities) consist of the following:
|  | December 31,
|  | 2014 |  | 2013
|  | (In thousands)
Deferred tax assets |  |  |  |
Federal net operating loss carryforwards |  | $ | — |  |  | $ | 1,798 |
State net operating loss carryforwards |  | 16,937 |  |  | 15,072 |
Foreign net operating loss carryforwards |  | 18,182 |  |  | 11,789 |
Accrued liabilities |  | 72,058 |  |  | 59,718 |
Other assets including credits |  | 6,993 |  |  | 2,619 |
Foreign tax credit carryforwards |  | 12,306 |  |  | 10,584 |
|  | 126,476 |  |  | 101,580 |
Valuation allowance |  | (24,709 | ) |  | (14,116 | )
Deferred tax liabilities |  |  |  |
Rental merchandise |  | (285,371 | ) |  | (255,541 | )
Property assets |  | (2,222 | ) |  | (41,740 | )
Intangible assets |  | (157,527 | ) |  | (108,686 | )
|  | (445,120 | ) |  | (405,967 | )
Net deferred taxes |  | $ | (343,353 | ) |  | $ | (318,503 | )
During the year ended December 31, 2014, we utilized all of our approximately $5.1 million of federal net operating loss (“NOL”) carryforwards to offset taxable income. There are approximately $348.1 million of state NOL carryforwards expiring between 2015 and 2032. Of the total remaining state NOL carryforwards, approximately 18.0% represent acquired NOLs. Utilization of these NOLs is subject to applicable annual limitations for U.S. state tax purposes. At December 31, 2014, the foreign NOL carryforwards were approximately $60.6 million, which expire between 2020 and 2024, and are offset with a full valuation allowance. In addition, at December 31, 2014, we also had approximately $12.3 million in foreign tax credit (“FTC”) carryforwards expiring between 2020 and 2024. We establish a valuation allowance to the extent we consider it more likely than not that the deferred tax assets attributable to our NOLs, FTCs or other deferred tax assets will not be recovered. We have not provided for deferred income taxes on undistributed earnings of non-U.S. subsidiaries because of our intention to indefinitely reinvest these earnings outside the U.S. The determination of the amount of the unrecognized deferred income tax liability related to the undistributed earnings is not practicable; however, unrecognized foreign income tax credits would be available to reduce a portion of this liability. We are subject to federal, state, local and foreign income taxes. Along with our U.S. subsidiaries, we file a U.S. federal consolidated income tax return. With few exceptions, we are no longer subject to U.S. federal, state, foreign and local income tax examinations by tax authorities for years before 2011. We are currently under examination in various states. We do not anticipate that adjustments as a result of these audits, if any, will result in a material change to our consolidated statement of earnings, financial condition, statement of cash flows or earnings per share. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| (In thousands)
Balance at January 1, 2013 | $ | 10,167 |
Additions based on tax positions related to current year | 50 |
Additions for tax positions of prior years | 3,742 |
Reductions for tax positions of prior years | (786 | )
Balance at January 1, 2014 | 13,173 |
Additions based on tax positions related to current year | 425 |
Additions for tax positions of prior years | 2,400 |
Reductions for tax positions of prior years | (2,225 | )
Settlements | (397 | )
Balance at December 31, 2014 | $ | 13,376 |
Included in the balance of unrecognized tax benefits at December 31, 2014, is $10.7 million, net of federal benefit, which, if ultimately recognized, will affect our annual effective tax rate. As of December 31, 2014, we have accrued approximately $2.0 million for the payment of interest and recorded interest expense of approximately $209,000 for the year then ended, which are excluded from the reconciliation of unrecognized tax benefits presented above.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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