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Income Taxes (Notes) | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Income Taxes [Text Block] | Income Taxes For financial statement purposes, earnings before income taxes by source was comprised of the following:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Domestic | $ | 176,042 |  |  | $ | 212,859 |  |  | $ | 212,406 |
Foreign | 18,262 |  |  | 9,920 |  |  | 11,377 |
Earnings before income taxes | $ | 194,304 |  |  | $ | 222,779 |  |  | $ | 223,783 |
A reconciliation of the federal statutory rate of 21% to the effective rate follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
Tax at statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Stock compensation | 11.6 | % |  | — | % |  | — | %
State income taxes | 7.4 | % |  | 2.8 | % |  | 4.3 | %
Effect of foreign operations | 2.0 | % |  | (0.3) | % |  | 0.3 | %
Effect of current and prior year credits | (2.4) | % |  | (0.8) | % |  | (2.7) | %
Change in unrecognized tax benefits | (2.8) | % |  | 0.3 | % |  | — | %
Other permanent differences | 0.3 | % |  | (0.7) | % |  | 0.2 | %
Prior year return to provision adjustments | (0.2) | % |  | 1.1 | % |  | (2.7) | %
Benefit of CARES Act | — | % |  | (7.5) | % |  | — | %
Valuation allowance | (7.1) | % |  | (9.3) | % |  | 1.2 | %
Other, net | 0.8 | % |  | — | % |  | 0.8 | %
Effective income tax rate | 30.6 | % |  | 6.6 | % |  | 22.4 | %
The components of income tax expense (benefit) are as follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Current expense (benefit) |  |  |  |  |
Federal | $ | (7,398) |  |  | $ | 14,354 |  |  | $ | (6,996) |
State | 15,106 |  |  | 4,735 |  |  | 528 |
Foreign | 3,690 |  |  | 1,608 |  |  | 796 |
Total current | 11,398 |  |  | 20,697 |  |  | (5,672) |
Deferred expense (benefit) |  |  |  |  |
Federal | 56,716 |  |  | 12,576 |  |  | 37,309 |
State | (1,205) |  |  | (2,956) |  |  | 16,439 |
Foreign | (7,545) |  |  | (15,653) |  |  | 2,161 |
Total deferred | 47,966 |  |  | (6,033) |  |  | 55,909 |
Total income tax expense (benefit) | $ | 59,364 |  |  | $ | 14,664 |  |  | $ | 50,237 |
Deferred tax assets (liabilities) consist of the following:
| December 31,
(In thousands) | 2021 |  | 2020
Deferred tax assets |  |  |
Net operating loss carryforwards | $ | 35,834 |  |  | $ | 32,834 |
Accrued liabilities | 48,659 |  |  | 45,776 |
Intangible assets | 165,135 |  |  | 9,676 |
Lease obligations | 73,819 |  |  | 67,999 |
Other assets including credits | 12,157 |  |  | 10,079 |
Foreign tax credit carryforwards | 7,696 |  |  | 5,643 |
Total deferred tax assets | 343,300 |  |  | 172,007 |
Valuation allowance | (7,688) |  |  | (21,645) |
Deferred tax assets, net | 335,612 |  |  | 150,362 |
Deferred tax liabilities |  |  |
Rental merchandise | (288,504) |  |  | (206,833) |
Property assets | (20,094) |  |  | (18,935) |
Lease assets | (72,458) |  |  | (66,661) |
Other liabilities | (108) |  |  | (561) |
Total deferred tax liabilities | (381,164) |  |  | (292,990) |
Net deferred taxes | $ | (45,552) |  |  | $ | (142,628) |
At December 31, 2021, we had net operating loss carryforwards of approximately $239 million for state, $37 million for federal and $52 million for foreign jurisdictions. State net operating losses were partially offset by a valuation allowance. We also had federal, state and foreign tax credit carryforwards of approximately $15.6 million of which a portion has been offset by a valuation allowance. The net operating losses and credits will expire in various years between 2022 and 2041. We file income tax returns in the U.S. and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, we are subject to examination by various taxing authorities. We are currently under examination by certain Federal and state revenue authorities for the fiscal years 2012 through 2019. The following is a summary of all tax years that are open to examination. •U.S. Federal - 2013 and forward •U.S. States - 2011 and forward •Foreign - 2013 and forward We do not anticipate that adjustments as a result of these audits, if any, will have a material impact to our Consolidated Statement of Operations, Consolidated Balance Sheets, and statement of cash flows or earnings per share. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. After review of the positive evidence generated during the year, we have determined no valuation allowance is required against Mexico net operating losses. A valuation allowance is still required related to certain tax credits and certain state net operating losses. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020 |  | 2019
Beginning unrecognized tax benefit balance | $ | 22,184 |  |  | $ | 24,208 |  |  | $ | 36,364 |
Additions (Reductions) based on tax positions related to current year | 461 |  |  | 1,204 |  |  | (654) |
Additions for tax positions of prior years | 4,119 |  |  | 45 |  |  | 415 |
Reductions for tax positions of prior years | (3,006) |  |  | (2,086) |  |  | (11,917) |
Settlements | (17,222) |  |  | (1,187) |  |  | — |
Ending unrecognized tax benefit balance | $ | 6,536 |  |  | $ | 22,184 |  |  | $ | 24,208 |
Included in the balance of unrecognized tax benefits at December 31, 2021, is $2.2 million, net of federal benefit, which, if ultimately recognized, will affect our annual effective tax rate. During the year ended December 31, 2021, we recorded $2.6 million of interest income primarily related to the reversal of the accrual of interest for matters settled during the year in our favor, partially offset by interest expense of $1.2 million for remaining uncertain tax positions, both of which are excluded from the reconciliation of unrecognized tax benefits presented above. The effect of the tax rate change for items originally recognized in other comprehensive income was properly recorded in tax expense from continuing operations. This results in stranded tax effects in accumulated other comprehensive income at December 31, 2021. Companies can make a policy election to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects directly arising from the change in the federal corporate tax rate. We did not exercise the option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate resulting from the Tax Cuts and Jobs Act of 2017 was recorded.

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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