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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The following is a summary of the Company’s income tax expense from continuing operations:
| Year Ended December 31,
(In Thousands) | 2020 |  | 2019 |  | 2018
Current Income Tax Expense: |  |  |  |  |
Federal | $ | (15,895) |  |  | $ | 4,453 |  |  | $ | (5,435) |
State | 16,219 |  |  | 11,206 |  |  | 9,575 |
| 324 |  |  | 15,659 |  |  | 4,140 |
Deferred Income Tax Expense: |  |  |  |  |
Federal | 37,132 |  |  | 38,353 |  |  | 30,314 |
State | 493 |  |  | (1,784) |  |  | (2,958) |
| 37,625 |  |  | 36,569 |  |  | 27,356 |
Income Tax Expense | $ | 37,949 |  |  | $ | 52,228 |  |  | $ | 31,496 |
Significant components of the Company’s deferred income tax liabilities and assets from continuing operations are as follows:
| December 31,
(In Thousands) | 2020 |  | 2019
Deferred Tax Liabilities: |  |  |
Lease Merchandise and Property, Plant and Equipment | $ | 179 |  |  | $ | 336 |
Goodwill and Other Intangibles | — |  |  | 119 |
Investment in Partnership | 150,988 |  |  | 165,042 |
Operating Lease Right-of-Use Assets | 447 |  |  | 681 |
Other, Net | — |  |  | — |
Total Deferred Tax Liabilities | 151,614 |  |  | 166,178 |
Deferred Tax Assets: |  |  |
Accrued Liabilities | 10,699 |  |  | 5,137 |
Advance Payments | — |  |  | — |
Operating Lease Liabilities | 472 |  |  | 710 |
Other, Net | 17,539 |  |  | 60,039 |
Total Deferred Tax Assets | 28,710 |  |  | 65,886 |
Less Valuation Allowance | (4,034) |  |  | — |
Net Deferred Tax Liabilities | $ | 126,938 |  |  | $ | 100,292 |
The Company’s effective tax rate from continuing operations differs from the statutory United States Federal income tax rate as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Statutory Rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (Decreases) in United States Federal Taxes |  |  |  |  |
Resulting From: |  |  |  |  |
State Income Taxes, net of Federal Income Tax Benefit | 4.6 |  |  | 26.9 |  |  | 3.4 |
Permanent difference for loss on Progressive FTC matter | — |  |  | 133.1 |  |  | — |
NOL Carryback under CARES Act | (13.1) |  |  | — |  |  | — |
Other Permanent Differences | (1.0) |  |  | (7.4) |  |  | (1.5) |
Deferred Tax Adjustments | 1.1 |  |  | 5.8 |  |  | (0.4) |
Current FIN 48 Expense | (0.3) |  |  | 7.2 |  |  | (0.1) |
Other, net | 1.7 |  |  | 2.5 |  |  | (2.3) |
Effective Tax Rate | 14.0 | % |  | 189.1 | % |  | 20.1 | %
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. As a result of the CARES Act legislation, the Company elected to carryback its 2018 net operating losses of $242.2 million to 2013, thus generating a refund of $84.4 million, which was received in July 2020, and an income tax benefit of $34.2 million which was reported within continuing operations in 2020. Vive filed a separate federal return from the Company and has also elected to carryback its 2018 and 2019 net operating losses of $5.4 million and $5.2 million respectively, to 2013 and 2014, thus generating a refund of $1.8 million in 2020, and an estimated refund of $1.8 million in 2021 and an income tax benefit of $1.4 million which was reported within continuing operations in 2020. The tax benefit related to the carryback of the net operating losses is the result of the federal income tax rate differential between the current statutory rate of 21% and the 35% rate applicable to 2013 and 2014. The Company is estimating taxable income in 2020. As stated above, the net operating loss earned during 2018 was carried back to prior years and is no longer available to offset estimated taxable income in the current year. At December 31, 2020, the Company had $1.8 million of tax-effected state net operating loss carryforwards and $7.3 million of state tax credit carryforwards, which will both begin to expire in 2023. The Company files a federal consolidated income tax return in the United States, and the separate legal entities file in various states. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2017. In connection with our separation and distribution of The Aaron's Company, we entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement. Under the tax matters agreement, the Company is generally responsible for all additional taxes (and will be entitled to all related refunds of taxes) imposed on The Aaron's Company and its subsidiaries arising after the separation date with respect to the taxable periods ended on or prior to November 30, 2020. The following table summarizes the activity related to the Company’s uncertain tax positions:
| Year Ended December 31,
(In Thousands) | 2020 |  | 2019 |  | 2018
Balance at January 1, | $ | 3,699 |  |  | $ | 1,896 |  |  | $ | 1,701 |
Additions Based on Tax Positions Related to the Current Year | 26 |  |  | 103 |  |  | 128 |
Additions for Tax Positions of Prior Years | 220 |  |  | 1,957 |  |  | 595 |
Prior Year Reductions | (108) |  |  | (32) |  |  | (85) |
Statute Expirations | (1,053) |  |  | (225) |  |  | (160) |
Settlements | (36) |  |  | — |  |  | (283) |
Balance at December 31, | $ | 2,748 |  |  | $ | 3,699 |  |  | $ | 1,896 |
As of December 31, 2020 and 2019, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $2.6 million and $3.6 million, respectively, including interest and penalties. During the years ended December 31, 2020, 2019 and 2018 the Company recognized a net benefit of $0.1 million, and net expense of $0.2 million and $0.1 million, respectively related to penalties and interest. The Company had $0.2 million and $0.4 million of accrued interest and penalties at December 31, 2020 and 2019, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense (benefit).

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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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