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Income Taxes
 12 Months Ended
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)202020192018
Current Income Tax Expense:
Federal$(15,895)$4,453 $(5,435)
State16,219 11,206 9,575 
324 15,659 4,140 
Deferred Income Tax Expense:
Federal37,132 38,353 30,314 
State493 (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)20202019
Deferred Tax Liabilities:
Lease Merchandise and Property, Plant and Equipment$179 $336 
Goodwill and Other Intangibles— 119 
Investment in Partnership150,988 165,042 
Operating Lease Right-of-Use Assets447 681 
Other, Net— — 
Total Deferred Tax Liabilities151,614 166,178 
Deferred Tax Assets:
Accrued Liabilities10,699 5,137 
Advance Payments— — 
Operating Lease Liabilities472 710 
Other, Net17,539 60,039 
Total Deferred Tax Assets28,710 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,
202020192018
Statutory Rate21.0 %21.0 %21.0 %
Increases (Decreases) in United States Federal Taxes
Resulting From:
State Income Taxes, net of Federal Income Tax Benefit4.6 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 Adjustments1.1 5.8 (0.4)
Current FIN 48 Expense(0.3)7.2 (0.1)
Other, net1.7 2.5 (2.3)
Effective Tax Rate14.0 %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)202020192018
Balance at January 1,$3,699 $1,896 $1,701 
Additions Based on Tax Positions Related to the Current Year26 103 128 
Additions for Tax Positions of Prior Years220 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).