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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12. Income Taxes The Company and its subsidiaries file a consolidated federal income tax return. The Company files consolidated or separate state income tax returns as required by individual states in which it operates. The Company is generally no longer subject to federal, state, or local income tax examinations by taxing authorities before 2014, though the Company remains subject to examination for the federal, South Carolina, and Tennessee tax returns for the 2013 tax year. In addition, the Texas tax returns remain open for examination back to 2011. Income tax expense differed from the amount computed by applying the federal income tax rate of 35% to total income before income taxes as a result of the following:
|  | Year Ended December 31, |
In thousands |  | 2017 |  |  | 2016 |  |  | 2015 |
Federal tax expense at statutory rate |  | $ | 14,090 |  |  | $ | 13,632 |  |  | $ | 13,349 |
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State tax, net of federal benefit |  |  | 1,253 |  |  |  | 1,275 |  |  |  | 1,098 |
Non-deductible compensation |  |  | — |  |  |  | — |  |  |  | 378 |
Tax rate change |  |  | (3,122 | ) |  |  | — |  |  |  | — |
Excess tax benefits from share-based awards |  |  | (1,603 | ) |  |  | — |  |  |  | — |
Research and development tax credits |  |  | (400 | ) |  |  | — |  |  |  | — |
Other |  |  | 76 |  |  |  | 10 |  |  |  | (51 | )
|  | $ | 10,294 |  |  | $ | 14,917 |  |  | $ | 14,774 |
Pursuant to the adoption of an accounting standard update issued in March 2016 and effective for fiscal year 2017, the Company now recognizes the tax benefits or deficiencies from the exercise or vesting of share-based awards in the income tax line of the consolidated statements of income. These tax benefits and deficiencies were previously recognized within additional paid-in-capital on the Company’s balance sheet. In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act makes changes to U.S. tax law, including a reduction in the corporate tax rate from 35% to 21%. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. The revaluation resulted in a $3.1 million income tax benefit and a corresponding reduction in the Company’s net deferred tax liability. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company has made reasonable estimates of the effects and recorded provisional amounts in its consolidated financial statements as of December 31, 2017. As the Company collects and prepares necessary data and interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, the SEC, and other standard-setting bodies, it may make adjustments to the provisional amounts. The accounting for the tax effects of the Tax Act will be completed in 2018. Income tax expense attributable to total income before income taxes consists of the following for the periods indicated:
|  | Year Ended December 31, |
In thousands |  | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,479 |  |  | $ | 11,431 |  |  | $ | 13,037 |
State and local |  |  | 821 |  |  |  | 1,584 |  |  |  | 1,859 |
|  |  | 5,300 |  |  |  | 13,015 |  |  |  | 14,896 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 4,464 |  |  |  | 1,694 |  |  |  | (104 | )
State and local |  |  | 530 |  |  |  | 208 |  |  |  | (18 | )
|  |  | 4,994 |  |  |  | 1,902 |  |  |  | (122 | )
Total |  | $ | 10,294 |  |  | $ | 14,917 |  |  | $ | 14,774 |
Net deferred tax assets and liabilities consist of the following as of the periods indicated:
|  | December 31, |
In thousands |  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 6,491 |  |  | $ | 15,823 |
Unearned insurance premiums |  |  | 2,971 |  |  |  | 2,612 |
Share-based compensation |  |  | 2,314 |  |  |  | 2,888 |
Amortization of intangible assets |  |  | 424 |  |  |  | 675 |
Accrued expenses |  |  | 391 |  |  |  | 565 |
State net operating loss carryforward |  |  | 300 |  |  |  | 32 |
Deferred contract incentive |  |  | 163 |  |  |  | 307 |
Other |  |  | 206 |  |  |  | 50 |
Gross deferred tax assets |  |  | 13,260 |  |  |  | 22,952 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Fair market value adjustment of finance receivables |  |  | 12,410 |  |  |  | 17,448 |
Tax over book depreciation |  |  | 3,463 |  |  |  | 2,266 |
Deferred loan costs |  |  | 1,633 |  |  |  | 2,283 |
Prepaid expenses |  |  | 395 |  |  |  | 724 |
Other |  |  | 320 |  |  |  | 198 |
Gross deferred tax liabilities |  |  | 18,221 |  |  |  | 22,919 |
Net deferred tax asset (liability) |  | $ | (4,961 | ) |  | $ | 33 |
The December 31, 2017 deferred tax asset for the allowance for credit losses includes a $5.0 million credit balance related to a tax method change from the accrual to the specific identification method. The Company had state net operating loss carryforwards of approximately $9.7 million and $1.2 million and the related deferred tax assets of $0.3 million and $32 thousand as of December 31, 2017 and 2016, respectively. These carryforwards are available to offset future taxable income. If not used, the current carryforwards will expire beginning in 2030. Income tax expense was $10.3 million, $14.9 million, and $14.8 million for the years ended December 31, 2017, 2016, and 2015, respectively. Included in these amounts are tax benefits from share-based awards of $1.6 million, $0, and $0 for the years ended December 31, 2017, 2016, and 2015, respectively. At December 31, 2017, the Company did not have any material uncertain tax positions.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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