INCOME TAXES

Following is a summary of the Company’s income tax expense:



	Year Ended December 31,
(In Thousands)	2016			2015		2014
Current Income Tax Expense:
Federal	$	103,993		$	32,999	$	41,946
State	10,308			5,442		8,682
	114,301			38,441		50,628
Deferred Income Tax (Benefit) Expense:
Federal	(33,470		)	35,413		(3,314		)
State	(1,692		)	3,557		(3,843		)
	(35,162		)	38,970		(7,157		)
	$	79,139		$	77,411	$	43,471

As a result of the extended bonus depreciation provisions in the Protecting Americans From Tax Hikes Act of 2015 not being enacted until December 2015, the Company paid more than the amount ultimately required for the 2015 federal tax liability. Due to that overpayment the Company received a refund of $120.0 million in February 2016.

Significant components of the Company’s deferred income tax liabilities and assets are as follows:



	December 31,
(In Thousands)	2016			2015
Deferred Tax Liabilities:
Lease Merchandise and Property, Plant and Equipment	$	185,891		$	228,174
Goodwill and Other Intangibles	52,135			47,421
Investment in Partnership	96,291			88,913
Other, Net	1,619			2,062
Total Deferred Tax Liabilities	335,936			366,570
Deferred Tax Assets:
Accrued Liabilities	33,243			29,192
Advance Payments	13,087			15,713
Other, Net	20,277			14,936
Total Deferred Tax Assets	66,607			59,841
Less Valuation Allowance	(875		)	(752		)
Net Deferred Tax Liabilities	$	270,204		$	307,481

The Company’s effective tax rate differs from the statutory United States Federal income tax rate as follows:



	Year Ended December 31,
	2016		2015		2014
Statutory Rate	35.0	%	35.0	%	35.0	%
Increases (Decreases) in United States Federal Taxes
Resulting From:
State Income Taxes, Net of Federal Income Tax Benefit	2.6		2.7		2.6
Federal Tax Credits	(1.1	)	(0.5	)	(1.8	)
Other, Net	(0.3	)	(0.9	)	(0.1	)
Effective Tax Rate	36.2	%	36.3	%	35.7	%

The Company files a federal consolidated income tax return in the United States and the separate legal entities file in various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state and local tax examinations by tax authorities for years before 2013.

The following table summarizes the activity related to the Company’s uncertain tax positions:



	Year Ended December 31,
(In Thousands)	2016			2015			2014
Balance at January 1,	$	3,561		$	2,644		$	1,960
Additions Based on Tax Positions Related to the Current Year	258			331			311
Additions for Tax Positions of Prior Years	293			1,176			928
Prior Year Reductions	(776		)	(1		)	(370		)
Statute Expirations	(609		)	(589		)	(94		)
Settlements	(133		)	—			(91		)
Balance at December 31,	$	2,594		$	3,561		$	2,644

As of December 31, 2016 and 2015, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $2.5 million and $3.1 million, respectively, including interest and penalties.

During the year ended December 31, 2016, the Company recognized a net benefit of $0.1 million related to interest and penalties. During the years ended December 31, 2015 and 2014, the Company recognized interest and penalties of $0.4 million and $0.3 million, respectively. The Company had $0.9 million and $1.0 million of accrued interest and penalties at December 31, 2016 and 2015, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense.