INCOME TAXES

12 Months Ended

Dec. 31, 2019

The components of income tax expense from continuing operations are as follows:



	For the Years Ended December 31,
	2019			2018		2017
	(In millions)
Current:
Federal	$	46.3		$	43.8	$	59.1
State	8.0			7.1		8.3
Total current income tax expense	54.3			50.9		67.4
Deferred:
Federal	5.5			3.9		1.2
State	(0.3		)	2.0		1.4
Total deferred income tax expense	5.2			5.9		2.6
Total income tax expense	$	59.5		$	56.8	$	70.0

A reconciliation of the statutory federal rate to the effective tax rate from continuing operations is as follows (dollar amounts shown in millions):



	For the Years Ended December 31,
	2019			%	2018			%	2017			%
Income tax provision at the statutory rate	$	51.2		21.0	$	47.2		21.0	$	73.2		35.0
State income tax expense, net of federal benefit	7.8			3.2	8.7			3.9	6.4			3.0
Non-deductible / non-tax items	0.6			0.2	0.4			0.2	(0.3		)	(0.1	)
Effect of enactment of tax reform	—			—	0.6			0.2	(7.9		)	(3.8	)
Adjustments and settlements	—			—	—			—	(0.6		)	(0.3	)
Other, net	(0.1		)	—	(0.1		)	—	(0.8		)	(0.3	)
Income tax expense	$	59.5		24.4	$	56.8		25.3	$	70.0		33.5

Deferred income tax asset and liability components consisted of the following:



	As of December 31,
	2019			2018
	(In millions)
Deferred income tax assets:
F&I chargeback liabilities	$	11.8		$	11.0
Other accrued liabilities	2.1			3.2
Stock-based compensation	2.2			2.4
Operating lease right-of-use assets	18.7			—
Other, net	9.0			3.9
Total deferred income tax assets	43.8			20.5
Deferred income tax liabilities:
Intangible asset amortization	(16.4		)	(12.5		)
Depreciation	(33.4		)	(26.4		)
Operating lease liabilities	(17.7		)	—
Other, net	(2.3		)	(3.3		)
Total deferred income tax liabilities	(69.8		)	(42.2		)
Net deferred income tax liabilities	$	(26.0	)	$	(21.7	)

There were no valuation allowances recorded against the deferred tax assets as of December 31, 2019 or 2018.

As of December 31, 2019, we had income taxes payable of $1.3 million, which is included in Accounts payable and accrued liabilities.

As of December 31, 2018, we had pre-paid income taxes of $4.6 million which was included in Other current assets.

There was no unrecognized tax benefits as of December 31, 2019, 2018 or 2017.

The statutes of limitations related to our consolidated Federal income tax returns are closed for all tax years up to and including 2015. The expiration of the statutes of limitations related to the various state income tax returns that we and our subsidiaries file varies by state. The 2012 through 2018 tax years generally remain subject to examination by most state tax authorities. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.

Tax Reform

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act made broad and complex changes to the U.S. tax code that affects 2017, including, but not limited to, accelerated depreciation that will allow for full expensing of qualified property. The Tax Act also established new tax laws including a reduction in the U.S. federal corporate income tax rate from 35% to 21%.

The SEC staff issued SAB 118 on December 22, 2017, which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 allowed for a measurement period, not to extend beyond one year from the Tax Act enactment date, for companies to complete the accounting under ASC 740, Income Taxes.

In 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which was generally 21%. We recorded a $7.9 million reduction to our net deferred tax liability for the year ended December 31, 2017 related to the remeasurement of our deferred tax balance.

During the third quarter of 2018, the IRS released Notice 2018-68, which clarified a number of changes made to Section 162(m) of the Code by the Tax Act. As a result of this new guidance, we recorded $0.6 million of additional income tax expense related to an adjustment to the December 31, 2017 deferred tax asset for certain components of share-based compensation. After considering the additional guidance issued by the U.S. Treasury Department, state tax authorities and other standard-setting bodies, we completed our accounting for the Tax Act in 2018.