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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows:
 Year Ended December 31,
 202120202019
Provision (benefit) for income taxes:(In millions)
Current   
Federal$20.2 $11.0 $31.2 
State4.6 3.1 6.5 
Foreign1.4 1.3 1.9 
26.2 15.4 39.6 
Deferred   
Federal(2.3)(17.3)(3.8)
State0.2 (2.7)(1.7)
(2.1)(20.0)(5.5)
Provision (benefit) for income taxes$24.1 $(4.6)$34.1 
The provision (benefit) for income taxes differs from the expected federal income tax rates as follows:
Year Ended December 31,
202120202019
Statutory federal income tax rate21.0 %21.0 %21.0 %
Non-deductibility of goodwill impairment — (17.9)— 
Non-deductibility of officer's compensation2.2 (0.9)1.0 
State and other taxes, net of federal tax benefit3.1 1.2 2.8 
Excess tax deficiencies or benefits (7.1)0.1 (0.6)
Change in unrecognized tax benefits(0.1)2.0 1.8 
Change in valuation allowance0.5 (1.5)0.5 
Changes in tax rates and state tax laws0.2 (0.4)(0.5)
General business credits(0.9)0.8 (1.3)
Other0.8 (0.2)(0.1)
Effective tax rate19.7 %4.2 %24.6 %

The 2021 effective tax rate of 19.7% applied to pretax book income was different than the statutory Federal income tax rate of 21% primarily due to the one-time recognition of excess tax benefits on stock-based compensation, offset by non-deductibility of executive compensation and state and local income taxes.

The 2020 effective tax rate of 4.2% applied to pretax book loss was significantly different than the statutory Federal income tax rate of 21% primarily because of the $92.2 million impairment of goodwill incurred, which was not deductible for income tax purposes and therefore had no associated tax benefit.
The 2019 effective tax rate of 24.6% applied to pretax book income was higher than the statutory Federal tax rate of 21% primarily due to tax expense associated with unrecognized tax benefits and state and local income taxes, offset by the recognized benefit from general business credits.

The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2017 and state or non-United States tax examinations by tax authorities for years before 2011. The Company believes that adequate reserves have been recorded relating to all matters contained in the tax periods open to examination.

Net deferred tax assets (liabilities) at December 31, 2021 and 2020 consisted of the following components:
20212020
 (In millions)
Lease liabilities$112.9 $119.6 
Employee compensation12.1 7.5 
Revenue recognition35.4 36.6 
Other8.4 10.2 
Deferred tax assets168.8 173.9 
Valuation allowance(4.2)(3.0)
Total deferred tax assets after valuation allowance164.6 170.9 
Recognition of franchise and equipment sales
(8.2)(10.7)
Capitalization and depreciation (2)
(122.7)(123.2)
Lease assets(108.6)(114.2)
Other(1.3)(1.1)
Deferred tax liabilities(240.8)(249.2)
Net deferred tax liabilities$(76.2)$(78.3)
(1) Primarily related to the 2007 Applebee's acquisition.

As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regards to future realization of deferred tax assets. As of December 31, 2021, management determined it is more likely than not that the benefit from foreign tax credit carryforward and certain state deferred tax assets, including net operating loss carryforwards, from the Applebee’s company-operated restaurants will not be realized. In recognition of this risk, the Company provided a valuation allowance of $4.2 million.

The Company had gross operating loss carryforwards for state tax purposes of $23.6 million and $13.3 million as of December 31, 2021 and 2020, respectively. The net operating loss carryforwards begin to expire in 2034 if not utilized.

The total gross unrecognized tax benefit as of December 31, 2021 and 2020 was $1.9 million and $2.2 million, respectively, excluding interest, penalties and related income tax benefits. If recognized, these amounts would affect the Company's effective income tax rates.

The Company estimates the unrecognized tax benefits may decrease over the upcoming 12 months by an amount up to less than $0.1 million related to settlements with taxing authorities, statutes of limitations expirations and method changes. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonable estimate as to when cash settlement with a taxing authority will occur. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended December 31,
202120202019
(In millions)
Unrecognized tax benefit as of January 1$2.2 $7.6 $5.2 
Changes for tax positions of prior years0.5 — 2.1 
Increases for tax positions related to the current year0.3 0.2 0.5 
Decreases relating to settlements and lapsing of statutes of limitations(1.1)(5.6)(0.2)
Unrecognized tax benefit as of December 31$1.9 $2.2 $7.6 
As of December 31, 2021, the accrued interest was $0.6 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2020, the accrued interest and penalties were $0.9 million and less than $0.1 million, respectively, excluding any related income tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss).

On March 11, 2021, the American Rescue Plan Act of 2021 (“ARP Act”) was enacted in response to the COVID-19 pandemic. The ARP Act did not result in a material impact on our income tax provision for the year ended December 31, 2021.