INCOME TAXES

Following is a summary of the Company’s income tax expense for the years ended December 31:



(In Thousands)	2015		2014			2013
Current Income Tax Expense:
Federal	$	32,999	$	41,946		$	91,664
State	5,442		8,682			9,393
	38,441		50,628			101,057
Deferred Income Tax Expense (Benefit):
Federal	35,413		(3,314		)	(35,941		)
State	3,557		(3,843		)	(822		)
	38,970		(7,157		)	(36,763		)
	$	77,411	$	43,471		$	64,294

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 anticipated for the 2015 federal tax liability. The Company applied for and received a refund of $120.0 million in February 2016.

Significant components of the Company’s deferred income tax liabilities and assets at December 31 are as follows:



(In Thousands)	2015			2014
Deferred Tax Liabilities:
Lease Merchandise and Property, Plant and Equipment	$	228,174		$	228,002
Goodwill & Other Intangibles	47,421			40,644
Investment in Partnership	88,913			61,342
Other, Net	2,062			1,866
Total Deferred Tax Liabilities	366,570			331,854
Deferred Tax Assets:
Accrued Liabilities	29,192			42,024
Advance Payments	15,713			14,272
Other, Net	14,936			7,713
Total Deferred Tax Assets	59,841			64,009
Less Valuation Allowance	(752		)	(706		)
Net Deferred Tax Liabilities	$	307,481		$	268,551

The Company’s effective tax rate differs from the statutory United States Federal income tax rate for the years ended December 31 as follows:



	2015		2014		2013
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	2.7		2.6		3.1
Federal Tax Credits	(.5	)	(1.8	)	(1.7	)
Other, Net	(.9	)	(.1	)	(1.6	)
Effective Tax Rate	36.3	%	35.7	%	34.8	%

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 2012.

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



(In Thousands)	2015			2014			2013
Balance at January 1,	$	2,644		$	1,960		$	1,258
Additions Based on Tax Positions Related to the Current Year	331			311			454
Additions for Tax Positions of Prior Years	1,176			928			423
Prior Year Reductions	(1		)	(370		)	(5		)
Statute Expirations	(589		)	(94		)	(85		)
Settlements	—			(91		)	(85		)
Balance at December 31,	$	3,561		$	2,644		$	1,960

As of December 31, 2015 and 2014, the amount of uncertain tax benefits that, if recognized, would affect the effective tax rate is $3.1 million and $2.1 million, respectively, including interest and penalties.

The Company recognized interest and penalties of $365,000, $286,000 and $76,000 during the years ended December 31, 2015, 2014 and 2013 respectively. The Company had $1.0 million and $499,000 of accrued interest and penalties at December 31, 2015 and 2014, respectively. The Company recognizes potential interest and penalties related to uncertain tax benefits as a component of income tax expense.