INCOME TAXES

The income tax provision consists of the following:



(In millions)	For the Years Ended December 31,
	2014		2013		2012
Income before provision for income taxes:	$	420.9	$	398.2	$	343.1
Current provision for income taxes:
Federal	$	90.9	$	128.4	$	94.9
State	7.3		7.4		3.5
	98.2		135.8		98.4
Deferred provision for income taxes:
Federal	52.0		8.7		23.6
State	4.1		0.1		1.4
	56.1		8.8		25.0
Interest and penalties expense (benefit):
Interest	0.4		0.5		—
Penalties	—		—		—
	0.4		0.5		—
Provision for income taxes	$	154.7	$	145.1	$	123.4

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities consist of the following:



(In millions)	As of December 31,
	2014		2013
Deferred tax assets:
Allowance for credit losses	$	76.4	$	71.5
Stock-based compensation	14.8		12.6
Deferred state net operating loss	3.9		3.0
Other, net	9.2		7.9
Total deferred tax assets	104.3		95.0
Deferred tax liabilities:
Valuation of Loans receivable	306.5		242.3
Deferred Loan origination costs	2.7		3.3
Other, net	8.5		6.6
Total deferred tax liabilities	317.7		252.2
Net deferred tax liability	$	213.4	$	157.2

The deferred state net operating loss tax asset arising from the operating loss carry forward for state income tax purposes is expected to expire at various times beginning in 2021, if not utilized. We do not anticipate expiration of the net operating loss carry forwards prior to their utilization.

A reconciliation of the U.S. federal statutory rate to our effective tax rate is as follows:



	For the Years Ended December 31,
	2014		2013		2012
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes	2.1	%	1.4	%	1.4	%
Changes in reserve for uncertain tax positions as a result of settlements and lapsed statutes and related interest	(0.4	)%	(0.3	)%	(0.6	)%
Other	0.1	%	0.3	%	0.2	%
Effective tax rate	36.8	%	36.4	%	36.0	%

The differences between the U.S. federal statutory rate and our effective tax rates for 2014, 2013 and 2012 are primarily due to state income taxes and reserves for uncertain tax positions and related interest and penalties that are included in the provision for income taxes.

The state income taxes for the years ended December 31, 2014, 2013 and 2012 fluctuate due to variability in the amount of income taxable in various state tax jurisdictions with differing statutory tax rates and changes in state statutory tax rates.

The following table is a summary of changes in gross unrecognized tax benefits:



(In millions)	For the Years Ended December 31,
	2014			2013			2012
Unrecognized tax benefits at January 1,	$	13.2		$	11.0		$	10.0
Additions based on tax positions related to current year	5.5			3.6			3.1
Reductions for tax positions of prior years	(0.2		)	—			(0.4		)
Settlements	—			—			(0.2		)
Reductions as a result of a lapse of the statute of limitations	(1.9		)	(1.4		)	(1.5		)
Unrecognized tax benefits at December 31,	$	16.6		$	13.2		$	11.0

The total amount of gross unrecognized tax benefit that, if recognized, would favorably affect our effective income tax rate in future periods, was $16.6 million as of December 31, 2014. Accrued interest related to uncertain tax positions was $3.1 million and $2.7 million as of December 31, 2014 and 2013, respectively.

We are subject to income tax in federal and state jurisdictions. The IRS has completed their federal tax examinations for years prior to 2012. With respect to state jurisdictions, we are generally no longer subject to tax examinations on returns filed for years prior to 2008.