Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Provision

The income tax provision was as follows (in millions):



Year Ended December 31,	2019		2018		2017
Current:
Federal	$	40.0	$	30.3	$	95.1
State	24.0		11.5		16.9
	64.0		41.8		112.0
Deferred:
Federal	34.7		20.4		(14.2		)
State	5.2		9.6		4.1
	39.9		30.0		(10.1		)
Total	$	103.9	$	71.8	$	101.9

At December 31, 2019 and 2018, we had income taxes payable of $10.1 million and income tax receivable of $17.1 million included as a component of accrued liabilities and other current assets, respectively, in our Consolidated Balance Sheets.

The reconciliation between amounts computed using the federal income tax rate of 21% in 2019 and 2018, and 35% in 2017 and our income tax provision is shown in the following tabulation (in millions):



Year Ended December 31,	2019			2018			2017
Federal tax provision at statutory rate	$	78.8		$	70.9		$	121.5
State taxes, net of federal income tax benefit	23.6			16.1			13.3
Non-deductible items	2.6			1.5			1.3
Permanent differences related to stock compensation	0.2			(0.1		)	(0.8		)
Net change in valuation allowance	(0.5		)	0.5			0.3
General business credits	(0.9		)	(1.1		)	(0.9		)
Deferred remeasurement for change in statutory tax rate	—			(15.8		)	(32.9		)
Other	0.1			(0.2		)	0.1
Income tax provision	$	103.9		$	71.8		$	101.9

Deferred Taxes

Individually significant components of the deferred tax assets and (liabilities) are presented below (in millions):



December 31,	2019			2018
Deferred tax assets:
Deferred revenue and cancellation reserves	$	48.4		$	47.2
Allowances and accruals, including state tax carryforward amounts	42.1			40.8
Lease Liability	69.7			—
Credits and other	0.3			0.3
Valuation allowance	(0.6		)	(1.1		)
Total deferred tax assets	159.9			87.2

Deferred tax liabilities:
Inventories	(40.0		)	(42.0		)
Goodwill	(60.7		)	(48.2		)
Property and equipment, principally due to differences in depreciation	(113.6		)	(78.0		)
Right of Use Asset	(66.6		)	—
Prepaid expenses and other	(10.1		)	(10.2		)
Total deferred tax liabilities	(291.0		)	(178.4		)
Total	$	(131.1	)	$	(91.2	)

We consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment.

As of December 31, 2019, we had a $0.6 million valuation allowance recorded associated with our deferred tax assets. The entire allowance is associated with state net operating losses generated in previous years. The valuation allowance decreased $0.5 million in the current year as a result of taxable income and the expected realization of these benefits.

As of December 31, 2019, we had state net operating loss (NOL) carryforward amounts totaling approximately $2.2 million, tax effected, with expiration dates through 2039. We believe that it is more likely than not that the benefit from certain state NOL carryforward amounts will not be realized. In recognition of this risk, we have recorded a valuation allowance of $0.6 million on the deferred tax assets relating to these state NOL carryforwards as discussed above. We had $0.2 million, tax effected, in state tax credit carryforwards with expiration dates through 2029. We believe it is more likely than not that the benefits from these state tax credit carryforwards will be realized.

Unrecognized Tax Benefits

We have no unrecognized tax benefits recorded as of December 31, 2019, 2018 and 2017.

Open tax years at December 31, 2019 included the following:



Federal	2016 - 2019
21 states	2015 - 2019