INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The components of income tax expense are as follows: 

	For the Year Ended December 31,
	2023		2022		2021
	(In millions)
Current:
Federal	$	128.9	$	142.0	$	113.9
State	30.1		30.8		20.8
Total current income tax expense	159.0		172.8		134.7
Deferred:
Federal	33.8		130.7		24.8
State	6.0		18.3		5.8
Total deferred income tax expense	39.8		149.0		30.6
Total income tax expense	$	198.8	$	321.8	$	165.3

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

	For the Year Ended December 31,
	2023		%	2022		%	2021		%
Income tax provision at the statutory rate	$	168.3	21.0	$	277.0	21.0	$	146.5	21.0
State income tax expense, net of federal benefit	29.8		3.7	42.7		3.2	21.0		3.0
Non-deductible items	1.7		0.2	1.6		0.1	0.6		0.1
Other, net	(1.0)		(0.1)	0.5		0.1	(2.8)		(0.4)
Income tax expense	$	198.8	24.8	$	321.8	24.4	$	165.3	23.7

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

	As of December 31,
	2023		2022
	(In millions)
Deferred income tax assets:
Deferred revenue	$	38.0	$	35.7
F&I chargeback liabilities	12.1		13.2
Other accrued liabilities	2.9		6.6
Stock-based compensation	3.7		3.1
Operating lease right-of-use assets	61.5		59.1
Other, net	12.9		9.4
Total deferred income tax assets	$	131.2	$	127.1
Deferred income tax liabilities:
Intangible asset amortization	110.8		91.0
Depreciation	56.9		52.1
Operating lease liabilities	59.9		57.5
Investments, net	20.0		24.0
Deferred sales commissions	18.3		—
Other, net	1.6		3.2
Total deferred income tax liabilities	$	267.6	$	227.8
Net deferred income tax liabilities	$	(136.4)	$	(100.7)

There were no valuation allowances recorded against the deferred tax assets as of December 31, 2023 or 2022.

As of December 31, 2023, we had an income tax receivable of $11.5 million, included in Other current assets.

As of December 31, 2022, we had income tax payable of $21.5 million, included in accounts payable and accrued liabilities.

As of December 31, 2023, we had a state net operating loss ("NOL") carryforward of $63.8 million and a deferred tax asset of $2.2 million to reflect the benefit. This NOL will expire in 2042.

The statutes of limitation related to our consolidated Federal income tax returns are closed for all tax years up to and including 2019. The expiration of the statutes of limitation related to the various state income tax returns that we and our subsidiaries file varies by state. The 2018 through 2022 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.