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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Schedule of Effective Tax Rates
The effective tax rates for the respective periods are shown below:
 
Year Ended December 31,
 
2014
 
2013
 
2012
Federal provision
35.0
 %
 
35.0
 %
 
35.0
 %
State provision
8.2
 %
 
5.8
 %
 
6.6
 %
State benefit
(2.9
)%
 
(2.0
)%
 
(2.3
)%
Changes in state apportionment(1)
0.0
 %
 
(0.2
)%
 
0.0
 %
Tax reserves(2)
0.0
 %
 
0.0
 %
 
0.1
 %
International benefit(3)
(3.6
)%
 
(2.2
)%
 
(0.4
)%
Permanent items(4)
4.3
 %
 
2.4
 %
 
0.5
 %
Other(5)
(6.4
)%
 
(1.2
)%
 
0.2
 %
Effective rate
34.6
 %
 
37.6
 %
 
39.7
 %
________________________
(1)
Represents changes in state apportionment methodologies.
(2)
Represents reserves taken for certain tax position adopted by the Company.
(3)
Relates primarily to the lower tax rate on the income attributable to international operations.
(4)
Represents a provision for nondeductible items.
(5)
Includes the effect of discrete items. The decrease of effective tax rate in 2014 was primarily related to the recognition of a tax benefit as a result of a favorable tax settlement with taxing authorities.
Components of Pretax Income
The pretax income from continuing operations consisted of the following (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Domestic
$
131,434

 
$
105,009

 
$
122,423

Foreign
21,181

 
15,859

 
7,902

 
$
152,615

 
$
120,868

 
$
130,325

Components of Provision for Income Taxes
The provision for income taxes consisted of the following (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Current expense:
 
 
 
 
 
Federal
$
71,002

 
$
50,304

 
$
48,025

State
7,741

 
7,196

 
9,537

Foreign
3,752

 
4,052

 
2,765

 
82,495

 
61,552

 
60,327

Deferred (benefit) expense:
 
 
 
 
 
Federal
(33,398
)
 
(13,134
)
 
(6,801
)
State
2,710

 
(2,369
)
 
(1,301
)
Foreign
918

 
(661
)
 
(471
)
 
(29,770
)
 
(16,164
)
 
(8,573
)
 
$
52,725

 
$
45,388

 
$
51,754

Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities consisted of the following (in thousands):
 
December 31,
2014
 
December 31,
2013
Deferred tax assets:
 
 
 
State taxes
$

 
$
2,758

Stock-based compensation expense
7,143

 
7,250

Accrued expenses
6,701

 
5,015

Non-qualified plan
273

 
97

Differences in income recognition related to receivable portfolios
31,799

 
38,529

Cash flow hedge instruments
103

 
1,588

State and international operating losses
12,917

 
6,490

Difference in basis of depreciable assets
2,077

 
86

Capitalized legal fees—International
4,365

 
1,609

Cumulative translation adjustment
4,036

 
1,509

Tax benefit of uncertain tax positions
1,247

 
4,237

Difference in basis of bond and loan costs
10,455

 

Valuation allowance
(10,047
)
 
(3,595
)
 
71,069

 
65,573

Deferred tax liabilities:
 
 
 
State taxes
(1,643
)
 

Deferred court costs
(19,550
)
 
(15,445
)
Difference in basis of amortizable assets
(10,682
)
 
(12,200
)
Difference in basis of depreciable assets
(7,868
)
 
(6,834
)
Differences in income recognition related to receivable portfolios
(16,308
)
 
(20,773
)
Deferred debt cancellation income
(2,602
)
 
(1,222
)
Other
(3,533
)
 
(2,289
)
 
(62,186
)
 
(58,763
)
Net deferred tax asset
$
8,883

 
$
6,810

Differences between Total Income Tax Expense and Income Tax Expense
The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35.0% per annum were as follows (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Computed “expected” Federal income tax expense
$
53,415

 
$
42,304

 
$
45,614

Increase (decrease) in income taxes resulting from:
 
 
 
 
 
State income taxes, net
8,118

 
3,138

 
5,551

Foreign non-taxed income, rate differential
(5,453
)
 
(2,647
)
 
(481
)
Other adjustments, net
(3,355
)
 
2,593

 
1,070

 
$
52,725

 
$
45,388

 
$
51,754

Unrecognized Tax Benefit
A reconciliation of the beginning and ending amount of the Company’s unrecognized tax benefit is as follows (in thousands):
 
Amount
Balance at December 31, 2011
$
1,230

Decreases related to prior year tax positions
(361
)
Increases related to current and prior year tax positions
915

Balance at December 31, 2012
1,784

Decreases related to prior year tax positions
(712
)
Increases related to prior year tax positions
70,201

Balance at December 31, 2013
71,273

Increases related to prior year tax positions
33,027

Increases related to current year tax positions
1,329

Decreases related to settlements with taxing authorities
(67,204
)
Balance at December 31, 2014
$
38,425