Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2014
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Income Tax Disclosure [Abstract] |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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