XML 63 R36.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Schedule of Effective Tax Rates
The effective tax rates for the respective periods are shown below:
 
Year Ended December 31,
 
2015
 
2014
 
2013
Federal provision
35.0
 %
 
35.0
 %
 
35.0
 %
State (benefit) provision(1)
(1.2
)%
 
8.2
 %
 
5.8
 %
Federal expense (benefit) of state
0.4
 %
 
(2.9
)%
 
(2.0
)%
Changes in state apportionment(2)
0.0
 %
 
0.0
 %
 
(0.2
)%
International benefit(3)
(12.5
)%
 
(3.6
)%
 
(2.2
)%
Tax reserves(4)
(3.3
)%
 
0.0
 %
 
0.0
 %
Permanent items(5)
9.6
 %
 
4.3
 %
 
2.4
 %
Release of valuation allowance
(9.1
)%
 
0.0
 %
 
0.0
 %
Other(6)
3.4
 %
 
(6.4
)%
 
(1.2
)%
Effective rate
22.3
 %
 
34.6
 %
 
37.6
 %
________________________
(1)
Change from 2014 to 2015 relates primarily to a beneficial settlement with a state tax authority.
(2)
Represents changes in state apportionment methodologies.
(3)
Relates primarily to the lower tax rate on the income attributable to international operations.
(4)
Represents release of reserves taken for a certain tax position.
(5)
Represents a provision for nondeductible items, including the CFPB settlement.
(6)
Includes the effect of discrete items, primarily relates to the recognition of tax benefit as a result of a favorable tax settlement with taxing authorities as discussed below.
Components of Pretax Income
The pretax income from continuing operations consisted of the following (in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Domestic
$
22,104

 
$
131,434

 
$
105,009

Foreign
38,877

 
21,181

 
15,859

 
$
60,981

 
$
152,615

 
$
120,868
Components of Provision for Income Taxes
The provision for income taxes consisted of the following (in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Current expense:
 
 
 
 
 
Federal
$
42,459

 
$
71,002

 
$
50,304

State
567

 
7,741

 
7,196

Foreign
7,124

 
3,752

 
4,052

 
50,150

 
82,495

 
61,552

Deferred (benefit) expense:
 
 
 
 
 
Federal
(35,353
)
 
(33,398
)
 
(13,134
)
State
(1,409
)
 
2,710

 
(2,369
)
Foreign
209

 
918

 
(661
)
 
(36,553
)
 
(29,770
)
 
(16,164
)
 
$
13,597

 
$
52,725

 
$
45,388
Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities consisted of the following (in thousands):
 
December 31,
2015
 
December 31,
2014
Deferred tax assets:
 
 
 
Stock-based compensation expense
$
1,301

 
$
7,143

Accrued expenses
7,899

 
6,701

Differences in income recognition related to receivable portfolios
33,652

 
31,799

State and international operating losses
15,234

 
12,917

Difference in basis of depreciable assets
3,069

 
2,077

Capitalized legal fees—international
4,143

 
4,365

Cumulative translation adjustment
958

 
4,036

Tax benefit of uncertain tax positions
1,349

 
1,247

Difference in basis of bond and loan costs
9,480

 
10,455

Difference in basis of intangible assets
18,089

 
—

Other
2,372

 
376

Valuation allowance
(4,517
)
 
(10,047
)
 
93,029

 
71,069

Deferred tax liabilities:
 
 
 
State taxes
(690
)
 
(1,643
)
Deferred court costs
(25,277
)
 
(19,550
)
Difference in basis of amortizable assets
(14,988
)
 
(10,682
)
Difference in basis of depreciable assets
(9,163
)
 
(7,868
)
Differences in income recognition related to receivable portfolios
(17,432
)
 
(16,308
)
Deferred debt cancellation income
(1,957
)
 
(2,602
)
Other
(46
)
 
(3,533
)
 
(69,553
)
 
(62,186
)
Net deferred tax asset
$
23,476

 
$
8,883
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,
 
2015
 
2014
 
2013
Computed “expected” Federal income tax expense
$
21,343

 
$
53,415

 
$
42,304

(Decrease) increase in income taxes resulting from:
 
 
 
 
 
State income taxes, net
(460
)
 
8,118

 
3,138

Foreign non-taxed income, rate differential
(7,609
)
 
(5,453
)
 
(2,647
)
Other adjustments, net
323

 
(3,355
)
 
2,593

 
$
13,597

 
$
52,725

 
$
45,388
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, 2012
$
1,784

Decreases related to prior year tax positions
(712
)
Increases related to current and 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

Increases related to prior year tax positions
5,835

Increases related to current year tax positions
11,882

Decreases related to prior year tax positions
(8,193
)
Balance at December 31, 2015
$
47,949