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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Effective Tax Rates
The effective tax rates for the respective periods are shown below:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Federal provision
35.0
 %
 
35.0
 %
 
35.0
 %
State provision(1)
2.3
 %
 
0.2
 %
 
8.7
 %
International benefit(2)
(3.6
)%
 
(7.8
)%
 
(3.0
)%
Tax reserves(3)
(3.2
)%
 
(2.0
)%
 
(3.8
)%
Permanent items(4)
14.7
 %
 
6.0
 %
 
4.3
 %
Increase (decrease) in valuation allowance(5)
20.7
 %
 
(5.6
)%
 
0.0
 %
Other(6)
0.7
 %
 
1.9
 %
 
(6.9
)%
Effective rate
66.6
 %
 
27.7
 %
 
34.3
 %
________________________
(1)
Change from 2014 to 2015 relates primarily to a beneficial settlement with a state tax authority.
(2)
Relates primarily to the lower tax rate on the income attributable to international operations.
(3)
Represent release of reserves taken for certain tax positions.
(4)
Represents a provision for nondeductible items, including overall foreign loss in 2016 and a settlement with the Consumer Finance Protection Bureau (“CFPB”) in 2015. The Company incurred a $10.0 million civil monetary penalty related to a settlement with the CFPB during the year ended December 31, 2015, which is not deductible for income tax purposes.
(5)
Valuation allowance increased in 2016 due to a foreign subsidiary’s cumulative operating loss.
(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 (loss) from continuing operations consisted of the following (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Domestic
$
112,483

 
$
59,056

 
$
120,461

Foreign
(55,108
)
 
38,877

 
21,181

 
$
57,375

 
$
97,933

 
$
141,642
Components of Provision for Income Taxes
The income tax provisions for continuing operations consisted of the following (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current expense:
 
 
 
 
 
Federal
$
58,816

 
$
38,831

 
$
68,142

State
1,173

 
363

 
7,538

Foreign
10,364

 
7,124

 
3,752

 
70,353

 
46,318

 
79,432

Deferred (benefit) expense:
 
 
 
 
 
Federal
(22,951
)
 
(18,755
)
 
(34,479
)
State
25

 
(610
)
 
2,698

Foreign
(9,222
)
 
209

 
918

 
(32,148
)
 
(19,156
)
 
(30,863
)
 
$
38,205

 
$
27,162

 
$
48,569
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,
 
2016
 
2015
 
2014
Computed “expected” Federal income tax expense
$
20,081

 
$
34,277

 
$
49,578

(Decrease) increase in income taxes resulting from:
 
 
 
 
 
State income taxes, net
1,331

 
637

 
7,975

Foreign non-taxed income, rate differential
(2,076
)
 
(7,609
)
 
(5,453
)
Other adjustments, net
18,869

 
(143
)
 
(3,531
)
 
$
38,205

 
$
27,162

 
$
48,569
Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities consisted of the following (in thousands):
 
December 31,
2016
 
December 31,
2015
Deferred tax assets:
 
 
 
Stock-based compensation expense
$
7,549

 
$
1,301

Accrued expenses
19,868

 
7,220

Differences in income recognition related to receivable portfolios
45,419

 
33,652

State and international operating losses
26,386

 
15,234

Difference in basis of depreciable assets
3,427

 
3,069

Capitalized legal fees—international
171

 
4,143

Cumulative translation adjustment
715

 
958

Tax benefit of uncertain tax positions
677

 
1,349

Difference in basis of bond and loan costs
3,007

 
9,480

Other
1,077

 
2,372

Valuation allowance
(18,892
)
 
(4,517
)
 
89,404

 
74,261

Deferred tax liabilities:
 
 
 
State taxes
(377
)
 
(707
)
Deferred court costs
(19,860
)
 
(25,277
)
Difference in basis of amortizable assets
(16,488
)
 
(11,044
)
Difference in basis of depreciable assets
(7,705
)
 
(8,932
)
Differences in income recognition related to receivable portfolios
—

 
(17,432
)
Deferred debt cancellation income
(1,313
)
 
(1,957
)
Other
(242
)
 
(46
)
 
(45,985
)
 
(65,395
)
Net deferred tax asset(1)
$
43,419

 
$
8,866
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, 2013
$
71,273

Increases related to current and prior year tax positions
34,356

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

Increases related to prior year tax positions
2,505

Increases related to current year tax positions
1,259

Decreases related to settlements with taxing authorities
(31,111
)
Decreases related to prior year tax positions
(1,657
)
Balance at December 31, 2016
$
18,945