Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rates

The effective tax rates for the respective periods are shown below:

	Year Ended December 31,
	2013			2012
Federal provision		35.0	%		35.0	%
State provision		5.8	%		6.6	%
State benefit		(2.0	%)		(2.3	%)
Changes in state apportionment(1)		(0.2	%)		0.0	%
Tax reserves(2)		0.0	%		0.1	%
International provision(3)		(2.2	%)		(0.4	%)
Permanent items(4)		2.4	%		0.5	%
Other		(1.2	%)		0.2	%
Effective rate		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.

Components of Pretax Income

The pretax income consisted of the following (in thousands):

	Year Ended December 31,
	2013		2012		2011
Domestic	$	105,009	$	122,423	$	92,759
Foreign		15,859		7,902		5,910
	$	120,868	$	130,325	$	98,669

Components of Provision for Income Taxes

The provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2013			2012			2011
Current expense:
Federal	$	50,304		$	48,025		$	30,822
State		7,196			9,537			6,647
Foreign		4,052			2,765			2,407
		61,552			60,327			39,876
Deferred (benefit) expense:
Federal		(13,134	)		(6,801	)		(814	)
State		(2,369	)		(1,301	)		90
Foreign		(661	)		(471	)		(1,076	)
		(16,164	)		(8,573	)		(1,800	)
	$	45,388		$	51,754		$	38,076

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities consisted of the following for the years presented (in thousands):

	December 31, 2013			December 31, 2012
Deferred tax assets:
State taxes	$	2,758		$	1,408
Stock-based compensation expense		7,250			8,888
Accrued expenses		5,015			2,957
Non-qualified plan		97			(136	)
Deferred revenue		38,529			—
Cash flow hedge instruments		1,588			1,037
State and international operating losses		6,490			51
Fixed asset basis—International		86			(26	)
Capitalized legal fees—International		1,609			—
Cumulative translation adjustment		1,509			—
Tax benefit of uncertain tax positions		4,237			—
Valuation allowance		(3,595	)		(13	)
		65,573			14,166
Deferred tax liabilities:
Deferred court costs		(15,445	)		(15,013	)
Difference in basis of amortizable assets		(12,200	)		(7,898	)
Difference in basis of depreciable assets		(6,834	)		(4,134	)
Differences in income recognition related to receivable portfolios		(20,773	)		5,723
Deferred debt cancellation income		(1,222	)		(1,222	)
Other		(2,289	)		142
		(58,763	)		(22,402	)
Net deferred tax asset (liability)	$	6,810		$	(8,236	)

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% per annum were as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
Computed “expected” Federal income tax expense	$	42,304		$	45,614		$	34,534
Increase (decrease) in income taxes resulting from:
State income taxes, net		3,138			5,551			4,200
Foreign non-taxed income, rate differential		(2,647	)		(481	)		(772	)
Other adjustments, net		2,593			1,070			114
	$	45,388		$	51,754		$	38,076

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
Current year deletions relating to prior years		(712	)
Current year additions relating to prior years—acquisitions		70,201
Balance at December 31, 2013	$	71,273