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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Effective Tax Rates | The effective tax rates for the respective periods are shown below:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Federal provision | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State provision | 0.5 | % |  | 2.3 | % |  | 0.2 | %
Foreign rate differential(1) | (20.0 | )% |  | (3.6 | )% |  | (7.8 | )%
Transaction costs(2) | 5.0 | % |  | 0.0 | % |  | 0.0 | %
Tax reserves | 0.0 | % |  | (3.2 | )% |  | (2.0 | )%
Permanent items(3) | 10.2 | % |  | 14.7 | % |  | 6.0 | %
Change in valuation allowance(4) | 8.2 | % |  | 20.7 | % |  | (5.6 | )%
Other(5) | 0.8 | % |  | 0.7 | % |  | 1.9 | %
Effective rate | 39.7 | % |  | 66.6 | % |  | 27.7 | %
________________________
(1) | Relates primarily to the lower tax rates on the income or loss attributable to international operations.
(2) | Relates primarily to the effect of certain costs related to the withdrawn Cabot IPO that are disallowed for U.K. tax purposes.
(3) | Includes nondeductible interest reported in a foreign subsidiary. The year ending December 31, 2017 also includes certain foreign income taxable in the U.S. under Internal Revenue Code Section 951 (Subpart F) in 2017. The year ending December 31, 2015 also includes a settlement with the Consumer Finance Protection Bureau (“CFPB”) for which the Company incurred a $10.0 million civil monetary penalty related to a settlement with the CFPB, which is not deductible for income tax purposes.
(4) | Valuation allowance recorded as a result of certain foreign subsidiaries’ cumulative operating losses for tax purposes.
(5) | Includes the impact from the Tax Reform Act for the year ended December 31, 2017.
Components of Pretax Income | The pretax income (loss) from continuing operations consisted of the following (in thousands):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Domestic | $ | 71,794 |  |  | $ | 112,483 |  |  | $ | 59,056 |
Foreign | 59,432 |  |  | (55,108 | ) |  | 38,877 |
| $ | 131,226 |  |  | $ | 57,375 |  |  | $ | 97,933 |
Components of Provision for Income Taxes | The income tax provisions for continuing operations consisted of the following (in thousands):
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Current expense (benefit): |  |  |  |  |
Federal | $ | 9,969 |  |  | $ | 58,816 |  |  | $ | 38,831 |
State | (794 | ) |  | 1,173 |  |  | 363 |
Foreign | 15,690 |  |  | 10,364 |  |  | 7,124 |
| 24,865 |  |  | 70,353 |  |  | 46,318 |
Deferred expense (benefit): |  |  |  |  |
Federal | 16,563 |  |  | (22,951 | ) |  | (18,755 | )
State | 784 |  |  | 25 |  |  | (610 | )
Foreign | 9,837 |  |  | (9,222 | ) |  | 209 |
| 27,184 |  |  | (32,148 | ) |  | (19,156 | )
| $ | 52,049 |  |  | $ | 38,205 |  |  | $ | 27,162 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities consisted of the following (in thousands):
| December 31, 2017 |  | December 31, 2016
Deferred tax assets: |  |  |
Stock-based compensation expense | $ | 4,777 |  |  | $ | 7,549 |
Accrued expenses | 14,708 |  |  | 19,868 |
Differences in income recognition related to receivable portfolios | 20,612 |  |  | 45,419 |
Net operating losses | 46,615 |  |  | 26,386 |
Difference in basis of bond and loan costs | 7,878 |  |  | 3,007 |
Other | 522 |  |  | 6,067 |
Total deferred tax assets | 95,112 |  |  | 108,296 |
Valuation allowance | (34,642 | ) |  | (18,892 | )
Total deferred tax assets net of valuation allowance | 60,470 |  |  | 89,404 |
Deferred tax liabilities: |  |  |
State taxes | (1,237 | ) |  | (377 | )
Deferred court costs | (20,207 | ) |  | (19,860 | )
Difference in basis of amortizable assets | (18,573 | ) |  | (16,488 | )
Difference in basis of depreciable assets | (2,059 | ) |  | (7,705 | )
Other | (9,144 | ) |  | (1,555 | )
Total deferred tax liabilities | (51,220 | ) |  | (45,985 | )
Net deferred tax asset(1) | $ | 9,250 |  |  | $ | 43,419 |
________________________
(1) | The Company operates in multiple jurisdictions. In accordance with authoritative guidance relating to income taxes, deferred tax assets and liabilities are netted for each tax-paying component of the Company within a particular tax jurisdiction, and presented as a single amount in the statement of financial condition.
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, 2014 | $ | 38,425 |
Increases related to current and prior year tax positions | 5,835 |
Increases related to current year tax positions | 11,882 |
Decreases related to settlements with taxing authorities | (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 |
Increases related to current year tax positions | 5,902 |
Decreases related to settlements with taxing authorities | (228 | )
Decreases related to current year tax positions | (4,599 | )
Balance at December 31, 2017 | $ | 20,020 |

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