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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Income Before Taxes

For income tax purposes, the components of loss before taxes were as follows:

	Years Ended December 31,
	2017				2016				2015
Domestic	$	(75,143	)		$	(130,920	)		$	(62,903	)
Foreign	(68,830		)		(75,441		)		(66,958		)
	$	(143,973	)		$	(206,361	)		$	(129,861	)

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows:

	Years Ended December 31,
	2017				2016				2015
Current:
Federal	$	(21,859	)		$	(8,025	)		$	46,680
State	(3,938		)		460				1,079
Foreign	9,550				5,099				161
	(16,247		)		(2,466		)		47,920
Deferred:
Federal	27,289				(22,054		)		(27,173		)
State	702				4,701				(3,719		)
Foreign	2,719				(2,806		)		2,754
Provision for (reversal of) valuation allowance on deferred tax assets	(29,979		)		15,639				97,069
	731				(4,520		)		68,931
Total	$	(15,516	)		$	(6,986	)		$	116,851

Schedule of Effective Income Tax Reconciliation

Income tax expense differs from the amounts computed by applying the U.S. Federal corporate income tax rate of 35% as follows:

	Years Ended December 31,
	2017				2016				2015
Expected income tax expense (benefit) at statutory rate	$	(50,391	)		$	(72,225	)		$	(45,451	)
Differences between expected and actual income tax expense:
U.S Tax Reform - Change in Federal rate	62,758				—				—
U.S Tax Reform - Transition Tax	34,846				—				—
Foreign tax differential including effectively connected income (1)	(12,140		)		42,463				41,695
Provision for (reversal of) liability for uncertain tax positions	(16,925		)		2,236				18,205
Provision for (reversal of) valuation allowance on deferred tax assets (2)	(29,979		)		15,639				97,069
Provision for liability for intra-entity transactions	2,484				3,357				4,700
State tax, after Federal tax benefit	(3,938		)		250				(2,867		)
Excess tax benefits from share-based compensation	(3,701		)		—				—
Other permanent differences	2,783				515				(463		)
Non-deductible regulatory settlements	—				—				700
Other	(1,313		)		779				3,263
Actual income tax expense (benefit)	$	(15,516	)		$	(6,986	)		$	116,851

(1) The foreign tax differential includes a benefit recognized in 2017 and 2016 for taxable losses earned by OMS which are taxable in the U.S. as effectively connected income (ECI). The foreign tax differential for 2015 included positive ECI expected to be generated for that year. The impact of ECI to income tax expense (benefit) for 2017, 2016 and 2015 was $(28.5) million, $(7.4) million and $7.3 million, respectively.

(2) The benefit recorded for the provision for valuation allowance in 2017 relates primarily to the reduction in the valuation allowance necessary as a result of revaluing our deferred tax assets due to U.S. tax reform and the reduction in the corporate tax rate. This benefit is partially offset by an increase in valuation allowance necessary for current year losses. The provision for valuation allowance in 2016 and 2015 primarily relates to the recording of the valuation allowance on both the U.S. and USVI net deferred tax assets as of December 31, 2016 and 2015. Also included in the provision for valuation allowance in 2015 is the reversal of a portion of the valuation allowance previously recorded on taxable losses earned by OMS which were taxable in the U.S. as ECI, which is equal to the positive taxable income that is expected to be generated for ECI purposes for the year ended December 31, 2015.

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:

	December 31,
	2017				2016
Deferred tax assets
Net operating loss carryforward	$	59,271			$	67,657
Foreign deferred assets	6,769				5,219
Intangible asset amortization	5,541				8,223
Partnership losses	5,360				8,976
Accrued incentive compensation	4,798				8,017
Foreign tax credit	4,262				4,262
Stock-based compensation expense	4,202				5,659
Mortgage servicing rights amortization	3,664				11,592
Accrued other liabilities	3,239				5,543
Accrued legal settlements	3,602				9,178
Tax residuals and deferred income on tax residuals	2,569				4,037
Bad debt and allowance for loan losses	2,383				3,268
Interest expense disallowance	2,032				—
Reserve for servicing exposure	1,312				1,900
Capital losses	937				1,450
Delinquent servicing fees	769				1,647
Other	3,245				1,872
	113,955				148,500
Deferred tax liabilities
Foreign undistributed earnings	4,858				13,619
Other	49				76
	4,907				13,695
	109,048				134,805
Valuation allowance (1)	(107,048		)		(132,073		)
Deferred tax assets, net	$	2,000			$	2,732

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the total liability for uncertain tax positions is as follows:

	Years Ended December 31,
	2017				2016				2015
Beginning balance	$	16,994			$	32,548			$	22,523
Additions for tax positions of prior years	2,281				—				13,162
Reductions for tax positions of prior years	—				—				(2,741		)
Reductions for settlements	(387		)		(14,420		)		—
Lapses in statute of limitations	(16,607		)		(1,134		)		(396		)
Ending balance	$	2,281			$	16,994			$	32,548

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns.

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