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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income Before Taxes | For income tax purposes, the components of loss from continuing operations before taxes were as follows:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Domestic | $ | 11,477 |  |  | $ | (75,143 | ) |  | $ | (130,920 | )
Foreign | (82,953 | ) |  | (68,830 | ) |  | (75,441 | )
| $ | (71,476 | ) |  | $ | (143,973 | ) |  | $ | (206,361 | )
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax benefit were as follows:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |  |  |  |
Federal | $ | (7,670 | ) |  | $ | (21,859 | ) |  | $ | (8,025 | )
State | 356 |  |  | (3,938 | ) |  | 460 |
Foreign | 11,132 |  |  | 9,550 |  |  | 5,099 |
| 3,818 |  |  | (16,247 | ) |  | (2,466 | )
Deferred: |  |  |  |  |  |  |  |
Federal | 23,991 |  |  | 27,289 |  |  | (22,054 | )
State | 319 |  |  | 702 |  |  | 4,701 |
Foreign | (4,252 | ) |  | 2,719 |  |  | (2,806 | )
Provision for (reversal of) valuation allowance on deferred tax assets | (23,347 | ) |  | (29,979 | ) |  | 15,639 |
| (3,289 | ) |  | 731 |  |  | (4,520 | )
Total | $ | 529 |  |  | $ | (15,516 | ) |  | $ | (6,986 | )
Schedule of Effective Income Tax Reconciliation | Income tax expense differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows:
| Years Ended December 31,
| 2018 |  | 2017 |  | 2016
Expected income tax expense (benefit) at statutory rate (1) | $ | (15,010 | ) |  | $ | (50,391 | ) |  | $ | (72,225 | )
Differences between expected and actual income tax expense (2): |  |  |  |  |  |  |  |
Bargain purchase gain disallowance | (13,448 | ) |  | — |  |  | — |
Reduction in tax attributes for Section 382 & 383 limitations | 55,668 |  |  | — |  |  | — |
U.S. Tax Reform - Change in Federal rate | (10,666 | ) |  | 62,758 |  |  | — |
U.S. Tax Reform - Transition Tax | 14,412 |  |  | 34,846 |  |  | — |
U.S. Tax Reform - BEAT Tax | 1,076 |  |  | — |  |  | — |
Foreign tax differential including effectively connected income (3) | 22,990 |  |  | (12,140 | ) |  | 39,249 |
Provision for (reversal of) liability for uncertain tax positions | (3,987 | ) |  | (16,925 | ) |  | 2,236 |
Provision for (reversal of) valuation allowance on deferred tax assets (4) | (23,347 | ) |  | (29,979 | ) |  | 15,639 |
Provision for liability for intra-entity transactions | — |  |  | 2,484 |  |  | 3,357 |
State tax, after Federal tax benefit | 675 |  |  | (3,938 | ) |  | 250 |
Excess tax benefits from share-based compensation | (356 | ) |  | (3,701 | ) |  | — |
Other permanent differences | 122 |  |  | (267 | ) |  | (138 | )
Foreign tax credit (generation) utilization | (25,601 | ) |  | — |  |  | 3,214 |
Executive compensation disallowance | 959 |  |  | 221 |  |  | 425 |
Subpart F income | 3,222 |  |  | 2,824 |  |  | 228 |
Other provision to return differences | (6,559 | ) |  | 221 |  |  | (1,334 | )
Other | 379 |  |  | (1,529 | ) |  | 2,113 |
Actual income tax expense (benefit) | $ | 529 |  |  | $ | (15,516 | ) |  | $ | (6,986 | )
(1) | The U.S. Federal corporate income tax rate is 21% beginning January 1, 2018 and was 35% until December 31, 2017.
(2) | ASC 740-10-50 and SEC Regulation S-X, Rule 4-08(h) require the disclosure of significant reconciling items in the effective tax rate reconciliation schedule. We have prepared the 2018 effective tax rate reconciliation consistent with prior years, taking into account the materiality of reconciling items, comparability with prior years and the usefulness of the information.
(3) | The foreign tax differential includes a benefit recognized in 2018, 2017 and 2016 for taxable losses earned by OMS which are taxable in the U.S. as effectively connected income (ECI). The impact of ECI to income tax benefit for 2018, 2017 6 and 2016 was $3.3 million, $28.5 million and $7.4 million, respectively.
(4) | 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 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.
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following:
| December 31,
| 2018 |  | 2017
Deferred tax assets |  |  |  |  |
Net operating loss carryforward | $ | 31,587 |  |  | $ | 59,271 |
Reserve for servicing exposure | 10,331 |  |  | 1,312 |
Accrued other liabilities | 8,966 |  |  | 3,239 |
Foreign deferred assets | 7,142 |  |  | 6,769 |
Partnership losses | 6,681 |  |  | 5,360 |
Stock-based compensation expense | 5,610 |  |  | 4,202 |
Interest expense disallowance | 4,773 |  |  | 2,032 |
Intangible asset amortization | 4,579 |  |  | 5,541 |
Accrued incentive compensation | 4,527 |  |  | 4,798 |
Accrued legal settlements | 4,350 |  |  | 3,602 |
Bad debt and allowance for loan losses | 3,498 |  |  | 2,383 |
Tax residuals and deferred income on tax residuals | 2,905 |  |  | 2,569 |
Foreign tax credit | 357 |  |  | 4,262 |
Mortgage servicing rights amortization | — |  |  | 3,664 |
Other | 8,832 |  |  | 4,951 |
| 104,138 |  |  | 113,955 |
Deferred tax liabilities |  |  |  |  |
Mortgage servicing rights amortization | 27,860 |  |  | — |
Foreign undistributed earnings | 2,059 |  |  | 4,858 |
Other | 804 |  |  | 49 |
| 30,723 |  |  | 4,907 |
| 73,415 |  |  | 109,048 |
Valuation allowance | (68,126 | ) |  | (107,048 | )
Deferred tax assets, net | $ | 5,289 |  |  | $ | 2,000 |
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,
| 2018 |  | 2017 |  | 2016
Beginning balance | $ | 2,281 |  |  | $ | 16,994 |  |  | $ | 32,548 |
Additions - PHH acquisition | 13,108 |  |  | — |  |  | — |
Additions for tax positions of current year | 412 |  |  | — |  |  | — |
Additions for tax positions of prior years | 1,354 |  |  | 2,281 |  |  | — |
Reductions for tax positions of prior years | (236 | ) |  | — |  |  | — |
Reductions for settlements | (3,188 | ) |  | (387 | ) |  | (14,420 | )
Lapses in statute of limitations | (4,109 | ) |  | (16,607 | ) |  | (1,134 | )
Ending balance | $ | 9,622 |  |  | $ | 2,281 |  |  | $ | 16,994 |

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