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Income Taxes (Tables)

12 Months Ended

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, 20176 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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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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