XML 78 R56.htm IDEA: XBRL DOCUMENT v3.20.4

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income Before Taxes

For income tax purposes, the components of income (loss) from continuing operations before taxes were as follows:

			Years Ended December 31,
			2020						2019						2018
Domestic			$	(118,043)					$	(93,487)					$	11,477
Foreign			12,359						(33,004)						(82,953)
			$	(105,684)					$	(126,491)					$	(71,476)

Schedule of Components of Income Tax Expense (Benefit)

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

			Years Ended December 31,
			2020						2019						2018
Current:
Federal			$	(67,080)					$	873					$	(7,670)
State			348						4,460						356
Foreign			2,600						7,181						11,132
			(64,132)						12,514						3,818
Deferred:
Federal			(25,762)						(40,429)						23,991
State			(2,047)						(914)						319
Foreign			(1,445)						11,993						(4,252)
Provision for (reversal of) valuation allowance on deferred tax assets			27,880						32,470						(23,347)
			(1,374)						3,120						(3,289)
Total			$	(65,506)					$	15,634					$	529

Schedule of Effective Income Tax Reconciliation

Income tax expense (benefit) differs from the amounts computed by applying the U.S. Federal corporate income tax rate as follows:

			Years Ended December 31,
			2020						2019						2018
Expected income tax expense (benefit) at statutory rate			$	(22,194)					$	(26,563)					$	(15,010)
Differences between expected and actual income tax expense:
CARES Act			(63,954)						—						—
Provision for (reversal of) valuation allowance on deferred tax assets (1)			27,880						32,470						(23,347)
Provision for (reversal of) liability for uncertain tax positions			(2,033)						4,198						(3,987)
Other provision to return differences			(3,347)						1,242						(6,559)
Foreign tax differential including effectively connected income (2)			(2,511)						15,979						22,990
State tax, after Federal tax benefit			(1,700)						(784)						675
Executive compensation disallowance			594						1,344						959
Excess tax benefits from share-based compensation			424						381						(356)
Other permanent differences			382						66						122
Foreign tax credit (generation) utilization			(13)						263						(25,601)
Revaluation of deferred tax assets related to legal entity mergers			(2)						(25,509)						—
U.S. Tax Reform - Global Intangible Low-Taxed Income (GILTI) inclusion			182						11,859						—
U.S. Tax Reform - Change in Federal rate			—						—						(10,666)
U.S. Tax Reform - Transition Tax			—						—						14,412
U.S. Tax Reform - BEAT Tax			—						(555)						1,076
Reduction in tax attributes for Section 382 & 383 limitations			—						—						55,668
Bargain purchase gain disallowance			—						80						(13,448)
Subpart F income			—						—						3,222
Other			786						1,163						379
Actual income tax expense (benefit)			$	(65,506)					$	15,634					$	529

(1)The benefit recorded for the provision for valuation allowance in 2018 relates primarily to a reduction in the valuation allowance necessary as a result of the reduction in tax attributes due to Section 382 & 383 limitations. This benefit is partially offset by an

increase in valuation allowance necessary for current year losses and for adjustments to provisional amounts recorded under SAB 118 at December 31, 2017 when accounting for the effects of tax reform passed on December 22, 2017.

(2)The foreign tax differential includes expense recognized in 2019 and a benefit recognized in 2018 for taxable income or losses earned by Ocwen Mortgage Servicing, Inc. (OMS) prior to the merger of OMS into OVIS in 2019, which are taxable in the U.S. as effectively connected income (ECI). The impact of ECI to income tax expense (benefit) for 2019 and 2018 was $2.6 million and $(3.3) million, respectively.

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets were comprised of the following:

			December 31,
			2020						2019
Deferred tax assets
Net operating loss carryforwards - federal and foreign			$	40,557					$	64,817
Net operating loss carryforwards and credits - state and local			67,293						70,254
Interest expense disallowance			23,112						12,423
Reserve for servicing exposure			10,273						7,711
Accrued legal settlements			9,200						6,028
Partnership losses			7,316						7,029
Stock-based compensation expense			6,486						5,297
Accrued incentive compensation			6,240						5,063
Accrued other liabilities			5,722						6,377
Lease liabilities			4,943						5,459
Intangible asset amortization			4,541						4,946
Foreign deferred assets			3,731						3,620
Tax residuals and deferred income on tax residuals			2,968						2,885
Foreign tax credit			107						94
Bad debt and allowance for loan losses			—						2,530
Deferred income			—						8,493
Other			5,928						8,708
			198,417						221,734
Deferred tax liabilities
Mortgage servicing rights amortization			8,123						16,358
Bad debt and allowance for loan losses			1,951						—
Foreign undistributed earnings			287						1,615
Other			864						1,151
			11,225						19,124
			187,192						202,610
Valuation allowance			(183,649)						(200,441)
Deferred tax assets, net			$	3,543					$	2,169

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of the total unrecognized tax benefits for uncertain tax position is as follows:

			Years Ended December 31,
			2020						2019						2018
Beginning balance			$	10,589					$	9,622					$	2,281
Additions for tax positions of current year			—						207						412
Additions for tax positions of prior years			15,242						3,110						1,354
Reductions for tax positions of prior years			(219)						—						(236)
Reductions for settlements			(3,067)						(1,293)						(3,188)
Lapses in statute of limitations			(1,907)						(1,057)						(4,109)
Additions - PHH acquisition			—						—						13,108
Ending balance (1)			$	20,638					$	10,589					$	9,622

(1)$12.8 million of the balance at December 31, 2020 is included in the Liability for uncertain tax positions in Other liabilities, with the remaining $7.8 million balance included as a reduction of Income taxes receivable in Receivables. The balance at December 31, 2019 is included in the Liability for uncertain tax positions in Other liabilities.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsExcludingAmountsPertainingToExaminedTaxReturnsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration