Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ECPG | ||
Entity Registrant Name | ENCORE CAPITAL GROUP INC | ||
Entity Central Index Key | 1,084,961 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 25,598,192 | ||
Entity Public Float | $ 556,475,441 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 149,765 | $ 123,993 |
Investment in receivable portfolios, net | 2,382,809 | 2,440,669 |
Property and equipment, net | 72,257 | 72,546 |
Deferred court costs, net | 65,187 | 75,239 |
Other assets | 215,447 | 148,762 |
Goodwill | 785,032 | 924,847 |
Assets associated with discontinued operations | 0 | 388,763 |
Total assets | 3,670,497 | 4,174,819 |
Liabilities: | ||
Accounts payable and accrued liabilities | 234,398 | 290,608 |
Debt | 2,805,983 | 2,944,063 |
Other liabilities | 29,601 | 59,226 |
Liabilities associated with discontinued operations | 0 | 232,434 |
Total liabilities | 3,069,982 | 3,526,331 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 45,755 | 38,624 |
Redeemable equity component of convertible senior notes | 2,995 | 6,126 |
Equity: | ||
Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 50,000 shares authorized, 25,593 shares and 25,288 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | 256 | 253 |
Additional paid-in capital | 103,392 | 110,533 |
Accumulated earnings | 560,567 | 543,489 |
Accumulated other comprehensive loss | (104,911) | (57,822) |
Total Encore Capital Group, Inc. stockholders’ equity | 559,304 | 596,453 |
Noncontrolling interest | (7,539) | 7,285 |
Total equity | 551,765 | 603,738 |
Total liabilities, redeemable equity and equity | 3,670,497 | 4,174,819 |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||
Assets | ||
Cash and cash equivalents | 55,823 | 50,483 |
Investment in receivable portfolios, net | 972,841 | 1,197,513 |
Property and equipment, net | 19,284 | 19,767 |
Deferred court costs, net | 22,760 | 33,296 |
Other assets | 79,767 | 31,679 |
Goodwill | 584,868 | 706,812 |
Liabilities: | ||
Accounts payable and accrued liabilities | 99,689 | 142,375 |
Debt | 1,514,799 | 1,665,009 |
Other liabilities | $ 1,921 | $ 839 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 25,593,000 | 25,288,000 |
Common stock, shares outstanding | 25,593,000 | 25,288,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Revenue from receivable portfolios, net | $ 946,615 | $ 1,072,436 | $ 992,832 |
Other revenues | 82,643 | 57,531 | 50,597 |
Total revenues | 1,029,258 | 1,129,967 | 1,043,429 |
Operating expenses | |||
Salaries and employee benefits | 281,097 | 262,281 | 238,942 |
Cost of legal collections | 200,855 | 229,847 | 205,661 |
Other operating expenses | 100,737 | 93,210 | 89,934 |
Collection agency commissions | 36,141 | 37,858 | 33,343 |
General and administrative expenses | 134,046 | 191,357 | 139,977 |
Depreciation and amortization | 34,868 | 33,160 | 27,101 |
Total operating expenses | 787,744 | 847,713 | 734,958 |
Income from operations | 241,514 | 282,254 | 308,471 |
Other (expense) income | |||
Interest expense | (198,367) | (186,556) | (166,942) |
Other income | 14,228 | 2,235 | 113 |
Total other expense | (184,139) | (184,321) | (166,829) |
Income from continuing operations before income taxes | 57,375 | 97,933 | 141,642 |
Provision for income taxes | (38,205) | (27,162) | (48,569) |
Income from continuing operations | 19,170 | 70,771 | 93,073 |
(Loss) income from discontinued operations, net of tax | (2,353) | (23,387) | 5,205 |
Net income | 16,817 | 47,384 | 98,278 |
Net loss (income) attributable to noncontrolling interest | 59,753 | (2,249) | 5,448 |
Net income attributable to Encore Capital Group, Inc. stockholders | 76,570 | 45,135 | 103,726 |
Amounts attributable to Encore Capital Group, Inc.: | |||
Income from continuing operations | 78,923 | 68,522 | 98,521 |
(Loss) income from discontinued operations, net of tax | (2,353) | (23,387) | 5,205 |
Net income attributable to Encore Capital Group, Inc. stockholders | $ 76,570 | $ 45,135 | $ 103,726 |
Basic earnings (loss) per share from: | |||
Continuing operations (in dollars per share) | $ 3.07 | $ 2.66 | $ 3.81 |
Discontinued operations (in dollars per share) | (0.09) | (0.91) | 0.20 |
Net basic earnings per share (in dollars per share) | 2.98 | 1.75 | 4.01 |
Diluted earnings (loss) per share from: | |||
Continuing operations (in dollars per share) | 3.05 | 2.57 | 3.58 |
Discontinued operations (in dollars per share) | (0.09) | (0.88) | 0.19 |
Net diluted earnings per share (in dollars per share) | $ 2.96 | $ 1.69 | $ 3.77 |
Weighted average shares outstanding: | |||
Basic (in shares) | 25,713 | 25,722 | 25,853 |
Diluted (in shares) | 25,909 | 26,647 | 27,495 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 16,817 | $ 47,384 | $ 98,278 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on derivative instruments | 407 | (1,527) | 3,048 |
Income tax effect | (87) | (151) | (708) |
Unrealized gain (loss) on derivative instruments, net of tax | 320 | (1,678) | 2,340 |
Unrealized loss on foreign currency translation | (67,943) | (57,144) | (10,562) |
Income tax effect | 361 | (1,468) | (1,774) |
Unrealized loss on foreign currency translation, net of tax | (67,582) | (58,612) | (12,336) |
Other comprehensive loss, net of tax | (67,262) | (60,290) | (9,996) |
Comprehensive (loss) income | (50,445) | (12,906) | 88,282 |
Comprehensive loss (income) attributable to noncontrolling interest: | |||
Net loss (income) | 59,753 | (2,249) | 5,448 |
Unrealized loss on foreign currency translation | 20,173 | 3,390 | 3,879 |
Comprehensive loss attributable to noncontrolling interest | 79,926 | 1,141 | 9,327 |
Comprehensive income (loss) attributable to Encore Capital Group, Inc. stockholders | $ 29,481 | $ (11,765) | $ 97,609 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Balance (in shares) at Dec. 31, 2013 | 25,457 | |||||
Balance at Dec. 31, 2013 | $ 575,907 | $ 255 | $ 171,819 | $ 394,628 | $ 5,195 | $ 4,010 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 102,791 | 103,726 | (935) | |||
Other comprehensive (loss) gain, net of tax | (6,103) | (6,117) | 14 | |||
Initial noncontrolling interest related to business combinations | 892 | 892 | ||||
Change in fair value of redeemable noncontrolling interest | (5,730) | (5,730) | ||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares) | 737 | |||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | (15,489) | $ 7 | (15,496) | |||
Repurchase of common stock (in shares) | (400) | |||||
Repurchase of common stock | (16,815) | $ (4) | (16,811) | |||
Stock-based compensation | 17,181 | 17,181 | ||||
Tax benefit related to stock-based compensation | 11,580 | 11,580 | ||||
Issuance of convertible notes, net of hedge transactions | (28,160) | (28,160) | ||||
Reclassification of redeemable equity component of convertible senior notes | (9,073) | (9,073) | ||||
Balance (in shares) at Dec. 31, 2014 | 25,794 | |||||
Balance at Dec. 31, 2014 | 626,981 | $ 258 | 125,310 | 498,354 | (922) | 3,981 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 46,013 | 45,135 | 878 | |||
Other comprehensive (loss) gain, net of tax | (56,900) | (56,900) | 0 | |||
Initial noncontrolling interest related to business combinations | 2,426 | 2,426 | ||||
Change in fair value of redeemable noncontrolling interest | (2,349) | (2,349) | ||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares) | 333 | |||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | (5,318) | $ 3 | (5,321) | |||
Repurchase of common stock (in shares) | (839) | |||||
Repurchase of common stock | (33,185) | $ (8) | (33,177) | |||
Stock-based compensation | 22,008 | 22,008 | ||||
Tax benefit related to stock-based compensation | 1,251 | 1,251 | ||||
Reclassification of redeemable equity component of convertible senior notes | 2,948 | 2,948 | ||||
Other | (137) | (137) | ||||
Balance (in shares) at Dec. 31, 2015 | 25,288 | |||||
Balance at Dec. 31, 2015 | 603,738 | $ 253 | 110,533 | 543,489 | (57,822) | 7,285 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 64,648 | 76,570 | (11,922) | |||
Other comprehensive (loss) gain, net of tax | (50,766) | (47,089) | (3,677) | |||
Initial noncontrolling interest related to business combinations | 775 | 775 | ||||
Change in fair value of redeemable noncontrolling interest | (74,194) | (14,702) | (59,492) | |||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes (in shares) | 305 | |||||
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | (4,478) | $ 3 | (4,481) | |||
Stock-based compensation | 12,627 | 12,627 | ||||
Tax benefit related to stock-based compensation | (2,324) | (2,324) | ||||
Reclassification of redeemable equity component of convertible senior notes | 3,130 | 3,130 | ||||
Other | (1,391) | (1,391) | ||||
Balance (in shares) at Dec. 31, 2016 | 25,593 | |||||
Balance at Dec. 31, 2016 | $ 551,765 | $ 256 | $ 103,392 | $ 560,567 | $ (104,911) | $ (7,539) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Operating activities: | |||
Net income | $ 16,817 | $ 47,384 | $ 98,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (income) from discontinued operations, net of income taxes | 2,353 | 23,387 | (6,816) |
Depreciation and amortization | 34,868 | 33,160 | 27,100 |
Other non-cash expense, net | 30,623 | 35,104 | 27,660 |
Stock-based compensation expense | 12,627 | 22,008 | 17,181 |
Gain on derivative instruments, net | (7,816) | 0 | 0 |
Deferred income taxes | (52,905) | (16,665) | (48,078) |
Excess tax benefit from stock-based payment arrangements | 0 | (1,724) | (11,928) |
Provision for (reversal of) allowances on receivable portfolios, net | 84,177 | (6,763) | (17,407) |
Changes in operating assets and liabilities | |||
Deferred court costs and other assets | (20,364) | (33,430) | (11,282) |
Prepaid income tax and income taxes payable | 25,417 | (29,504) | 22,180 |
Accounts payable, accrued liabilities and other liabilities | 2,439 | 43,135 | 9,832 |
Net cash provided by operating activities | 128,236 | 116,092 | 106,720 |
Net cash provided by (used in) operating activities from discontinued operations | 2,096 | (1,667) | 4,824 |
Net cash provided by operating activities | 130,332 | 114,425 | 111,544 |
Investing activities: | |||
Cash paid for acquisitions, net of cash acquired | (675) | (276,575) | (446,165) |
Proceeds from divestiture of business, net of cash divested | 106,041 | 0 | 0 |
Payments to Acquire Assets Held-for-Sale | (19,874) | 0 | 0 |
Purchases of receivable portfolios, net of put-backs | (907,413) | (749,760) | (862,997) |
Collections applied to investment in receivable portfolios, net | 659,321 | 635,899 | 633,960 |
Purchases of property and equipment | (31,668) | (28,624) | (23,084) |
Proceeds from derivative instruments, net | 8,800 | 0 | 0 |
Other, net | 1,994 | (1,233) | (5,102) |
Net cash used in investing activities | (183,474) | (420,293) | (703,388) |
Net cash provided by (used in) used in investing activities from discontinued operations | 14,685 | (52,416) | (51,809) |
Net cash used in investing activities | (168,789) | (472,709) | (755,197) |
Financing activities: | |||
Payment of loan costs | (32,338) | (17,995) | (20,101) |
Proceeds from credit facilities | 586,016 | 1,084,393 | 1,343,417 |
Repayment of credit facilities | (615,857) | (898,086) | (1,184,244) |
Proceeds from senior secured notes | 442,610 | 332,693 | 288,645 |
Repayment of senior secured notes | (352,549) | (15,000) | (15,000) |
Proceeds from issuance of convertible senior notes | 0 | 0 | 161,000 |
Proceeds from issuance of securitized notes | 0 | 0 | 134,000 |
Repayment of securitized notes | (935) | (44,251) | (29,753) |
Purchases of convertible hedge instruments | 0 | 0 | (33,576) |
Repurchase of common stock | 0 | (33,185) | (16,815) |
Taxes paid related to net share settlement of equity awards | (4,829) | (6,289) | (20,324) |
Excess tax benefit from stock-based payment arrangements | 0 | 1,724 | 11,928 |
Proceeds from other debt | 36,172 | 0 | 0 |
Other, net | (15,037) | (2,159) | 7,146 |
Net cash provided by financing activities | 43,253 | 401,845 | 626,323 |
Net increase (decrease) in cash and cash equivalents | 4,796 | 43,561 | (17,330) |
Effect of exchange rate changes on cash and cash equivalents | (8,624) | (14,131) | 15,280 |
Cash and cash equivalents, beginning of period | 153,593 | 124,163 | 126,213 |
Cash and cash equivalents, end of period | 149,765 | 153,593 | 124,163 |
Cash and cash equivalents of discontinued operations, end of period | 0 | 29,600 | 32,644 |
Cash and cash equivalents of continuing operations, end of period | 149,765 | 123,993 | 91,519 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 147,899 | 151,946 | 95,034 |
Cash paid for income taxes, net | 60,071 | 84,101 | 69,948 |
Supplemental schedule of non-cash investing and financing activities: | |||
Fixed assets acquired through capital lease | $ 55 | $ 2,220 | $ 8,341 |
Ownership, Description of Busin
Ownership, Description of Business, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Ownership, Description of Business, and Summary of Significant Accounting Policies | Ownership, Description of Business, and Summary of Significant Accounting Policies Encore Capital Group, Inc. (“Encore”), through its subsidiaries (collectively with Encore, the “Company”), is an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. The Company purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies, commercial retailers, and telecommunication companies. Defaulted receivables may also include receivables subject to bankruptcy proceedings. Basis of Consolidation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. The Company also consolidates VIEs, for which it is the primary beneficiary. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (b) either the obligation to absorb losses or the right to receive benefits. Refer to Note 11 , “Variable Interest Entities” for further details. All intercompany transactions and balances have been eliminated in consolidation. Translation of Foreign Currencies The financial statements of certain of the Company’s foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities of foreign operations are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The resulting translation adjustments are recorded as a component of other comprehensive income or loss. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Intercompany transaction gains or losses at each period end arising from subsequent measurement of balances for which settlement is not planned or anticipated in the foreseeable future are included as translation adjustments and recorded within other comprehensive income or loss. Transaction gains and losses are included in other income or expense. Reclassifications Certain immaterial reclassifications have been made to the consolidated financial statements to conform to the current year’s presentation. For the years ended December 31, 2015 and 2014, the Company revised its statements of comprehensive income. The comprehensive loss attributable to Encore increased by $3.4 million for the year ended December 31, 2015, and the comprehensive income attributable to Encore decreased by $3.5 million for the years ended December 31, 2014. These revisions were not material. There were no revisions to the statements of financial condition, income, equity or cash flows. Change in Accounting Principle In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective beginning January 1, 2016, with early adoption permitted. The update requires retrospective application and represents a change in accounting principle. The Company adopted ASU 2015-03 in the first quarter of 2016 and the retrospective application of this change in accounting principle on the consolidated balance sheet as of December 31, 2015 reclassified debt issuance costs of $41.7 million , which were previously presented as other assets, as a reduction to the carrying value of the debt by the same amount. The adoption did not have an impact on the Company's condensed consolidated statements of income or statements of cash flows in any period. Recent Accounting Pronouncements Other than the adoption of ASU 2015-03 as discussed in the “Change in Accounting Principle” section above, there have been no new accounting pronouncements made effective during year ended December 31, 2016 that have significance, or potential significance, to the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairments tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements as well as whether to adopt the new guidance early. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The FASB issued ASU 2016-15 to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this update provide guidance on eight specific cash flow issues. ASU 2016-15 is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements as well as whether to adopt the new guidance early. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 applies a current expected credit loss model which is a new impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 eliminates the current accounting model for loans and debt securities acquired with deteriorated credit quality under ASC 310-30, which provides authoritative guidance for the accounting of the Company’s investment in receivable portfolios. Under this new standard, entities will gross up the initial amortized cost for the purchased financial assets with credit deterioration (“PCD assets”), the initial amortized cost will be the sum of (1) the purchase price and (2) the estimate of credit losses as of the date of acquisition. After initial recognition of PCD assets and the related allowance, any change in estimated cash flows (favorable or unfavorable) will be immediately recognized in the income statement because the yield on PCD assets is locked. ASU 2016-13 is effective for reporting periods beginning after December 15, 2019 with early adoption permitted for reporting periods beginning after December 15, 2018. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption of this standard, excess tax benefits and tax deficiencies will be recognized as income tax expense, and the tax effects of exercised or vested awards will be treated as discrete items in the period in which they occur. As such, implementation of this standard could create volatility in and entity’s effective income tax rate on a quarter by quarter basis. The volatility in the effective income tax rate is due primarily to fluctuations in the stock price and the timing of stock option exercises and vesting of restricted share grants. The standard also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity. An entity may elect to apply the change in presentation in the statement of cash flows either prospectively or retrospectively to all periods presented. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. ASU 2016-09 became effective for the Company on January 1, 2017. The Company will apply the change in presentation in the statement of cash flows retrospectively for all periods presented after adoption date. The Company believes that the new standard may cause volatility in its effective tax rates and earnings per share due to the tax effects related to share-based payments being recorded to the income statement. The volatility in future periods will depend on the Company’s stock price at the awards’ vest dates and the number of awards that vest in each period. The Company will not elect an accounting policy change to record forfeitures as they occur and will continue to estimate forfeitures at each period. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal year 2019. Early adoption is permitted. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying ASU 2014-09, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB’s ASC. ASU 2014-09 is effective for annual reporting periods (including interim periods within that reporting period) beginning after December 15, 2016 and shall be applied using either a full retrospective or modified retrospective approach. Early application is not permitted. In August 2015, FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all public companies for all annual periods beginning after December 15, 2017 with early adoption permitted only as of annual reporting periods beginning after December 31, 2016, including interim periods within the reporting period. In March 2016, the FASB issued ASU 2016-08 as an amendment to ASU 2014-09, the amendment clarifies how to identify the unit of accounting for the principal versus agent evaluation, how to apply the control principle to certain types of arrangements, such as service transaction, and reframed the indicators in the guidance to focus on evidence that an entity is acting as a principal rather than as an agent. The Company is evaluating its implementation approach and the potential impacts of Topic 606 on its existing revenue recognition policies and procedures. The revenue recognition guidance of this new standard applies to the Company’s fee-based income generated from its international subsidiaries that provide portfolio management services. The Company does not expect the adoption of this standard will have a material impact on its consolidated financial statements. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s consolidated financial statements. Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the date of purchase. The Company invests its excess cash in bank deposits and money market instruments, which are afforded the highest ratings by nationally recognized rating firms. The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents approximate their fair value. Investment in Receivable Portfolios In accordance with the authoritative guidance for loans and debt securities acquired with deteriorated credit quality, discrete receivable portfolio purchases during the same fiscal quarter are aggregated into pools based on common risk characteristics. Common risk characteristics include risk ratings (e.g. FICO or similar scores), financial asset type, collateral type, size, interest rate, date of origination, term, and geographic location. The Company’s static pools are typically grouped into credit card, purchased consumer bankruptcy, and mortgage portfolios. The Company further groups these static pools by geographic region or location. Portfolios acquired in business combinations are also grouped into these pools. During any fiscal quarter in which the Company has an acquisition of an entity that has portfolio, the entire historical portfolio of the acquired company is aggregated into the pool groups for that quarter, based on common characteristics, resulting in pools for that quarter that may consist of several different vintages of portfolio. Once a static pool is established, the portfolios are permanently assigned to the pool. The discount ( i.e. , the difference between the cost of each static pool and the related aggregate contractual receivable balance) is not recorded because the Company expects to collect a relatively small percentage of each static pool’s contractual receivable balance. As a result, receivable portfolios are recorded at cost at the time of acquisition. The purchase cost of the portfolios includes certain fees paid to third parties incurred in connection with the direct acquisition of the receivable portfolios. In compliance with the authoritative guidance, the Company accounts for its investments in consumer receivable portfolios using either the interest method or the cost recovery method. The interest method applies an internal rate of return (“IRR”) to the cost basis of the pool, which remains unchanged throughout the life of the pool, unless there is an increase in subsequent expected cash flows. Subsequent increases in expected cash flows are generally recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows do not change the IRR, but are recognized as an allowance to the cost basis of the pool, and are reflected in the consolidated statements of income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition. With gross collections being discounted at monthly IRRs, when collections are lower in the near term, even if substantially higher collections are expected later in the collection curve, an allowance charge could result. The Company accounts for each static pool as a unit for the economic life of the pool (similar to one loan) for recognition of revenue from receivable portfolios, for collections applied to the cost basis of receivable portfolios and for provision for loss or allowance. Revenue from receivable portfolios is accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool is increased by revenue earned and decreased by gross collections and portfolio allowances. If the amount and timing of future cash collections on a pool of receivables are not reasonably estimable, the Company accounts for such portfolios on the cost recovery method (“Cost Recovery Portfolios”). The accounts in these portfolios have different risk characteristics than those included in other portfolios acquired during the same quarter, or the necessary information was not available to estimate future cash flows and, accordingly, they were not aggregated with other portfolios. See Note 6 , “Investment in Receivable Portfolios, Net” for further discussion of investment in receivable portfolios. Fee-based Income Certain of the Company’s international subsidiaries earn fee-based income by providing portfolio management services to credit originators for non-performing loans. The Company recognizes fee-based income in accordance with the authoritative guidance for revenue recognition, specifically principal agent considerations. The revenue recognition guidance requires an analysis to be completed to determine if certain revenues should be reported gross or reported net of their related operating expense. This analysis includes an assessment of who retains credit risk, controls vendor selection, establishes pricing and remains the primary obligor on the transaction. The Company considers each of these factors to determine the correct method of recognizing fee-based income. Fee-based income is included in “Other Revenues” in the Company’s consolidated statements of income. Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over the value assigned to the tangible and identifiable intangible assets, liabilities assumed, and noncontrolling interest of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. In accordance with authoritative guidance on goodwill and other intangible assets, goodwill and other indefinite-lived intangible assets are tested at the reporting unit level annually for impairment and in interim periods if certain events occur indicating the fair value of a reporting unit may be below its carrying value. See Note 16 , “Goodwill and Identifiable Intangible Assets” for further discussion of the Company’s goodwill and other intangible assets. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Fixed Asset Category Estimated Useful Life Leasehold improvements Lesser of lease term, including periods covered by renewal options, or useful life Furniture, fixtures and equipment 5 to 10 years Computer hardware and software 3 to 10 years Maintenance and repairs are charged to expense in the year incurred. Expenditures for major renewals that extend the useful lives of fixed assets are capitalized and depreciated over the useful lives of such assets. Deferred Court Costs The Company pursues legal collections using a network of attorneys that specialize in collection matters and through its internal legal channel. The Company generally pursues collections through legal means only when it believes a consumer has sufficient assets to repay their indebtedness but has, to date, been unwilling to pay. In order to pursue legal collections the Company is required to pay certain upfront costs to the applicable courts that are recoverable from the consumer (“Deferred Court Costs”). The Company capitalizes Deferred Court Costs in its consolidated financial statements and provides a reserve for those costs that it believes will ultimately be uncollectible. The Company determines the reserve based on an estimated court cost recovery rate established based on its analysis of historical court costs recovery data. The Company estimates deferral periods for Deferred Court Costs based on jurisdiction and nature of litigation and writes off any Deferred Court Costs not recovered within the respective deferral period. Collections received from debtors are first applied against related court costs with the balance applied to the debtors’ account balance. See Note 7 , “Deferred Court Costs, Net” for further discussion. Income Taxes The Company uses the liability method of accounting for income taxes in accordance with the authoritative guidance for Income Taxes. When the Company prepares its consolidated financial statements, it estimates income taxes based on the various jurisdictions and countries where it conducts business. This requires the Company to estimate current tax exposure and to assess temporary differences that result from differing treatments of certain items for tax and accounting purposes. Deferred income taxes are recognized based on the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company then assesses the likelihood that deferred tax assets will be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. When the Company establishes a valuation allowance or increases this allowance in an accounting period, it records a corresponding tax expense in the consolidated statement of income. The Company includes interest and penalties related to income taxes within its provision for income taxes. The Company uses the income forecasting methodology to recognize the income and expenses of the portfolios with the exception of a certain recently acquired subsidiary, which uses the cost recovery methodology. See Note 13 , “Income Taxes” for further discussion. Management must make significant judgments to determine the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance to be recorded against deferred tax assets. Stock-Based Compensation The Company determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. The Company has certain share awards that include market conditions that affect vesting, the fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. For share awards that require service and performance conditions, the Company recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions over the requisite service period of the award. Forfeiture rates are estimated based on the Company’s historical experience. See Note 12 , “Stock-Based Compensation” for further discussion. Derivative Instruments and Hedging Activities The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value. Changes in the fair value of derivative instruments are recorded in earnings unless hedge accounting criteria are met. The Company designates certain foreign currency exchange contracts and interest rate swap agreements as cash flow hedges. The effective portion of the changes in fair value of these cash flow hedges is recorded each period, net of tax, in accumulated other comprehensive income or loss until the related hedged transaction occurs. Any ineffective portion of the changes in fair value of these cash flow hedges is recorded in earnings. In the event the hedged cash flow does not occur, or it becomes probable that it will not occur, the Company would reclassify the amount of any gain or loss on the related cash flow hedge to income or expense at that time. See Note 5 , “Derivatives and Hedging Instruments” for further discussion. Redeemable Noncontrolling Interest Some minority shareholders in certain subsidiaries of the Company have the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value, and in some cases, to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interest subject to these arrangements is included in temporary equity as redeemable noncontrolling interest, and is adjusted to its estimated redemption amount each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amount are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interest at the time it was originally recorded. The recorded value of the redeemable noncontrolling interest cannot go below the floor level. These adjustments do not affect the calculation of earnings per share. Earnings Per Share Basic earnings per share is calculated by dividing net earnings attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock, and the dilutive effect of the convertible senior notes. On April 24, 2014, the Company’s Board of Directors approved a $50.0 million share repurchase program. In May 2014, the Company repurchased 400,000 shares of its common stock for approximately $16.8 million . In May 2015, the Company repurchased 839,295 shares of common stock for approximately $33.2 million , which represented the remaining amount allowed under this share repurchase program. The Company’s practice is to retire the shares repurchased. On August 12, 2015, the Company’s Board of Directors approved a new $50.0 million share repurchase program. Repurchases under this program are expected to be made with cash on hand and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by the Company’s management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion. A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands) : Year Ended December 31, 2016 2015 2014 Weighted average common shares outstanding—basic 25,713 25,722 25,853 Dilutive effect of stock-based awards 196 253 556 Dilutive effect of convertible senior notes — 672 1,082 Dilutive effect of warrants — — 4 Weighted average common shares outstanding—diluted 25,909 26,647 27,495 Anti-dilutive employee stock options outstanding were zero or negligible during the periods presented above. The Company has the following convertible senior notes outstanding: $115.0 million convertible senior notes due 2017 at a conversion price equivalent to approximately $31.56 per share of the Company’s common stock (the “2017 Convertible Notes”), $172.5 million convertible senior notes due 2020 at a conversion price equivalent to approximately $45.72 per share of the Company’s common stock (the “2020 Convertible Notes”), and $161.0 million convertible senior notes due 2021 at a conversion price equivalent to approximately $59.39 per share of the Company’s common stock (the “2021 Convertible Notes”). In the event of conversion, the 2017 Convertible Notes are convertible into cash up to the aggregate principal amount and permit the excess conversion premium to be settled in cash or shares of the Company’s common stock. For the 2020 Convertible Notes and 2021 Convertible Notes, the Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion. The Company’s intent is to settle the principal amount of the 2020 and 2021 Convertible Notes in cash upon conversion. As a result, upon conversion of all the convertible senior notes, only the amounts payable in excess of the principal amounts are considered in diluted earnings per share under the treasury stock method. Diluted earnings per share during the periods presented above included the effect of the common shares issuable upon conversion of certain of the convertible senior notes because the average stock price exceeded the conversion price of these notes. However, as described in Note 10 , “Debt-Encore Convertible Notes,” the Company entered into certain hedge transactions that have the effect of increasing the effective conversion price of the 2017 Convertible Notes to $60.00 , the 2020 Convertible Notes to $61.55 , and the 2021 Convertible Notes to $83.14 . On January 2, 2014 the 2017 Convertible Notes became convertible as certain conditions for conversion were met in the immediately preceding calendar quarter as defined in the applicable indenture. However |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On March 31, 2016, the Company completed its previously announced divestiture of its membership interests in Propel Acquisition LLC (“Propel”) pursuant to the Securities Purchase Agreement (the “Purchase Agreement”), dated February 19, 2016, among the Company and certain funds affiliated with Prophet Capital Asset Management LP. Pursuant to the Purchase Agreement, the application of the purchase price formula resulted in cash consideration paid to the Company at closing of $144.4 million (net proceeds were $106.0 million after divestiture of $38.4 million in cash), subject to customary post-closing adjustments. The purchase price was finalized in January 2017. During the three months ended March 31, 2016, the Company recognized a loss of $3.0 million related to the sale of Propel, this loss was reduced to $1.7 million based on the true-up adjustments recorded in the fourth quarter of 2016 subsequent to the sale. Propel represented the Company’s entire tax lien business reportable segment. Propel’s operations are presented as discontinued operations in the Company’s consolidated statements of income. Certain immaterial costs that may be eliminated as a result of the sale remained in continuing operations. The following table presents the results of the discontinued operations during the periods presented ( in thousands ): Year Ended December 31, 2016 2015 2014 Revenue $ 4,950 $ 31,605 $ 29,361 Salaries and employee benefits (3,074 ) (8,053 ) (7,304 ) Other operating expenses (1,366 ) (4,972 ) (3,926 ) General and administrative expenses (1,551 ) (5,470 ) (9,059 ) Depreciation and amortization (127 ) (785 ) (849 ) Impairment charge for goodwill and identifiable intangible assets — (49,277 ) — (Loss) income from discontinued operations, before income taxes (1,168 ) (36,952 ) 8,223 Loss on sale of discontinued operations, before income taxes (1,679 ) — — Total (loss) income on discontinued operations, before income taxes (2,847 ) (36,952 ) 8,223 Income tax benefit (provision) 494 13,565 (3,018 ) Total (loss) income from discontinued operations, net of tax $ (2,353 ) $ (23,387 ) $ 5,205 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations dlc Acquisition On June 1, 2015, Encore’s U.K.-based subsidiary, Cabot Credit Management Limited and its subsidiaries (collectively, “Cabot”) acquired Hillesden Securities Ltd and its subsidiaries (“dlc”), a U.K.-based acquirer and collector of non-performing unsecured consumer debt for approximately £180.6 million (approximately $274.7 million ), (the “dlc Acquisition”). The dlc Acquisition was accounted for using the acquisition method of accounting and, accordingly, the tangible and intangible assets acquired and liabilities assumed were recorded at their estimated fair values as of the date of the acquisition. Fair value measurements have been applied based on assumptions that market participants would use in the pricing of the respective assets and liabilities. The components of the purchase price allocation for the dlc Acquisition were as follows (in thousands) : Purchase price: Cash paid at acquisition $ 268,391 Deferred consideration 6,306 Total purchase price $ 274,697 Allocation of purchase price: Cash $ 30,518 Investment in receivable portfolios 215,988 Deferred court costs 760 Property and equipment 1,327 Other assets 2,384 Liabilities assumed (46,435 ) Identifiable intangible assets 3,669 Goodwill 66,486 Total net assets acquired $ 274,697 The goodwill recognized is primarily attributable to synergies that are expected to be achieved by combining dlc and Cabot's existing contingent collections operations. The entire goodwill of $66.5 million related to the dlc Acquisition is no t deductible for income tax purposes. Total acquisition and integration costs related to the dlc Acquisition were approximately $2.8 million for the year ended December 31, 2015, and have been expensed in the accompanying consolidated statements of income within general and administrative expenses. The amount of revenue and net income attributable to Encore included in the Company’s consolidated statement of income for the year ended December 31, 2015 related to dlc was $27.5 million and $6.3 million , respectively. Pro forma financial information for the dlc Acquisition has not been included as the computation of such information is impracticable and too onerous due to the complexities of a hypothetical calculation because dlc’s revenue recognition methodology prior to the dlc Acquisition was significantly different from GAAP. Other Acquisitions In addition to the dlc Acquisition discussed above, the Company, through its subsidiaries, completed certain other acquisitions in 2016 and 2015. These acquisitions were immaterial to the Company’s financial statements individually and in the aggregate. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The authoritative guidance for fair value measurements defines fair value as the price that would be received upon sale of an asset or the price paid to transfer a liability, in an orderly transaction between market participants at the measurement date ( i.e., the “exit price”). The guidance utilizes a fair value hierarchy that prioritizes the inputs used in valuation techniques to measure fair value into three broad levels. The following is a brief description of each level: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs, including inputs that reflect the reporting entity’s own assumptions. Financial Instruments Required To Be Carried At Fair Value Financial assets and liabilities measured at fair value on a recurring basis are summarized below ( in thousands ): Fair Value Measurements as of Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 1,122 $ — $ 1,122 Liabilities Foreign currency exchange contracts — (1,360 ) — (1,360 ) Interest rate swap agreements — (131 ) — (131 ) Contingent consideration — — (2,531 ) (2,531 ) Temporary Equity Redeemable noncontrolling interest — — (45,755 ) (45,755 ) Fair Value Measurements as of Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 718 $ — $ 718 Liabilities Foreign currency exchange contracts — (601 ) — (601 ) Interest rate swap agreements — (352 ) — (352 ) Contingent consideration — — (10,403 ) (10,403 ) Temporary Equity Redeemable noncontrolling interest — — (38,624 ) (38,624 ) Derivative Contracts: The Company uses derivative instruments to manage its exposure to fluctuations in interest rates and foreign currency exchange rates. Fair values of these derivative instruments are estimated using industry standard valuation models. These models project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves, foreign currency exchange rates, and forward and spot prices for currencies. Contingent consideration: In October 2015, the Company, through its subsidiaries, acquired two debt solution service providers in Europe. According to the terms of the purchase agreements, the sellers could earn additional earn-out payments in cash based on each acquired entities’ respective subsequent operating performance. The Company recorded the acquisition-date fair values of these contingent liabilities, based on the likelihood of contingent earn-out payments, as part of the consideration transferred. The earn-out payments are subsequently remeasured to fair value at each reporting date. During the review of the earn-out analysis in the fourth quarter of 2016, the Company determined that, based on the actual and forecasted operating performance at one of the acquired entities, there would be no future earn-out payment to the sellers, as a result, the entire liability for the contingent consideration of $8.1 million relating to the acquisition of this entity was reversed during the year ended December 31, 2016. As of December 31, 2016, the fair value of the contingent consideration for the other acquired entity was approximately $2.5 million . The following table provides a roll-forward of the fair value of contingent consideration for the years ended December 31, 2016 and 2015 (in thousands) : Amount Balance at December 31, 2014 $ — Issuance of contingent consideration in connection with acquisition 10,587 Change in fair value of contingent consideration 132 Effect of foreign currency translation (316 ) Balance at December 31, 2015 10,403 Change in fair value of contingent consideration (7,602 ) Effect of foreign currency translation (270 ) Balance at December 31, 2016 $ 2,531 Redeemable Noncontrolling Interest: Some minority shareholders in certain subsidiaries of the Company have the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value and, in some cases, to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interest subject to these arrangements is included in temporary equity as redeemable noncontrolling interest, and is adjusted to its estimated redemption amount each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amount are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interest at the time it was originally recorded. The recorded value of the redeemable noncontrolling interest cannot go below the floor level. Adjustments to the carrying amount of redeemable noncontrolling interest are charged to retained earnings (or to additional paid-in capital if there are no retained earnings) and do not affect net income or comprehensive income in the consolidated financial statements. The components of the change in the redeemable noncontrolling interest for the years ended December 31, 2016 , 2015 and 2014 are presented in the following table (in thousands) : Amount Balance at December 31, 2013 $ 26,564 Addition to redeemable noncontrolling interest 4,997 Net loss attributable to redeemable noncontrolling interest (4,513 ) Adjustment of the redeemable noncontrolling interest to fair value 5,730 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3,893 ) Balance at December 31, 2014 28,885 Addition to redeemable noncontrolling interest 9,409 Net income attributable to redeemable noncontrolling interest 1,371 Adjustment of the redeemable noncontrolling interest to fair value 2,349 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3,390 ) Balance at December 31, 2015 38,624 Addition to redeemable noncontrolling interest 826 Redemption of redeemable noncontrolling interest (3,562 ) Net loss attributable to redeemable noncontrolling interest (47,831 ) Adjustment of the redeemable noncontrolling interest to fair value 74,194 Effect of foreign currency translation attributable to redeemable noncontrolling interest (16,496 ) Balance at December 31, 2016 $ 45,755 Financial Instruments Not Required To Be Carried At Fair Value Investment in Receivable Portfolios: The Company records its investment in receivable portfolios at cost, which represents a significant discount from the contractual receivable balances due. The Company computes the fair value of its investment in receivable portfolios using Level 3 inputs by discounting the estimated future cash flows generated by its proprietary forecasting models. The key inputs include the estimated future gross cash flow, average cost to collect, and discount rate. In accordance with authoritative guidance related to fair value measurements, the Company estimates the average cost to collect and discount rates based on its estimate of what a market participant might use in valuing these portfolios. The determination of such inputs requires significant judgment, including assessing the assumed market participant’s cost structure, its determination of whether to include fixed costs in its valuation, its collection strategies, and determining the appropriate weighted average cost of capital. The Company evaluates the use of these key inputs on an ongoing basis and refines the data as it continues to obtain better information from market participants in the debt recovery and purchasing business. In the Company’s current analysis, the estimated blended market participant cost to collect and discount rate is approximately 50.3% and 10.5% , respectively, for U.S. portfolios, approximately 29.9% and 12.0% , respectively, for Europe portfolios and approximately 32.8% and 11.0% , respectively for other geographies. Using this method, the fair value of investment in receivable portfolios was approximately $2,446.6 million and $2,473.8 million as of December 31, 2016 and 2015 , respectively, as compared to the carrying value of $2,382.8 million and $2,440.7 million as of December 31, 2016 and 2015 , respectively. A 100 basis point fluctuation in the cost to collect and discount rate used would result in an increase or decrease in the fair value of U.S., European and other geographies portfolios by approximately $43.8 million , $52.0 million and $6.4 million , respectively, as of December 31, 2016 . This fair value calculation does not represent, and should not be construed to represent, the underlying value of the Company or the amount which could be realized if its investment in receivable portfolios were sold. Deferred Court Costs: The Company capitalizes deferred court costs and provides a reserve for those costs that it believes will ultimately be uncollectible. The carrying value of net deferred court costs approximates fair value. Debt: The majority of Encore and its subsidiaries’ borrowings are carried at historical amounts, adjusted for additional borrowings less principal repayments, which approximate fair value. These borrowings include Encore’s senior secured notes and borrowings under its revolving credit and term loan facilities, Cabot’s senior secured notes and borrowings under its revolving credit facility, and other borrowing under revolving credit facilities at certain of the Company’s other subsidiaries. Encore’s convertible senior notes are carried at historical cost, adjusted for the debt discount. The carrying value of the convertible senior notes was $416.5 million and $406.6 million , as of December 31, 2016 and 2015 , respectively. The fair value estimate for these convertible senior notes, which incorporates quoted market prices using Level 2 inputs, was approximately $431.7 million and $372.2 million as of December 31, 2016 and 2015 , respectively. Cabot’s senior secured notes are carried at historical cost, adjusted for debt discount and debt premium. The carrying value of Cabot’s senior secured notes was $1,295.7 million and $1,144.2 million , as of December 31, 2016 and 2015 , respectively. The fair value estimate for these senior notes, which incorporates quoted market prices using Level 2 inputs, was $1,312.7 million and $1,403.5 million as of December 31, 2016 and 2015 , respectively. The Company’s preferred equity certificates are legal obligations to the noncontrolling shareholders of certain subsidiaries. They are carried at the face amount, plus any accrued interest. The Company determined that the carrying value of these preferred equity certificates approximated fair value as of December 31, 2016 and 2015. |
Derivatives and Hedging Instrum
Derivatives and Hedging Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Instruments | Derivatives and Hedging Instruments The Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Certain of the Company’s derivative financial instruments qualify for hedge accounting treatment under the authoritative guidance for derivatives and hedging. The following table summarizes the fair value of derivative instruments as recorded in the Company’s consolidated statements of financial condition (in thousands): December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency exchange contracts Other assets $ 707 Other assets $ 718 Foreign currency exchange contracts Other liabilities (51 ) Other liabilities (601 ) Interest rate swap agreements Other liabilities (131 ) Other liabilities — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other assets 415 Other assets — Foreign currency exchange contracts Other liabilities (1,309 ) Other liabilities — Interest rate swap agreements Other liabilities — Other liabilities (352 ) Derivatives Designated as Hedging Instruments The Company has operations in foreign countries, which expose the Company to foreign currency exchange rate fluctuations due to transactions denominated in foreign currencies. To mitigate a portion of this risk, the Company enters into derivative financial instruments, principally foreign currency forward contracts with financial counterparties. The Company adjusts the level and use of derivatives as soon as practicable after learning that an exposure has changed and reviews all exposures and derivative positions on an ongoing basis. Certain of the foreign currency forward contracts are designated as cash flow hedging instruments and qualify for hedge accounting treatment. Gains and losses arising from the effective portion of such contracts are recorded as a component of accumulated other comprehensive income (“OCI”) as gains and losses on derivative instruments, net of income taxes. The hedging gains and losses in OCI are subsequently reclassified into earnings in the same period in which the underlying transactions affect the Company’s earnings. If all or a portion of the forecasted transaction is cancelled, this would render all or a portion of the cash flow hedge ineffective and the Company would reclassify the ineffective portion of the hedge into earnings. The Company generally does not experience ineffectiveness of the hedge relationship and the accompanying consolidated financial statements do not include any such gains or losses. As of December 31, 2016 , the total notional amount of the forward contracts that are designated as cash flow hedging instruments was $29.4 million . All of these outstanding contracts qualified for hedge accounting treatment. The Company estimates that approximately $0.2 million of net derivative gain included in OCI will be reclassified into earnings within the next 12 months. No gains or losses were reclassified from OCI into earnings as a result of forecasted transactions that failed to occur during the years ended December 31, 2016 , 2015 , or 2014 . The Company may periodically enter into interest rate swap agreements, to reduce its exposure to fluctuations in interest rates on variable interest rate debt and their impact on earnings and cash flows. As of December 31, 2016, Baycorp had one interest rate swap agreement outstanding with a total notional amount of $17.5 million Australian dollars (approximately $12.6 million U.S. dollars). The interest rate swap instrument is designated as cash flow hedge and accounted for using hedge accounting. The following table summarizes the effects of derivatives in cash flow hedging relationships designated as hedging instruments on the Company’s consolidated statements of income for the years ended December 31, 2016 and 2015 (in thousands): Gain or (Loss) Recognized in OCI- Effective Portion Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion Gain or (Loss) Reclassified from OCI into Income - Effective Portion Location of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing 2016 2015 2016 2015 2016 2015 Foreign currency exchange contracts $ 1,404 $ (248 ) Salaries and $ 755 $ (472 ) Other (expense) $ — $ — Foreign currency exchange contracts (5 ) 88 General and 105 (74 ) Other (expense) — — Interest rate swap agreements (131 ) — Interest expense — — Other (expense) — — Derivatives Not Designated as Hedging Instruments In 2016, Encore and its Cabot subsidiary collectively began entering into currency exchange forward contracts to reduce the effects of currency exchange rate fluctuations between the British Pound and Euro. These derivative contracts generally mature within one to three months and are not designated as hedge instruments for accounting purposes. The Company continues to monitor the level of exposure of the foreign currency exchange risk and may enter into additional short-term forward contracts on an ongoing basis. The gains or losses on these derivative contracts are recognized in other income or expense based on the changes in fair value. Before the effect of income tax and noncontrolling interest, the net gain on these derivative contracts recognized in the Company’s consolidated statements of income was $8.2 million and zero during the years ended December 31, 2016 and 2015, respectively. The following table summarizes the effects of derivatives in cash flow hedging relationships not designated as hedging instruments on the Company’s consolidated statements of income for the years ended December 31, 2016 and 2015 (in thousands) : Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative 2016 2015 Foreign currency exchange contracts (1) Other income (expense) $ 8,248 $ — Interest rate swap agreements Interest expense 144 92 ________________________ (1) After the effect of income tax and noncontrolling interest, the net impact of the derivative contracts to consolidated net income from continuing income attributable to Encore was a gain of $1.3 million and zero during the years ended December 31, 2016 and 2015, respectively. |
Investment in Receivable Portfo
Investment in Receivable Portfolios, Net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Investment in Receivable Portfolios, Net | Investment in Receivable Portfolios, Net In accordance with the authoritative guidance for loans and debt securities acquired with deteriorated credit quality, discrete receivable portfolio purchases during the same fiscal quarter are aggregated into pools based on common risk characteristics. Common risk characteristics include risk ratings (e.g. FICO or similar scores), financial asset type, collateral type, size, interest rate, date of origination, term, and geographic location. The Company’s static pools are typically grouped into credit card, purchased consumer bankruptcy, and mortgage portfolios. The Company further groups these static pools by geographic region or location. Portfolios acquired in business combinations are also grouped into these pools. During any fiscal quarter in which the Company has an acquisition of an entity that has portfolio, the entire historical portfolio of the acquired company is aggregated into the pool groups for that quarter, based on common characteristics, resulting in pools for that quarter that may consist of several different vintages of portfolio. Once a static pool is established, the portfolios are permanently assigned to the pool. The discount ( i.e. , the difference between the cost of each static pool and the related aggregate contractual receivable balance) is not recorded because the Company expects to collect a relatively small percentage of each static pool’s contractual receivable balance. As a result, receivable portfolios are recorded at cost at the time of acquisition. The purchase cost of the portfolios includes certain fees paid to third parties incurred in connection with the direct acquisition of the receivable portfolios. In compliance with the authoritative guidance, the Company accounts for its investments in receivable portfolios using either the interest method or the cost recovery method. The interest method applies an IRR to the cost basis of the pool, which remains unchanged throughout the life of the pool, unless there is an increase in subsequent expected cash flows. Subsequent increases in expected cash flows are recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows do not change the IRR, but are recognized as an allowance to the cost basis of the pool, and are reflected in the consolidated statements of income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition. With gross collections being discounted at monthly IRRs, when collections are lower in the near term, even if substantially higher collections are expected later in the collection curve, an allowance charge could result. The Company utilizes its proprietary forecasting models to continuously evaluate the economic life of each pool. During the quarter ended September 30, 2016, the Company revised the forecasting methodology it uses to value and calculate IRRs on certain portfolios in Europe by extending the collection forecast from 120 months to 180 months. This change was made as a result of (1) the Company having observed that older portfolios in Europe have consistently experienced cash collections beyond 120 months, (2) an expectation that regulatory changes in the United Kingdom resulting in a reduction in the number of highly discounted near term one-time settlements, an increase in the number of payment plans, and an increase in the length of existing payment plans will cause a lengthening of the collections curve, (3) an expectation that, as a result of a higher percentage of semi-performing account purchases in the United Kingdom in recent years, newer vintages will have a larger percentage of collections after 120 months and (4) the Company’s increased confidence in its ability to forecast future cash collections to 180 months. The increase in the collection forecast 120 months to 180 months was applied effective July 1, 2016 to certain portfolios in Europe for which the Company could accurately forecast through such term. In addition, during the three months ended September 30, 2016, the Company recorded allowance charges of approximately $94.0 million resulting from delays or shortfalls in near term collections against the forecasts for certain pools in Europe. These changes in forecasted future cash flows resulted in an increase in the aggregate total estimated remaining collections for the receivable portfolios of approximately $296.5 million as of September 30, 2016. The increase in the collection forecast from 120 months to 180 months had the effect of reducing the allowance charges by approximately $13.2 million . For portfolios in Europe that were not extended to 180 months, the Company will continue to include collection forecasts to 120 months in calculating accretion revenue and in its estimated remaining collection disclosures. In the United States, the Company will continue to include collection forecasts to 120 months in calculating accretion revenue. Expected collections beyond the 120 month collection forecast in the United States are included in its estimated remaining collection disclosures but are not included in the calculation of accretion revenue. The Company accounts for each static pool as a unit for the economic life of the pool (similar to one loan) for recognition of revenue from receivable portfolios, for collections applied to the cost basis of receivable portfolios, and for provision for loss or allowance. Revenue from receivable portfolios is accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool is increased by revenue earned and portfolio allowance reversals and decreased by gross collections and portfolio allowances. If the amount and timing of future cash collections on a pool of receivables are not reasonably estimable, the Company accounts for such portfolios on the cost recovery method as Cost Recovery Portfolios. The accounts in these portfolios have different risk characteristics than those included in other portfolios acquired during the same quarter, or the necessary information was not available to estimate future cash flows and, accordingly, they were not aggregated with other portfolios. Under the cost recovery method of accounting, no revenue is recognized until the carrying value of a Cost Recovery Portfolio has been fully recovered. Accretable yield represents the amount of revenue the Company expects to generate over the remaining life of its existing investment in receivable portfolios based on estimated future cash flows. Total accretable yield is the difference between future estimated collections and the current carrying value of a portfolio. All estimated cash flows on portfolios where the cost basis has been fully recovered are classified as zero basis cash flows. The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands) : Accretable Yield Estimate of Zero Basis Cash Flows Total Balance at December 31, 2014 $ 2,993,321 $ 66,392 $ 3,059,713 Revenue recognized, net (964,225 ) (108,211 ) (1,072,436 ) Net additions on existing portfolios 263,713 266,252 529,965 Additions for current purchases, net 846,632 — 846,632 Effect of foreign currency translation (91,801 ) (1,402 ) (93,203 ) Balance at December 31, 2015 3,047,640 223,031 3,270,671 Revenue recognized, net (801,736 ) (144,879 ) (946,615 ) Net additions on existing portfolios 441,632 287,116 728,748 Additions for current purchases, net 861,698 — 861,698 Effect of foreign currency translation (457,230 ) 236 (456,994 ) Balance at December 31, 2016 $ 3,092,004 $ 365,504 $ 3,457,508 During the year ended December 31, 2016 , the Company purchased receivable portfolios with a face value of $9.8 billion for $0.9 billion , or a purchase cost of 9.2% of face value. The estimated future collections at acquisition for all portfolios purchased during the year amounted to $1.7 billion . During the year ended December 31, 2015 , the Company purchased receivable portfolios with a face value of $12.7 billion for $1.0 billion , or a purchase cost of 8.0% of face value. Purchases of charged-off credit card portfolios include $216.0 million of receivables acquired in connection with the dlc Acquisition and $60.3 million acquired in connection with the acquisition of Baycorp. The estimated future collections at acquisition for all portfolios purchased during the year amounted to $1.8 billion . All collections realized after the net book value of a portfolio has been fully recovered (“Zero Basis Portfolios”) are recorded as revenue (“Zero Basis Revenue”). During the years ended December 31, 2016 , 2015 , and 2014 , Zero Basis Revenue was approximately $138.1 million , $96.4 million , and $22.3 million , respectively. The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods ( in thousands, except percentages ): Year Ended December 31, 2016 Accrual Basis Portfolios Cost Recovery Portfolios Zero Basis Portfolios Total Balance, beginning of period $ 2,436,054 $ 4,615 $ — $ 2,440,669 Purchases of receivable portfolios 906,719 — — 906,719 Transfer of portfolios (13,076 ) 13,076 — — Gross collections (1) (1,538,663 ) (2,102 ) (144,839 ) (1,685,604 ) Put-backs and Recalls (2) (27,561 ) (1,019 ) (33 ) (28,613 ) Foreign currency adjustments (196,842 ) (127 ) (8 ) (196,977 ) Revenue recognized 892,732 — 138,060 1,030,792 Portfolio (allowance) reversals, net (90,997 ) — 6,820 (84,177 ) Balance, end of period $ 2,368,366 $ 14,443 $ — $ 2,382,809 Revenue as a percentage of collections (3) 58.0 % 0.0 % 95.3 % 61.2 % ________________________ (1) Does not include amounts collected on behalf of others. (2) Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”). (3) Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals. Year Ended December 31, 2015 Accrual Basis Cost Recovery Zero Basis Total Balance, beginning of period $ 2,131,084 $ 12,476 $ — $ 2,143,560 Purchases of receivable portfolios 1,023,722 — — 1,023,722 Gross collections (1) (1,587,525 ) (5,237 ) (107,963 ) (1,700,725 ) Put-backs and Recalls (2) (13,009 ) (20 ) (268 ) (13,297 ) Foreign currency adjustments (82,443 ) (2,604 ) 20 (85,027 ) Revenue recognized 969,227 — 96,446 1,065,673 Portfolio (allowance) reversals, net (5,002 ) — 11,765 6,763 Balance, end of period $ 2,436,054 $ 4,615 $ — $ 2,440,669 Revenue as a percentage of collections (3) 61.1 % 0.0 % 89.3 % 62.7 % Year Ended December 31, 2014 Accrual Basis Cost Recovery Zero Basis Total Balance, beginning of period $ 1,585,587 $ 4,662 $ — $ 1,590,249 Purchases of receivable portfolios 1,249,651 1,709 — 1,251,360 Transfer of portfolios (18,682 ) 18,682 — — Gross collections (1) (1,563,996 ) (9,010 ) (34,491 ) (1,607,497 ) Put-backs and Recalls (2) (15,164 ) (536 ) (9 ) (15,709 ) Foreign currency adjustments (64,644 ) (3,031 ) — (67,675 ) Revenue recognized 953,154 — 22,271 975,425 Portfolio allowance reversals, net 5,178 — 12,229 17,407 Balance, end of period $ 2,131,084 $ 12,476 $ — $ 2,143,560 Revenue as a percentage of collections (3) 60.9 % 0.0 % 64.6 % 60.7 % ________________________ (1) Does not include amounts collected on behalf of others. (2) Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”). (3) Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals. The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented ( in thousands ): Valuation Allowance Balance at December 31, 2013 $ 93,080 Reversal of prior allowances (17,407 ) Balance at December 31, 2014 75,673 Provision for portfolio allowances 8,322 Reversal of prior allowances (15,085 ) Allowance charged off to investment in receivable portfolios (8,322 ) Balance at December 31, 2015 60,588 Provision for portfolio allowances 94,011 Reversal of prior allowances (9,834 ) Balance at December 31, 2016 $ 144,765 |
Deferred Court Costs, Net
Deferred Court Costs, Net | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Court Costs, Net | Deferred Court Costs, Net The Company pursues legal collections using a network of attorneys that specialize in collection matters and through its internal legal channel. The Company generally pursues collections through legal means only when it believes a consumer has sufficient assets to repay their indebtedness but has, to date, been unwilling to pay. In order to pursue legal collections the Company is required to pay certain upfront costs to the applicable courts that are recoverable from the consumer (“Deferred Court Costs”). The Company capitalizes Deferred Court Costs in its consolidated financial statements and provides a reserve for those costs that it believes will ultimately be uncollectible. The Company determines the reserve based on an estimated court cost recovery rate established based on its analysis of historical court costs recovery data. Based on recent trends of historical court costs recovery data, the Company noted a decrease in the estimated court cost recovery rate in the United Kingdom. Based on the revised estimated court cost recovery rate, the Company recorded an additional court costs reserve of approximately $11.3 million during the three months ended September 30, 2016. The Company estimates deferral periods for Deferred Court Costs based on jurisdiction and nature of litigation and writes off any Deferred Court Costs not recovered within the respective deferral period. Collections received from debtors are first applied against related court costs with the balance applied to the debtors’ account balance. Deferred Court Costs for the deferral period consist of the following as of the dates presented ( in thousands ): December 31, December 31, Court costs advanced $ 654,356 $ 636,922 Court costs recovered (261,243 ) (242,899 ) Court costs reserve (327,926 ) (318,784 ) Deferred court costs $ 65,187 $ 75,239 A roll forward of the Company’s court cost reserve is as follows ( in thousands ): December 31, December 31, December 31, Balance at beginning of period $ (318,784 ) $ (279,572 ) $ (210,889 ) Provision for court costs (67,850 ) (82,593 ) (69,062 ) Net down of reserve after deferral period 53,527 42,745 — Effect of foreign currency translation 5,181 636 379 Balance at end of period $ (327,926 ) $ (318,784 ) $ (279,572 ) |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consist of the following, as of the dates presented ( in thousands ): December 31, December 31, Furniture, fixtures and equipment $ 19,230 $ 21,754 Computer equipment and software 138,232 125,967 Telecommunications equipment 4,442 4,030 Leasehold improvements 17,493 19,058 Other 1,923 1,693 181,320 172,502 Less: accumulated depreciation and amortization (109,063 ) (99,956 ) $ 72,257 $ 72,546 Depreciation and amortization expense for continuing operations was $27.7 million , $28.5 million , and $23.9 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following ( in thousands ): December 31, December 31, Deferred tax assets $ 51,077 $ 12,695 Identifiable intangible assets, net 28,243 15,712 Assets held for sale 21,147 911 Other financial receivables 18,732 11,275 Prepaid expenses 18,036 21,872 Service fee receivables 15,156 13,708 Receivable from seller 5,388 8,605 Security deposits 2,781 2,368 Derivative instruments 1,122 718 Prepaid income taxes 649 25,839 Other 53,116 35,059 Total $ 215,447 $ 148,762 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company is in compliance with all covenants under its financing arrangements. The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands) : December 31, December 31, Encore revolving credit facility $ 578,000 $ 627,000 Encore term loan facility 164,615 143,078 Encore senior secured notes 11,320 28,750 Encore convertible notes 448,500 448,500 Less: Debt discount (31,968 ) (41,867 ) Cabot senior secured notes 1,280,241 1,360,000 Add: Debt premium 17,686 53,440 Less: Debt discount (2,200 ) (3,184 ) Cabot senior revolving credit facility 33,218 54,089 Preferred equity certificates 205,975 221,516 Other credit facilities 74,551 49,895 Other 62,608 33,447 Capital lease obligations 5,091 11,054 2,847,637 2,985,718 Less: debt issuance costs, net of amortization (41,654 ) (41,655 ) Total $ 2,805,983 $ 2,944,063 Encore Revolving Credit Facility and Term Loan Facility On December 20, 2016, the Company amended its revolving credit facility and term loan facility pursuant to a Third Amended and Restated Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement includes a revolving credit facility of $781.7 million (the “Revolving Credit Facility”), a term loan facility of $166.4 million (the “Term Loan Facility”, and together with the Revolving Credit Facility, the “Senior Secured Credit Facilities”), and an accordion feature that allows the Company to increase the Senior Secured Credit Facilities by an additional $250.0 million . Including the accordion feature, the maximum amount that can be borrowed under the Restated Credit Agreement is approximately $1.2 billion . The Senior Secured Credit Facilities have a five year maturity expiring in December 2021 , except with respect to (1) revolving commitments under the Revolving Credit Facility of $32.1 million and $207.8 million expiring in November 2017 and February 2019, respectively, and (2) three subtranches of the Term Loan Facility of $50.6 million , $4.9 million and $22.6 million , expiring in February 2017 , November 2017 and February 2019, respectively. Provisions of the Restated Credit Agreement include, but are not limited to: • Revolving Credit Facility commitments of (1) $541.8 million that expire in December 2021, (2) $207.8 million that expire in February 2019 and (3) $32.1 million that expire in November 2017, in each case with interest at a floating rate equal to, at the Company’s option, either: (a) reserve adjusted London Interbank Offered Rate (“LIBOR”), plus a spread that ranges from 250 to 300 basis points depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; or (b) alternate base rate, plus a spread that ranges from 150 to 200 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries. “Alternate base rate,” as defined in the Restated Credit Agreement, means the highest of (i) the per annum rate which the administrative agent publicly announces from time to time as its prime lending rate, (ii) the federal funds effective rate from time to time, plus 0.5% per annum, (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest period, plus 1.0% per annum and (iv) zero; • An $88.3 million term loan maturing in December 2021, with interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; or (2) alternate base rate, plus a spread that ranges from 150 to 200 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries. Principal amortizes $4.4 million in each of 2017 and 2018, $6.6 million in each of 2019 and 2020, and $8.8 million in 2021 with the remaining principal due at the end of the term; • A $22.6 million term loan maturing in February 2019, with interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; or (2) alternate base rate, plus a spread that ranges from 150 to 200 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries. Principal amortizes $4.4 million in each of 2017 and 2018 with the remaining principal due at the end of the term; • A $4.9 million term loan maturing in November 2017 , with interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; or (2) alternate base rate, plus a spread that ranges from 150 to 200 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries. Principal amortizes $0.5 million in 2017 with the remaining principal due at the end of the term; • A $50.6 million term loan maturing in February 2017 , with interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; or (2) alternate base rate, plus a spread that ranges from 100 to 150 basis points , depending on the cash flow leverage ratio of Encore and its restricted subsidiaries; • A borrowing base under the Revolving Credit Facility equal to 35% of all eligible non-bankruptcy estimated remaining collections plus 55% of eligible estimated remaining collections for consumer receivables subject to bankruptcy; • A maximum cash flow leverage ratio permitted of 3.00 :1.00; • A maximum cash flow first-lien leverage ratio of 2.00 :1.00; • The allowance of indebtedness in the form of senior secured notes not to exceed $150.0 million ; • The allowance of additional unsecured or subordinated indebtedness not to exceed $1.1 billion , including junior lien indebtedness not to exceed $400.0 million ; • Restrictions and covenants, which limit the payment of dividends and the incurrence of additional indebtedness and liens, among other limitations; • Repurchases of up to $150.0 million of Encore’s common stock after July 9, 2015, subject to compliance with certain covenants and available borrowing capacity; • A change of control definition, that excludes acquisitions of stock by Red Mountain Capital Partners LLC, JCF FPK I, LP and their respective affiliates of up to 50% of the outstanding shares of Encore’s voting stock; • Events of default which, upon occurrence, may permit the lenders to terminate the facility and declare all amounts outstanding to be immediately due and payable; • A pre-approved acquisition limit of $225.0 million per fiscal year; • A basket to allow for investments not to exceed the greater of (1) 200% of the consolidated net worth of Encore and its restricted subsidiaries; and (2) an unlimited amount such that after giving effect to the making of any investment, the cash flow leverage ratio is less than 1.25 :1:00; • A basket to allow for investments in persons organized under the laws of Canada in the amount of $50.0 million ; • A requirement that Encore and its restricted subsidiaries, for the four-month period ending February 2019, have sufficient cash or availability under the Revolving Credit Facility (excluding availability under revolving commitments expiring in February 2019) to satisfy any amounts due under the revolving commitments that expire in February 2019 and the sub-tranche of the Term Loan Facility that expires in February 2019; • Collateralization by all assets of the Company, other than the assets of certain foreign subsidiaries and all unrestricted subsidiaries as defined in the Restated Credit Agreement. At December 31, 2016 , the outstanding balance under the Restated Credit Agreement was $742.6 million , which bore a weighted average interest rate of 3.56% and 3.17% for the years ended December 31, 2016 and 2015 , respectively. Available capacity under the Restated Credit Agreement, subject to borrowing base and applicable debt covenants, was $203.7 million as of December 31, 2016 . Encore Senior Secured Notes In 2010 and 2011 Encore entered into an aggregate of $75.0 million in senior secured notes with certain affiliates of Prudential Capital Group (the “Senior Secured Notes”). $25.0 million of the Senior Secured Notes bear an annual interest rate of 7.375% , mature in 2018 and require quarterly principal payments of $1.25 million . Prior to May 2013, these notes required quarterly payments of interest only. The remaining $50.0 million of Senior Secured Notes bear an annual interest rate of 7.75% , mature in 2017 and require quarterly principal payments of $2.5 million . Prior to December 2012 these notes required quarterly interest only payments. As of December 31, 2016 , $5.1 million of the 7.375% Senior Secured Notes and $6.2 million of the 7.75% Senior Secured Notes, for an aggregate of $11.3 million , remained outstanding. The Senior Secured Notes are guaranteed in full by certain of Encore’s subsidiaries. The Senior Secured Notes are pari passu with, and are collateralized by the same collateral as the Senior Secured Credit Facilities. The Senior Secured Notes may be accelerated and become automatically and immediately due and payable upon certain events of default, including certain events related to insolvency, bankruptcy, or liquidation. Additionally, the Senior Secured Notes may be accelerated at the election of the holder or holders of a majority in principal amount of the Senior Secured Notes upon certain events of default by Encore, including the breach of affirmative covenants regarding guarantors, collateral, most favored lender treatment, minimum revolving credit facility commitment or the breach of any negative covenant. If Encore prepays the Senior Secured Notes at any time for any reason, payment will be at the higher of par or the present value of the remaining scheduled payments of principal and interest on the portion being prepaid. The discount rate used to determine the present value is 50 basis points over the then current Treasury Rate corresponding to the remaining average life of the Senior Secured Notes. The covenants are substantially similar to those in the Restated Credit Agreement. Prudential Capital Group and the administrative agent for the lenders of the Restated Credit Agreement have an intercreditor agreement related to their pro rata rights to the collateral, actionable default, powers and duties and remedies, among other topics. The terms of the purchase agreement for the Senior Secured Notes have been amended in connection with amendments to the Restated Credit Agreement in order to align certain provisions between the two agreements. Encore Convertible Notes In November and December 2012, Encore sold $115.0 million aggregate principal amount of 3.0% 2017 Convertible Notes that mature on November 27, 2017 in private placement transactions. In June and July 2013, Encore sold $172.5 million aggregate principal amount of 3.0% 2020 Convertible Notes that mature on July 1, 2020 in private placement transactions. In March 2014, Encore sold $161.0 million aggregate principal amount of 2.875% 2021 Convertible Notes that mature on March 15, 2021 in private placement transactions. The interest on these unsecured convertible senior notes (collectively, the “Convertible Notes”), is payable semi-annually. Prior to the close of business on the business day immediately preceding their respective conversion date (listed below), holders may convert their Convertible Notes under certain circumstances set forth in the applicable Convertible Notes indentures. On or after their respective conversion dates until the close of business on the scheduled trading day immediately preceding their respective maturity date, holders may convert their Convertible Notes at any time. Certain key terms related to the convertible features for each of the Convertible Notes as of year ended December 31, 2016 are listed below. 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Initial conversion price $ 31.56 $ 45.72 $ 59.39 Closing stock price at date of issuance $ 25.66 $ 33.35 $ 47.51 Closing stock price date November 27, 2012 June 24, 2013 March 5, 2014 Conversion rate (shares per $1,000 principal amount) 31.6832 21.8718 16.8386 Conversion date (1) May 27, 2017 January 1, 2020 September 15, 2020 _______________________ (1) The 2017 Convertible Notes became convertible on January 2, 2014, as certain early conversion events were satisfied. Refer to “Conversion and Earnings Per Share Impact” section below for further details. In the event of conversion, the 2017 Convertible Notes are convertible into cash up to the aggregate principal amount of the notes. The excess conversion premium may be settled in cash or shares of the Company’s common stock at the discretion of the Company. In the event of conversion, holders of the Company’s 2020 and 2021 Convertible Notes will receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The Company’s current intent is to settle conversions through combination settlement ( i.e., convertible into cash up to the aggregate principal amount, and shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, for the remainder). As a result, and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when, during any quarter, the average share price of the Company’s common stock exceeds the initial conversion prices listed in the above table. Authoritative guidance related to debt with conversion and other options requires that issuers of convertible debt instruments that, upon conversion, may be settled fully or partially in cash, must separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Additionally, debt issuance costs are required to be allocated in proportion to the allocation of the liability and equity components and accounted for as debt issuance costs and equity issuance costs, respectively. The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes are listed below (in thousands, except percentages) : 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Debt component $ 100,298 $ 140,247 $ 143,645 Equity component $ 14,702 $ 32,253 $ 17,355 Equity issuance cost $ 788 $ 1,106 $ 581 Stated interest rate 3.000 % 3.000 % 2.875 % Effective interest rate 6.000 % 6.350 % 4.700 % The balances of the liability and equity components of all of the Convertible Notes outstanding were as follows (in thousands) : December 31, December 31, Liability component—principal amount $ 448,500 $ 448,500 Unamortized debt discount (31,968 ) (41,867 ) Liability component—net carrying amount $ 416,532 $ 406,633 Equity component $ 61,314 $ 58,184 The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates. Interest expense related to the convertible notes was as follows (in thousands) : Year ended December 31, 2016 2015 Interest expense—stated coupon rate $ 13,263 $ 13,245 Interest expense—amortization of debt discount 9,900 9,335 Total interest expense—convertible notes $ 23,163 $ 22,580 Convertible Notes Hedge Transactions In order to reduce the risk related to the potential dilution and/or the potential cash payments the Company may be required to make in the event that the market price of the Company’s common stock becomes greater than the conversion prices of the Convertible Notes, the Company maintains a hedge program that increases the effective conversion price for each of the Convertible Notes. All of the hedge instruments related to the Convertible Notes have been determined to be indexed to the Company’s own stock and meet the criteria for equity classification. In accordance with authoritative guidance, the Company recorded the cost of the hedge instruments as a reduction in additional paid-in capital, and will not recognize subsequent changes in fair value of these financial instruments in its consolidated financial statements. The details of the hedge program for each of the Convertible Notes are listed below (in thousands, except conversion price) : 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Cost of the hedge transaction(s) $ 50,595 $ 18,113 $ 19,545 Initial conversion price $ 31.56 $ 45.72 $ 59.39 Effective conversion price $ 60.00 $ 61.55 $ 83.14 Conversion and Earnings Per Share Impact During the quarter ending December 31, 2013, the closing price of the Company’s common stock exceeded 130% of the conversion price of the 2017 Convertible Notes for more than 20 trading days during a 30 consecutive trading day period, thereby satisfying one of the early conversion events. As a result, the 2017 Convertible Notes became convertible on demand effective January 2, 2014, and the holders were notified that they could elect to submit their 2017 Convertible Notes for conversion. The carrying value of the 2017 Convertible Notes continues to be reported as debt as the Company intends to draw on the Revolving Credit Facility or use cash on hand to settle the principal amount of any such conversions in cash. No gain or loss was recognized when the debt became convertible. The estimated fair value of the 2017 Convertible Notes was approximately $127.0 million as of December 31, 2016 . In addition, upon becoming convertible, a portion of the equity component that was recorded at the time of the issuance of the 2017 Convertible Notes was considered redeemable and that portion of the equity was reclassified to temporary equity in the Company’s consolidated statements of financial condition. Such amount was determined based on the cash consideration to be paid upon conversion and the carrying amount of the debt. Upon conversion, the holders of the 2017 Convertible Notes will be paid in cash for the principal amount. The excess conversion premium may be settled in cash or shares of the Company’s common stock at the discretion of the Company. As a result, the Company reclassified $3.0 million of the equity component to temporary equity as of December 31, 2016 . If a conversion event takes place, this temporary equity balance will be recalculated based on the difference between the 2017 Convertible Notes principal and the debt carrying value. If the 2017 Convertible Notes are settled, an amount equal to the fair value of the liability component, immediately prior to the settlement, will be deducted from the fair value of the total settlement consideration transferred and allocated to the liability component. Any difference between the amount allocated to the liability and the net carrying amount of the 2017 Convertible Notes (including any unamortized debt issue costs and discount) will be recognized in earnings as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and will be recognized as a reduction in stockholders’ equity. None of the 2017 Convertible Notes have been converted since they became convertible. Cabot Senior Secured Notes On September 20, 2012, Cabot Financial (Luxembourg) S.A. (“Cabot Financial”), an indirect subsidiary of Encore, issued £265.0 million (approximately $438.4 million ) in aggregate principal amount of 10.375% Senior Secured Notes due 2019 (the “Cabot 2019 Notes”). Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year. On October 6, 2016, the Cabot 2019 Notes were redeemed in full using the proceeds from the issuance of Senior Secured Notes due 2023 (the “Cabot 2023 Notes”) as discussed below. A call premium of £13.7 million (approximately $17.4 million ) was paid in connection with the redemption of the Cabot 2019 Notes. Since the Cabot 2019 Notes carried a premium of approximately £15.2 million (approximately $19.2 million ) at the time of redemption, Cabot recognized a gain of approximately £1.4 million (approximately $1.8 million ) on this transaction. The gain is included in other income in the Company’s consolidated statements of income for the year ended December 31, 2016. On August 2, 2013, Cabot Financial issued £100 million (approximately $151.7 million ) in aggregate principal amount of 8.375% Senior Secured Notes due 2020 (the “Cabot 2020 Notes”). Interest on the Cabot 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year. On March 27, 2014, Cabot Financial issued £175.0 million (approximately $291.8 million ) in aggregate principal amount of 6.500% Senior Secured Notes due 2021 (the “Cabot 2021 Notes”). Interest on the Cabot 2021 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year. On October 6, 2016, Cabot Financial issued £350.0 million (approximately $442.6 million ) in aggregate principal amount of 7.500% Cabot 2023 Notes (together with the Cabot 2019 Notes, the Cabot 2020 Notes and the Cabot 2021 Notes, the “Cabot Notes”). Interest on the Cabot 2023 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year. The Cabot 2023 Notes were issued at a price equal to 100% of their face value. The proceeds from the offering were used to (1) redeem in full the Cabot 2019 Notes plus a call premium of £13.7 million (approximately $17.4 million ), (2) partially repay amounts outstanding under Cabot’s revolving credit facility, (3) pay accrued interest on the Cabot 2019 Notes, and (4) pay fees and expenses in relation to the offering of the Cabot 2023 Notes. The Cabot Notes are fully and unconditionally guaranteed on a senior secured basis by the following indirect subsidiaries of the Company: Cabot Credit Management Limited (“CCM”), Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited (other than Cabot Financial and Marlin Intermediate Holdings plc). The Cabot Notes are secured by a first ranking security interest in all the outstanding shares of Cabot Financial and the guarantors (other than CCM and Marlin Midway Limited) and substantially all the assets of Cabot Financial and the guarantors (other than CCM). Subject to the Intercreditor Agreement described below under “Cabot Senior Revolving Credit Facility”, the guarantees provided in respect of the Cabot Notes are pari passu with each such guarantee given in respect of the Cabot Floating Rate Notes, Marlin Bonds and the Cabot Credit Facility described below. On November 11, 2015, Cabot Financial (Luxembourg) II S.A. (“Cabot Financial II”), an indirect subsidiary of Encore, issued €310.0 million (approximately $332.2 million ) in aggregate principal amount of Senior Secured Floating Rate Notes due 2021 (the “Cabot Floating Rate Notes”). The Cabot Floating Rate Notes were issued at a 1% , or €3.1 million (approximately $3.4 million ), original issue discount, which is being amortized over the life of the notes and included as interest expense in the Company’s consolidated statements of income. The Cabot Floating Rate Notes bear interest at a rate equal to three-month EURIBOR plus 5.875% per annum, reset quarterly. Interest on the Cabot Floating Rate Notes is payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on February 15, 2016. The Cabot Floating Rate Notes will mature on November 15, 2021. The Cabot Floating Rate Notes are fully and unconditionally guaranteed on a senior secured basis by the following indirect subsidiaries of the Company: CCM, Cabot Financial Limited and all material subsidiaries of Cabot Financial Limited (other than Cabot Financial II and Marlin Intermediate Holdings plc). The Cabot Floating Rate Notes are secured by a first-ranking security interest in all the outstanding shares of Cabot Financial II and the guarantors (other than CCM and Marlin Midway Limited) and substantially all the assets of Cabot Financial II and the guarantors (other than CCM). On July 25, 2013, Marlin Intermediate Holdings plc (“Marlin”), an indirect, a subsidiary of Marlin, issued £150.0 million (approximately $246.5 million ) in aggregate principal amount of 10.5% Senior Secured Notes due 2020 (the “Marlin Bonds”). Interest on the Marlin Bonds is payable semi-annually, in arrears, on February 1 and August 1 of each year. Cabot assumed the Marlin Bonds as a result of the Acquisition of Marlin. The carrying value of the Marlin Bonds was adjusted to approximately $284.2 million to reflect the fair value of the Marlin Bonds at the time of acquisition. The Marlin Bonds are fully and unconditionally guaranteed on a senior secured basis by Cabot Financial Limited and each of Cabot Financial Limited’s material subsidiaries other than Marlin Intermediate Holdings plc, each of which is an indirect subsidiary of the Company. Subject to the Intercreditor Agreement described below under “-Cabot Senior Revolving Credit Facility”, the guarantees provided in respect of the Marlin Bonds are pari passu with each such guarantee given in respect of the Cabot Notes, the Cabot Floating Rate Notes and the Cabot Credit Facility. Interest expense related to the Cabot Notes, Cabot Floating Rate Notes, and Marlin Bonds was as follows (in thousands) : Year ended December 31, 2016 2015 Interest expense—stated coupon rate $ 105,606 $ 98,988 Interest income—accretion of debt premium (8,951 ) (10,747 ) Interest expense—amortization of debt discount 620 75 Total interest expense—Cabot senior secured notes $ 97,275 $ 88,316 At December 31, 2016 , the outstanding balance on the Cabot Notes, Cabot Floating Rate Notes, and Marlin Bonds was $1.3 billion . Cabot Senior Revolving Credit Facility On September 20, 2012, Cabot Financial (UK) Limited (“Cabot Financial UK”) entered into an agreement for a senior committed revolving credit facility of £50.0 million (approximately $82.7 million ) (the “Cabot Credit Agreement”). Since such date there have been a number of amendments made, including, but not limited to, increases in the lenders’ total commitments thereunder. On October 6, 2016, Cabot Financial UK amended and restated its existing senior secured revolving credit facility agreement to, among other things, increase the total committed amount of the facility to £250.0 million (approximately $316.2 million ), extend the termination date to September 24, 2019 and decrease the interest rate from LIBOR (or EURIBOR for any loan drawn in euro) plus 3.5% to LIBOR (or EURIBOR for any loan drawn in euro) plus 3.25% (as amended and restated, the “Cabot Credit Facility”). The Cabot Credit Facility also includes an uncommitted accordion provision which will allow the facility to be increased by an additional £50.0 million , subject to obtaining the requisite commitments and compliance with the terms of Cabot Financial UK’s other indebtedness, among other conditions precedent. The Cabot Credit Facility expires in September 2019 , and includes the following key provisions: • Interest at LIBOR (or EURIBOR for any loan drawn in euro) plus 3.25% ; • A restrictive covenant that limits the loan to value ratio to 0.75 in the event that the Cabot Credit Facility is more than 20% utilized; • A restrictive covenant that limits the super senior loan (i.e. the Cabot Credit Facility and any super priority hedging liabilities) to value ratio to 0.25 in the event that the Cabot Credit Facility is more than 20% utilized; • Additional restrictions and covenants which limit, among other things, the payment of dividends and the incurrence of additional indebtedness and liens; and • Events of default which, upon occurrence, may permit the lenders to terminate the Cabot Credit Facility and declare all amounts outstanding to be immediately due and payable. The Cabot Credit Facility is unconditionally guaranteed by the following indirect subsidiaries of the Company: CCM, Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited. The Cabot Credit Facility is secured by first ranking security interests in all the outstanding shares of Cabot Financial UK and the guarantors (other than CCM) and substantially all the assets of Cabot Financial UK and the guarantors (other than CCM). Pursuant to the terms of intercreditor agreements entered into with respect to the relative positions of the Cabot Notes, the Cabot Floating Rate Notes, the Marlin Bonds and the Cabot Credit Facility, any liabilities in respect of obligations under the Cabot Credit Facility that are secured by assets that also secure the Cabot Notes, the Cabot Floating Rate Notes and the Marlin Bonds will receive priority with respect to any proceeds received upon any enforcement action over any such assets. At December 31, 2016 , the outstanding borrowings under the Cabot Credit Facility were approximately $33.2 million . The weighted average interest rate was 3.95% and 3.86% for the years ended December 31, 2016 and 2015 , respectively. Preferred Equity Certificates On July 1, 2013, the Company, through its wholly owned subsidiary Encore Europe Holdings, S.a.r.l. (“Encore Europe”), completed the acquisition of Cabot (the “Cabot Acquisition”) by acquiring 50.1% of the equity interest in Janus Holdings S.a.r.l. (“Janus Holdings”). Encore Europe purchased from J.C. Flowers & Co. LLC (“J.C. Flowers”): (i) E Bridge preferred equity certificates issued by Janus Holdings, with a face value of £10,218,574 (approximately $15.5 million ) (and any accrued interest thereof) (the “E Bridge PECs”), (ii) E preferred equity certificates issued by Janus Holdings with a face value of £96,729,661 (approximately $147.1 million ) (and any accrued interest thereof) (the “E PECs”), (iii) 3,498,563 E shares of Janus Holdings (the “E Shares”), and (iv) 100 A shares of Cabot Holdings S.a.r.l. (“Cabot Holdings”), the direct subsidiary of Janus Holdings, for an aggregate purchase price of approximately £115.1 million (approximately $175.0 million ). The E Bridge PECs, E PECs, and E Shares represent 50.1% of all of the issued and outstanding equity and debt securities of Janus Holdings. The remaining 49.9% of Janus Holdings’ equity and debt securities are owned by J.C. Flowers and include: (a) J Bridge PECs with a face value of £10,177,781 (approximately $15.5 million ), (b) J preferred equity certificates with a face value of £96,343,515 (approximately $146.5 million ) (the “J PECs”), (c) 3,484,597 J shares of Janus Holdings (the “J Shares”), and (d) 100 A shares of Cabot Holdings. All of the PECs accrue interest at 12% per annum. Since PECs are legal form debt, the J Bridge PECs, J PECs and any accrued interests thereof are classified as liabilities and are included in debt in the Company’s accompanying consolidated statements of financial condition. In addition, certain other minority owners hold PECs at the Cabot Holdings level (the “Management PECs”). These PECs are also included in debt in the Company’s accompanying consolidated statements of financial condition. The E Bridge PECs and E PECs held by the Company, and their related interest eliminate in consolidation and therefore are not included in debt in the Company’s consolidated statements of financial condition. The J Bridge PECs, J PECs, and the Management PECs do not require the payment of cash interest expense as they have characteristics similar to equity with a preferred return. The ultimate payment of the accumulated interest would be satisfied only in connection with the disposition of the noncontrolling interest of J.C. Flowers and management. On June 20, 2014, Encore Europe converted all of its E Bridge PECs into E Shares and E PECs, and J.C. Flowers converted all of its J Bridge PECs into J Shares and J PECs, in proportion to the number of E Shares and E PECs, or J Shares and J PECs, as applicable, outstanding on the closing date of the Cabot Acquisition. As of December 31, 2016 , the outstanding balance of the PECs, including accrued i |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The Company’s VIEs include its subsidiary Janus Holdings and other immaterial special purpose entities that were created to purchase receivable portfolios in certain geographies. Prior to March 31, 2016, the Company’s VIEs included its subsidiary Janus Holdings and its special purpose entity used for the Propel securitization. On March 31, 2016, the Company completed the divestiture of 100% of its membership interests in Propel. Since Propel is the primary beneficiary of the VIE used for securitization, subsequent to the sale of Propel, the Company no longer consolidates this VIE. Janus Holdings is the indirect parent company of Cabot. The Company has determined that Janus Holdings is a VIE and the Company is the primary beneficiary of the VIE. The key activities that affect Cabot’s economic performance include, but are not limited to, operational budgets and purchasing decisions. Through its control of the board of directors of Janus Holdings, the Company controls the key operating activities at Cabot. Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the VIE. The Company evaluates its relationships with its VIE on an ongoing basis to ensure that it continues to be the primary beneficiary. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In April 2013, Encore’s Board of Directors (the “Board”) approved the Encore Capital Group, Inc. 2013 Incentive Compensation Plan (as amended, the “2013 Plan”), which was then approved by the Company’s stockholders on June 5, 2013. The 2013 Plan superseded the Company’s 2005 Stock Incentive Plan (“2005 Plan”). Board members, employees, and consultants of Encore and its subsidiaries and affiliates are eligible to receive awards under the 2013 Plan. Subject to certain adjustments, the Company may grant awards for an aggregate of 2,500,000 shares of the Company’s common stock under the 2013 Plan. Any shares subject to awards made under the 2013 Plan that terminate by expiration, forfeiture, cancellation, payment of exercise price, payment of withholding tax obligation or otherwise without the issuance of such shares shall again be available for issuance or payment of awards under the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, cash awards, performance-based awards and any other types of awards not inconsistent with the 2013 Plan. The awards under the 2013 Plan consist of compensation subject to authoritative guidance for stock-based compensation. In accordance with authoritative guidance for stock-based compensation, compensation expense is recognized only for those shares expected to vest, based on the Company’s historical experience and future expectations. Total compensation expense during the years ended December 31, 2016 , 2015 , and 2014 was $12.6 million , $22.0 million , and $17.2 million , respectively. The Company’s stock-based compensation arrangements are described below: Stock Options The 2013 Plan permits the granting of stock options. No options have been awarded under the 2013 Plan. Under the 2005 Plan, option awards were generally granted with an exercise price equal to the market price of the Company’s stock at the date of issuance. They generally vest over three to five years of continuous service, and have ten -year contractual terms. The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards. All options are amortized ratably over the requisite service periods of the awards, which are generally the vesting periods. The fair value for options granted is estimated at the date of grant using a Black-Scholes option-pricing model. There were no options granted during the years ended December 31, 2016, 2015, or 2014. As of December 31, 2016 , all outstanding stock options have been fully vested and all related compensation expenses have been fully recognized. A summary of the Company’s stock option activity as of December 31, 2016 , and changes during the year then ended, is presented below: Number of Shares Option Price Per Share Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 118,879 $2.89 –$24.65 $ 16.23 Exercised (15,333 ) 22.17 –24.65 22.87 Outstanding at December 31, 2016 103,546 $2.89 –$22.17 $ 15.24 $ 1,388 Exercisable at December 31, 2016 103,546 $2.89 –$22.17 $ 15.24 $ 1,388 The total intrinsic value of options exercised during the year ended December 31, 2016 was negligible. The total intrinsic value of options exercised during the years ended December 31, 2015 and 2014 was $1.2 million and $29.6 million , respectively. As of December 31, 2016 , the weighted-average remaining contractual life of options outstanding and options exercisable was 3.4 years. Non-Vested Shares The Company’s 2013 Plan (and previously, the 2005 Plan), permits restricted stock units, restricted stock awards, and performance share awards. The fair value of non-vested shares with service condition and/or performance condition that affect vesting is equal to the closing sale price of the Company’s common stock on the date of issuance. Compensation cost is recognized only for the awards that ultimately vest. The Company has certain share awards that include market conditions that affect vesting, the fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. For the majority of non-vested shares, shares are issued on the vesting dates net of the amount of shares needed to satisfy minimal statutory tax withholding requirements. The tax obligations are then paid by the Company on behalf of the employees. A summary of the status of the Company’s restricted stock units and restricted stock awards as of December 31, 2016 , and changes during the year then ended, is presented below: Non-Vested Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2015 1,304,271 $ 38.71 Awarded 712,841 $ 27.16 Vested (513,073 ) $ 39.93 Cancelled/forfeited (163,664 ) $ 38.57 Non-vested at December 31, 2016 1,340,375 $ 32.11 Unrecognized compensation cost related to non-vested shares as of December 31, 2016 , was $14.2 million . The weighted-average remaining expense period, based on the unamortized value of these outstanding non-vested shares, was approximately 1.8 years. The fair value of restricted stock units and restricted stock awards vested for the years ended December 31, 2016 , 2015 , and 2014 was $12.5 million , $16.5 million , and $20.2 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax provisions for continuing operations of $38.2 million , $27.2 million , and $48.6 million , during the years ended December 31, 2016 , 2015 and 2014, respectively. The effective tax rates for the respective periods are shown below: Year Ended December 31, 2016 2015 2014 Federal provision 35.0 % 35.0 % 35.0 % State provision (1) 2.3 % 0.2 % 8.7 % International benefit (2) (3.6 )% (7.8 )% (3.0 )% Tax reserves (3) (3.2 )% (2.0 )% (3.8 )% Permanent items (4) 14.7 % 6.0 % 4.3 % Increase (decrease) in valuation allowance (5) 20.7 % (5.6 )% 0.0 % Other (6) 0.7 % 1.9 % (6.9 )% Effective rate 66.6 % 27.7 % 34.3 % ________________________ (1) Change from 2014 to 2015 relates primarily to a beneficial settlement with a state tax authority. (2) Relates primarily to the lower tax rate on the income attributable to international operations. (3) Represent release of reserves taken for certain tax positions. (4) Represents a provision for nondeductible items, including overall foreign loss in 2016 and a settlement with the Consumer Finance Protection Bureau (“CFPB”) in 2015. The Company incurred a $10.0 million civil monetary penalty related to a settlement with the CFPB during the year ended December 31, 2015, which is not deductible for income tax purposes. (5) Valuation allowance increased in 2016 due to a foreign subsidiary’s cumulative operating loss. (6) Includes the effect of discrete items, primarily relates to the recognition of tax benefit as a result of a favorable tax settlement with taxing authorities as discussed below. The pretax income (loss) from continuing operations consisted of the following (in thousands) : Year Ended December 31, 2016 2015 2014 Domestic $ 112,483 $ 59,056 $ 120,461 Foreign (55,108 ) 38,877 21,181 $ 57,375 $ 97,933 $ 141,642 The income tax provisions for continuing operations consisted of the following (in thousands) : Year Ended December 31, 2016 2015 2014 Current expense: Federal $ 58,816 $ 38,831 $ 68,142 State 1,173 363 7,538 Foreign 10,364 7,124 3,752 70,353 46,318 79,432 Deferred (benefit) expense: Federal (22,951 ) (18,755 ) (34,479 ) State 25 (610 ) 2,698 Foreign (9,222 ) 209 918 (32,148 ) (19,156 ) (30,863 ) $ 38,205 $ 27,162 $ 48,569 The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35.0% per annum were as follows ( in thousands ): Year Ended December 31, 2016 2015 2014 Computed “expected” Federal income tax expense $ 20,081 $ 34,277 $ 49,578 (Decrease) increase in income taxes resulting from: State income taxes, net 1,331 637 7,975 Foreign non-taxed income, rate differential (2,076 ) (7,609 ) (5,453 ) Other adjustments, net 18,869 (143 ) (3,531 ) $ 38,205 $ 27,162 $ 48,569 The Company’s subsidiary in Costa Rica is operating under a 100% tax holiday through December 31, 2018 and a 50% tax holiday for the subsequent four years. The impact of the tax holiday in Costa Rica for the year ended December 31, 2016 was immaterial. The Company has not provided for U.S. income taxes or foreign withholding taxes on the undistributed earnings from continuing operations of its subsidiaries operating outside of the United States. Undistributed net income of these subsidiaries as of December 31, 2016 , were approximately $86.2 million . Such undistributed earnings are considered permanently reinvested. The Company does not provide deferred taxes on translation adjustments on unremitted earnings under the indefinite reversal exception. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable due the complexities of a hypothetical calculation. The components of deferred tax assets and liabilities consisted of the following (in thousands) : December 31, December 31, Deferred tax assets: Stock-based compensation expense $ 7,549 $ 1,301 Accrued expenses 19,868 7,220 Differences in income recognition related to receivable portfolios 45,419 33,652 State and international operating losses 26,386 15,234 Difference in basis of depreciable assets 3,427 3,069 Capitalized legal fees—international 171 4,143 Cumulative translation adjustment 715 958 Tax benefit of uncertain tax positions 677 1,349 Difference in basis of bond and loan costs 3,007 9,480 Other 1,077 2,372 Valuation allowance (18,892 ) (4,517 ) 89,404 74,261 Deferred tax liabilities: State taxes (377 ) (707 ) Deferred court costs (19,860 ) (25,277 ) Difference in basis of amortizable assets (16,488 ) (11,044 ) Difference in basis of depreciable assets (7,705 ) (8,932 ) Differences in income recognition related to receivable portfolios — (17,432 ) Deferred debt cancellation income (1,313 ) (1,957 ) Other (242 ) (46 ) (45,985 ) (65,395 ) Net deferred tax asset (1) $ 43,419 $ 8,866 ________________________ (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. Certain of the Company’s foreign subsidiaries have net operating loss carry forwards in the amount of approximately $87.9 million , which can be carried forward indefinitely. One of the Company’s domestic subsidiaries has a net operating loss carry forward in the approximate amount of $1.6 million which will begin to expire in 2024 unless previously utilized. Certain of the Company’s domestic subsidiaries have state net operating loss carry forwards in the amount of approximately $8.3 million , which will generally begin to expire in 2026. Valuation allowances are recognized on deferred tax assets if the Company believes that it is more likely than not that some or all of the deferred tax assets will not be realized. The Company believes the majority of the deferred tax assets will be realized due to the reversal of certain significant temporary differences and anticipated future taxable income from operations. As of December 31, 2016, valuation allowance increased to $18.9 million , as compared to $4.5 million as of December 31, 2015. The increase in the valuation allowance was primarily related to the recording of a valuation allowance at one of the Company’s foreign subsidiaries that has incurred cumulative operating loss during the year ended December 31, 2016. The Company believes that it is more likely than not that the net operating loss carryforwards will not be realized at this jurisdiction, therefore, the Company has recorded a valuation allowance against the previously established deferred tax assets. 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, 2013 $ 71,273 Increases related to current and prior year tax positions 34,356 Decreases related to settlements with taxing authorities (67,204 ) Balance at December 31, 2014 38,425 Increases related to prior year tax positions 5,835 Increases related to current year tax positions 11,882 Decreases related to prior year tax positions (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 The Company had gross unrecognized tax benefits, inclusive of penalties and interest, of $21.2 million , $58.5 million and $44.4 million at December 31, 2016 , 2015 , and 2014 respectively. At December 31, 2016 , 2015 and 2014 , there were $7.1 million , $14.9 million and $12.7 million , respectively, of unrecognized tax benefits that if recognized, would result in a net tax benefit. During the year ended December 31, 2016 , the decrease in the Company’s gross unrecognized tax benefit was primarily related to the settlement with tax authorities for unrecognized tax benefits associated with amortization of receivable portfolios. During the year ended December 31, 2015, the increase in the Company’s gross unrecognized tax benefit was primarily associated with certain business combinations. During the year ended December 31, 2014, the decrease in total gross unrecognized tax benefits was due to a favorable tax settlement in November 2014 with taxing authorities related to a previously uncertain tax position. The result of the settlement was a reduction in the unrecognized tax benefit offset by an increase in current taxes payable and deferred tax liabilities. Additionally, the Company recorded a net tax benefit as a result of the settlement of approximately $7.5 million . The uncertain tax benefit is included in “Other liabilities” in the Company’s consolidated statements of financial condition. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, it is reasonably possible that certain changes may occur within the next 12 months, which could significantly increase or decrease the balance of the Company’s gross unrecognized tax benefits. The Company recognizes interest and penalties related to unrecognized tax benefits in its tax expense. The Company recognized expense of approximately $0.5 million , $0.3 million and $1.3 million in interest and penalties during the years ended December 31, 2016, 2015 and 2014, respectively. Interest and penalties accrued as of December 31, 2016 and 2015 were $2.2 million and $0.5 million , respectively. The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2013 through 2016 tax years remain subject to examination by federal taxing authorities, 2012 through 2016 tax years generally remain subject to examination by state tax authorities, and the 2013 through 2016 tax years remain subject to examination by foreign tax authorities. Tax years from 2008 forward remain open at certain of the Company’s subsidiaries for adjustment for federal and state tax purposes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Regulatory The Company is involved in disputes, legal actions, regulatory investigations, inquiries, and other actions from time to time in the ordinary course of business. The Company, along with others in its industry, is routinely subject to legal actions based on the Fair Debt Collection Practices Act (“FDCPA”), comparable state statutes, the Telephone Consumer Protection Act (“TCPA”), state and federal unfair competition statutes, and common law causes of action. The violations of law investigated or alleged in these actions often include claims that the Company lacks specified licenses to conduct its business, attempts to collect debts on which the statute of limitations has run, has made inaccurate or unsupported assertions of fact in support of its collection actions and/or has acted improperly in connection with its efforts to contact consumers. Such litigation and regulatory actions could involve potential compensatory or punitive damage claims, fines, sanctions, injunctive relief, or changes in business practices. Many continue on for some length of time and involve substantial investigation, litigation, negotiation, and other expense and effort before a result is achieved, and during the process the Company often cannot determine the substance or timing of any eventual outcome. On May 19, 2008, an action captioned Brent v. Midland Credit Management, Inc. et. al was filed in the United States District Court for the Northern District of Ohio Western Division, in which the plaintiff filed a class action counter-claim against two of the Company’s subsidiaries (the “Midland Defendants”). The complaint alleged that the Midland Defendants’ business practices violated consumers’ rights under the FDCPA and the Ohio Consumer Sales Practices Act. The Company has vigorously denied the claims asserted against it in these matters, but has agreed to a proposed settlement to avoid the burden and expense of continued litigation. Subject to court approval, settlement awards to eligible class members, as well as fees and costs, will be paid from a settlement fund of approximately $5.2 million , which has already been paid by the Company and its insurer. If the number of class members who make claims exceeds a certain level, the total settlement could increase to an amount not to exceed $5.7 million . On October 14, 2014, the district court issued an order granting final approval of the parties’ revised agreed upon settlement of this lawsuit. That order was appealed by an objector to the settlement and on July 7, 2016, the United States Court of Appeals for the Sixth Circuit affirmed the district court’s October 14, 2014 ruling. On November 2, 2010 and December 17, 2010, two national class actions entitled Robinson v. Midland Funding LLC and Tovar v. Midland Credit Management, respectively, were filed in the United States District Court for the Southern District of California. The complaints allege that certain of the Company’s subsidiaries violated the TCPA by calling consumers’ cellular phones without their prior express consent. The complaints seek monetary damages under the TCPA, injunctive relief, and other relief, including attorney fees. On May 10, 2011 and May 11, 2011 two class actions entitled Scardina v. Midland Credit Management, Inc., Midland Funding LLC and Encore Capital Group, Inc. and Martin v. Midland Funding, LLC, respectively, were filed in the United States District Court for the Northern District of Illinois. The complaints allege on behalf of a putative class of Illinois consumers that certain of the Company’s subsidiaries violated the TCPA by calling consumers’ cellular phones without their prior express consent. The complaints seek monetary damages under the TCPA, injunctive relief, and other relief, including attorney fees. On July 28, 2011, the Company filed a motion to transfer the Scardina and Martin cases to the United States District Court for the Southern District of California to be consolidated with the Tovar and Robinson cases. On October 11, 2011, the United States Judicial Panel on Multidistrict Litigation granted the Company’s motion to transfer. All four of these cases, along with a number of additional cases brought against the Company that allege violations of the TCPA, are now pending in the United States District Court for the Southern District of California in a multidistrict litigation titled In re Midland Credit Management Inc. Telephone Consumer Protection Act Litigation. The lead plaintiffs filed an amended consolidated complaint on July 11, 2012. The Company has vigorously denied the claims asserted against it in these matters, but has agreed to a proposed class settlement to avoid the burden and expense of continued litigation. The proposed class settlement is intended to resolve all cases involved in multi-district litigation, and all claims against the Company for alleged violations of the TCPA that occurred before August 31, 2014, other than those of persons who exclude themselves from class settlement. The settlement agreement requires the Company to contribute $2.0 million to a settlement fund, to be disbursed among eligible class members, and to set aside $13.0 million in debt forgiveness to be allocated among eligible class members. In addition, the settlement agreement provides that the Company will pay plaintiffs’ attorney fees in an amount of $2.4 million , and for the costs associated with administering the class relief. On November 30, 2016, the court granted final approval of the settlement. On September 9, 2015, the Company entered into a consent order (the “Consent Order”) with the CFPB in which it settled allegations arising from its practices between 2011 and 2015. The Consent Order includes obligations on the Company to, among other things: (1) follow certain specified operational requirements, substantially all of which are already part of the Company’s current operations; (2) submit to the CFPB for review a comprehensive plan designed to ensure that its debt collection practices comply with all applicable federal consumer financial laws and the terms of the Consent Order; (3) pay redress to certain specified groups of consumers; and (4) pay a civil monetary penalty. The Company will continue to cooperate and engage with the CFPB and work to ensure compliance with the Consent Order. In addition, the Company is subject to ancillary state attorney general investigations related to similar debt collection practices. The Company incurred a one-time, after-tax charge of approximately $43 million in the third quarter of 2015. The Company believes this charge will cover all related impacts of the Consent Order, including civil monetary penalties, restitution, any such ancillary state regulatory matters, legal expenses and portfolio allowance charges on several pool groups due to the impact on the Company’s current estimated remaining collections related to its existing receivable portfolios. The Company anticipates that after this one-time charge, any future earnings impact will be immaterial. In certain legal proceedings, the Company may have recourse to insurance or third party contractual indemnities to cover all or portions of its litigation expenses, judgments, or settlements. In accordance with authoritative guidance, the Company records loss contingencies in its financial statements only for matters in which losses are probable and can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability. The Company continuously assesses the potential liability related to its pending litigation and regulatory matters and revises its estimates when additional information becomes available. As of December 31, 2016 , other than reserves related to the CFPB Consent Order, ancillary state regulatory matters and the TCPA settlement fund discussed above, the Company has no material reserves for legal matters. Additionally, based on the current status of litigation and regulatory matters, either the estimate of exposure is immaterial to the Company’s financial statements or an estimate cannot yet be determined. The Company’s legal costs are recorded to expense as incurred. Leases The Company leases office facilities in the United States, Europe, and other geographies. The leases are structured as operating leases, and the Company incurred related rent expense in the amounts of $20.3 million , $19.4 million , and $23.0 million during the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company has capital lease obligations primarily for certain computer equipment. Refer to Note 10 , “Debt—Capital Lease Obligations” for additional information on the Company’s capital leases. Amortization of assets under capital leases is included in depreciation and amortization expense. Future minimum lease payments under lease obligations consist of the following for the years ending December 31, (in thousands) : Capital Leases Operating Leases Total 2017 $ 3,470 $ 17,347 $ 20,817 2018 1,227 13,033 14,260 2019 478 8,282 8,760 2020 270 6,361 6,631 2021 — 5,599 5,599 Thereafter — 11,202 11,202 Total minimal leases payments 5,445 $ 61,824 $ 67,269 Less: Interest (354 ) Present value of minimal lease payments $ 5,091 Purchase Commitments In the normal course of business, the Company enters into forward flow purchase agreements and other purchase commitment agreements. As of December 31, 2016 , the Company has entered into agreements to purchase receivable portfolios with a face value of approximately $1.9 billion for a purchase price of approximately $262.1 million . Most purchase commitments do not extend past one year. Guarantees Encore’s Certificate of Incorporation and indemnification agreements between the Company and its officers and directors provide that the Company will indemnify and hold harmless its officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. The Company has also agreed to indemnify certain third parties under certain circumstances pursuant to the terms of certain underwriting agreements, registration rights agreements, credit facilities, portfolio purchase and sale agreements, and other agreements entered into by the Company in the ordinary course of business. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company believes the estimated fair value of these indemnification agreements is minimal and, as of December 31, 2016 , has no liabilities recorded for these agreements. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company conducts business through several operating segments that meet the aggregation criteria under authoritative guidance related to segment reporting. The Company’s management relies on internal management reporting processes that provide segment revenue, segment operating income, and segment asset information in order to make financial decisions and allocate resources. Prior to the first quarter 2016 the Company had determined that it had two reportable segments: portfolio purchasing and recovery and tax lien business. As discussed in Note 2 , “Discontinued Operations,” on March 31, 2016, the Company completed the divestiture of its membership interests in Propel, which comprised the entire tax lien business segment. Propel’s operations are presented as discontinued operations in the Company’s consolidated statements of income. Beginning in the first quarter 2016, the Company has one reportable segment, portfolio purchasing and recovery. The following tables present information about geographic areas in which the Company operates (in thousands) : Year Ended December 31, 2016 2015 2014 Revenues (1) : United States $ 669,636 $ 709,405 $ 723,247 International Europe (2) 270,411 376,055 295,173 Other geographies 89,211 44,507 25,009 Total $ 1,029,258 $ 1,129,967 $ 1,043,429 ________________________ (1) Revenues are attributed to countries based on location of customer. (2) Based on the financial information that is used to produce the general-purpose financial statements, providing further geographic information is impracticable. December 31, December 31, Long-lived assets (1) : United States $ 39,126 $ 38,921 International United Kingdom 20,860 20,795 Other foreign countries 12,271 12,830 33,131 33,625 Total $ 72,257 $ 72,546 ________________________ (1) Long-lived assets consists of property and equipment, net. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets In accordance with authoritative guidance, goodwill is tested for impairment at the reporting unit level annually and in interim periods if certain events occur that indicate that the fair value of a reporting unit may be below its carrying value. Determining the number of reporting units and the fair value of a reporting unit requires the Company to make judgments and involves the use of significant estimates and assumptions. The Company has five reporting units for goodwill impairment testing purposes. The annual goodwill testing date for these reporting units is October 1st. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The qualitative factors include economic environment, business climate, market capitalization, operating performance, competition, and other factors. The Company may proceed directly to the two-step quantitative test without performing the qualitative test. The first step involves measuring the recoverability of goodwill at the reporting unit level by comparing the estimated fair value of the reporting unit in which the goodwill resides to its carrying value. The second step, if necessary, measures the amount of impairment, if any, by comparing the implied fair value of goodwill to its carrying value. The Company applies various valuation techniques to measure the fair value of each reporting unit, including the income approach and the market approach. For goodwill impairment analyses conducted at most of the reporting units, the Company uses the income approach in determining fair value, specifically the discounted cash flow method, or DCF. In applying the DCF method, an identified level of future cash flow is estimated. Annual estimated cash flows and a terminal value are then discounted to their present value at an appropriate discount rate to obtain an indication of fair value. The discount rate utilized reflects estimates of required rates of return for investments that are seen as similar to an investment in the reporting unit. DCF analyses are based on management’s long-term financial projections and require significant judgments, therefore, for most of the Company’s reporting units where the Company has access to reliable market participant data, the market approach is conducted in addition to the income approach in determining the fair value. The Company uses a guideline company method under the market approach to estimate the fair value of equity and the market value of invested capital (“MVIC”). The guideline company approach relies on estimated remaining collections data or the earnings before interest, tax, depreciation and amortization (“EBITDA”) for each of the selected guideline companies, which enables a direct comparison between the reporting unit and the selected peer group. The Company believes that the current methodology used in determining the fair value at its reporting units represent its best estimates. In addition, the Company compares the aggregate fair value of the reporting units to its overall market capitalization. Due to the large allowance charge recorded during the third quarter of 2016, the carrying value at the Company’s Cabot reporting unit became negative at October 1, 2016. According to authoritative guidance, if the carrying amount of a reporting unit is zero or negative, the traditional step two of the impairment test should be performed to measure the amount of impairment loss, if any, when it is more likely than not that a goodwill impairment exists. In considering whether it is more likely than not that a goodwill impairment exists, an entity can perform a step zero qualitative analysis. The Company conducted a qualitative analysis and concluded that there was no indication that a goodwill impairment existed at this reporting unit. For the Company’s annual goodwill impairment tests performed at October 1, 2016 for the remaining four reporting units, the estimated fair value of each of these reporting units exceeded its respective carrying value. As a result, no impairment existed at any of these reporting units. Management continues to evaluate and monitor all key factors impacting the carrying value of the Company’s recorded goodwill and long-lived assets. Further adverse changes in the Company’s actual or expected operating results, market capitalization, business climate, economic factors or other negative events that may be outside the control of management could result in a material non-cash impairment charge in the future. The Company’s goodwill is attributable to reporting units included in its portfolio purchasing and recovery segment. The following table summarizes the activity in the Company’s goodwill balance, as follows (in thousands): Total Balance, December 31, 2015 $ 924,847 Goodwill acquired 623 Goodwill adjustment (1) (20,674 ) Effect of foreign currency translation (119,764 ) Balance, December 31, 2016 $ 785,032 ______________________ (1) Represent adjustments made to preliminary purchase price allocations as a result of obtaining fair value of intangible assets acquired and finalizing certain established deferred income tax associated with prior year business combinations. The Company’s acquired intangible assets are summarized as follows (in thousands) : As of December 31, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 21,200 $ (3,220 ) $ 17,980 $ 5,356 $ (903 ) $ 4,453 Developed technologies 6,497 (3,891 ) 2,606 8,141 (3,793 ) 4,348 Trade name and other 12,566 (4,909 ) 7,657 10,324 (3,413 ) 6,911 Total intangible assets $ 40,263 $ (12,020 ) $ 28,243 $ 23,821 $ (8,109 ) $ 15,712 The weighted-average useful lives of intangible assets at the time of acquisition were as follows: Weighted-Average Useful Lives Customer relationships 10 Developed technologies 5 Trade name and other 8 The amortization expense for intangible assets that are subject to amortization was $7.2 million , $5.0 million , and $3.6 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Estimated future amortization expense related to finite-lived intangible assets at December 31, 2016 is as follows ( in thousands ): 2017 $ 5,417 2018 4,442 2019 3,109 2020 2,972 2021 2,849 Thereafter 9,454 Total $ 28,243 |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) The following table summarizes quarterly financial data for the periods presented ( in thousands, except per share amounts ): Three Months Ended March 31 June 30 September 30 December 31 2016 Gross collections $ 447,805 $ 434,100 $ 406,961 $ 396,738 Revenues 289,017 289,442 179,415 271,384 Total operating expenses 205,513 197,695 200,597 183,939 Income (loss) from continuing operations 29,789 30,833 (51,946 ) 10,494 Net income (loss) 26,607 30,833 (51,946 ) 11,323 Amounts attributable to Encore Capital Group, Inc.: Income from (loss) continuing operations 28,876 29,588 (1,524 ) 21,983 Net income (loss) attributable to Encore Capital Group, Inc. stockholders 25,694 29,588 (1,524 ) 22,812 Earnings (loss) per share attributable to Encore Capital Group, Inc.: From continuing operations: Basic $ 1.13 $ 1.15 $ (0.06 ) $ 0.85 Diluted 1.12 1.14 (0.06 ) 0.85 From net income: Basic $ 1.01 $ 1.15 $ (0.06 ) $ 0.88 Diluted 0.99 1.14 (0.06 ) 0.88 2015 Gross collections $ 425,071 $ 437,324 $ 421,753 $ 416,577 Revenues 277,782 282,662 278,914 290,609 Total operating expenses 194,895 198,362 248,185 206,271 Income (loss) from continuing operations 28,087 23,524 (11,650 ) 30,810 Net income (loss) 29,967 25,185 (9,364 ) 1,596 Amounts attributable to Encore Capital Group, Inc.: Income (loss) from continuing operations 27,545 25,996 (13,245 ) 28,226 Net income (loss) 1,880 1,661 2,286 (29,214 ) Earnings (loss) per share attributable to Encore Capital Group, Inc.: From continuing operations: Basic $ 1.06 $ 1.00 $ (0.52 ) $ 1.11 Diluted 1.01 0.97 (0.52 ) 1.08 From net income: Basic $ 1.13 $ 1.07 $ (0.43 ) $ (0.04 ) Diluted 1.08 1.03 (0.43 ) (0.04 ) |
Ownership, Description of Bus25
Ownership, Description of Business, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. The Company also consolidates VIEs, for which it is the primary beneficiary. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (b) either the obligation to absorb losses or the right to receive benefits. Refer to Note 11 , “Variable Interest Entities” for further details. All intercompany transactions and balances have been eliminated in consolidation. |
Translation of Foreign Currencies | Translation of Foreign Currencies The financial statements of certain of the Company’s foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities of foreign operations are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The resulting translation adjustments are recorded as a component of other comprehensive income or loss. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Intercompany transaction gains or losses at each period end arising from subsequent measurement of balances for which settlement is not planned or anticipated in the foreseeable future are included as translation adjustments and recorded within other comprehensive income or loss. Transaction gains and losses are included in other income or expense. |
Reclassifications | Reclassifications Certain immaterial reclassifications have been made to the consolidated financial statements to conform to the current year’s presentation. |
Change in Accounting Principle and Recent Accounting Pronouncements | Change in Accounting Principle In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective beginning January 1, 2016, with early adoption permitted. The update requires retrospective application and represents a change in accounting principle. The Company adopted ASU 2015-03 in the first quarter of 2016 and the retrospective application of this change in accounting principle on the consolidated balance sheet as of December 31, 2015 reclassified debt issuance costs of $41.7 million , which were previously presented as other assets, as a reduction to the carrying value of the debt by the same amount. The adoption did not have an impact on the Company's condensed consolidated statements of income or statements of cash flows in any period. Recent Accounting Pronouncements Other than the adoption of ASU 2015-03 as discussed in the “Change in Accounting Principle” section above, there have been no new accounting pronouncements made effective during year ended December 31, 2016 that have significance, or potential significance, to the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairments tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements as well as whether to adopt the new guidance early. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The FASB issued ASU 2016-15 to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this update provide guidance on eight specific cash flow issues. ASU 2016-15 is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements as well as whether to adopt the new guidance early. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 applies a current expected credit loss model which is a new impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 eliminates the current accounting model for loans and debt securities acquired with deteriorated credit quality under ASC 310-30, which provides authoritative guidance for the accounting of the Company’s investment in receivable portfolios. Under this new standard, entities will gross up the initial amortized cost for the purchased financial assets with credit deterioration (“PCD assets”), the initial amortized cost will be the sum of (1) the purchase price and (2) the estimate of credit losses as of the date of acquisition. After initial recognition of PCD assets and the related allowance, any change in estimated cash flows (favorable or unfavorable) will be immediately recognized in the income statement because the yield on PCD assets is locked. ASU 2016-13 is effective for reporting periods beginning after December 15, 2019 with early adoption permitted for reporting periods beginning after December 15, 2018. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption of this standard, excess tax benefits and tax deficiencies will be recognized as income tax expense, and the tax effects of exercised or vested awards will be treated as discrete items in the period in which they occur. As such, implementation of this standard could create volatility in and entity’s effective income tax rate on a quarter by quarter basis. The volatility in the effective income tax rate is due primarily to fluctuations in the stock price and the timing of stock option exercises and vesting of restricted share grants. The standard also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity. An entity may elect to apply the change in presentation in the statement of cash flows either prospectively or retrospectively to all periods presented. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. ASU 2016-09 became effective for the Company on January 1, 2017. The Company will apply the change in presentation in the statement of cash flows retrospectively for all periods presented after adoption date. The Company believes that the new standard may cause volatility in its effective tax rates and earnings per share due to the tax effects related to share-based payments being recorded to the income statement. The volatility in future periods will depend on the Company’s stock price at the awards’ vest dates and the number of awards that vest in each period. The Company will not elect an accounting policy change to record forfeitures as they occur and will continue to estimate forfeitures at each period. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 changes accounting for leases and requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet and requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal year 2019. Early adoption is permitted. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements as well as whether to adopt the new guidance early. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying ASU 2014-09, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB’s ASC. ASU 2014-09 is effective for annual reporting periods (including interim periods within that reporting period) beginning after December 15, 2016 and shall be applied using either a full retrospective or modified retrospective approach. Early application is not permitted. In August 2015, FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all public companies for all annual periods beginning after December 15, 2017 with early adoption permitted only as of annual reporting periods beginning after December 31, 2016, including interim periods within the reporting period. In March 2016, the FASB issued ASU 2016-08 as an amendment to ASU 2014-09, the amendment clarifies how to identify the unit of accounting for the principal versus agent evaluation, how to apply the control principle to certain types of arrangements, such as service transaction, and reframed the indicators in the guidance to focus on evidence that an entity is acting as a principal rather than as an agent. The Company is evaluating its implementation approach and the potential impacts of Topic 606 on its existing revenue recognition policies and procedures. The revenue recognition guidance of this new standard applies to the Company’s fee-based income generated from its international subsidiaries that provide portfolio management services. The Company does not expect the adoption of this standard will have a material impact on its consolidated financial statements. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the date of purchase. The Company invests its excess cash in bank deposits and money market instruments, which are afforded the highest ratings by nationally recognized rating firms. The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents approximate their fair value. |
Investment in Receivable Portfolios | Investment in Receivable Portfolios In accordance with the authoritative guidance for loans and debt securities acquired with deteriorated credit quality, discrete receivable portfolio purchases during the same fiscal quarter are aggregated into pools based on common risk characteristics. Common risk characteristics include risk ratings (e.g. FICO or similar scores), financial asset type, collateral type, size, interest rate, date of origination, term, and geographic location. The Company’s static pools are typically grouped into credit card, purchased consumer bankruptcy, and mortgage portfolios. The Company further groups these static pools by geographic region or location. Portfolios acquired in business combinations are also grouped into these pools. During any fiscal quarter in which the Company has an acquisition of an entity that has portfolio, the entire historical portfolio of the acquired company is aggregated into the pool groups for that quarter, based on common characteristics, resulting in pools for that quarter that may consist of several different vintages of portfolio. Once a static pool is established, the portfolios are permanently assigned to the pool. The discount ( i.e. , the difference between the cost of each static pool and the related aggregate contractual receivable balance) is not recorded because the Company expects to collect a relatively small percentage of each static pool’s contractual receivable balance. As a result, receivable portfolios are recorded at cost at the time of acquisition. The purchase cost of the portfolios includes certain fees paid to third parties incurred in connection with the direct acquisition of the receivable portfolios. In compliance with the authoritative guidance, the Company accounts for its investments in consumer receivable portfolios using either the interest method or the cost recovery method. The interest method applies an internal rate of return (“IRR”) to the cost basis of the pool, which remains unchanged throughout the life of the pool, unless there is an increase in subsequent expected cash flows. Subsequent increases in expected cash flows are generally recognized prospectively through an upward adjustment of the pool’s IRR over its remaining life. Subsequent decreases in expected cash flows do not change the IRR, but are recognized as an allowance to the cost basis of the pool, and are reflected in the consolidated statements of income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition. With gross collections being discounted at monthly IRRs, when collections are lower in the near term, even if substantially higher collections are expected later in the collection curve, an allowance charge could result. The Company accounts for each static pool as a unit for the economic life of the pool (similar to one loan) for recognition of revenue from receivable portfolios, for collections applied to the cost basis of receivable portfolios and for provision for loss or allowance. Revenue from receivable portfolios is accrued based on each pool’s IRR applied to each pool’s adjusted cost basis. The cost basis of each pool is increased by revenue earned and decreased by gross collections and portfolio allowances. If the amount and timing of future cash collections on a pool of receivables are not reasonably estimable, the Company accounts for such portfolios on the cost recovery method (“Cost Recovery Portfolios”). The accounts in these portfolios have different risk characteristics than those included in other portfolios acquired during the same quarter, or the necessary information was not available to estimate future cash flows and, accordingly, they were not aggregated with other portfolios. See Note 6 , “Investment in Receivable Portfolios, Net” for further discussion of investment in receivable portfolios. |
Fee-Based Income | Fee-based Income Certain of the Company’s international subsidiaries earn fee-based income by providing portfolio management services to credit originators for non-performing loans. The Company recognizes fee-based income in accordance with the authoritative guidance for revenue recognition, specifically principal agent considerations. The revenue recognition guidance requires an analysis to be completed to determine if certain revenues should be reported gross or reported net of their related operating expense. This analysis includes an assessment of who retains credit risk, controls vendor selection, establishes pricing and remains the primary obligor on the transaction. The Company considers each of these factors to determine the correct method of recognizing fee-based income. Fee-based income is included in “Other Revenues” in the Company’s consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over the value assigned to the tangible and identifiable intangible assets, liabilities assumed, and noncontrolling interest of businesses acquired. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. In accordance with authoritative guidance on goodwill and other intangible assets, goodwill and other indefinite-lived intangible assets are tested at the reporting unit level annually for impairment and in interim periods if certain events occur indicating the fair value of a reporting unit may be below its carrying value. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Fixed Asset Category Estimated Useful Life Leasehold improvements Lesser of lease term, including periods covered by renewal options, or useful life Furniture, fixtures and equipment 5 to 10 years Computer hardware and software 3 to 10 years Maintenance and repairs are charged to expense in the year incurred. Expenditures for major renewals that extend the useful lives of fixed assets are capitalized and depreciated over the useful lives of such assets. |
Deferred Court Costs | Deferred Court Costs The Company pursues legal collections using a network of attorneys that specialize in collection matters and through its internal legal channel. The Company generally pursues collections through legal means only when it believes a consumer has sufficient assets to repay their indebtedness but has, to date, been unwilling to pay. In order to pursue legal collections the Company is required to pay certain upfront costs to the applicable courts that are recoverable from the consumer (“Deferred Court Costs”). The Company capitalizes Deferred Court Costs in its consolidated financial statements and provides a reserve for those costs that it believes will ultimately be uncollectible. The Company determines the reserve based on an estimated court cost recovery rate established based on its analysis of historical court costs recovery data. The Company estimates deferral periods for Deferred Court Costs based on jurisdiction and nature of litigation and writes off any Deferred Court Costs not recovered within the respective deferral period. Collections received from debtors are first applied against related court costs with the balance applied to the debtors’ account balance. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes in accordance with the authoritative guidance for Income Taxes. When the Company prepares its consolidated financial statements, it estimates income taxes based on the various jurisdictions and countries where it conducts business. This requires the Company to estimate current tax exposure and to assess temporary differences that result from differing treatments of certain items for tax and accounting purposes. Deferred income taxes are recognized based on the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company then assesses the likelihood that deferred tax assets will be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. When the Company establishes a valuation allowance or increases this allowance in an accounting period, it records a corresponding tax expense in the consolidated statement of income. The Company includes interest and penalties related to income taxes within its provision for income taxes. The Company uses the income forecasting methodology to recognize the income and expenses of the portfolios with the exception of a certain recently acquired subsidiary, which uses the cost recovery methodology. See Note 13 , “Income Taxes” for further discussion. Management must make significant judgments to determine the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance to be recorded against deferred tax assets. |
Stock-Based Compensation | Stock-Based Compensation The Company determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. The Company has certain share awards that include market conditions that affect vesting, the fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. For share awards that require service and performance conditions, the Company recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions over the requisite service period of the award. Forfeiture rates are estimated based on the Company’s historical experience. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value. Changes in the fair value of derivative instruments are recorded in earnings unless hedge accounting criteria are met. The Company designates certain foreign currency exchange contracts and interest rate swap agreements as cash flow hedges. The effective portion of the changes in fair value of these cash flow hedges is recorded each period, net of tax, in accumulated other comprehensive income or loss until the related hedged transaction occurs. Any ineffective portion of the changes in fair value of these cash flow hedges is recorded in earnings. In the event the hedged cash flow does not occur, or it becomes probable that it will not occur, the Company would reclassify the amount of any gain or loss on the related cash flow hedge to income or expense at that time. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interest Some minority shareholders in certain subsidiaries of the Company have the right, at certain times, to require the Company to acquire their ownership interest in those entities at fair value, and in some cases, to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interest subject to these arrangements is included in temporary equity as redeemable noncontrolling interest, and is adjusted to its estimated redemption amount each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amount are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interest at the time it was originally recorded. The recorded value of the redeemable noncontrolling interest cannot go below the floor level. These adjustments do not affect the calculation of earnings per share. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net earnings attributable to Encore by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock, and the dilutive effect of the convertible senior notes. |
Ownership, Description of Bus26
Ownership, Description of Business, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Fixed Asset Category Estimated Useful Life Leasehold improvements Lesser of lease term, including periods covered by renewal options, or useful life Furniture, fixtures and equipment 5 to 10 years Computer hardware and software 3 to 10 years |
Reconciliation of Shares Used in Calculating Earnings Per Basic and Diluted Shares | A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands) : Year Ended December 31, 2016 2015 2014 Weighted average common shares outstanding—basic 25,713 25,722 25,853 Dilutive effect of stock-based awards 196 253 556 Dilutive effect of convertible senior notes — 672 1,082 Dilutive effect of warrants — — 4 Weighted average common shares outstanding—diluted 25,909 26,647 27,495 |
Discontinued Operations Disco27
Discontinued Operations Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Revenue and Components of Discontinued Operations | The following table presents the results of the discontinued operations during the periods presented ( in thousands ): Year Ended December 31, 2016 2015 2014 Revenue $ 4,950 $ 31,605 $ 29,361 Salaries and employee benefits (3,074 ) (8,053 ) (7,304 ) Other operating expenses (1,366 ) (4,972 ) (3,926 ) General and administrative expenses (1,551 ) (5,470 ) (9,059 ) Depreciation and amortization (127 ) (785 ) (849 ) Impairment charge for goodwill and identifiable intangible assets — (49,277 ) — (Loss) income from discontinued operations, before income taxes (1,168 ) (36,952 ) 8,223 Loss on sale of discontinued operations, before income taxes (1,679 ) — — Total (loss) income on discontinued operations, before income taxes (2,847 ) (36,952 ) 8,223 Income tax benefit (provision) 494 13,565 (3,018 ) Total (loss) income from discontinued operations, net of tax $ (2,353 ) $ (23,387 ) $ 5,205 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The components of the purchase price allocation for the dlc Acquisition were as follows (in thousands) : Purchase price: Cash paid at acquisition $ 268,391 Deferred consideration 6,306 Total purchase price $ 274,697 Allocation of purchase price: Cash $ 30,518 Investment in receivable portfolios 215,988 Deferred court costs 760 Property and equipment 1,327 Other assets 2,384 Liabilities assumed (46,435 ) Identifiable intangible assets 3,669 Goodwill 66,486 Total net assets acquired $ 274,697 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below ( in thousands ): Fair Value Measurements as of Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 1,122 $ — $ 1,122 Liabilities Foreign currency exchange contracts — (1,360 ) — (1,360 ) Interest rate swap agreements — (131 ) — (131 ) Contingent consideration — — (2,531 ) (2,531 ) Temporary Equity Redeemable noncontrolling interest — — (45,755 ) (45,755 ) Fair Value Measurements as of Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts $ — $ 718 $ — $ 718 Liabilities Foreign currency exchange contracts — (601 ) — (601 ) Interest rate swap agreements — (352 ) — (352 ) Contingent consideration — — (10,403 ) (10,403 ) Temporary Equity Redeemable noncontrolling interest — — (38,624 ) (38,624 ) |
Schedule of Fair Value of Contingent Consideration | The following table provides a roll-forward of the fair value of contingent consideration for the years ended December 31, 2016 and 2015 (in thousands) : Amount Balance at December 31, 2014 $ — Issuance of contingent consideration in connection with acquisition 10,587 Change in fair value of contingent consideration 132 Effect of foreign currency translation (316 ) Balance at December 31, 2015 10,403 Change in fair value of contingent consideration (7,602 ) Effect of foreign currency translation (270 ) Balance at December 31, 2016 $ 2,531 |
Change in Redeemable Noncontrolling Interests | The components of the change in the redeemable noncontrolling interest for the years ended December 31, 2016 , 2015 and 2014 are presented in the following table (in thousands) : Amount Balance at December 31, 2013 $ 26,564 Addition to redeemable noncontrolling interest 4,997 Net loss attributable to redeemable noncontrolling interest (4,513 ) Adjustment of the redeemable noncontrolling interest to fair value 5,730 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3,893 ) Balance at December 31, 2014 28,885 Addition to redeemable noncontrolling interest 9,409 Net income attributable to redeemable noncontrolling interest 1,371 Adjustment of the redeemable noncontrolling interest to fair value 2,349 Effect of foreign currency translation attributable to redeemable noncontrolling interest (3,390 ) Balance at December 31, 2015 38,624 Addition to redeemable noncontrolling interest 826 Redemption of redeemable noncontrolling interest (3,562 ) Net loss attributable to redeemable noncontrolling interest (47,831 ) Adjustment of the redeemable noncontrolling interest to fair value 74,194 Effect of foreign currency translation attributable to redeemable noncontrolling interest (16,496 ) Balance at December 31, 2016 $ 45,755 |
Derivatives and Hedging Instr30
Derivatives and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Instruments as Recorded on Company's Consolidated Statements of Financial Condition | The following table summarizes the fair value of derivative instruments as recorded in the Company’s consolidated statements of financial condition (in thousands): December 31, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency exchange contracts Other assets $ 707 Other assets $ 718 Foreign currency exchange contracts Other liabilities (51 ) Other liabilities (601 ) Interest rate swap agreements Other liabilities (131 ) Other liabilities — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other assets 415 Other assets — Foreign currency exchange contracts Other liabilities (1,309 ) Other liabilities — Interest rate swap agreements Other liabilities — Other liabilities (352 ) |
Summary of Effects of Derivatives in Cash Flow Hedging Relationships in Company's Statements of Income | The following table summarizes the effects of derivatives in cash flow hedging relationships not designated as hedging instruments on the Company’s consolidated statements of income for the years ended December 31, 2016 and 2015 (in thousands) : Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in income on Derivative Amount of Gain or (Loss) Recognized in Income on Derivative 2016 2015 Foreign currency exchange contracts (1) Other income (expense) $ 8,248 $ — Interest rate swap agreements Interest expense 144 92 ________________________ (1) After the effect of income tax and noncontrolling interest, the net impact of the derivative contracts to consolidated net income from continuing income attributable to Encore was a gain of $1.3 million and zero during the years ended December 31, 2016 and 2015, respectively. The following table summarizes the effects of derivatives in cash flow hedging relationships designated as hedging instruments on the Company’s consolidated statements of income for the years ended December 31, 2016 and 2015 (in thousands): Gain or (Loss) Recognized in OCI- Effective Portion Location of Gain or (Loss) Reclassified from OCI into Income - Effective Portion Gain or (Loss) Reclassified from OCI into Income - Effective Portion Location of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing 2016 2015 2016 2015 2016 2015 Foreign currency exchange contracts $ 1,404 $ (248 ) Salaries and $ 755 $ (472 ) Other (expense) $ — $ — Foreign currency exchange contracts (5 ) 88 General and 105 (74 ) Other (expense) — — Interest rate swap agreements (131 ) — Interest expense — — Other (expense) — — |
Investment in Receivable Port31
Investment in Receivable Portfolios, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows | The following table summarizes the Company’s accretable yield and an estimate of zero basis future cash flows at the beginning and end of the period presented (in thousands) : Accretable Yield Estimate of Zero Basis Cash Flows Total Balance at December 31, 2014 $ 2,993,321 $ 66,392 $ 3,059,713 Revenue recognized, net (964,225 ) (108,211 ) (1,072,436 ) Net additions on existing portfolios 263,713 266,252 529,965 Additions for current purchases, net 846,632 — 846,632 Effect of foreign currency translation (91,801 ) (1,402 ) (93,203 ) Balance at December 31, 2015 3,047,640 223,031 3,270,671 Revenue recognized, net (801,736 ) (144,879 ) (946,615 ) Net additions on existing portfolios 441,632 287,116 728,748 Additions for current purchases, net 861,698 — 861,698 Effect of foreign currency translation (457,230 ) 236 (456,994 ) Balance at December 31, 2016 $ 3,092,004 $ 365,504 $ 3,457,508 |
Summary of Changes in Balance of the Investment in Receivable Portfolios | The following tables summarize the changes in the balance of the investment in receivable portfolios during the following periods ( in thousands, except percentages ): Year Ended December 31, 2016 Accrual Basis Portfolios Cost Recovery Portfolios Zero Basis Portfolios Total Balance, beginning of period $ 2,436,054 $ 4,615 $ — $ 2,440,669 Purchases of receivable portfolios 906,719 — — 906,719 Transfer of portfolios (13,076 ) 13,076 — — Gross collections (1) (1,538,663 ) (2,102 ) (144,839 ) (1,685,604 ) Put-backs and Recalls (2) (27,561 ) (1,019 ) (33 ) (28,613 ) Foreign currency adjustments (196,842 ) (127 ) (8 ) (196,977 ) Revenue recognized 892,732 — 138,060 1,030,792 Portfolio (allowance) reversals, net (90,997 ) — 6,820 (84,177 ) Balance, end of period $ 2,368,366 $ 14,443 $ — $ 2,382,809 Revenue as a percentage of collections (3) 58.0 % 0.0 % 95.3 % 61.2 % ________________________ (1) Does not include amounts collected on behalf of others. (2) Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”). (3) Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals. Year Ended December 31, 2015 Accrual Basis Cost Recovery Zero Basis Total Balance, beginning of period $ 2,131,084 $ 12,476 $ — $ 2,143,560 Purchases of receivable portfolios 1,023,722 — — 1,023,722 Gross collections (1) (1,587,525 ) (5,237 ) (107,963 ) (1,700,725 ) Put-backs and Recalls (2) (13,009 ) (20 ) (268 ) (13,297 ) Foreign currency adjustments (82,443 ) (2,604 ) 20 (85,027 ) Revenue recognized 969,227 — 96,446 1,065,673 Portfolio (allowance) reversals, net (5,002 ) — 11,765 6,763 Balance, end of period $ 2,436,054 $ 4,615 $ — $ 2,440,669 Revenue as a percentage of collections (3) 61.1 % 0.0 % 89.3 % 62.7 % Year Ended December 31, 2014 Accrual Basis Cost Recovery Zero Basis Total Balance, beginning of period $ 1,585,587 $ 4,662 $ — $ 1,590,249 Purchases of receivable portfolios 1,249,651 1,709 — 1,251,360 Transfer of portfolios (18,682 ) 18,682 — — Gross collections (1) (1,563,996 ) (9,010 ) (34,491 ) (1,607,497 ) Put-backs and Recalls (2) (15,164 ) (536 ) (9 ) (15,709 ) Foreign currency adjustments (64,644 ) (3,031 ) — (67,675 ) Revenue recognized 953,154 — 22,271 975,425 Portfolio allowance reversals, net 5,178 — 12,229 17,407 Balance, end of period $ 2,131,084 $ 12,476 $ — $ 2,143,560 Revenue as a percentage of collections (3) 60.9 % 0.0 % 64.6 % 60.7 % ________________________ (1) Does not include amounts collected on behalf of others. (2) Put-backs represent accounts that are returned to the seller in accordance with the respective purchase agreement (“Put-Backs”). Recalls represent accounts that are recalled by the seller in accordance with the respective purchase agreement (“Recalls”). (3) Revenue as a percentage of collections excludes the effects of net portfolio allowances or net portfolio allowance reversals. |
Summary of Change in the Valuation Allowance for Investment in Receivable Portfolios | The following table summarizes the change in the valuation allowance for investment in receivable portfolios during the periods presented ( in thousands ): Valuation Allowance Balance at December 31, 2013 $ 93,080 Reversal of prior allowances (17,407 ) Balance at December 31, 2014 75,673 Provision for portfolio allowances 8,322 Reversal of prior allowances (15,085 ) Allowance charged off to investment in receivable portfolios (8,322 ) Balance at December 31, 2015 60,588 Provision for portfolio allowances 94,011 Reversal of prior allowances (9,834 ) Balance at December 31, 2016 $ 144,765 |
Deferred Court Costs, Net (Tabl
Deferred Court Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Court Costs | Deferred Court Costs for the deferral period consist of the following as of the dates presented ( in thousands ): December 31, December 31, Court costs advanced $ 654,356 $ 636,922 Court costs recovered (261,243 ) (242,899 ) Court costs reserve (327,926 ) (318,784 ) Deferred court costs $ 65,187 $ 75,239 |
Schedule of Court Cost Reserve | A roll forward of the Company’s court cost reserve is as follows ( in thousands ): December 31, December 31, December 31, Balance at beginning of period $ (318,784 ) $ (279,572 ) $ (210,889 ) Provision for court costs (67,850 ) (82,593 ) (69,062 ) Net down of reserve after deferral period 53,527 42,745 — Effect of foreign currency translation 5,181 636 379 Balance at end of period $ (327,926 ) $ (318,784 ) $ (279,572 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following, as of the dates presented ( in thousands ): December 31, December 31, Furniture, fixtures and equipment $ 19,230 $ 21,754 Computer equipment and software 138,232 125,967 Telecommunications equipment 4,442 4,030 Leasehold improvements 17,493 19,058 Other 1,923 1,693 181,320 172,502 Less: accumulated depreciation and amortization (109,063 ) (99,956 ) $ 72,257 $ 72,546 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | Other assets consist of the following ( in thousands ): December 31, December 31, Deferred tax assets $ 51,077 $ 12,695 Identifiable intangible assets, net 28,243 15,712 Assets held for sale 21,147 911 Other financial receivables 18,732 11,275 Prepaid expenses 18,036 21,872 Service fee receivables 15,156 13,708 Receivable from seller 5,388 8,605 Security deposits 2,781 2,368 Derivative instruments 1,122 718 Prepaid income taxes 649 25,839 Other 53,116 35,059 Total $ 215,447 $ 148,762 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Schedule of Obligation Under Borrowings | The components of the Company’s consolidated debt and capital lease obligations were as follows (in thousands) : December 31, December 31, Encore revolving credit facility $ 578,000 $ 627,000 Encore term loan facility 164,615 143,078 Encore senior secured notes 11,320 28,750 Encore convertible notes 448,500 448,500 Less: Debt discount (31,968 ) (41,867 ) Cabot senior secured notes 1,280,241 1,360,000 Add: Debt premium 17,686 53,440 Less: Debt discount (2,200 ) (3,184 ) Cabot senior revolving credit facility 33,218 54,089 Preferred equity certificates 205,975 221,516 Other credit facilities 74,551 49,895 Other 62,608 33,447 Capital lease obligations 5,091 11,054 2,847,637 2,985,718 Less: debt issuance costs, net of amortization (41,654 ) (41,655 ) Total $ 2,805,983 $ 2,944,063 |
Convertible Debt, Features and Hedging | Prior to the close of business on the business day immediately preceding their respective conversion date (listed below), holders may convert their Convertible Notes under certain circumstances set forth in the applicable Convertible Notes indentures. On or after their respective conversion dates until the close of business on the scheduled trading day immediately preceding their respective maturity date, holders may convert their Convertible Notes at any time. Certain key terms related to the convertible features for each of the Convertible Notes as of year ended December 31, 2016 are listed below. 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Initial conversion price $ 31.56 $ 45.72 $ 59.39 Closing stock price at date of issuance $ 25.66 $ 33.35 $ 47.51 Closing stock price date November 27, 2012 June 24, 2013 March 5, 2014 Conversion rate (shares per $1,000 principal amount) 31.6832 21.8718 16.8386 Conversion date (1) May 27, 2017 January 1, 2020 September 15, 2020 _______________________ (1) The 2017 Convertible Notes became convertible on January 2, 2014, as certain early conversion events were satisfied. Refer to “Conversion and Earnings Per Share Impact” section below for further details. The details of the hedge program for each of the Convertible Notes are listed below (in thousands, except conversion price) : 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Cost of the hedge transaction(s) $ 50,595 $ 18,113 $ 19,545 Initial conversion price $ 31.56 $ 45.72 $ 59.39 Effective conversion price $ 60.00 $ 61.55 $ 83.14 |
Balances of the Liability and Equity Components | The debt and equity components, the issuance costs related to the equity component, the stated interest rate, and the effective interest rate for each of the Convertible Notes are listed below (in thousands, except percentages) : 2017 Convertible Notes 2020 Convertible Notes 2021 Convertible Notes Debt component $ 100,298 $ 140,247 $ 143,645 Equity component $ 14,702 $ 32,253 $ 17,355 Equity issuance cost $ 788 $ 1,106 $ 581 Stated interest rate 3.000 % 3.000 % 2.875 % Effective interest rate 6.000 % 6.350 % 4.700 % The balances of the liability and equity components of all of the Convertible Notes outstanding were as follows (in thousands) : December 31, December 31, Liability component—principal amount $ 448,500 $ 448,500 Unamortized debt discount (31,968 ) (41,867 ) Liability component—net carrying amount $ 416,532 $ 406,633 Equity component $ 61,314 $ 58,184 |
Summary of Debt Including Capital Lease Obligations Maturities | The aggregate amounts of the Company’s debt, including PECs, accrued interests on PECs, and capital lease obligations, maturing in each of the next five years and thereafter are as follows (in thousands) : 2017 $ 224,394 2018 18,760 2019 306,032 2020 887,084 2021 775,821 Thereafter 652,028 Total $ 2,864,119 |
Cabot Senior Secured Notes [Member] | |
Debt Instrument [Line Items] | |
Interest Expense | Interest expense related to the Cabot Notes, Cabot Floating Rate Notes, and Marlin Bonds was as follows (in thousands) : Year ended December 31, 2016 2015 Interest expense—stated coupon rate $ 105,606 $ 98,988 Interest income—accretion of debt premium (8,951 ) (10,747 ) Interest expense—amortization of debt discount 620 75 Total interest expense—Cabot senior secured notes $ 97,275 $ 88,316 |
Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Interest Expense | The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates. Interest expense related to the convertible notes was as follows (in thousands) : Year ended December 31, 2016 2015 Interest expense—stated coupon rate $ 13,263 $ 13,245 Interest expense—amortization of debt discount 9,900 9,335 Total interest expense—convertible notes $ 23,163 $ 22,580 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity as of December 31, 2016 , and changes during the year then ended, is presented below: Number of Shares Option Price Per Share Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 118,879 $2.89 –$24.65 $ 16.23 Exercised (15,333 ) 22.17 –24.65 22.87 Outstanding at December 31, 2016 103,546 $2.89 –$22.17 $ 15.24 $ 1,388 Exercisable at December 31, 2016 103,546 $2.89 –$22.17 $ 15.24 $ 1,388 |
Summary of Restricted Stock Units | A summary of the status of the Company’s restricted stock units and restricted stock awards as of December 31, 2016 , and changes during the year then ended, is presented below: Non-Vested Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2015 1,304,271 $ 38.71 Awarded 712,841 $ 27.16 Vested (513,073 ) $ 39.93 Cancelled/forfeited (163,664 ) $ 38.57 Non-vested at December 31, 2016 1,340,375 $ 32.11 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rates | The effective tax rates for the respective periods are shown below: Year Ended December 31, 2016 2015 2014 Federal provision 35.0 % 35.0 % 35.0 % State provision (1) 2.3 % 0.2 % 8.7 % International benefit (2) (3.6 )% (7.8 )% (3.0 )% Tax reserves (3) (3.2 )% (2.0 )% (3.8 )% Permanent items (4) 14.7 % 6.0 % 4.3 % Increase (decrease) in valuation allowance (5) 20.7 % (5.6 )% 0.0 % Other (6) 0.7 % 1.9 % (6.9 )% Effective rate 66.6 % 27.7 % 34.3 % ________________________ (1) Change from 2014 to 2015 relates primarily to a beneficial settlement with a state tax authority. (2) Relates primarily to the lower tax rate on the income attributable to international operations. (3) Represent release of reserves taken for certain tax positions. (4) Represents a provision for nondeductible items, including overall foreign loss in 2016 and a settlement with the Consumer Finance Protection Bureau (“CFPB”) in 2015. The Company incurred a $10.0 million civil monetary penalty related to a settlement with the CFPB during the year ended December 31, 2015, which is not deductible for income tax purposes. (5) Valuation allowance increased in 2016 due to a foreign subsidiary’s cumulative operating loss. (6) Includes the effect of discrete items, primarily relates to the recognition of tax benefit as a result of a favorable tax settlement with taxing authorities as discussed below. |
Components of Pretax Income | The pretax income (loss) from continuing operations consisted of the following (in thousands) : Year Ended December 31, 2016 2015 2014 Domestic $ 112,483 $ 59,056 $ 120,461 Foreign (55,108 ) 38,877 21,181 $ 57,375 $ 97,933 $ 141,642 |
Components of Provision for Income Taxes | The income tax provisions for continuing operations consisted of the following (in thousands) : Year Ended December 31, 2016 2015 2014 Current expense: Federal $ 58,816 $ 38,831 $ 68,142 State 1,173 363 7,538 Foreign 10,364 7,124 3,752 70,353 46,318 79,432 Deferred (benefit) expense: Federal (22,951 ) (18,755 ) (34,479 ) State 25 (610 ) 2,698 Foreign (9,222 ) 209 918 (32,148 ) (19,156 ) (30,863 ) $ 38,205 $ 27,162 $ 48,569 |
Differences between Total Income Tax Expense and Income Tax Expense | The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35.0% per annum were as follows ( in thousands ): Year Ended December 31, 2016 2015 2014 Computed “expected” Federal income tax expense $ 20,081 $ 34,277 $ 49,578 (Decrease) increase in income taxes resulting from: State income taxes, net 1,331 637 7,975 Foreign non-taxed income, rate differential (2,076 ) (7,609 ) (5,453 ) Other adjustments, net 18,869 (143 ) (3,531 ) $ 38,205 $ 27,162 $ 48,569 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities consisted of the following (in thousands) : December 31, December 31, Deferred tax assets: Stock-based compensation expense $ 7,549 $ 1,301 Accrued expenses 19,868 7,220 Differences in income recognition related to receivable portfolios 45,419 33,652 State and international operating losses 26,386 15,234 Difference in basis of depreciable assets 3,427 3,069 Capitalized legal fees—international 171 4,143 Cumulative translation adjustment 715 958 Tax benefit of uncertain tax positions 677 1,349 Difference in basis of bond and loan costs 3,007 9,480 Other 1,077 2,372 Valuation allowance (18,892 ) (4,517 ) 89,404 74,261 Deferred tax liabilities: State taxes (377 ) (707 ) Deferred court costs (19,860 ) (25,277 ) Difference in basis of amortizable assets (16,488 ) (11,044 ) Difference in basis of depreciable assets (7,705 ) (8,932 ) Differences in income recognition related to receivable portfolios — (17,432 ) Deferred debt cancellation income (1,313 ) (1,957 ) Other (242 ) (46 ) (45,985 ) (65,395 ) Net deferred tax asset (1) $ 43,419 $ 8,866 |
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, 2013 $ 71,273 Increases related to current and prior year tax positions 34,356 Decreases related to settlements with taxing authorities (67,204 ) Balance at December 31, 2014 38,425 Increases related to prior year tax positions 5,835 Increases related to current year tax positions 11,882 Decreases related to prior year tax positions (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 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under lease obligations consist of the following for the years ending December 31, (in thousands) : Capital Leases Operating Leases Total 2017 $ 3,470 $ 17,347 $ 20,817 2018 1,227 13,033 14,260 2019 478 8,282 8,760 2020 270 6,361 6,631 2021 — 5,599 5,599 Thereafter — 11,202 11,202 Total minimal leases payments 5,445 $ 61,824 $ 67,269 Less: Interest (354 ) Present value of minimal lease payments $ 5,091 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under lease obligations consist of the following for the years ending December 31, (in thousands) : Capital Leases Operating Leases Total 2017 $ 3,470 $ 17,347 $ 20,817 2018 1,227 13,033 14,260 2019 478 8,282 8,760 2020 270 6,361 6,631 2021 — 5,599 5,599 Thereafter — 11,202 11,202 Total minimal leases payments 5,445 $ 61,824 $ 67,269 Less: Interest (354 ) Present value of minimal lease payments $ 5,091 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Areas of Which Company Operates | The following tables present information about geographic areas in which the Company operates (in thousands) : Year Ended December 31, 2016 2015 2014 Revenues (1) : United States $ 669,636 $ 709,405 $ 723,247 International Europe (2) 270,411 376,055 295,173 Other geographies 89,211 44,507 25,009 Total $ 1,029,258 $ 1,129,967 $ 1,043,429 ________________________ (1) Revenues are attributed to countries based on location of customer. (2) Based on the financial information that is used to produce the general-purpose financial statements, providing further geographic information is impracticable. |
Schedule of Long-lived Assets by Geographic Areas [Table Text Block] | December 31, December 31, Long-lived assets (1) : United States $ 39,126 $ 38,921 International United Kingdom 20,860 20,795 Other foreign countries 12,271 12,830 33,131 33,625 Total $ 72,257 $ 72,546 ________________________ (1) Long-lived assets consists of property and equipment, net. |
Goodwill and Identifiable Int40
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reportable Segments by Reporting Units | The following table summarizes the activity in the Company’s goodwill balance, as follows (in thousands): Total Balance, December 31, 2015 $ 924,847 Goodwill acquired 623 Goodwill adjustment (1) (20,674 ) Effect of foreign currency translation (119,764 ) Balance, December 31, 2016 $ 785,032 ______________________ (1) Represent adjustments made to preliminary purchase price allocations as a result of obtaining fair value of intangible assets acquired and finalizing certain established deferred income tax associated with prior year business combinations. |
Summary of Acquired Intangible Assets | The Company’s acquired intangible assets are summarized as follows (in thousands) : As of December 31, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 21,200 $ (3,220 ) $ 17,980 $ 5,356 $ (903 ) $ 4,453 Developed technologies 6,497 (3,891 ) 2,606 8,141 (3,793 ) 4,348 Trade name and other 12,566 (4,909 ) 7,657 10,324 (3,413 ) 6,911 Total intangible assets $ 40,263 $ (12,020 ) $ 28,243 $ 23,821 $ (8,109 ) $ 15,712 |
Weighted-Average Useful Lives of Intangible Assets | The weighted-average useful lives of intangible assets at the time of acquisition were as follows: Weighted-Average Useful Lives Customer relationships 10 Developed technologies 5 Trade name and other 8 |
Estimated Future Amortization Expense | Estimated future amortization expense related to finite-lived intangible assets at December 31, 2016 is as follows ( in thousands ): 2017 $ 5,417 2018 4,442 2019 3,109 2020 2,972 2021 2,849 Thereafter 9,454 Total $ 28,243 |
Quarterly Information (Unaudi41
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The following table summarizes quarterly financial data for the periods presented ( in thousands, except per share amounts ): Three Months Ended March 31 June 30 September 30 December 31 2016 Gross collections $ 447,805 $ 434,100 $ 406,961 $ 396,738 Revenues 289,017 289,442 179,415 271,384 Total operating expenses 205,513 197,695 200,597 183,939 Income (loss) from continuing operations 29,789 30,833 (51,946 ) 10,494 Net income (loss) 26,607 30,833 (51,946 ) 11,323 Amounts attributable to Encore Capital Group, Inc.: Income from (loss) continuing operations 28,876 29,588 (1,524 ) 21,983 Net income (loss) attributable to Encore Capital Group, Inc. stockholders 25,694 29,588 (1,524 ) 22,812 Earnings (loss) per share attributable to Encore Capital Group, Inc.: From continuing operations: Basic $ 1.13 $ 1.15 $ (0.06 ) $ 0.85 Diluted 1.12 1.14 (0.06 ) 0.85 From net income: Basic $ 1.01 $ 1.15 $ (0.06 ) $ 0.88 Diluted 0.99 1.14 (0.06 ) 0.88 2015 Gross collections $ 425,071 $ 437,324 $ 421,753 $ 416,577 Revenues 277,782 282,662 278,914 290,609 Total operating expenses 194,895 198,362 248,185 206,271 Income (loss) from continuing operations 28,087 23,524 (11,650 ) 30,810 Net income (loss) 29,967 25,185 (9,364 ) 1,596 Amounts attributable to Encore Capital Group, Inc.: Income (loss) from continuing operations 27,545 25,996 (13,245 ) 28,226 Net income (loss) 1,880 1,661 2,286 (29,214 ) Earnings (loss) per share attributable to Encore Capital Group, Inc.: From continuing operations: Basic $ 1.06 $ 1.00 $ (0.52 ) $ 1.11 Diluted 1.01 0.97 (0.52 ) 1.08 From net income: Basic $ 1.13 $ 1.07 $ (0.43 ) $ (0.04 ) Diluted 1.08 1.03 (0.43 ) (0.04 ) |
Ownership, Description of Bus42
Ownership, Description of Business, and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2015 | May 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 12, 2015 | Apr. 24, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Comprehensive income (loss) attributable to Encore Capital Group, Inc. stockholders | $ 29,481,000 | $ (11,765,000) | $ 97,609,000 | ||||
Debt issuance costs, net of amortization | $ 41,654,000 | 41,655,000 | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | $ 50,000,000 | |||||
Stock repurchased during period (in shares) | 839,295 | 400,000 | |||||
Stock repurchased during period (amount) | $ 33,200,000 | $ 16,800,000 | $ 33,185,000 | $ 16,815,000 | |||
Employee stock options to purchase common shares, excluded from computation of diluted earnings per share | 0 | 0 | 0 | ||||
2017 Convertible Senior Notes [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Debt instrument, interest rate | 3.00% | ||||||
Convertible debt | $ 115,000,000 | ||||||
Initial conversion price (in dollars per share) | $ 31.56 | ||||||
2017 Convertible Senior Notes [Member] | Adjusted Debt Conversion Rate Following Hedge Transactions [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Initial conversion price (in dollars per share) | $ 60 | ||||||
2020 Convertible Senior Notes [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Debt instrument, interest rate | 3.00% | ||||||
Convertible debt | $ 172,500,000 | ||||||
Initial conversion price (in dollars per share) | $ 45.72 | ||||||
2020 Convertible Senior Notes [Member] | Adjusted Debt Conversion Rate Following Hedge Transactions [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Initial conversion price (in dollars per share) | $ 61.55 | ||||||
2021 Convertible Senior Notes [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Debt instrument, interest rate | 2.875% | ||||||
Convertible debt | $ 161,000,000 | ||||||
Initial conversion price (in dollars per share) | $ 59.39 | ||||||
2021 Convertible Senior Notes [Member] | Adjusted Debt Conversion Rate Following Hedge Transactions [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Initial conversion price (in dollars per share) | $ 83.14 | ||||||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Debt issuance costs, net of amortization | $ 41,700,000 | ||||||
Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Debt issuance costs, net of amortization | (41,700,000) | ||||||
Restatement Adjustment [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Comprehensive income (loss) attributable to Encore Capital Group, Inc. stockholders | $ (3,400,000) | $ (3,500,000) |
Ownership, Description of Bus43
Ownership, Description of Business, and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Lesser of lease term, including periods covered by renewal options, or useful life |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Ownership, Description of Bus44
Ownership, Description of Business, and Summary of Significant Accounting Policies - Reconciliation of Shares Used in Calculating Earnings Per Basic and Diluted Shares (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Weighted average common shares outstanding-basic (in shares) | 25,713,000 | 25,722,000 | 25,853,000 |
Dilutive effect of stock-based awards (in shares) | 196,000 | 253,000 | 556,000 |
Dilutive effect of convertible senior notes (in shares) | 0 | 672,000 | 1,082,000 |
Dilutive effect of warrants (in shares) | 0 | 0 | 4,000 |
Weighted average common shares outstanding-diluted (in shares) | 25,909,000 | 26,647,000 | 27,495,000 |
Anti-dilutive employee stock options outstanding, value | 0 | 0 | 0 |
Discontinued Operations Disco45
Discontinued Operations Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of business, net of cash divested | $ 106,041 | $ 0 | $ 0 | ||
Tax Lien Business [Member] | Propel [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | $ 144,400 | $ 144,400 | |||
Proceeds from divestiture of business, net of cash divested | 106,000 | ||||
Divestiture of cash | $ 38,400 | ||||
Loss on sale of discontinued operations, before income taxes | $ (3,000) | $ (1,679) | $ 0 | $ 0 |
Discontinued Operations Disco46
Discontinued Operations Discontinued Operations - Revenue and Components of Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total (loss) income from discontinued operations, net of tax | $ (2,353) | $ (23,387) | $ 5,205 | |
Tax Lien Business [Member] | Propel [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 4,950 | 31,605 | 29,361 | |
Salaries and employee benefits | (3,074) | (8,053) | (7,304) | |
Other operating expenses | (1,366) | (4,972) | (3,926) | |
General and administrative expenses | (1,551) | (5,470) | (9,059) | |
Depreciation and amortization | (127) | (785) | (849) | |
Impairment charge for goodwill and identifiable intangible assets | 0 | (49,277) | 0 | |
(Loss) income from discontinued operations, before income taxes | (1,168) | (36,952) | 8,223 | |
Loss on sale of discontinued operations, before income taxes | $ (3,000) | (1,679) | 0 | 0 |
Total (loss) income on discontinued operations, before income taxes | (2,847) | (36,952) | 8,223 | |
Income tax benefit (provision) | 494 | 13,565 | (3,018) | |
Total (loss) income from discontinued operations, net of tax | $ (2,353) | $ (23,387) | $ 5,205 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) £ in Millions | Jun. 01, 2015USD ($) | Jun. 01, 2015GBP (£) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 924,847,000 | $ 924,847,000 | $ 785,032,000 | ||
dlc [Member] | |||||
Business Acquisition [Line Items] | |||||
Business combination, aggregate purchase price | $ 274,700,000 | £ 180.6 | |||
Goodwill | $ 66,486,000 | ||||
Amount of goodwill expected to be tax deductible | $ 0 | ||||
Revenue included in condensed consolidated statement of income | 27,500,000 | ||||
Net income included in condensed consolidated statement of income | $ 6,300,000 | ||||
General and Administrative Expense [Member] | dlc [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | $ 2,800,000 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation for dlc Acquisition (Details) $ in Thousands, £ in Millions | Jun. 01, 2015USD ($) | Jun. 01, 2015GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Allocation of purchase price: | ||||
Goodwill | $ 785,032 | $ 924,847 | ||
dlc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid at acquisition | $ 268,391 | |||
Deferred consideration | 6,306 | |||
Total purchase price | 274,700 | £ 180.6 | ||
Allocation of purchase price: | ||||
Cash | 30,518 | |||
Investment in receivable portfolios | 215,988 | |||
Deferred court costs | 760 | |||
Property and equipment | 1,327 | |||
Other assets | 2,384 | |||
Liabilities assumed | (46,435) | |||
Identifiable intangible assets | 3,669 | |||
Goodwill | 66,486 | |||
Total net assets acquired | $ 274,697 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Foreign currency exchange contracts | $ 1,122 | $ 718 |
Liabilities | ||
Foreign currency exchange contracts | (1,360) | (601) |
Interest rate swap agreements | (131) | (352) |
Contingent consideration | (2,531) | (10,403) |
Temporary Equity | ||
Redeemable noncontrolling interest | (45,755) | (38,624) |
Level 1 [Member] | ||
Assets | ||
Foreign currency exchange contracts | 0 | 0 |
Liabilities | ||
Foreign currency exchange contracts | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Contingent consideration | 0 | 0 |
Temporary Equity | ||
Redeemable noncontrolling interest | 0 | 0 |
Level 2 [Member] | ||
Assets | ||
Foreign currency exchange contracts | 1,122 | 718 |
Liabilities | ||
Foreign currency exchange contracts | (1,360) | (601) |
Interest rate swap agreements | (131) | (352) |
Contingent consideration | 0 | 0 |
Temporary Equity | ||
Redeemable noncontrolling interest | 0 | 0 |
Level 3 [Member] | ||
Assets | ||
Foreign currency exchange contracts | 0 | 0 |
Liabilities | ||
Foreign currency exchange contracts | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Contingent consideration | (2,531) | (10,403) |
Temporary Equity | ||
Redeemable noncontrolling interest | $ (45,755) | $ (38,624) |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Redeemable Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Redeemable Noncontrolling Interests [Roll Forward] | |||
Balance, beginning of period | $ 38,624 | $ 28,885 | $ 26,564 |
Addition to redeemable noncontrolling interest | 826 | 9,409 | 4,997 |
Redemption of redeemable noncontrolling interest | (3,562) | ||
Net income (loss) attributable to redeemable noncontrolling interests | (47,831) | 1,371 | (4,513) |
Adjustment of the redeemable noncontrolling interest to fair value | 74,194 | 2,349 | 5,730 |
Effect of foreign currency translation attributable to redeemable noncontrolling interest | (16,496) | (3,390) | (3,893) |
Balance, end of period | $ 45,755 | $ 38,624 | $ 28,885 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Contingent Consideration Roll Forward (Details) - Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning of period | $ 10,403 | $ 0 |
Issuance of contingent consideration in connection with acquisition | 10,587 | |
Change in fair value of contingent consideration | (7,602) | 132 |
Effect of foreign currency translation | (270) | (316) |
End of period | $ 2,531 | $ 10,403 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2015acquisition | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of businesses acquired | acquisition | 2 | ||||
Increase (decrease) contingent consideration liability | $ (8,100) | ||||
Investment in receivable portfolios, net | $ 2,382,809 | $ 2,440,669 | $ 2,143,560 | $ 1,590,249 | |
Fluctuation in discount rate | 1.00% | ||||
Convertible senior notes, carrying value | $ 448,500 | 448,500 | |||
Senior secured notes, carrying value | $ 11,320 | 28,750 | |||
UNITED STATES | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated market participant cost to collect | 50.30% | ||||
Discount rate | 10.50% | ||||
Increase or decrease of the fair value | $ 43,800 | ||||
Europe [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated market participant cost to collect | 29.90% | ||||
Discount rate | 12.00% | ||||
Increase or decrease of the fair value | $ 52,000 | ||||
Other Geographies [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated market participant cost to collect | 32.80% | ||||
Discount rate | 11.00% | ||||
Increase or decrease of the fair value | $ 6,400 | ||||
Senior Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Convertible senior notes, carrying value | 416,500 | 406,600 | |||
Level 2 [Member] | Senior Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value estimate of convertible senior notes incorporates quoted market prices | 431,700 | 372,200 | |||
Cabot Senior Secured Notes [Member] | Secured Debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior secured notes, carrying value | 1,295,700 | 1,144,200 | |||
Cabot Senior Secured Notes [Member] | Level 2 [Member] | Secured Debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of senior notes | 1,312,700 | 1,403,500 | |||
Estimate of Fair Value Measurement [Member] | Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Receivables fair value disclosure | 2,446,600 | 2,473,800 | |||
Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | 2,531 | 10,403 | |||
Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | 2,531 | 10,403 | |||
Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 0 | $ 0 |
Derivatives and Hedging Instr53
Derivatives and Hedging Instruments - Additional Information (Detail) AUD in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016AUDinstrument | Dec. 31, 2016USD ($)instrument | |
Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) reclassified from OCI into earnings | $ 0 | $ 0 | |||
Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative number of instruments held | instrument | 1 | 1 | |||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Derivative instrument, notional amount | $ 29,400,000 | ||||
Net derivative gain (loss) included in OCI to be reclassified into earnings | $ 200,000 | ||||
Gain (loss) reclassified from OCI into earnings | $ 0 | ||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative instrument, notional amount | AUD 17.5 | $ 12,600,000 | |||
Minimum [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative term of contract | 1 month | ||||
Maximum [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative term of contract | 3 months |
Derivatives and Hedging Instr54
Derivatives and Hedging Instruments - Summary of Fair Value of Derivative Instruments as Recorded in Company's Consolidated Statements of Financial Condition (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Foreign currency exchange contracts | $ 1,122 | $ 718 |
Foreign currency exchange contracts | (1,360) | (601) |
Interest rate swap agreements | (131) | (352) |
Designated as Hedging Instrument [Member] | Other Assets [Member] | Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Foreign currency exchange contracts | 707 | 718 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Foreign currency exchange contracts | (51) | (601) |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Interest rate swap agreements | (131) | 0 |
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Foreign currency exchange contracts | 415 | 0 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Foreign Currency Exchange Contracts [Member] | ||
Derivative [Line Items] | ||
Foreign currency exchange contracts | (1,309) | 0 |
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Interest rate swap agreements | $ 0 | $ (352) |
Derivatives and Hedging Instr55
Derivatives and Hedging Instruments - Summary of Effects of Derivatives on Cash Flow Hedging Relationships in Company's Statements of Income, Derivatives Designated as Hedging Instruments (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Currency Exchange Contracts 1 [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Recognized in OCI- Effective Portion | $ 1,404 | $ (248) |
Foreign Currency Exchange Contracts 1 [Member] | Salaries and employee benefits [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | 755 | (472) |
Foreign Currency Exchange Contracts 1 [Member] | Other (expense) income [Member] | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 |
Foreign Currency Exchange Contracts 2 [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Recognized in OCI- Effective Portion | (5) | 88 |
Foreign Currency Exchange Contracts 2 [Member] | General and administrative expenses [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | 105 | (74) |
Foreign Currency Exchange Contracts 2 [Member] | Other (expense) income [Member] | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Recognized in OCI- Effective Portion | (131) | 0 |
Interest Rate Swap [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | 0 | 0 |
Interest Rate Swap [Member] | Other (expense) income [Member] | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | $ 0 | $ 0 |
Derivatives and Hedging Instr56
Derivatives and Hedging Instruments Derivatives and Hedging Instruments - Summary of Effects of Derivatives on Cash Flow Hedging Relationships in Company's Statements of Income, Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Net gain (loss) on derivative contracts | $ 8,248,000 | $ 0 |
Net gain (loss) on derivative contracts, attributable to parent | 1,300,000 | 0 |
Interest Expense [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Net gain (loss) on derivative contracts | $ 144,000 | $ 92,000 |
Investment in Receivable Port57
Investment in Receivable Portfolios, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Initial Collection Forecast | 120 months | |||
Extended Collection Forecast | 180 months | |||
Allowance charges | $ 94,011 | $ 8,322 | ||
Reduction in allowance charges | 9,834 | 15,085 | $ 17,407 | |
Face value of receivable portfolios | 9,800,000 | 12,700,000 | ||
Purchase price of receivable portfolios | $ 906,719 | $ 1,023,722 | 1,251,360 | |
Purchase cost as a percentage of face value | 9.20% | 8.00% | ||
Estimated future collections at acquisition for receivable portfolios | $ 1,700,000 | $ 1,800,000 | ||
Zero basis revenue | 138,100 | 96,400 | $ 22,300 | |
dlc [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment in receivable portfolios | $ 216,000 | |||
Baycorp [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment in receivable portfolios | $ 60,300 | |||
Investment in Receivable Portfolios [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase in total estimated remaining collections for receivable portfolios | $ 296,500 | |||
Reduction in allowance charges | 13,200 | |||
Europe [Member] | Investment in Receivable Portfolios [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance charges | $ 94,000 |
Investment in Receivable Port58
Investment in Receivable Portfolios, Net - Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield and Estimate of Zero Basis Future Cash Flows Movement Schedule [Roll Forward] | |||
Beginning balance | $ 3,270,671 | $ 3,059,713 | |
Revenue recognized, net | (946,615) | (1,072,436) | $ (992,832) |
Net additions on existing portfolios | 728,748 | 529,965 | |
Additions for current purchases, net | 861,698 | 846,632 | |
Effect of foreign currency translation | (456,994) | (93,203) | |
Ending balance | 3,457,508 | 3,270,671 | 3,059,713 |
Accretable Yield [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield and Estimate of Zero Basis Future Cash Flows Movement Schedule [Roll Forward] | |||
Beginning balance | 3,047,640 | 2,993,321 | |
Revenue recognized, net | (801,736) | (964,225) | |
Net additions on existing portfolios | 441,632 | 263,713 | |
Additions for current purchases, net | 861,698 | 846,632 | |
Effect of foreign currency translation | (457,230) | (91,801) | |
Ending balance | 3,092,004 | 3,047,640 | 2,993,321 |
Estimate of Zero Basis Cash Flows [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield and Estimate of Zero Basis Future Cash Flows Movement Schedule [Roll Forward] | |||
Beginning balance | 223,031 | 66,392 | |
Revenue recognized, net | (144,879) | (108,211) | |
Net additions on existing portfolios | 287,116 | 266,252 | |
Additions for current purchases, net | 0 | 0 | |
Effect of foreign currency translation | 236 | (1,402) | |
Ending balance | $ 365,504 | $ 223,031 | $ 66,392 |
Investment in Receivable Port59
Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment in Receivables Portfolio [Roll Forward] | |||||||||||
Balance, beginning of period | $ 2,440,669 | $ 2,143,560 | $ 2,440,669 | $ 2,143,560 | $ 1,590,249 | ||||||
Purchases of receivable portfolios | 906,719 | 1,023,722 | 1,251,360 | ||||||||
Transfer of portfolios | 0 | 0 | |||||||||
Gross collections | $ (396,738) | $ (406,961) | $ (434,100) | (447,805) | $ (416,577) | $ (421,753) | $ (437,324) | (425,071) | (1,685,604) | (1,700,725) | (1,607,497) |
Put-backs and Recalls | (28,613) | (13,297) | (15,709) | ||||||||
Foreign currency adjustments | (196,977) | (85,027) | (67,675) | ||||||||
Revenue recognized | 1,030,792 | 1,065,673 | 975,425 | ||||||||
Portfolio (allowance) reversals, net | (84,177) | 6,763 | 17,407 | ||||||||
Balance, end of period | 2,382,809 | 2,440,669 | $ 2,382,809 | $ 2,440,669 | $ 2,143,560 | ||||||
Revenue as a percentage of collections | 61.20% | 62.70% | 60.70% | ||||||||
Accrual Basis Portfolios [Member] | |||||||||||
Investment in Receivables Portfolio [Roll Forward] | |||||||||||
Balance, beginning of period | 2,436,054 | 2,131,084 | $ 2,436,054 | $ 2,131,084 | $ 1,585,587 | ||||||
Purchases of receivable portfolios | 906,719 | 1,023,722 | 1,249,651 | ||||||||
Transfer of portfolios | (13,076) | (18,682) | |||||||||
Gross collections | (1,538,663) | (1,587,525) | (1,563,996) | ||||||||
Put-backs and Recalls | (27,561) | (13,009) | (15,164) | ||||||||
Foreign currency adjustments | (196,842) | (82,443) | (64,644) | ||||||||
Revenue recognized | 892,732 | 969,227 | 953,154 | ||||||||
Portfolio (allowance) reversals, net | (90,997) | (5,002) | 5,178 | ||||||||
Balance, end of period | 2,368,366 | 2,436,054 | $ 2,368,366 | $ 2,436,054 | $ 2,131,084 | ||||||
Revenue as a percentage of collections | 58.00% | 61.10% | 60.90% | ||||||||
Cost Recovery Portfolios [Member] | |||||||||||
Investment in Receivables Portfolio [Roll Forward] | |||||||||||
Balance, beginning of period | 4,615 | 12,476 | $ 4,615 | $ 12,476 | $ 4,662 | ||||||
Purchases of receivable portfolios | 0 | 0 | 1,709 | ||||||||
Transfer of portfolios | 13,076 | 18,682 | |||||||||
Gross collections | (2,102) | (5,237) | (9,010) | ||||||||
Put-backs and Recalls | (1,019) | (20) | (536) | ||||||||
Foreign currency adjustments | (127) | (2,604) | (3,031) | ||||||||
Revenue recognized | 0 | 0 | 0 | ||||||||
Portfolio (allowance) reversals, net | 0 | 0 | 0 | ||||||||
Balance, end of period | 14,443 | 4,615 | $ 14,443 | $ 4,615 | $ 12,476 | ||||||
Revenue as a percentage of collections | 0.00% | 0.00% | 0.00% | ||||||||
Zero Basis Portfolios [Member] | |||||||||||
Investment in Receivables Portfolio [Roll Forward] | |||||||||||
Balance, beginning of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Purchases of receivable portfolios | 0 | 0 | 0 | ||||||||
Transfer of portfolios | 0 | 0 | |||||||||
Gross collections | (144,839) | (107,963) | (34,491) | ||||||||
Put-backs and Recalls | (33) | (268) | (9) | ||||||||
Foreign currency adjustments | (8) | 20 | 0 | ||||||||
Revenue recognized | 138,060 | 96,446 | 22,271 | ||||||||
Portfolio (allowance) reversals, net | 6,820 | 11,765 | 12,229 | ||||||||
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Revenue as a percentage of collections | 95.30% | 89.30% | 64.60% |
Investment in Receivable Port60
Investment in Receivable Portfolios, Net - Summary of Change in Valuation Allowance for Investment in Receivable Portfolios (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivable Portfolio, Valuation Allowance [Roll Forward] | |||
Balance at beginning of period | $ 60,588 | $ 75,673 | $ 93,080 |
Provision for portfolio allowances | 94,011 | 8,322 | |
Reversal of prior allowances | (9,834) | (15,085) | (17,407) |
Allowance charged off to investment in receivable portfolios | (8,322) | ||
Balance at end of period | $ 144,765 | $ 60,588 | $ 75,673 |
Deferred Court Costs, Net - Sch
Deferred Court Costs, Net - Schedule of Deferred Court Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||
Court costs advanced | $ 654,356 | $ 636,922 | |||
Court costs recovered | (261,243) | (242,899) | |||
Court costs reserve | (327,926) | (318,784) | $ (279,572) | $ (210,889) | |
Deferred court costs | $ 65,187 | $ 75,239 | |||
UNITED KINGDOM | |||||
Segment Reporting Information [Line Items] | |||||
Increase (decrease) in deferred costs | $ 11,300 |
Deferred Court Costs, Net - S62
Deferred Court Costs, Net - Schedule of Court Cost Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets [Roll Forward] | |||
Balance at beginning of period | $ (318,784) | $ (279,572) | $ (210,889) |
Provision for court costs | (67,850) | (82,593) | (69,062) |
Net down of reserve after deferral period | 53,527 | 42,745 | 0 |
Effect of foreign currency translation | 5,181 | 636 | 379 |
Balance at end of period | $ (327,926) | $ (318,784) | $ (279,572) |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 181,320 | $ 172,502 |
Less: accumulated depreciation and amortization | (109,063) | (99,956) |
Property and equipment, net | 72,257 | 72,546 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,230 | 21,754 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 138,232 | 125,967 |
Telecommunications equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,442 | 4,030 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,493 | 19,058 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,923 | $ 1,693 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 27.7 | $ 28.5 | $ 23.9 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred tax assets | $ 51,077 | $ 12,695 |
Identifiable intangible assets, net | 28,243 | 15,712 |
Assets held for sale | 21,147 | 911 |
Other financial receivables | 18,732 | 11,275 |
Prepaid expenses | 18,036 | 21,872 |
Service fee receivables | 15,156 | 13,708 |
Receivable from seller | 5,388 | 8,605 |
Security deposits | 2,781 | 2,368 |
Derivative instruments | 1,122 | 718 |
Prepaid income taxes | 649 | 25,839 |
Other | 53,116 | 35,059 |
Total | $ 215,447 | $ 148,762 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 20, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Other debt | $ 62,608 | $ 33,447 | |
Encore senior secured notes | 11,320 | 28,750 | |
Encore convertible notes | 448,500 | 448,500 | |
Less: Debt discount | (31,968) | (41,867) | |
Preferred equity certificates | 205,975 | 221,516 | |
Debt and capital lease obligations, before debt issuance costs | 2,847,637 | 2,985,718 | |
Less: debt issuance costs, net of amortization | (41,654) | (41,655) | |
Debt and capital lease obligations, total | 2,805,983 | 2,944,063 | |
Encore Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 578,000 | 627,000 | |
Cabot Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 33,218 | 54,089 | |
Other Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 74,551 | 49,895 | |
Cabot Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Encore senior secured notes | 1,280,241 | 1,360,000 | |
Less: Debt discount | (2,200) | (3,184) | |
Add: Debt premium | 17,686 | 53,440 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Other debt | $ 164,615 | $ 166,400 | $ 143,078 |
Debt - Encore Revolving Credit
Debt - Encore Revolving Credit Facility and Term Loan Facility (Detail) | Dec. 20, 2016USD ($)subtranche | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||
Term loan facility | $ 62,608,000 | $ 33,447,000 | |
Number of subtranches, term loan facility | subtranche | 3 | ||
Percentage to be added to base rate for alternate base rate | 0.50% | ||
Percentage to be added to adjusted base rate for alternate base rate | 1.00% | ||
Principal amortization in 2017 | 224,394,000 | ||
Principal amortization in 2018 | 18,760,000 | ||
Principal amortization in 2019 | 306,032,000 | ||
Principal amortization in 2020 | 887,084,000 | ||
Principal amortization in 2021 | 775,821,000 | ||
Borrowing base as percentage of eligible estimated collection range end | 35.00% | ||
Eligible estimated remaining collections for consumer receivables | 55.00% | ||
Maximum cash flow leverage ratio | 300.00% | ||
Maximum cash flow secured leverage ratio | 200.00% | ||
Maximum senior secured notes | $ 150,000,000 | ||
Allowance of additional unsecured indebtedness | 1,100,000,000 | ||
Company's repurchases, common stock | $ 150,000,000 | ||
Percentage of acquisitions excluded | 50.00% | ||
Acquisition limit | $ 225,000,000 | ||
Maximum percentage of consolidated net worth | 200.00% | ||
Basket allowed for investments under laws of Canada | $ 50,000,000 | ||
Amount outstanding | $ 742,600,000 | ||
Weighted average interest rate | 3.56% | 3.17% | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Maximum cash flow leverage ratio | 125.00% | ||
LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility | $ 166,400,000 | $ 164,615,000 | $ 143,078,000 |
Term Loan One [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility | 88,300,000 | ||
Principal amortization in 2017 | 4,400,000 | ||
Principal amortization in 2018 | 4,400,000 | ||
Principal amortization in 2019 | 6,600,000 | ||
Principal amortization in 2020 | 6,600,000 | ||
Principal amortization in 2021 | $ 8,800,000 | ||
Term Loan One [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 25000.00% | ||
Term Loan One [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Term Loan One [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 15000.00% | ||
Term Loan One [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Term Loan Four [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility | $ 50,600,000 | ||
Term Loan Four [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Term Loan Four [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Term Loan Four [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Term Loan Four [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term Loan One [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility | $ 22,600,000 | ||
Principal amortization in 2017 | 4,400,000 | ||
Principal amortization in 2018 | $ 4,400,000 | ||
Term Loan One [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Term Loan One [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Term Loan One [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term Loan One [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Term Loan Three [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility | $ 4,900,000 | ||
Principal amortization in 2017 | $ 500,000 | ||
Term Loan Three [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Term Loan Three [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Term Loan Three [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term Loan Three [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Junior Lien Portion [Member] | |||
Debt Instrument [Line Items] | |||
Allowance of additional unsecured indebtedness | $ 400,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 781,700,000 | ||
Additional line of revolving credit facility | $ 250,000,000 | ||
Maturity of debt instrument | 5 years | ||
Revolving Credit Facility One [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 541,800,000 | ||
Revolving Credit Facility Two [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 207,800,000 | ||
Revolving Credit Facility Three [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 32,100,000 | ||
Restated Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity including accordion agreement after amendment | $ 1,200,000,000 | ||
Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Available borrowing capacity | $ 203,700,000 |
Debt - Encore Senior Secured No
Debt - Encore Senior Secured Notes (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)agreement | Dec. 31, 2011USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Senior Secured Notes, aggregate amount | $ 75,000,000 | ||
Senior secured notes | $ 11,320,000 | $ 28,750,000 | |
Basis spread over the current Treasury Rate (percent) | 0.50% | ||
Number of debt agreements | agreement | 2 | ||
2011 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes, aggregate amount | $ 25,000,000 | ||
Debt instrument, interest rate | 7.375% | ||
Senior Secured Notes, periodic principal repayment | $ 1,250,000 | ||
Senior secured notes | $ 5,100,000 | ||
2010 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes, aggregate amount | $ 50,000,000 | ||
Debt instrument, interest rate | 7.75% | ||
Senior Secured Notes, periodic principal repayment | $ 2,500,000 | ||
Senior secured notes | $ 6,200,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.00% |
Debt - Encore Convertible Notes
Debt - Encore Convertible Notes (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Jul. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Debt Instrument [Line Items] | |||||
Convertible senior notes sold | $ 448,500,000 | $ 448,500,000 | |||
Equity component | 61,314,000 | 58,184,000 | |||
Liability component—principal amount | 448,500,000 | 448,500,000 | |||
Unamortized debt discount | (31,968,000) | (41,867,000) | |||
Liability component—net carrying amount | 416,532,000 | 406,633,000 | |||
Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense—stated coupon rate | 13,263,000 | 13,245,000 | |||
Interest expense—amortization of debt discount | 9,900,000 | 9,335,000 | |||
Total interest expense | $ 23,163,000 | $ 22,580,000 | |||
2017 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.00% | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 31.56 | ||||
Closing stock price at date of issuance (in dollars per share) | $ / shares | $ 25.66 | ||||
Conversion rate (in shares per $1,000 principal amount) | 0.0316832 | ||||
Debt component | $ 100,298,000 | ||||
Equity component | 14,702,000 | ||||
Equity issuance cost | $ 788,000 | ||||
Effective interest rate | 6.00% | ||||
2017 Convertible Senior Notes [Member] | Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes sold | $ 115,000,000 | ||||
Stated interest rate | 3.00% | ||||
2020 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.00% | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 45.72 | ||||
Closing stock price at date of issuance (in dollars per share) | $ / shares | $ 33.35 | ||||
Conversion rate (in shares per $1,000 principal amount) | 0.0218718 | ||||
Debt component | $ 140,247,000 | ||||
Equity component | 32,253,000 | ||||
Equity issuance cost | $ 1,106,000 | ||||
Effective interest rate | 6.35% | ||||
2020 Convertible Senior Notes [Member] | Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes sold | $ 172,500,000 | ||||
Stated interest rate | 3.00% | ||||
2021 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.875% | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 59.39 | ||||
Closing stock price at date of issuance (in dollars per share) | $ / shares | $ 47.51 | ||||
Conversion rate (in shares per $1,000 principal amount) | 0.0168386 | ||||
Debt component | $ 143,645,000 | ||||
Equity component | 17,355,000 | ||||
Equity issuance cost | $ 581,000 | ||||
Effective interest rate | 4.70% | ||||
2021 Convertible Senior Notes [Member] | Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes sold | $ 161,000,000 | ||||
Stated interest rate | 2.875% |
Debt - Convertible Notes Hedge
Debt - Convertible Notes Hedge Transactions (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
2017 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cost of the hedge transaction(s) | $ | $ 50,595 |
Conversion price (in dollars per share) | $ 31.56 |
2020 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cost of the hedge transaction(s) | $ | $ 18,113 |
Conversion price (in dollars per share) | $ 45.72 |
2021 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Cost of the hedge transaction(s) | $ | $ 19,545 |
Conversion price (in dollars per share) | $ 59.39 |
Hedging of Convertible Debt Instrument [Member] | 2017 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Conversion price (in dollars per share) | 60 |
Hedging of Convertible Debt Instrument [Member] | 2020 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Conversion price (in dollars per share) | 61.55 |
Hedging of Convertible Debt Instrument [Member] | 2021 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Conversion price (in dollars per share) | $ 83.14 |
Debt - Conversion and Earnings
Debt - Conversion and Earnings Per Share Impact (Details) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013d | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Reclassifications of permanent to temporary equity, debt conversion | $ 3,000,000 | |
Dollar amount of converted notes | 0 | |
2017 Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Convertible debt, threshold percentage of stock price trigger (exceeded) | 130.00% | |
Convertible debt, threshold trading days (more than) | d | 20 | |
Convertible debt, threshold consecutive trading days | 30 days | |
Convertible notes, fair value | 127,000,000 | |
2017 Convertible Senior Notes [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Gain (loss) on debt conversion | $ 0 |
Debt - Cabot Senior Debt (Detai
Debt - Cabot Senior Debt (Details) $ in Thousands | Oct. 06, 2016USD ($) | Nov. 11, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 06, 2016GBP (£) | Nov. 11, 2015EUR (€) | Mar. 27, 2014USD ($) | Mar. 27, 2014GBP (£) | Aug. 02, 2013USD ($) | Aug. 02, 2013GBP (£) | Jul. 25, 2013USD ($) | Jul. 25, 2013GBP (£) | Sep. 20, 2012USD ($) | Sep. 20, 2012GBP (£) |
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 11,320 | $ 28,750 | ||||||||||||
Unamortized debt discount | 31,968 | 41,867 | ||||||||||||
Cabot Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 3.25% | |||||||||||||
Cabot Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense—stated coupon rate | 105,606 | 98,988 | ||||||||||||
Total interest expense | 97,275 | 88,316 | ||||||||||||
Cabot 2019 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 438,400 | £ 265,000,000 | ||||||||||||
Debt instrument, interest rate | 10.375% | 10.375% | ||||||||||||
Redemption of notes, call premium paid | $ 17,400 | £ 13,700,000 | ||||||||||||
Add: Debt premium | 19,200 | 15,200,000 | ||||||||||||
Gain recognized on redemption of notes from premium paid | 1,800 | 1,400,000 | ||||||||||||
Cabot 2020 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 151,700 | £ 100,000,000 | ||||||||||||
Debt instrument, interest rate | 8.375% | 8.375% | ||||||||||||
Cabot 2021 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 291,800 | £ 175,000,000 | ||||||||||||
Debt instrument, interest rate | 6.50% | 6.50% | ||||||||||||
Cabot Two Thousand Twenty Three Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 442,600 | £ 350,000,000 | ||||||||||||
Debt instrument, interest rate | 7.50% | 7.50% | ||||||||||||
Percentage of face value issued | 100.00% | |||||||||||||
Secured Debt [Member] | Senior Secured Cabot Floating Rate Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 332,200 | € 310,000,000 | ||||||||||||
Debt instrument, discount rate | 1.00% | |||||||||||||
Unamortized debt discount | $ 3,400 | € 3,100,000 | ||||||||||||
Secured Debt [Member] | Senior Secured Cabot Floating Rate Notes [Member] | Three-Month EURIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 5.875% | |||||||||||||
Secured Debt [Member] | Cabot Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | 1,295,700 | 1,144,200 | ||||||||||||
Ten Point Five Percent Senior Secured Notes Due Two Thousand Twenty [Member] | Marlin [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Senior secured notes | $ 246,500 | £ 150,000,000 | ||||||||||||
Debt instrument, interest rate | 10.50% | 10.50% | ||||||||||||
Long-term debt fair value | $ 284,200 | |||||||||||||
Interest Income [Member] | Cabot Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest income—accretion of debt premium | (8,951) | (10,747) | ||||||||||||
Interest Expense [Member] | Cabot Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest income—accretion of debt premium | $ 620 | $ 75 |
Debt - Cabot Senior Revolving C
Debt - Cabot Senior Revolving Credit Facility (Details) | Dec. 20, 2016USD ($) | Oct. 06, 2016 | Oct. 05, 2016 | Nov. 11, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 11, 2015GBP (£) | Sep. 20, 2012USD ($) | Sep. 20, 2012GBP (£) |
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 3.56% | 3.17% | |||||||
Cabot Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 82,700,000 | £ 50,000,000 | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 781,700,000 | ||||||||
Cabot Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional borrowing capacity, accordion provision | £ | £ 50,000,000 | ||||||||
Maximum loan to value ratio | 0.75% | ||||||||
Outstanding borrowings for credit facility | $ 33,218,000 | $ 54,089,000 | |||||||
Weighted average interest rate | 3.95% | 3.86% | |||||||
Senior Loans [Member] | Cabot Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum loan to value ratio | 25.00% | ||||||||
LIBOR [Member] | Cabot Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, initial spread percentage | 3.25% | ||||||||
LIBOR [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, initial spread percentage | 2.50% | ||||||||
Cabot Credit Agreement [Member] | Secured Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 316,200,000 | £ 250,000,000 | |||||||
Cabot Credit Agreement [Member] | Senior Loans [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum utilization of credit facility | 20.00% | ||||||||
Cabot Credit Agreement [Member] | LIBOR [Member] | Secured Debt [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, initial spread percentage | 3.25% | 3.50% |
Debt - Preferred Equity Certifi
Debt - Preferred Equity Certificates (Details) $ in Thousands | Jul. 01, 2013USD ($)shares | Jul. 01, 2013GBP (£)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 01, 2013GBP (£) |
Debt Instrument [Line Items] | |||||
Preferred equity certificates | $ | $ 205,975 | $ 221,516 | |||
Preferred Equity Certificate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 12.00% | ||||
Cabot [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of equity interest acquired | 50.10% | 50.10% | |||
Janus Holdings [Member] | |||||
Debt Instrument [Line Items] | |||||
Minority interest percentage | 49.90% | 49.90% | |||
Cabot [Member] | Common Class A [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, number of shares still held by minority interest | 100 | 100 | |||
Cabot [Member] | Janus Holdings [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, aggregate purchase price | $ 175,000 | £ 115,100,000 | |||
Cabot [Member] | Janus Holdings [Member] | Common Class E [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, number of shares acquired | 3,498,563 | 3,498,563 | |||
Cabot [Member] | E Bridge Preferred Equity Certificates [Member] | Janus Holdings [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, preferred equity certificates acquired (amount) | $ 15,500 | £ 10,218,574 | |||
Cabot [Member] | E Preferred Equity Certificates [Member] | Janus Holdings [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, preferred equity certificates acquired (amount) | $ 147,100 | 96,729,661 | |||
Cabot Holdings [Member] | Common Class A [Member] | J C Flowers And Company Limited Liability Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, number of shares acquired | 100 | 100 | |||
Cabot Holdings [Member] | Janus Holdings [Member] | Common Class J [Member] | J C Flowers And Company Limited Liability Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, number of shares still held by minority interest | 3,484,597 | 3,484,597 | |||
Cabot Holdings [Member] | J Bridge PECs [Member] | Janus Holdings [Member] | J C Flowers And Company Limited Liability Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, preferred equity certificates acquired (amount) | $ 15,500 | 10,177,781 | |||
Cabot Holdings [Member] | J Preferred Equity Certificates [Member] | Janus Holdings [Member] | J C Flowers And Company Limited Liability Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, financial liabilities still held by minority interest (amount) | $ 146,500 | £ 96,343,515 |
Debt - Capital Lease Obligation
Debt - Capital Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 5,091 | $ 11,054 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Implicit interest rate | 0.00% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Implicit interest rate | 11.10% |
Debt - Summary of Debt and Capi
Debt - Summary of Debt and Capital Lease Obligations Maturities (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |
Principal amortization in 2017 | $ 224,394 |
Principal amortization in 2018 | 18,760 |
Principal amortization in 2019 | 306,032 |
Principal amortization in 2020 | 887,084 |
Principal amortization in 2021 | 775,821 |
Thereafter | 652,028 |
Total | $ 2,864,119 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities - Narrative (Details) | Mar. 31, 2016 |
Propel [Member] | |
Variable Interest Entity [Line Items] | |
Percent of membership interests divested | 100.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 05, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 12.6 | $ 22 | $ 17.2 | |
Stock options intrinsic value | 1.2 | 29.6 | ||
Weighted-average remaining contractual life, options outstanding | 3 years 5 months 12 days | |||
Weighted-average remaining contractual life, options exercisable | 3 years 5 months 12 days | |||
Unrecognized compensation cost, non vested shares | $ 14.2 | |||
Fair value of restricted stock units and restricted stock awards vested | $ 12.5 | $ 16.5 | $ 20.2 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, contractual term | 10 years | |||
Non-Vested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period in years, unrecognized compensation cost | 1 year 9 months 18 days | |||
Minimum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation, vesting period | 3 years | |||
Maximum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation, vesting period | 5 years | |||
2013 Incentive Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 2,500,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Outstanding, Beginning Balance (in shares) | shares | 118,879 |
Number of Shares, Exercised (in shares) | shares | (15,333) |
Number of Shares, Outstanding, Ending Balance (in shares) | shares | 103,546 |
Number of Shares, Exercisable, Ending Balance (in shares) | shares | 103,546 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) | $ 16.23 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 22.87 |
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | 15.24 |
Weighted Average Exercise Price, Exercisable, Ending Balance (in dollars per share) | $ 15.24 |
Weighted-average remaining contractual life, options exercisable | 3 years 5 months 12 days |
Aggregate intrinsic value, outstanding | $ | $ 1,388 |
Aggregate intrinsic value, exercisable | $ | $ 1,388 |
Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Roll Forward] | |
Option Price Per Share, Outstanding, Beginning Balance (in dollars per share) | $ 2.89 |
Option Price Per Share, Exercised (in dollars per share) | 22.17 |
Option Price Per Share, Outstanding, Ending Balance (in dollars per share) | 2.89 |
Option Price Per Share, Exercisable, Ending Balance (in dollars per share) | 2.89 |
Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Roll Forward] | |
Option Price Per Share, Outstanding, Beginning Balance (in dollars per share) | 24.65 |
Option Price Per Share, Exercised (in dollars per share) | 24.65 |
Option Price Per Share, Outstanding, Ending Balance (in dollars per share) | 22.17 |
Option Price Per Share, Exercisable, Ending Balance (in dollars per share) | $ 22.17 |
Stock-Based Compensation - Su80
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-Vested Shares, Beginning Balance (in shares) | shares | 1,304,271 |
Non-Vested Shares, Awarded (in shares) | shares | 712,841 |
Non-Vested Shares, Vested (in shares) | shares | (513,073) |
Non-Vested Shares, Cancelled/forfeited (in shares) | shares | (163,664) |
Non-Vested Shares, Ending Balance (in shares) | shares | 1,340,375 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 38.71 |
Weighted Average Grant Date Fair Value, Awarded (in dollars per share) | $ / shares | 27.16 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 39.93 |
Weighted Average Grant Date Fair Value, Cancelled/forfeited (in dollars per share) | $ / shares | 38.57 |
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 32.11 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Provision for income taxes | $ 38,205 | $ 27,162 | $ 48,569 |
Federal income tax rate (percent) | 35.00% | 35.00% | 35.00% |
Undistributed earnings | $ 86,200 | ||
Valuation allowance | 18,892 | $ 4,517 | |
Unrecognized tax benefits, including penalties and interest | 21,200 | 58,500 | $ 44,400 |
Net tax benefit from unrecognized tax benefits, if recognized | 7,100 | 14,900 | 12,700 |
Unrecognized tax benefits, income tax penalties and interest expense | 500 | 300 | $ 1,300 |
Unrecognized tax benefits, income tax penalties and interest accrued | 2,200 | 500 | |
Foreign Subsidiaries [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry forward | 87,900 | ||
Domestic Subsidiaries [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry forward | $ 1,600 | ||
Tax Holiday Through December 31, 2018 [Member] | Costa Rica [Member] | |||
Income Taxes [Line Items] | |||
Holiday tax rate | 100.00% | ||
Subsequent Four Years [Member] | Costa Rica [Member] | |||
Income Taxes [Line Items] | |||
Holiday tax rate | 50.00% | ||
Income tax holiday, term | 4 years | ||
State and Local Jurisdiction [Member] | Domestic Subsidiaries [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry forward | $ 8,300 | ||
Consent Order, Consumer Finance Protection Bureau [Member] | |||
Income Taxes [Line Items] | |||
Litigation settlement penalty | $ 10,000 | ||
Settlement with Taxing Authority [Member] | |||
Income Taxes [Line Items] | |||
Provision for income taxes | $ (7,500) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal provision | 35.00% | 35.00% | 35.00% |
State (benefit) provision | 2.30% | 0.20% | 8.70% |
International benefit | (3.60%) | (7.80%) | (3.00%) |
Tax reserves | (3.20%) | (2.00%) | (3.80%) |
Permanent items | 14.70% | 6.00% | 4.30% |
Increase (decrease) in valuation allowance | 20.70% | (5.60%) | 0.00% |
Other | 0.70% | 1.90% | (6.90%) |
Effective rate | 66.60% | 27.70% | 34.30% |
Income Taxes - Components of Pr
Income Taxes - Components of Pretax Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 112,483 | $ 59,056 | $ 120,461 |
Foreign | (55,108) | 38,877 | 21,181 |
Income from continuing operations before income taxes | $ 57,375 | $ 97,933 | $ 141,642 |
Income Taxes - Components of 84
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current expense: | |||
Federal | $ 58,816 | $ 38,831 | $ 68,142 |
State | 1,173 | 363 | 7,538 |
Foreign | 10,364 | 7,124 | 3,752 |
Total current income tax expense | 70,353 | 46,318 | 79,432 |
Deferred (benefit) expense: | |||
Federal | (22,951) | (18,755) | (34,479) |
State | 25 | (610) | 2,698 |
Foreign | (9,222) | 209 | 918 |
Total deferred income tax expense | (32,148) | (19,156) | (30,863) |
Total income tax expense (benefit) | $ 38,205 | $ 27,162 | $ 48,569 |
Income Taxes - Differences betw
Income Taxes - Differences between Total Income Tax Expense and Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Computed “expected” Federal income tax expense | $ 20,081 | $ 34,277 | $ 49,578 |
(Decrease) increase in income taxes resulting from: | |||
State income taxes, net | 1,331 | 637 | 7,975 |
Foreign non-taxed income, rate differential | (2,076) | (7,609) | (5,453) |
Other adjustments, net | 18,869 | (143) | (3,531) |
Total income tax expense (benefit) | $ 38,205 | $ 27,162 | $ 48,569 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Stock-based compensation expense | $ 7,549 | $ 1,301 |
Accrued expenses | 19,868 | 7,220 |
Differences in income recognition related to receivable portfolios | 45,419 | 33,652 |
State and international operating losses | 26,386 | 15,234 |
Difference in basis of depreciable assets | 3,427 | 3,069 |
Capitalized legal fees—international | 171 | 4,143 |
Cumulative translation adjustment | 715 | 958 |
Tax benefit of uncertain tax positions | 677 | 1,349 |
Difference in basis of bond and loan costs | 3,007 | 9,480 |
Other | 1,077 | 2,372 |
Valuation allowance | (18,892) | (4,517) |
Net deferred tax assets | 89,404 | 74,261 |
Deferred tax liabilities: | ||
State taxes | (377) | (707) |
Deferred court costs | (19,860) | (25,277) |
Difference in basis of amortizable assets | (16,488) | (11,044) |
Difference in basis of depreciable assets | (7,705) | (8,932) |
Differences in income recognition related to receivable portfolios | 0 | (17,432) |
Deferred debt cancellation income | (1,313) | (1,957) |
Other | (242) | (46) |
Deferred tax liabilities gross | (45,985) | (65,395) |
Net deferred tax asset | $ 43,419 | $ 8,866 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning Balance | $ 47,949 | $ 38,425 | $ 71,273 |
Increases related to current and prior year tax positions | 34,356 | ||
Increases related to prior year tax positions | 2,505 | 5,835 | |
Increases related to current year tax positions | 1,259 | 11,882 | |
Decreases related to settlements with taxing authorities | (31,111) | (67,204) | |
Decreases related to prior year tax positions | (1,657) | (8,193) | |
Ending Balance | $ 18,945 | $ 47,949 | $ 38,425 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) | Oct. 14, 2014USD ($) | May 19, 2008subsidiary | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)class_action | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | May 11, 2011class_action | Dec. 17, 2010class_action |
Loss Contingencies [Line Items] | ||||||||
Number of class actions | class_action | 4 | 2 | 2 | |||||
Settlement fund | $ 2,000,000 | |||||||
Debt forgiveness allocation | 13,000,000 | |||||||
Attorney fees to be paid to plaintiff | 2,400,000 | |||||||
Rent expense | 20,300,000 | $ 19,400,000 | $ 23,000,000 | |||||
Purchase price of receivable portfolios | 1,900,000,000 | |||||||
Purchase price | 262,100,000 | |||||||
Estimated fair value, liability | $ 0 | |||||||
Brent v Midland Credit Management [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of defendant subsidiaries | subsidiary | 2 | |||||||
Class action, damages paid | $ 5,200,000 | |||||||
Class action, damages awarded, maximum | $ 5,700,000 | |||||||
Consent Order, Consumer Finance Protection Bureau [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
After-tax expense related to settlement | $ 43,000,000 |
Commitments and Contingencies89
Commitments and Contingencies - Future Minimum Lease Payments under Lease Obligations (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital lease obligation, 2017 | $ 3,470 |
Capital lease obligation, 2018 | 1,227 |
Capital lease obligation, 2019 | 478 |
Capital lease obligation, 2020 | 270 |
Capital lease obligation, 2021 | 0 |
Capital lease obligation, Thereafter | 0 |
Total minimal leases payments, Capital Leases | 5,445 |
Less: Interest | (354) |
Present value of minimal lease payments | 5,091 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating lease obligation, 2017 | 17,347 |
Operating lease obligation, 2018 | 13,033 |
Operating lease obligation, 2019 | 8,282 |
Operating lease obligation, 2020 | 6,361 |
Operating lease obligation, 2021 | 5,599 |
Operating lease obligation, Thereafter | 11,202 |
Total minimal leases payments, Operating Leases | 61,824 |
Schedule of Total Future Minimum Lease Payments [Abstract] | |
Total lease, 2017 | 20,817 |
Total lease, 2018 | 14,260 |
Total lease, 2019 | 8,760 |
Total lease, 2020 | 6,631 |
Total lease, 2021 | 5,599 |
Total lease, Thereafter | 11,202 |
Total minimal leases payments | $ 67,269 |
Segment Information - Narrative
Segment Information - Narrative (Detail) - Segment | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | 2 |
Segment Information - Schedule
Segment Information - Schedule of Geographical Areas of Which Company Operates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 271,384 | $ 179,415 | $ 289,442 | $ 289,017 | $ 290,609 | $ 278,914 | $ 282,662 | $ 277,782 | $ 1,029,258 | $ 1,129,967 | $ 1,043,429 |
Provision for portfolio allowances | 94,011 | 8,322 | |||||||||
Domestic [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 669,636 | 709,405 | 723,247 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 270,411 | 376,055 | 295,173 | ||||||||
Other Geographies [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 89,211 | $ 44,507 | $ 25,009 | ||||||||
Investment in Receivable Portfolios [Member] | Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Provision for portfolio allowances | $ 94,000 |
Segment Information Segment Inf
Segment Information Segment Information - Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 72,257 | $ 72,546 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 39,126 | 38,921 |
UNITED KINGDOM | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 20,860 | 20,795 |
Other Foreign Countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 12,271 | 12,830 |
Non-US [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 33,131 | $ 33,625 |
Goodwill and Identifiable Int93
Goodwill and Identifiable Intangible Assets - Narrative (Detail) $ in Millions | Oct. 01, 2016report_unit | Dec. 31, 2016USD ($)reporting_unit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reporting units | 4 | 5 | ||
Amortization expense | $ 7.2 | $ 5 | $ 3.6 |
Goodwill and Identifiable Int94
Goodwill and Identifiable Intangible Assets - Schedule of Reportable Segments by Reporting Units (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 924,847 |
Goodwill acquired | 623 |
Additional tax related obligations assumed | (20,674) |
Effect of foreign currency translation | (119,764) |
Ending Balance | $ 785,032 |
Goodwill and Identifiable Int95
Goodwill and Identifiable Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (12,020) | $ (8,109) |
Net Carrying Amount | 28,243 | |
Total intangible assets, Gross Carrying Amount | 40,263 | 23,821 |
Total intangible assets, Net Carrying Amount | 28,243 | 15,712 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,200 | 5,356 |
Accumulated Amortization | (3,220) | (903) |
Net Carrying Amount | 17,980 | 4,453 |
Developed Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,497 | 8,141 |
Accumulated Amortization | (3,891) | (3,793) |
Net Carrying Amount | 2,606 | 4,348 |
Trade Name and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,566 | 10,324 |
Accumulated Amortization | (4,909) | (3,413) |
Net Carrying Amount | $ 7,657 | $ 6,911 |
Goodwill and Identifiable Int96
Goodwill and Identifiable Intangible Assets - Weighted-Average Useful Lives of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 10 years |
Developed Technologies [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 5 years |
Trade Name and Other [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 8 years |
Goodwill and Identifiable Int97
Goodwill and Identifiable Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 5,417 |
2,018 | 4,442 |
2,019 | 3,109 |
2,020 | 2,972 |
2,021 | 2,849 |
Thereafter | 9,454 |
Net Carrying Amount | $ 28,243 |
Quarterly Information (Unaudi98
Quarterly Information (Unaudited) - Summary of Quarterly Financial Data for Periods (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross collections | $ 396,738 | $ 406,961 | $ 434,100 | $ 447,805 | $ 416,577 | $ 421,753 | $ 437,324 | $ 425,071 | $ 1,685,604 | $ 1,700,725 | $ 1,607,497 |
Revenues | 271,384 | 179,415 | 289,442 | 289,017 | 290,609 | 278,914 | 282,662 | 277,782 | 1,029,258 | 1,129,967 | 1,043,429 |
Total operating expenses | 183,939 | 200,597 | 197,695 | 205,513 | 206,271 | 248,185 | 198,362 | 194,895 | 787,744 | 847,713 | 734,958 |
Income (loss) from continuing operations | 10,494 | (51,946) | 30,833 | 29,789 | 30,810 | (11,650) | 23,524 | 28,087 | 19,170 | 70,771 | 93,073 |
Net income | 11,323 | (51,946) | 30,833 | 26,607 | 1,596 | (9,364) | 25,185 | 29,967 | 16,817 | 47,384 | 98,278 |
Amounts attributable to Encore Capital Group, Inc.: | |||||||||||
Income from continuing operations | 21,983 | (1,524) | 29,588 | 28,876 | 28,226 | (13,245) | 25,996 | 27,545 | 78,923 | 68,522 | 98,521 |
Net income (loss) attributable to Encore Capital Group, Inc. stockholders | $ 22,812 | $ (1,524) | $ 29,588 | $ 25,694 | $ (29,214) | $ 2,286 | $ 1,661 | $ 1,880 | $ 76,570 | $ 45,135 | $ 103,726 |
From continuing operations: | |||||||||||
Basic (in dollars per share) | $ 0.85 | $ (0.06) | $ 1.15 | $ 1.13 | $ 1.11 | $ (0.52) | $ 1 | $ 1.06 | $ 3.07 | $ 2.66 | $ 3.81 |
Diluted (in dollars per share) | 0.85 | (0.06) | 1.14 | 1.12 | 1.08 | (0.52) | 0.97 | 1.01 | 3.05 | 2.57 | 3.58 |
From net income: | |||||||||||
Basic (in dollars per share) | 0.88 | (0.06) | 1.15 | 1.01 | (0.04) | (0.43) | 1.07 | 1.13 | 2.98 | 1.75 | 4.01 |
Diluted (in dollars per share) | $ 0.88 | $ (0.06) | $ 1.14 | $ 0.99 | $ (0.04) | $ (0.43) | $ 1.03 | $ 1.08 | $ 2.96 | $ 1.69 | $ 3.77 |