Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 03, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ECPG | ' | ' |
Entity Registrant Name | 'ENCORE CAPITAL GROUP INC | ' | ' |
Entity Central Index Key | '0001084961 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 25,482,713 | ' |
Entity Public Float | ' | ' | $772,566,457 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $126,213 | $17,510 | ||
Investment in receivable portfolios, net | 1,590,249 | 873,119 | ||
Deferred court costs, net | 41,219 | 35,407 | ||
Receivables secured by property tax liens, net | 212,814 | 135,100 | ||
Property and equipment, net | 55,783 | 23,223 | ||
Other assets | 154,783 | 31,535 | ||
Goodwill | 504,213 | 55,446 | ||
Total assets | 2,685,274 | [1] | 1,171,340 | [1] |
Liabilities: | ' | ' | ||
Accounts payable and accrued liabilities | 137,272 | 43,909 | ||
Deferred tax liabilities, net | 7,164 | 8,236 | ||
Debt | 1,850,431 | 706,036 | ||
Other liabilities | 87,936 | 7,343 | ||
Total liabilities | 2,082,803 | [1] | 765,524 | [1] |
Redeemable noncontrolling interest | 26,564 | ' | ||
Commitments and contingencies | ' | ' | ||
Stockholders' equity: | ' | ' | ||
Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding | ' | ' | ||
Common stock, $.01 par value, 50,000 shares authorized, 25,457 shares and 23,191 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively | 255 | 232 | ||
Additional paid-in capital | 171,819 | 88,029 | ||
Accumulated earnings | 394,628 | 319,329 | ||
Accumulated other comprehensive gain (loss) | 5,195 | -1,774 | ||
Total Encore Capital Group, Inc. stockholders' equity | 571,897 | 405,816 | ||
Noncontrolling interest | 4,010 | ' | ||
Total stockholders' equity | 575,907 | 405,816 | ||
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $2,685,274 | $1,171,340 | ||
[1] | The Company's consolidated assets as of December 31, 2013 included $1,106,538 of assets from its variable interest entity, or VIE, that can only be used to settle obligations of the VIE. These assets include cash and cash equivalents of $62,403; investment in receivable portfolios, net, of $620,312; property and equipment, net, of $13,755; other assets of $33,772; and goodwill of $376,296. The Company's consolidated liabilities as of December 31, 2013, included $895,792 of liabilities of its VIE, whose creditors have no recourse to the Company. These liabilities include accounts payable and accrued liabilities of $47,219; debt of $846,676; and other liabilities of $1,897. See further details of the assets and liabilities of the Company's VIE in Note 11, "Variable Interest Entity." |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, except Per Share data, unless otherwise specified | ||||
Convertible preferred stock, par value | $0.01 | $0.01 | ||
Convertible preferred stock, shares authorized | 5,000 | 5,000 | ||
Convertible preferred stock, shares issued | 0 | 0 | ||
Convertible preferred stock, shares outstanding | 0 | 0 | ||
Common stock, par value | $0.01 | $0.01 | ||
Common stock, shares authorized | 50,000 | 50,000 | ||
Common stock, shares issued | 25,457 | 23,191 | ||
Common stock, shares outstanding | 25,457 | 23,191 | ||
Total assets | $2,685,274 | [1] | $1,171,340 | [1] |
Cash and cash equivalents | 126,213 | 17,510 | ||
Investment in receivable portfolios, net | 1,590,249 | 873,119 | ||
Property and equipment, net | 55,783 | 23,223 | ||
Other assets | 154,783 | 31,535 | ||
Goodwill | 504,213 | 55,446 | ||
Total liabilities | 2,082,803 | [1] | 765,524 | [1] |
Accounts payable and accrued liabilities | 137,272 | 43,909 | ||
Other liabilities | 87,936 | 7,343 | ||
Debt | 1,850,431 | 706,036 | ||
Janus Holdings [Member] | ' | ' | ||
Total assets | 1,106,538 | ' | ||
Cash and cash equivalents | 62,403 | ' | ||
Investment in receivable portfolios, net | 620,312 | ' | ||
Property and equipment, net | 13,755 | ' | ||
Other assets | 33,772 | ' | ||
Goodwill | 376,296 | ' | ||
Total liabilities | 895,792 | ' | ||
Accounts payable and accrued liabilities | 47,219 | ' | ||
Other liabilities | 1,897 | ' | ||
Debt | $846,676 | ' | ||
[1] | The Company's consolidated assets as of December 31, 2013 included $1,106,538 of assets from its variable interest entity, or VIE, that can only be used to settle obligations of the VIE. These assets include cash and cash equivalents of $62,403; investment in receivable portfolios, net, of $620,312; property and equipment, net, of $13,755; other assets of $33,772; and goodwill of $376,296. The Company's consolidated liabilities as of December 31, 2013, included $895,792 of liabilities of its VIE, whose creditors have no recourse to the Company. These liabilities include accounts payable and accrued liabilities of $47,219; debt of $846,676; and other liabilities of $1,897. See further details of the assets and liabilities of the Company's VIE in Note 11, "Variable Interest Entity." |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Revenue from receivable portfolios, net | $744,870 | $545,412 | $448,714 |
Other revenues | 12,588 | 905 | 32 |
Net interest income | 15,906 | 10,460 | ' |
Total revenues | 773,364 | 556,777 | 448,746 |
Operating expenses | ' | ' | ' |
Salaries and employee benefits | 165,040 | 101,084 | 77,805 |
Cost of legal collections | 186,959 | 168,703 | 157,050 |
Other operating expenses | 66,649 | 48,939 | 35,708 |
Collection agency commissions | 33,097 | 15,332 | 14,162 |
General and administrative expenses | 109,713 | 61,798 | 39,760 |
Depreciation and amortization | 13,547 | 5,840 | 4,081 |
Total operating expenses | 575,005 | 401,696 | 328,566 |
Income from operations | 198,359 | 155,081 | 120,180 |
Other (expense) income | ' | ' | ' |
Interest expense | -73,269 | -25,564 | -21,116 |
Other (expense) income | -4,222 | 808 | -395 |
Total other expense | -77,491 | -24,756 | -21,511 |
Income from continuing operations before income taxes | 120,868 | 130,325 | 98,669 |
Provision for income taxes | -45,388 | -51,754 | -38,076 |
Income from continuing operations | 75,480 | 78,571 | 60,593 |
(Loss) income from discontinued operations, net of tax | -1,740 | -9,094 | 365 |
Net (loss) income | 73,740 | 69,477 | 60,958 |
Net loss | 1,559 | ' | ' |
Net income attributable to Encore Capital Group, Inc. stockholders | 75,299 | 69,477 | 60,958 |
Amounts attributable to Encore Capital Group, Inc.: | ' | ' | ' |
Income from continuing operations | 77,039 | 78,571 | 60,593 |
(Loss) income from discontinued operations, net of tax | -1,740 | -9,094 | 365 |
Net income attributable to Encore Capital Group, Inc. stockholders | $75,299 | $69,477 | $60,958 |
Basic earnings (loss) per share from: | ' | ' | ' |
Continuing operations | $3.12 | $3.16 | $2.47 |
Discontinued operations | ($0.07) | ($0.36) | $0.01 |
Net basic earnings per share | $3.05 | $2.80 | $2.48 |
Diluted earnings (loss) per share from: | ' | ' | ' |
Continuing operations | $2.94 | $3.04 | $2.36 |
Discontinued operations | ($0.07) | ($0.35) | $0.01 |
Net diluted earnings per share | $2.87 | $2.69 | $2.37 |
Weighted average shares outstanding: | ' | ' | ' |
Basic | 24,659 | 24,855 | 24,572 |
Diluted | 26,204 | 25,836 | 25,690 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $73,740 | $69,477 | $60,958 |
Other comprehensive (loss) gain, net of tax: | ' | ' | ' |
Unrealized (loss) gain on derivative instruments | -817 | 194 | -2,119 |
Unrealized gain on foreign currency translation | 7,692 | ' | ' |
Other comprehensive gain (loss), net of tax | 6,875 | 194 | -2,119 |
Comprehensive income | 80,615 | 69,671 | 58,839 |
Comprehensive loss (gain) attributable to noncontrolling interest: | ' | ' | ' |
Net loss | 1,559 | ' | ' |
Unrealized gain on foreign currency translation | -1,398 | ' | ' |
Comprehensive loss attributable to noncontrolling interests | 161 | ' | ' |
Comprehensive income attributable to Encore Capital Group, Inc. stockholders | $80,776 | $69,671 | $58,839 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interests [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $302,697 | $240 | $113,412 | $188,894 | $151 | ' |
Balance, Shares at Dec. 31, 2010 | ' | 24,011 | ' | ' | ' | ' |
Net income (loss) | 60,958 | ' | ' | 60,958 | ' | ' |
Other comprehensive gain/loss, net of tax: | ' | ' | ' | ' | ' | ' |
Unrealized gain/loss on derivative instruments | -2,119 | ' | ' | ' | -2,119 | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | -2,400 | 5 | -2,405 | ' | ' | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares | ' | 509 | ' | ' | ' | ' |
Stock-based compensation | 7,709 | ' | 7,709 | ' | ' | ' |
Tax benefit related to stock-based compensation | 4,690 | ' | 4,690 | ' | ' | ' |
Balance at Dec. 31, 2011 | 371,535 | 245 | 123,406 | 249,852 | -1,968 | ' |
Balance, Shares at Dec. 31, 2011 | ' | 24,520 | ' | ' | ' | ' |
Net income (loss) | 69,477 | ' | ' | 69,477 | ' | ' |
Other comprehensive gain/loss, net of tax: | ' | ' | ' | ' | ' | ' |
Unrealized gain/loss on derivative instruments | 194 | ' | ' | ' | 194 | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | -1,122 | 5 | -1,127 | ' | ' | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares | ' | 534 | ' | ' | ' | ' |
Repurchase of common stock | -49,270 | -18 | -49,252 | ' | ' | ' |
Repurchase of common stock, Shares | ' | -1,863 | ' | ' | ' | ' |
Stock-based compensation | 8,794 | ' | 8,794 | ' | ' | ' |
Tax benefit related to stock-based compensation | 3,926 | ' | 3,926 | ' | ' | ' |
Issuance of convertible notes, net | 13,923 | ' | 13,923 | ' | ' | ' |
Purchase of convertible hedge and sale of warrants, net | -11,641 | ' | -11,641 | ' | ' | ' |
Balance at Dec. 31, 2012 | 405,816 | 232 | 88,029 | 319,329 | -1,774 | ' |
Balance, Shares at Dec. 31, 2012 | ' | 23,191 | ' | ' | ' | ' |
Net income (loss) | 73,740 | ' | ' | 75,299 | ' | -392 |
Other comprehensive gain/loss, net of tax: | ' | ' | ' | ' | ' | ' |
Unrealized gain/loss on derivative instruments | -817 | ' | ' | ' | -817 | ' |
Unrealized gain on foreign currency translation (excluding $1,047 attributable to redeemable noncontrolling interests) | 8,137 | ' | ' | ' | 7,786 | 351 |
Initial noncontrolling interests related to business combinations | 4,051 | ' | ' | ' | ' | 4,051 |
Change in fair value of redeemable noncontrolling interests | -1,167 | ' | -1,167 | ' | ' | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes | -4,967 | 6 | -4,973 | ' | ' | ' |
Exercise of stock options and issuance of share-based awards, net of shares withheld for employee taxes, Shares | ' | 618 | ' | ' | ' | ' |
Repurchase of common stock | -729 | ' | -729 | ' | ' | ' |
Repurchase of common stock, Shares | ' | -24 | ' | ' | ' | ' |
Issuance of common stock | 62,352 | 17 | 62,335 | ' | ' | ' |
Issuance of common stock, Shares | ' | 1,672 | ' | ' | ' | ' |
Stock-based compensation | 12,649 | ' | 12,649 | ' | ' | ' |
Tax benefit related to stock-based compensation | 5,420 | ' | 5,420 | ' | ' | ' |
Issuance of convertible notes, net | 31,024 | ' | 31,024 | ' | ' | ' |
Purchase of convertible hedge and sale of warrants, net | -20,769 | ' | -20,769 | ' | ' | ' |
Balance at Dec. 31, 2013 | $571,897 | $255 | $171,819 | $394,628 | $5,195 | $4,010 |
Balance, Shares at Dec. 31, 2013 | ' | 25,457 | ' | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Net income (loss) attributable to redeemable noncontrolling interests | $1,167 |
Unrealized gain on foreign currency translation attributable to redeemable noncontrolling interests | -1,047 |
Common Stock [Member] | ' |
Net income (loss) attributable to redeemable noncontrolling interests | 1,167 |
Unrealized gain on foreign currency translation attributable to redeemable noncontrolling interests | $1,047 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $73,740 | $69,477 | $60,958 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 13,547 | 5,840 | 4,661 |
Impairment charge for goodwill and identifiable intangible assets | ' | 10,400 | ' |
Amortization of loan costs and premium on receivables secured by tax liens | 6,715 | 3,268 | 1,833 |
Stock-based compensation expense | 12,649 | 8,794 | 7,709 |
Recognized loss on termination of derivative contract | 3,630 | ' | ' |
Deferred income taxes | -28,188 | -7,474 | -1,917 |
Excess tax benefit from stock-based payment arrangements | -5,609 | -4,123 | -5,101 |
Loss on sale of discontinued operations | ' | 2,416 | ' |
(Reversal) provision for allowances on receivable portfolios, net | -12,193 | -4,221 | 10,823 |
Changes in operating assets and liabilities | ' | ' | ' |
Deferred court costs and other assets | -11,697 | 2,893 | -4,169 |
Prepaid income tax and income taxes payable | -468 | 7,060 | 6,495 |
Accounts payable, accrued liabilities and other liabilities | 22,649 | 4,190 | 3,287 |
Net cash provided by operating activities | 74,775 | 98,520 | 84,579 |
Investing activities: | ' | ' | ' |
Cash paid for acquisition, net of cash acquired | -449,024 | -186,731 | ' |
Purchases of receivable portfolios, net of put-backs | -249,562 | -559,259 | -383,998 |
Collections applied to investment in receivable portfolios, net | 546,366 | 406,815 | 301,474 |
Originations and purchases of receivables secured by tax liens | -116,960 | -34,036 | ' |
Collections applied to receivables secured by tax liens | 70,573 | 35,706 | ' |
Purchases of property and equipment | -13,423 | -6,265 | -5,564 |
Other | -5,210 | ' | ' |
Net cash used in investing activities | -217,240 | -343,770 | -88,088 |
Financing activities: | ' | ' | ' |
Payment of loan costs | -17,207 | -12,359 | -840 |
Proceeds from credit facilities | 659,940 | 508,399 | 121,000 |
Repayment of credit facilities | -630,163 | -289,673 | -143,000 |
Proceeds from senior secured notes | 151,670 | ' | 25,000 |
Repayment of senior secured notes | -13,750 | -2,500 | ' |
Proceeds from issuance of convertible senior notes | 172,500 | 115,000 | ' |
Repayment of preferred equity certificates | -39,743 | ' | ' |
Purchases of convertible hedge instruments | -32,008 | -22,669 | ' |
Proceeds from sale of warrants | ' | 11,028 | ' |
Repurchase of common stock | -729 | -49,270 | ' |
Proceeds from exercise of stock options | 4,442 | 1,847 | 1,263 |
Taxes paid related to net share settlement of equity awards | -9,591 | -2,969 | -3,891 |
Excess tax benefit from stock-based payment arrangements | 5,609 | 4,123 | 5,101 |
Repayment of capital lease obligations | -4,990 | -6,244 | -3,982 |
Net cash provided by financing activities | 245,980 | 254,713 | 651 |
Net increase (decrease) in cash and cash equivalents | 103,515 | 9,463 | -2,858 |
Effect of exchange rate changes on cash | 5,118 | ' | ' |
Cash and cash equivalents, beginning of period | 17,510 | 8,047 | 10,905 |
Cash and cash equivalents, end of period | 126,213 | 17,510 | 8,047 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid for interest | 50,181 | 25,218 | 19,038 |
Cash paid for income taxes | 66,759 | 46,297 | 32,125 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' | ' |
Fixed assets acquired through capital lease | $5,011 | $5,287 | $2,949 |
Ownership_Description_of_Busin
Ownership, Description of Business, and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Ownership, Description of Business, and Summary of Significant Accounting Policies | ' | ||||||||||||
Note 1: Ownership, Description of Business, and Summary of Significant Accounting Policies | |||||||||||||
Encore Capital Group, Inc. (“Encore”), through its subsidiaries (collectively, the “Company”), is an international specialty finance company providing debt recovery solutions for consumers and property owners 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. Encore, through certain subsidiaries, is a market leader in portfolio purchasing and recovery in the United States. Encore’s subsidiary, Janus Holdings Luxembourg S.a.r.l. (“Janus Holdings”), through its indirectly held United Kingdom-based subsidiary Cabot Credit Management Limited (“Cabot”), is a market leader in debt management in the United Kingdom specializing in higher balance, “semi-performing” accounts. Encore’s majority-owned subsidiary, Refinancia S.A. (“Refinancia”), through its subsidiaries is a market leader in debt collection and management in Colombia and Peru. In addition, through Encore’s subsidiary, Propel Financial Services, LLC (“Propel”), the Company assists Texas and Nevada property owners who are delinquent on their property taxes by paying these taxes on behalf of the property owners in exchange for payment agreements collateralized by the existing tax liens on the property. Propel also acquires tax liens directly from taxing authorities outside of Texas and Nevada. | |||||||||||||
Portfolio Purchasing and Recovery | |||||||||||||
United States. The Company purchases receivable portfolios based on robust, account-level valuation methods and employs a suite of proprietary statistical and behavioral models across the full extent of its operations. These investments allow the Company to value portfolios accurately (and limit the risk of overpaying), avoid buying portfolios that are incompatible with its methods or goals and precisely align the accounts it purchases with its operational channels to maximize future collections. As a result, the Company has been able to realize significant returns from the receivables it acquires. The Company maintains strong relationships with many of the largest credit and telecommunication providers, and possesses one of the industry’s best collection staff retention rates. | |||||||||||||
The Company uses insights discovered during its purchasing process to build account collection strategies. The Company’s proprietary consumer-level collectability analysis is the primary determinant of whether an account will be actively serviced post-purchase. The Company continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. After the Company’s preliminary analysis, it seeks to collect on only a fraction of the accounts it purchases, through one or more of its collection channels. The channel identification process is analogous to a funneling system, where the Company first differentiates those consumers who it believes are not able to pay from those who are able to pay. Consumers who the Company believes are financially incapable of making any payments, facing extenuating circumstances or hardships (such as medical issues), serving in the military, or currently receiving social security as their only source of income are excluded from the next step of its collection process and are designated as inactive. The remaining pool of accounts in the funnel then receives further evaluation. At that point, the Company analyzes and determines a consumer’s perceived willingness to pay. Based on that analysis, the Company will pursue collections through letters and/or phone calls to its consumers. Despite its efforts to reach consumers and work out a settlement option, only a small number of consumers who are contacted choose to engage with the Company. Those who do are often offered deep discounts on their obligations, or are presented with payment plans that are better suited to meet their daily cash flow needs. The majority of contacted consumers, however, ignore both the Company’s calls and letters, and therefore the Company must then make the difficult decision whether or not to pursue collections through legal means. | |||||||||||||
The Company continually monitors applicable changes to laws governing statutes of limitations and disclosures to consumers. The Company maintains policies, system controls, and processes designed to ensure that accounts past the applicable statute of limitations do not get placed into legal collections. Additionally, in written and verbal communications with consumers, the Company provides disclosures to the consumer that the account is past its applicable statute of limitations and, therefore, the Company will not pursue collections through legal means. | |||||||||||||
United Kingdom. Through Cabot, portfolio receivables are purchased using a proprietary pricing model. This model allows Cabot to value portfolios with a high degree of accuracy and quantify portfolio performance in order to maximize future collections. As a result, Cabot has been able to realize significant returns from the assets it has acquired. Cabot maintains strong relationships with many of the largest financial service providers in the United Kingdom. | |||||||||||||
Cabot also uses insights discovered during its purchasing process to build account collection strategies. Cabot’s proprietary consumer-level collectability analysis is the primary determinant of how an account will be serviced post-purchase. Cabot continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. In recent years, Cabot has concentrated on buying portfolios that are defined as semi-performing in which over 50% of the accounts in a portfolio have made a payment in three of the last four months immediately prior to the portfolio purchase. Cabot will try to establish contact with these consumers in order to transfer payment arrangements and gauge the willingness of these consumers to pay. Consumers who Cabot believes are financially incapable of making any payments, those having negative disposable income, or those experiencing hardships (such as medical issues or mental incapacity), are placed on hold and managed outside of normal collections routines. | |||||||||||||
The remaining pool of accounts then receives further evaluation. Cabot analyzes and estimates a consumer’s perceived willingness to pay. Based on that analysis, Cabot pursues collections through letters and/or phone calls to its consumers. Where contact is made and consumers indicate a willingness to pay, a patient approach of forbearance is applied using regulatory protocols within the United Kingdom to assess affordability and ensure that plans are fair and balanced and therefore sustainable. | |||||||||||||
Where consumers are not locatable or refuse to engage in a constructive dialogue, Cabot will pass these accounts through a litigation scorecard and rule set in order to assess suitability for legal action. | |||||||||||||
Colombia and Peru. The Company’s newly acquired Refinancia subsidiary is a market leader in management of non-performing loans in Colombia and Peru. In addition to purchasing defaulted receivables, Refinancia offers portfolio management services to banks for non-performing loans. Refinancia also specializes in non-traditional niches in the geographic areas in which it operates, including providing financial solutions to individuals with defaulted credit records, payment plan guarantee services through merchants and loan guarantee services to financial institutions. | |||||||||||||
Tax Lien Business | |||||||||||||
Propel’s principal activities are the acquisition and servicing of residential and commercial tax liens on real property. These liens take priority over most other liens. By funding tax liens, Propel provides state and local taxing authorities and governments with much needed tax revenue. To the extent permitted by local law, Propel works with property owners to structure affordable payment plans designed to allow them to keep their property while paying their property tax obligation over time. Propel maintains a foreclosure rate of less than one-half of one percent. | |||||||||||||
Propel’s receivables secured by property tax liens include Texas tax liens, Nevada tax liens, and tax lien certificates (collectively, “Tax Liens”). With Texas and Nevada Tax Liens, Texas or Nevada property owners choose to have the taxing authority transfer their tax lien to Propel. Propel pays their tax lien obligation to the taxing authority and the property owner pays Propel over time at a lower interest rate than is being assessed by the taxing authority. Propel’s arrangements with Texas and Nevada property owners provide them with repayment plans that are both affordable and flexible when compared with other payment options. Propel also purchases Tax Liens in various other states directly from taxing authorities, securing rights to future property tax payments, interest and penalties. In most cases, such Tax Liens continue to be serviced by the taxing authority. When the taxing authority is paid, it repays Propel the outstanding balance of the lien plus interest, which is established by statute or negotiated at the time of the purchase. | |||||||||||||
Basis of Consolidation | |||||||||||||
The consolidated financial statements have been prepared in conformity with 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 Variable Interest Entities (“VIE”), 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) the obligation to absorb losses or the right to receive benefits. The Company has determined that its less than wholly owned subsidiary Janus Holdings is a VIE, and the Company is the primary beneficiary of the VIE. As a result, the financial results of Janus Holdings are consolidated under the VIE consolidation model. Refer to Note 11, “Variable Interest Entity,” for further details. The Company evaluates its relationships with the VIE on an ongoing basis to ensure that it continues to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||
On July 1, 2013, the Company completed its acquisition of Cabot. The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of Cabot’s parent Company, Janus Holdings, since the date of acquisition. On June 13, 2013, the Company completed its merger with Asset Acceptance Capital Corp. (“AACC”). The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of AACC since the date of acquisition. On May 8, 2012, the Company completed its acquisition of Propel. The consolidated statements of income and comprehensive income for the year ended December 31, 2012, include the results of operations of Propel since the date of acquisition. Refer to Note 3, “Business Combinations,” for further details. | |||||||||||||
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 are translated as of the end of the balance sheet date and revenue and expenses are translated at an average rate over the period. Currency translation adjustments are recorded as a component of other comprehensive income. Transaction gains and losses are included in other (expense) income. | |||||||||||||
Reclassifications | |||||||||||||
Certain immaterial amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, 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 a quarter are aggregated into pools based on common risk characteristics. 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. | |||||||||||||
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. | |||||||||||||
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 interests 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 5 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 contracts with a nationwide network of attorneys that specialize in collection matters. The Company generally refers charged-off accounts to its contracted attorneys when it believes the related consumer has sufficient assets to repay the indebtedness and has, to date, been unwilling to pay. In connection with the Company’s agreement with the contracted attorneys, it advances certain out-of-pocket court costs (“Deferred Court Costs”). The Company capitalizes these 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 its analysis of court costs that have been advanced and those that have been recovered. Historically, the Company wrote off Deferred Court Costs not recovered within three years of placement. However, as a result of a history of court cost recoveries beyond three years, the Company has determined that court costs are recovered over a longer period of time. As a result, in January 2013, on a prospective basis, the Company began increasing its deferral period from three years to five years. Collections received from debtors are first applied to related court costs with the balance applied to the debtors’ account. See Note 7 “Deferred Court Costs, Net” for further discussion. | |||||||||||||
Receivables Secured by Property Tax Liens, Net | |||||||||||||
Propel’s receivables are secured by Tax Liens. Repayment of the Tax Liens is generally dependent on the property owner but can also come through payments from other lien holders or foreclosure on the properties. Propel records these receivables secured by property tax liens at their outstanding principal balances, adjusted for, if any, charge-offs, allowance for losses, deferred fees or costs, and unamortized premiums or discounts. Interest income is reported on the interest method and includes amortization of net deferred fees and costs over the term of the agreements. Propel accrues interest on all past due receivables secured by tax liens as the receivables are collateralized by tax liens that are in a priority position over most other liens on the properties. If there is doubt about the ultimate collection of the accrued interest on a specific portfolio, it would be placed on non-accrual and, at that time, all accrued interest would be reversed. | |||||||||||||
The allowance for losses on receivables secured by property tax liens is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability in light of historical experience, the nature and volume of the receivable portfolios, adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral and prevailing economic conditions. The primary factor Propel uses to evaluate each receivable is the lien to value ratio, which is typically less than 15% and rarely exceeds 25%. Propel has not experienced any losses on receivables secured by Tax Liens in its portfolio. In addition, management believes, based on the fact that the Tax Liens are in a priority position over most other liens on the properties, that it will not experience any material losses on the ultimate collection of these receivables. Therefore, no allowance has been provided for as of December 31, 2013. | |||||||||||||
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 operations. The Company includes interest and penalties related to income taxes within its provision for income taxes. 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 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 its interest rate swap and foreign currency exchange contracts 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 (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 (expense) at that time. See Note 5 “Derivatives and Hedging Instruments” for further discussion. | |||||||||||||
Redeemable Noncontrolling Interests | |||||||||||||
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, while others have the right to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interests subject to these arrangements are included in temporary equity as redeemable noncontrolling interests, and are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments will 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. | |||||||||||||
A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding—basic | 24,659 | 24,855 | 24,572 | ||||||||||
Dilutive effect of stock-based awards | 950 | 981 | 1,118 | ||||||||||
Dilutive effect of convertible senior notes | 595 | — | — | ||||||||||
Weighted average common shares outstanding—diluted | 26,204 | 25,836 | 25,690 | ||||||||||
No anti-dilutive employee stock options were outstanding during the year ended December 31, 2013. Employee stock options to purchase approximately 352,000, and 167,000 shares of common stock as of December 31, 2012 and 2011, respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect on diluted earnings per share would be anti-dilutive. | |||||||||||||
For the year ended December 31, 2013, diluted earnings per share includes the effect of common shares issuable upon conversion of the Company’s $115.0 million convertible senior notes due 2017. During the period, the notes were convertible at a conversion price equivalent to approximately $31.56 per share of the Company’s common stock as a result of the conditions of the notes. As a result, the amount in excess of the principal is presumed to be settled in common shares and is reflected in the calculation of diluted earnings per share. | |||||||||||||
During the fourth quarter of 2012, concurrent with the issuance of its $115.0 million convertible senior notes due 2017, the Company entered into privately negotiated transactions with certain counterparties and sold warrants to purchase approximately 3.6 million shares of its common stock. The sold warrants had an exercise price of $44.19. On December 16, 2013, the Company entered into amendments with the same counterparties to exchange the original warrants with new warrants with an exercise price of $60.00. All other terms and settlement provisions remain unchanged. Warrants representing approximately 358,000 shares of the Company’s common stock have been modified by December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. Refer to Note 10 “Debt—Encore Convertible Senior Notes—2017 Convertible Senior Notes” for further details of the warrant restrike transaction. | |||||||||||||
The average market value of the Company’s shares did not exceed the exercise price of the original or new warrants during the year ended December 31, 2013 or 2012, and therefore the effect of the warrants was anti-dilutive for those periods. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
Note 2: Discontinued Operations | |||||||||||||
On May 16, 2012, the Company completed the sale of substantially all of the assets and certain of the liabilities of its bankruptcy servicing subsidiary Ascension Capital Group, Inc. (“Ascension”), to a subsidiary of American InfoSource, L.P. (“AIS”). As part of the sale, the Company agreed to fund certain, agreed-upon operating losses in the first year of AIS’ ownership of the Ascension business, not to exceed $4.0 million. If the Ascension business becomes profitable under AIS’ ownership, the Company will be paid an earn-out equal to 40% of Ascension’s EBITDA, for the first five years commencing May 16, 2012. The Company received no proceeds from the sale and recognized the entire $4.0 million loss contingency during the second quarter of 2012. | |||||||||||||
During the year ended December 31, 2013, the Company recognized a loss of $2.2 million incurred to resolve legacy contractual claims against Ascension by a former customer. Additionally, during the year the Company accrued a loss of $0.7 million related to the Ascension lease which remains an obligation of the Company. Ascension’s operations are presented as discontinued operations in the Company’s consolidated statements of income and comprehensive income. The following table presents the revenue and components of discontinued operations (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | 5,704 | $ | 18,626 | |||||||
(Loss) income from discontinued operations before income taxes | $ | (2,900 | ) | $ | (11,942 | ) | $ | 595 | |||||
Income tax benefit (expense) | 1,160 | 4,678 | (230 | ) | |||||||||
(Loss) income from discontinued operations | (1,740 | ) | (7,264 | ) | 365 | ||||||||
Loss on sale of discontinued operations, before income taxes | — | (2,416 | ) | — | |||||||||
Income tax benefit | — | 586 | — | ||||||||||
Loss on sale of discontinued operations | — | (1,830 | ) | — | |||||||||
Total (loss) income from discontinued operations | $ | (1,740 | ) | $ | (9,094 | ) | $ | 365 |
Business_Combinations
Business Combinations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Business Combinations | ' | ||||||||||||
Note 3: Business Combinations | |||||||||||||
Cabot Acquisition | |||||||||||||
On July 1, 2013, the Company, through its wholly owned subsidiary Encore Europe Holdings S.a.r.l. (“Encore Europe”), completed its acquisition (the “Cabot Acquisition”) of 50.1% of the equity interest in Janus Holdings, the indirect holding company of United Kingdom-based Cabot from certain funds advised by J.C. Flowers & Co. LLC (“J.C. Flowers”) pursuant to a Securities Purchase Agreement (as amended, the “Purchase Agreement”). Pursuant to the terms and conditions of the Purchase Agreement, Encore Europe purchased from 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 preferred equity certificates with a face value of £10,177,781 (approximately $15.5 million) (the “J Bridge PECs”) (represents the amount after the partial redemption of the J Bridge PECs contemplated in the Purchase Agreement and discussed in Note 10, “Debt”), (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. | |||||||||||||
Through its acquisition of Janus Holdings, the Company’s effective equity ownership of Cabot is approximately 42.9%, after reflecting the ownership of the noncontrolling interests. The E Bridge PECs and the J Bridge PECs may be redeemed at any time prior to June 18, 2014. Any E Bridge PECs and J Bridge PECs that remain unredeemed as of June 18, 2014 will be converted into E Shares and E PECs, or J Shares and J PECs, as the case may be, 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. The E Bridge PECs, E PECs, J Bridge PECs and J PECs accrue interest at 12% per annum. | |||||||||||||
The following diagram summarizes Cabot’s corporate structure after the Company’s completion of the Cabot Acquisition. Encore has no interest in the J.C. Flowers entities or the employee benefit trust and they are not included in the Company’s consolidated financial statements. | |||||||||||||
The Cabot 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 Cabot Acquisition are as follows (in thousands): | |||||||||||||
Purchase price: | |||||||||||||
Cash paid at acquisition | $ | 177,246 | |||||||||||
Allocation of purchase price: | |||||||||||||
Cash | $ | 57,520 | |||||||||||
Investment in receivable portfolios | 558,951 | ||||||||||||
Property and equipment | 13,672 | ||||||||||||
Other assets | 20,349 | ||||||||||||
Preferred equity certificates assumed | (211,549 | ) | |||||||||||
Debt assumed | (559,907 | ) | |||||||||||
Other liabilities assumed | (45,142 | ) | |||||||||||
Redeemable noncontrolling interests | (12,064 | ) | |||||||||||
Noncontrolling interests | (4,051 | ) | |||||||||||
Identifiable intangible assets | 7,559 | ||||||||||||
Goodwill | 351,908 | ||||||||||||
Total net assets acquired | $ | 177,246 | |||||||||||
The goodwill recognized is primarily attributable to (i) the ability to capitalize on Cabot’s existing operating platform to gain immediate access to the debt management business in Europe and (ii) substantial synergies that are expected to be achieved through Cabot’s ability to leverage the Company’s analytic capacities and efficient operating platform. The entire goodwill of $351.9 million related to the Cabot Acquisition is not deductible for income tax purposes. | |||||||||||||
As discussed above, the Company purchased a majority interest in Janus Holdings. The Company has determined that Janus Holdings is a VIE and the Company is the primary beneficiary of the VIE. In accordance with authoritative guidance, the Company consolidates the financial results of Janus Holdings under the VIE consolidation model. The J Bridge PECs, J PECs, and any accrued interest are legal form debt, and are included as debt in the Company’s consolidated financial statements. In addition, certain other minority owners hold preferred equity certificates at the Cabot Holdings level. These preferred equity certificates and accrued interests are also included as debt. The Company’s preliminary valuation study indicated that the fair value of these preferred equity certificates approximates face value. The J shares represent noncontrolling interest at the Janus Holdings level, and the 100 A shares owned by J.C. Flowers represent noncontrolling interest at the Cabot Holdings level, and have been fair valued at the time of acquisition. | |||||||||||||
In connection with the Cabot Acquisition, the Company entered into an Investors Agreement with J.C. Flowers. Pursuant to the Investors Agreement, J.C. Flowers has the right, at certain times, to offer to sell its interest in Janus Holdings to the Company. The Company would then have the right, but not the obligation, to acquire J.C. Flowers’ interest at the offered price, or allow J.C. Flowers to offer Janus Holdings for sale to others. Since J.C. Flowers could force a sale of Janus Holdings, their noncontrolling interest has been reflected as a redeemable noncontrolling interest in the accompanying consolidated statements of financial condition. The remaining noncontrolling interests represent other minority owners’ share of interests in Cabot Holdings. | |||||||||||||
Total acquisition and integration costs related to the Cabot Acquisition were approximately $6.7 million for the year ended December 31, 2013, and have been expensed in the accompanying consolidated statements of income within general and administrative expenses. | |||||||||||||
The amount of revenue and net income included in the Company’s consolidated statement of income for the year ended December 31, 2013, directly related to the Cabot Acquisition, excluding the acquisition and integration costs, was $95.5 million and $9.0 million, respectively. The revenue and loss for the year ended December 31, 2013 at Janus Holdings was $95.5 million and $2.3 million, respectively. This loss is due to the fact that Janus Holdings recognizes all interest expense related to the outstanding preferred equity certificates owed to Encore, J.C. Flowers, and management. The loss attributable to noncontrolling interests included in the Company’s consolidated statement of income of $1.2 million for the year ended December 31, 2013 represents the total loss at Janus Holdings of $2.8 million multiplied by the noncontrolling ownership interest. The difference of $11.4 million between what was included in the Company’s financial statements and what was reported by Janus Holdings, represents Encore’s share of preferred equity certificate interest income recognized at Encore Europe and the loss attributable to noncontrolling interests. | |||||||||||||
The following table summarizes the operating performance of Janus Holdings and Encore Europe (in thousands): | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Janus | Encore | Encore Europe | |||||||||||
Holdings | Europe | Consolidated | |||||||||||
Total revenues | $ | 95,491 | $ | — | $ | 95,491 | |||||||
Total operating expenses | (48,890 | ) | — | (48,890 | ) | ||||||||
Income from operations | 46,601 | — | 46,601 | ||||||||||
Interest expense—non-PEC | (26,265 | ) | — | (26,265 | ) | ||||||||
PEC interest (expense) income | (21,616 | ) | 10,235 | (11,381 | ) | ||||||||
Other income | 98 | — | 98 | ||||||||||
(Loss) income before income taxes | (1,182 | ) | 10,235 | 9,053 | |||||||||
Provision for income taxes | (1,574 | ) | — | (1,574 | ) | ||||||||
Net (loss) income | (2,756 | ) | 10,235 | 7,479 | |||||||||
Net loss attributable to noncontrolling interests | 392 | 1,167 | 1,559 | ||||||||||
Net (loss) income attributable to Encore | $ | (2,364 | ) | $ | 11,402 | $ | 9,038 | ||||||
On February 7, 2014, Cabot, through a wholly-owned subsidiary, acquired all of the equity interest of Marlin Financial Group Limited, (“Marlin”), a leading acquirer of non-performing consumer debt in the United Kingdom, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). The Acquisition was financed with borrowings under Cabot’s existing revolving credit facility and under new senior secured bridge facilities. Refer to Note 18, “Subsequent Events” for additional details related to the acquisition of Marlin and the new senior secured bridge facilities. | |||||||||||||
AACC Merger | |||||||||||||
On June 13, 2013, the Company completed its merger with AACC (the “AACC Merger”), a leading provider of debt management and recovery solutions in the United States. The purchase price consisted of $150.8 million in cash consideration and 1.7 million shares of Encore common stock valued at $37.30 per share. In addition, the Company paid off approximately $165.7 million of AACC debt on the closing date of the AACC Merger. | |||||||||||||
The AACC Merger 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 merger. 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 AACC Merger are as follows (in thousands): | |||||||||||||
Purchase price: | |||||||||||||
Cash paid at acquisition | $ | 316,485 | |||||||||||
Stock consideration | 62,352 | ||||||||||||
Total purchase price | $ | 378,837 | |||||||||||
Allocation of purchase price: | |||||||||||||
Cash | $ | 23,156 | |||||||||||
Investment in receivable portfolios | 383,382 | ||||||||||||
Deferred court costs | 6,940 | ||||||||||||
Property and equipment | 11,003 | ||||||||||||
Other assets | 16,004 | ||||||||||||
Liabilities assumed | (126,059 | ) | |||||||||||
Identifiable intangible assets | 1,470 | ||||||||||||
Goodwill | 62,941 | ||||||||||||
Total net assets acquired | $ | 378,837 | |||||||||||
The entire goodwill of $62.9 million related to AACC was assigned to the Company’s portfolio purchasing reporting unit and is not deductible for income tax purposes. The goodwill recognized is primarily attributable to expected synergies when combining AACC with the Company. | |||||||||||||
Total acquisition and integration costs related to the AACC Merger were approximately $9.1 million for the year ended December 31, 2013, and were expensed in the accompanying consolidated statements of income within general and administrative expenses. The amount of revenue and net income included in the Company’s consolidated statement of income for the year ended December 31, 2013 related to AACC was $102.1 million and $14.6 million, respectively. | |||||||||||||
The following summary presents unaudited pro forma consolidated results of operations for the year ended December 31, 2013 and 2012 as if the Cabot Acquisition and AACC Merger had occurred on January 1, 2012. The following unaudited pro forma financial information does not necessarily reflect the actual results that would have occurred had Encore, Cabot, and AACC been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies (in thousands): | |||||||||||||
(Unaudited) | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Consolidated pro forma revenue | $ | 949,337 | $ | 929,579 | |||||||||
Consolidated pro forma income from continuing operations | 92,378 | 101,762 | |||||||||||
In addition to the Cabot Acquisition and AACC Merger, the Company completed certain other acquisitions including the acquisition of Refinancia in December 2013. These acquisitions were immaterial to the Company’s financial statements individually and in the aggregate, and resulted in the recording of approximately $13.5 million of initial goodwill through preliminary purchase price allocations. | |||||||||||||
Acquisition in Prior Year | |||||||||||||
On May 8, 2012, the Company acquired all of the outstanding equity interests of Propel for $186.8 million in cash. The Company recorded approximately $45.4 million of goodwill, $0.6 million of intangible assets and assumed $2.3 million of net liabilities. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 4: 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 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 46 | $ | — | $ | 46 | |||||||||
Interest rate cap contracts | — | 202 | — | 202 | |||||||||||||
Liabilities | |||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | (4,123 | ) | — | $ | (4,123 | ) | ||||||||
Temporary Equity | |||||||||||||||||
Redeemable noncontrolling interests | $ | — | $ | — | $ | (26,564 | ) | $ | (26,564 | ) | |||||||
Fair Value Measurements as of | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Liabilities | |||||||||||||||||
Interest rate swap agreements | $ | — | $ | (645 | ) | $ | — | $ | (645 | ) | |||||||
Foreign currency exchange contracts | — | (2,010 | ) | — | (2,010 | ) | |||||||||||
Derivative Contracts: | |||||||||||||||||
The Company uses derivative instruments to minimize its exposure to fluctuations in interest rates and foreign currency exchange rates. The Company’s derivative instruments primarily include interest rate swap agreements, interest rate cap contracts, and foreign currency exchange contracts. 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. | |||||||||||||||||
Redeemable Noncontrolling Interests: | |||||||||||||||||
As discussed in Note 3, “Business Combinations,” 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, while others have the right to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interests subject to these arrangements are included in temporary equity as redeemable noncontrolling interests, and are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments will not affect the calculation of earnings per share. The components of the change in the redeemable noncontrolling interests for the periods ended December 31, 2013 are presented in the following table: | |||||||||||||||||
Amount | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Initial redeemable noncontrolling interest related to business combinations | 25,517 | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | (1,167 | ) | |||||||||||||||
Adjustment of the redeemable noncontrolling interests to fair value | 1,167 | ||||||||||||||||
Effect of foreign currency translation attributable to redeemable noncontrolling interests | 1,047 | ||||||||||||||||
Balance at December 31, 2013 | $ | 26,564 | |||||||||||||||
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 by discounting the estimated future cash flows generated by its proprietary forecasting models, using an estimated market participant cost to collect of approximately 50.3% and a discount rate of approximately 12.0% for United States portfolios and an estimated market participant cost to collect of approximately 29.7% and a discount rate of approximately 18.2% for United Kingdom portfolios. Using this method, the fair value of investment in receivable portfolios approximates book value as of December 31, 2013 and 2012. 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 by approximately $19.5 million and $18.1 million, respectively, as of December 31, 2013. 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. The carrying value of the investment in receivable portfolios was $1.6 billion and $873.1 million as of December 31, 2013 and 2012, respectively. | |||||||||||||||||
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. | |||||||||||||||||
Receivables Secured By Property Tax Liens: | |||||||||||||||||
The fair value of receivables secured by property tax liens is estimated by discounting the future cash flows of the portfolio using a discount rate equivalent to the current rate at which similar portfolios would be originated. For certain tax liens purchased directly from taxing authorities in various other states, the fair value is estimated by discounting the expected future cash flows of the portfolio using a discount rate equivalent to the interest rate expected when acquiring these tax liens. The carrying value of receivables secured by property tax liens approximates fair value. Additionally, the carrying value of the related interest receivable also approximates fair value. | |||||||||||||||||
Debt: | |||||||||||||||||
Encore’s senior secured notes and borrowings under its revolving credit and term loan facilities are carried at historical amounts, adjusted for additional borrowings less principal repayments, which approximate fair value. | |||||||||||||||||
Encore’s convertible senior notes are carried at historical cost, adjusted for the debt discount. The carrying value of the convertible senior notes was $287.5 million, net of debt discount of $42.2 million, and $115.0 million, net of debt discount of $14.4 million as of December 31, 2013 and 2012, respectively. The fair value estimate for these convertible senior notes incorporates quoted market prices, which was approximately $412.4 million and $128.3 million as of December 31, 2013 and 2012, respectively. | |||||||||||||||||
Cabot’s senior secured notes due 2019 are carried at the fair value determined at the time of the Cabot Acquisition. Cabot’s senior secured notes due 2020 are carried at historical cost. The carrying value of the senior secured notes, including a debt premium of $43.6 million, was $646.9 million as of December 31, 2013. The fair value estimate for these convertible senior notes incorporates quoted market prices, which was approximately $680.7 million as of December 31, 2013. | |||||||||||||||||
The Company’s preferred equity certificates are legal obligations to the noncontrolling shareholders at its Janus Holdings and Cabot Holdings subsidiaries. They are carried at the face amount, plus any accrued interest. The Company determined, at the time of the Cabot Acquisition and at December 31, 2013, that the carrying value of these preferred equity certificates approximates fair value. |
Derivatives_and_Hedging_Instru
Derivatives and Hedging Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivatives and Hedging Instruments | ' | ||||||||||||||||||||||||||||
Note 5: Derivatives and Hedging Instruments | |||||||||||||||||||||||||||||
The Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Most of the Company’s derivative financial instruments qualify for hedge accounting treatment under the authoritative guidance for derivatives and hedging. The Company’s Cabot subsidiary also holds interest rate cap contracts with an aggregated notional amount of approximately $206.6 million that are used to manage its risk related to interest rate fluctuations. The Company does not apply hedge accounting on the interest rate cap contracts. The impact of the interest rate cap contracts to the Company’s consolidated financial statements for the year ended December 31, 2013, was immaterial. | |||||||||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||||
As of December 31, 2013, the Company had no outstanding interest rate swap agreements. During the years ended December 31, 2013, 2012 and 2011, the Company utilized interest rate swap contracts to manage risks related to interest rate fluctuation. These derivatives were designated as cash flow hedges in accordance with authoritative accounting guidance. The hedging instruments had been highly effective since the inception of the hedge program, no gains or losses were reclassified from other comprehensive income “OCI” into earnings as a result of hedge ineffectiveness. | |||||||||||||||||||||||||||||
Foreign Currency Exchange Contracts | |||||||||||||||||||||||||||||
The Company has operations in India, which exposes the Company to foreign currency exchange rate fluctuations due to transactions denominated in Indian rupees, such as employee salaries and rent expenditures. To mitigate this risk, the Company enters into derivative financial instruments, principally forward contracts, which are designated as cash flow hedges, to mitigate fluctuations in the cash payments of future forecasted transactions in Indian rupees for up to 36 months. 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. | |||||||||||||||||||||||||||||
Gains and losses on cash flow hedges are recorded in OCI until the hedged transaction is recorded in the consolidated financial statements. Once the underlying transaction is recorded in the consolidated financial statements, the Company reclassifies the OCI on the derivative into 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, 2013, the total notional amount of the forward contracts to buy Indian rupees in exchange for United States dollars was $48.0 million. As of December 31, 2013, all outstanding contracts qualified for hedge accounting treatment. The Company estimates that approximately $2.0 million of net derivative loss 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, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
The Company may periodically enter into other foreign currency exchange contracts to mitigate its risk that cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. In anticipation of the Cabot Acquisition, on June 7, 2013, the Company entered into a European style zero-cost collar foreign exchange contract with a notional amount of £132.1 million (approximately $206.0 million), which was equal to the anticipated purchase price for the Cabot Acquisition. The collar was set to expire on August 13, 2013, which was the anticipated date of closing of the Cabot Acquisition. The collar was used to offset the risk of changes in the foreign exchange rate relating to the purchase price for the Company’s interest in Janus Holdings. The Company did not apply hedge accounting on this foreign exchange contract. Due to the early closing of the Cabot Acquisition, the foreign exchange contract was terminated on June 28, 2013 at a loss of $3.6 million, which was recorded as other expenses in the Company’s consolidated statements of income in the second quarter of 2013 and is included in the year ended December 31, 2013. Economically, this foreign exchange loss was offset by a decrease in the estimated purchase price for Cabot of approximately $4.3 million. | |||||||||||||||||||||||||||||
The Company does not enter into derivative instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
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, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | Other liabilities | $ | (4,123 | ) | Other liabilities | $ | (2,010 | ) | |||||||||||||||||||||
Foreign currency exchange contracts | Other assets | 46 | — | — | |||||||||||||||||||||||||
Interest rate swaps | — | — | Other liabilities | (645 | ) | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Interest rate cap | Other assets | 202 | — | — | |||||||||||||||||||||||||
The following table summarizes the effects of derivatives in cash flow hedging relationships on the Company’s statements of income for the years ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
Gain or (Loss) | Location of Gain | Gain or (Loss) | Location of | Amount of | |||||||||||||||||||||||||
Recognized in OCI- | or (Loss) | Reclassified | Gain or (Loss) | Gain or (Loss) | |||||||||||||||||||||||||
Effective Portion | Reclassified from | from OCI into | Recognized - | Recognized - | |||||||||||||||||||||||||
OCI into | Income - Effective | Ineffective | Ineffective | ||||||||||||||||||||||||||
Income - Effective | Portion | Portion and | Portion and | ||||||||||||||||||||||||||
Portion | Amount | Amount | |||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest rate swaps | $ | 645 | $ | 369 | Interest expense | $ | — | $ | — | Other (expense) | $ | — | $ | — | |||||||||||||||
income | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | (3,031 | ) | (1,224 | ) | Salaries and | (1,362 | ) | (1,230 | ) | Other (expense) | — | — | |||||||||||||||||
employee | income | ||||||||||||||||||||||||||||
benefits | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | (658 | ) | (25 | ) | General and | (260 | ) | (212 | ) | Other (expense) | — | — | |||||||||||||||||
administrative | income | ||||||||||||||||||||||||||||
expenses |
Investment_in_Receivable_Portf
Investment in Receivable Portfolios, Net | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||
Investment in Receivable Portfolios, Net | ' | ||||||||||||||||
Note 6: 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 a quarter are aggregated into pools based on common risk characteristics. 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 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 comprehensive income as a reduction in revenue, with a corresponding valuation allowance, offsetting the investment in receivable portfolios in the consolidated statements of financial condition. | |||||||||||||||||
The Company utilizes its proprietary forecasting models to continuously evaluate the economic life of each pool. The collection forecast of each pool is generally estimated to be between 84 to 96 months based on the expected collection period of each pool (up to 120 months for Cabot’s semi-performing pools). The Company often experiences collections beyond the 84 to 96 month collection forecast. As of December 31, 2013, the total estimated remaining collections beyond the 84 to 96 month collection forecast, which are not included in the calculation of the Company’s IRRs, were $129.8 million. The collection forecast estimates for Cabot include a 120 month collection period which is included in its estimated remaining collections and is used for calculating its IRRs. | |||||||||||||||||
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 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 purchase price 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 | Estimate of | Total | |||||||||||||||
Yield | Zero Basis | ||||||||||||||||
Cash Flows | |||||||||||||||||
Balance at December 31, 2011 | $ | 821,527 | $ | 32,676 | $ | 854,203 | |||||||||||
Revenue recognized, net | (519,136 | ) | (26,276 | ) | (545,412 | ) | |||||||||||
Net additions on existing portfolios(1) | 229,207 | 10,966 | 240,173 | ||||||||||||||
Additions for current purchases(1) | 453,346 | — | 453,346 | ||||||||||||||
Balance at December 31, 2012 | $ | 984,944 | $ | 17,366 | $ | 1,002,310 | |||||||||||
Revenue recognized, net | (717,733 | ) | (27,119 | ) | (744,852 | ) | |||||||||||
Net additions on existing portfolios(1) | 357,189 | 18,218 | 375,407 | ||||||||||||||
Additions for current purchases(1)(2) | 1,767,071 | — | 1,767,071 | ||||||||||||||
Balance at December 31, 2013 | $ | 2,391,471 | $ | 8,465 | $ | 2,399,936 | |||||||||||
(1) | Estimated remaining collections and accretable yield include anticipated collections beyond the 84 to 96 month collection forecast for United States portfolios. | ||||||||||||||||
(2) | Includes $383.4 million of portfolios acquired in connection with the AACC Merger and $559.0 million of portfolios acquired in connection with the Cabot Acquisition discussed in Note 3, “Business Combinations.” | ||||||||||||||||
During the year ended December 31, 2013, the Company purchased receivable portfolios with a face value of $84.9 billion for $1.2 billion, or a purchase cost of 1.4% of face value. Purchases of charged-off credit card, telecom and consumer bankruptcy portfolios include $559.0 million of portfolios acquired in conjunction with the Cabot Acquisition and $383.4 million acquired in conjunction with the AACC Merger. The lower purchase rate for the year ended December 31, 2013 is due to the portfolio acquired in conjunction with the AACC Merger, which included all portfolios owned, including accounts that have no value and which the Company has no intention to collect. No-value accounts would typically not be included in a portfolio purchase transaction, as the sellers would remove them from the sale file. The estimated future collections at acquisition for all portfolios purchased during the year amounted to $1.3 billion. | |||||||||||||||||
During the year ended December 31, 2012, the Company purchased receivable portfolios with a face value of $11.4 billion for $478.8 million, or a purchase cost of 4.2% of face value. The estimated future collections at acquisition for all portfolios amounted to $842.8 million. | |||||||||||||||||
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, 2013, 2012, and 2011, Zero Basis Revenue was approximately $17.2 million, $22.6 million, and $20.6 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, 2013 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 873,119 | $ | — | $ | — | $ | 873,119 | |||||||||
Purchases of receivable portfolios(1) | 1,203,706 | 1,073 | — | 1,204,779 | |||||||||||||
Transfer of portfolios | (6,649 | ) | 6,649 | — | — | ||||||||||||
Gross collections(2) | (1,249,625 | ) | (2,764 | ) | (27,117 | ) | (1,279,506 | ) | |||||||||
Put-backs and recalls | (2,331 | ) | (296 | ) | (2 | ) | (2,629 | ) | |||||||||
Foreign currency adjustments | 49,634 | — | — | 49,634 | |||||||||||||
Revenue recognized | 715,458 | — | 17,201 | 732,659 | |||||||||||||
Portfolio allowance reversals, net | 2,275 | — | 9,918 | 12,193 | |||||||||||||
Balance, end of period | $ | 1,585,587 | $ | 4,662 | $ | — | $ | 1,590,249 | |||||||||
Revenue as a percentage of collections(3) | 57.3 | % | 0 | % | 63.4 | % | 57.3 | % | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 716,454 | $ | — | $ | — | $ | 716,454 | |||||||||
Purchases of receivable portfolios(1) | 562,335 | — | — | 562,335 | |||||||||||||
Gross collections(2) | (921,730 | ) | — | (26,276 | ) | (948,006 | ) | ||||||||||
Put-backs and recalls | (3,076 | ) | — | — | (3,076 | ) | |||||||||||
Revenue recognized | 518,617 | — | 22,574 | 541,191 | |||||||||||||
Portfolio allowance reversals, net | 519 | — | 3,702 | 4,221 | |||||||||||||
Balance, end of period | $ | 873,119 | $ | — | $ | — | $ | 873,119 | |||||||||
Revenue as a percentage of collections(3) | 56.3 | % | 0 | % | 85.9 | % | 57.1 | % | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 644,753 | $ | — | $ | — | $ | 644,753 | |||||||||
Purchases of receivable portfolios(1) | 386,850 | — | — | 386,850 | |||||||||||||
Gross collections(2) | (740,402 | ) | — | (20,609 | ) | (761,011 | ) | ||||||||||
Put-backs and recalls | (2,843 | ) | — | (9 | ) | (2,852 | ) | ||||||||||
Revenue recognized | 443,367 | — | 16,170 | 459,537 | |||||||||||||
(Portfolio allowances) portfolio allowance reversals, net | (15,271 | ) | — | 4,448 | (10,823 | ) | |||||||||||
Balance, end of period | $ | 716,454 | $ | — | $ | — | $ | 716,454 | |||||||||
Revenue as a percentage of collections(3) | 59.9 | % | 0 | % | 78.5 | % | 60.4 | % | |||||||||
(1) | Purchases of portfolio receivables include $383.4 million acquired in connection with the AACC Merger in June 2013 and $559.0 million acquired in connection with the Cabot Acquisition in July 2013 discussed in Note 3, “Business Combinations.” | ||||||||||||||||
(2) | Does not include amounts collected on behalf of others. | ||||||||||||||||
(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, 2010 | $ | 98,671 | |||||||||||||||
Provision for portfolio allowances | 17,707 | ||||||||||||||||
Reversal of prior allowances | (6,884 | ) | |||||||||||||||
Balance at December 31, 2011 | $ | 109,494 | |||||||||||||||
Provision for portfolio allowances | 6,745 | ||||||||||||||||
Reversal of prior allowances | (10,966 | ) | |||||||||||||||
Balance at December 31, 2012 | $ | 105,273 | |||||||||||||||
Provision for portfolio allowances | 479 | ||||||||||||||||
Reversal of prior allowances | (12,672 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 93,080 | |||||||||||||||
Deferred_Court_Costs_Net
Deferred Court Costs, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Deferred Court Costs, Net | ' | ||||||||||||
Note 7: Deferred Court Costs, Net | |||||||||||||
Within the United States, the Company contracts with a nationwide network of attorneys that specialize in collection matters. The Company generally refers charged-off accounts to its contracted attorneys when it believes the related consumer has sufficient assets to repay the indebtedness and has, to date, been unwilling to pay. In connection with the Company’s agreement with the contracted attorneys, it advances certain out-of-pocket court costs (“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 its analysis of court costs that have been advanced and those that have been recovered. Historically, the Company wrote off Deferred Court Costs not recovered within three years of placement. However, as a result of a history of court cost recoveries beyond three years, the Company has determined that court costs are recovered over a longer period of time. As a result, in January 2013, on a prospective basis, the Company began increasing its deferral period from three years to five years. Collections received from debtors are first applied against related court costs with the balance applied to the debtors’ account balance. | |||||||||||||
Deferred Court Costs consist of the following as of the dates presented (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Court costs advanced | $ | 399,274 | $ | 279,314 | |||||||||
Court costs recovered | (147,166 | ) | (94,827 | ) | |||||||||
Court costs reserve | (210,889 | ) | (149,080 | ) | |||||||||
$ | 41,219 | $ | 35,407 | ||||||||||
A roll forward of the Company’s court cost reserve is as follows (in thousands): | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of period | $ | (149,080 | ) | $ | (130,454 | ) | $ | (113,239 | ) | ||||
Provision for court costs | (61,809 | ) | (53,946 | ) | (54,939 | ) | |||||||
Write-off of reserve after the 36th month | — | 35,320 | 37,724 | ||||||||||
Balance at end of period | $ | (210,889 | ) | $ | (149,080 | ) | $ | (130,454 | ) | ||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
Note 8: Property and Equipment, Net | |||||||||
Property and equipment consist of the following, as of the dates presented (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 15,955 | $ | 7,605 | |||||
Computer equipment and software | 79,765 | 33,189 | |||||||
Telecommunications equipment | 3,589 | 6,033 | |||||||
Leasehold improvements | 15,145 | 6,692 | |||||||
Other | 1,086 | — | |||||||
115,540 | 53,519 | ||||||||
Less: accumulated depreciation and amortization | (59,757 | ) | (30,296 | ) | |||||
$ | 55,783 | $ | 23,223 | ||||||
Depreciation and amortization expense for continuing operations was $12.7 million, $5.8 million, and $4.1 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
Note 9: Other Assets | |||||||||
Other assets consist of the following (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Service fee receivables | $ | 29,931 | $ | — | |||||
Debt issuance costs, net of amortization | 28,066 | 14,397 | |||||||
Identifiable intangible assets, net | 23,549 | 487 | |||||||
Prepaid expenses | 23,487 | 6,399 | |||||||
Deferred tax assets | 13,974 | — | |||||||
Other financial receivables | 7,962 | — | |||||||
Interest receivable | 7,956 | 4,042 | |||||||
Prepaid income taxes | 5,009 | — | |||||||
Recoverable legal fees | 3,049 | 1,521 | |||||||
Security deposits | 2,500 | 1,696 | |||||||
Other | 9,300 | 2,993 | |||||||
$ | 154,783 | $ | 31,535 | ||||||
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Note 10: Debt | |||||||||
The Company is obligated under borrowings as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Encore revolving credit facility | $ | 356,000 | $ | 258,000 | |||||
Encore term loan facility | 140,625 | 148,125 | |||||||
Encore senior secured notes | 58,750 | 72,500 | |||||||
Encore convertible notes | 287,500 | 115,000 | |||||||
Less: Debt discount | (42,240 | ) | (14,442 | ) | |||||
Propel facility | 152,292 | 117,601 | |||||||
Propel Wells Fargo facility | 18,338 | — | |||||||
Cabot senior secured notes | 603,272 | — | |||||||
Add: Debt premium | 43,583 | — | |||||||
Preferred equity certificates | 199,821 | — | |||||||
Capital lease obligations | 12,219 | 9,252 | |||||||
Other | 20,271 | — | |||||||
$ | 1,850,431 | $ | 706,036 | ||||||
Encore Revolving Credit Facility and Term Loan Facility | |||||||||
On February 25, 2014, Encore amended its revolving credit facility and term loan facility (the “Credit Facility”) pursuant to a Second Amended and Restated Credit Agreement, (the “Restated Credit Agreement”). The Restated Credit Agreement includes a revolving credit facility tranche of $692.6 million, a term loan facility tranche of $153.8 million, and an accordion feature that would allow the Company to increase the revolving credit facility by an additional $250.0 million. Including the accordion feature, the maximum amount that can be borrowed under the restated Credit Facility is $1.1 billion. The Restated Credit Agreement has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. | |||||||||
The Restated Credit Agreement includes a basket to allow for investments in unrestricted subsidiaries of $200.0 million and a subordinated or unsecured debt basket of $450.0 million, among other provisions. | |||||||||
Provisions of the Restated Credit Agreement include, but are not limited to: | |||||||||
• | A revolving loan of $692.6 million, interest at a floating rate equal to, at the Company’s option, either: (1) reserve adjusted London Interbank Offered Rate (“LIBOR”), plus a spread that ranges from, depending on the Company’s cash flow leverage ratio, 250 to 300 basis points; or (2) Alternate Base Rate, plus a spread that ranges from, depending on the Company’s cash flow leverage ratio, 150 to 200 basis points. “Alternate Base Rate,” as defined in the 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, as in effect from time to time, (ii) the federal funds effective rate from time to time, plus 0.5% per annum and (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest period, plus 1.0% per annum; | ||||||||
• | An $87.5 million five-year term loan, 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 Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $4.4 million in 2014, $4.4 million in 2015, $6.6 million in 2016, $8.8 million in 2017, and $8.8 million in 2018 with the remaining principal due at the end of the term; | ||||||||
• | A $60.0 million term loan maturing on February 25, 2017, 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 Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term; | ||||||||
• | A $6.3 million term loan maturing on November 3, 2017, 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 Company’s cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Company’s cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term; | ||||||||
• | A borrowing base equal to (1) the lesser of (i) (a) 55% of eligible estimated remaining collections for consumer receivables subject to bankruptcy proceedings, provided that the amount described in this clause (i)(a) may not exceed 35% of the amount described in clauses (i)(a) and (i)(b), plus (b) 30%—35% (depending on the Company’s trailing 12-month cost per dollar collected) of all other eligible estimated remaining collections, initially set at 33%, and (ii) the product of the net book value of all receivable portfolios acquired on or after January 1, 2005 multiplied by 95%, minus (2) (x) the aggregate principal amount outstanding of the Senior Secured Notes (as defined below) plus (y) the aggregate principal amount outstanding under the term loans; | ||||||||
• | The allowance of additional unsecured or subordinated indebtedness not to exceed $450.0 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 $50.0 million of Encore’s common stock after February 25, 2014, subject to compliance with certain covenants and available borrowing capacity; | ||||||||
• | A change of control definition, which excludes acquisitions of stock by Red Mountain Capital Partners LLC, JCF FPK LLP 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; | ||||||||
• | An acquisition limit of $75.0 million per acquisition and $225.0 million in the aggregate for acquisitions after February 25, 2014; | ||||||||
• | An annual foreign portfolio investment basket of $150.0 million; and | ||||||||
• | Collateralization by all assets of the Company, other than the assets of the Propel entities or any foreign or unrestricted subsidiaries. | ||||||||
At December 31, 2013, the outstanding balance under the Restated Credit Agreement was $496.6 million, which bore a weighted average interest rate of 3.11% and 4.06% for the year ended December 31, 2013 and 2012, respectively. | |||||||||
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 amortization 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 amortization payments of $2.5 million. Prior to December 2012 these notes required quarterly interest payments only. As of December 31, 2013, $58.8 million is outstanding under these obligations. | |||||||||
The Senior Secured Notes are guaranteed in full by certain of Encore’s subsidiaries. Similar to, and pari passu with, Encore’s credit facility, the Senior Secured Notes are also collateralized by all assets of the Company other than the assets of the Propel entities and any foreign and unrestricted subsidiaries including Janus Holdings. 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 Senior Secured Notes were amended and restated on May 9, 2013 in connection with the Restated Credit Agreement in order to properly align certain provisions between the two agreements. | |||||||||
Encore Convertible Senior Notes | |||||||||
2017 Convertible Senior Notes | |||||||||
On November 27, 2012, Encore sold $100.0 million in aggregate principal amount of 3.0% convertible senior notes due November 27, 2017 in a private placement transaction. On December 6, 2012, the initial purchasers exercised, in full, their option to purchase an additional $15.0 million of the convertible senior notes, which resulted in an aggregate principal amount of $115.0 million of the convertible senior notes outstanding (collectively, the “2017 Convertible Notes”). Interest on the 2017 Convertible Notes is payable semi-annually, in arrears, on May 27 and November 27 of each year, beginning on May 27, 2013. The 2017 Convertible Notes are the Company’s general unsecured obligations. The 2017 Convertible Notes will be convertible into cash up to the aggregate principal amount of the 2017 Convertible Notes to be converted and the Company will pay or deliver, as the case may be, 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, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2017 Convertible Notes being converted. The 2017 Convertible Notes will be convertible at an initial conversion rate of 31.6832 shares of the Company’s common stock per $1,000 principal amount of 2017 Convertible Notes, subject to adjustment upon certain events, which is equivalent to an initial conversion price of approximately $31.56 per share of the Company’s common stock. As of December 31, 2013, none of the conditions allowing holders of the 2017 Convertible Notes to convert their notes had occurred. However, starting on January 2, 2014, the 2017 Convertible Notes became convertible. | |||||||||
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 Company determined that the fair value of the 2017 Convertible Notes was approximately $100.3 million, and designated the residual value of approximately $14.7 million as the equity component. Additionally, the Company allocated approximately $3.3 million of the $3.8 million original Convertible Notes issuance cost as debt issuance cost and the remaining $0.5 million as equity issuance cost. | |||||||||
In accordance with authoritative guidance related to derivatives and hedging and earnings per share calculation, only the conversion spread of the 2017 Convertible Notes 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 the average share price of the Company’s common stock during any quarter exceeds $31.56. The average share price of the Company’s common stock for the year ended December 31, 2013 exceeded $31.56. The dilutive effect from the 2017 Convertible Notes was approximately 0.6 million shares for the year ended December 31, 2013. See Note 1, “Ownership, Description of Business and Summary of Significant Accounting Policies—Earnings Per Share” for additional information. | |||||||||
Concurrent with the pricing of the 2017 Convertible Notes, the Company entered into privately negotiated convertible note hedge transactions (together, the “Convertible Note Hedge Transactions”) with certain counterparties. The Convertible Note Hedge Transactions collectively cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock underlying the 2017 Convertible Notes, as described below. Concurrently with entering into the Convertible Note Hedge Transactions, the Company also entered into separate, privately negotiated warrant transactions (together, the “Warrant Transactions”) with the same counterparties, whereby the Company sold to the counterparties warrants to purchase, collectively, subject to customary anti-dilution adjustments, up to the same number of shares of the Company’s common stock as in the Convertible Note Hedge Transactions. Subject to certain conditions, the Company may settle the warrants in cash or on a net-share basis. | |||||||||
The Convertible Note Hedge Transactions are expected generally to reduce the potential dilution and/or offset the potential cash payments the Company is required to make in excess of the principal amount upon conversion of the 2017 Convertible Notes in the event that the market price per share of the Company’s common stock, is greater than the strike price of the Convertible Note Hedge Transactions, which initially corresponds to the conversion price of the 2017 Convertible Notes and is subject to anti-dilution adjustments. If, however, the market price per share of the Company’s common stock, as measured under the terms of the Warrant Transactions, exceeds the strike price of the warrants, there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants, unless the Company elects, subject to certain conditions, to settle the Warrant Transactions in cash. The strike price of the Warrant Transactions was initially $44.19 per share of the Company’s common stock and was subject to certain adjustments under the terms of the Warrant Transactions. Taken together, the Convertible Note Hedge Transactions and the Warrant Transactions had the effect of increasing the effective conversion price of the 2017 Convertible Notes to $44.19 per share. The average share price of the Company’s common stock for the year ended December 31, 2013 did not exceed $44.19. | |||||||||
The Convertible Note Hedge Transactions and the Warrant Transactions are separate transactions, in each case, entered into by the Company with certain counterparties, and are not part of the terms of the 2017 Convertible Notes and will not affect any holder’s rights under the 2017 Convertible Notes. Holders of the 2017 Convertible Notes will not have any rights with respect to the Convertible Note Hedge Transactions or the Warrant Transactions. In accordance with authoritative guidance, the Company recorded the net cost of the Convertible Note Hedge Transactions and the Warrant Transactions 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. | |||||||||
On December 16, 2013, the Company entered into amendments to the warrants to increase the strike price from $44.19 to $60.00. All other terms and settlement provisions of the warrants remained unchanged. Warrants representing approximately 358,000 shares of common stock were modified as of December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. The Company paid the holders of the warrants approximately $7.66 per warrant, or approximately $27.9 million in total in consideration for amending the warrants. In accordance with authoritative guidance, the Company recorded the payment as a reduction of shareholders’ equity in the consolidated statements of financial condition because, prior to being amended, the warrants were classified in permanent equity. The amended warrants meet the definition of derivatives; however, because these instruments have been determined to be indexed to the Company’s own stock and meet the criteria for equity classification under the authoritative guidance, the amended warrants have also been recorded in shareholders’ equity in the consolidated statements of financial condition. The costs for the warrant restrike completed in 2013 and 2014 were approximately $2.7 million and $25.2 million, respectively. | |||||||||
2020 Convertible Senior Notes | |||||||||
On June 24, 2013, Encore sold $150.0 million in aggregate principal amount of 3.0% convertible senior notes due July 1, 2020 in a private placement transaction. On July 18, 2013, the initial purchasers exercised, in full, their option to purchase an additional $22.5 million of the convertible senior notes, which resulted in an aggregate principal amount of $172.5 million of the convertible senior notes outstanding (collectively, the “2020 Convertible Notes”). The 2020 Convertible Notes are general unsecured obligations of the Company. Interest on the 2020 Convertible Notes is payable semi-annually, in arrears, on January 1 and July 1 of each year, beginning on January 1, 2014. Prior to January 1, 2020, the 2020 Convertible Notes will be convertible only during specified periods, if certain conditions are met. On or after January 1, 2020, the 2020 Convertible Notes will be convertible regardless of these conditions. Upon conversion, holders 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 conversion rate for the 2020 Convertible Notes is 21.8718 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $45.72 per share of common stock. As of December 31, 2013, none of the conditions allowing holders of the 2020 Convertible Notes to convert their notes had occurred. | |||||||||
As noted above, upon conversion, holders of the Company’s 2020 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. However, 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 the average share price of the Company’s common stock during any quarter exceeds $45.72. | |||||||||
In connection with the pricing of the 2020 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with one or more of the initial purchasers (or their affiliates) and one or more other financial institutions (the “Option Counterparties”). The Capped Call Transactions cover, collectively, the number of shares of the Company’s common stock underlying the 2020 Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2020 Convertible Notes. The cost of the Capped Call Transactions was approximately $18.1 million. In accordance with authoritative guidance, the Company recorded the net cost of the Capped Call Transactions 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 Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount upon conversion of the 2020 Convertible Notes in the event that the market price of the Company’s common stock is greater than the strike price of the Capped Call Transactions (which initially corresponds to the initial conversion price of the 2020 Convertible Notes and is subject to certain adjustments under the terms of the Capped Call Transactions), with such reduction and/or offset subject to a cap based on the cap price of the Capped Call Transactions. The cap price of the Capped Call Transactions is $61.5475 per share, and is subject to certain adjustments under the terms of the Capped Call Transactions. | |||||||||
The Capped Call Transactions are separate transactions, in each case, entered into by the Company with the Option Counterparties, and are not part of the terms of the 2020 Convertible Notes and will not affect any holder’s rights under the 2020 Convertible Notes. Holders of the 2020 Convertible Notes do not have any rights with respect to the Capped Call Transactions. | |||||||||
The net proceeds from the sale of the 2020 Convertible Notes were approximately $167.4 million, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses paid by the Company. The Company used approximately $18.1 million of the net proceeds from this offering to pay the cost of the Capped Call Transactions and used the remainder of the net proceeds from this offering to pay a portion of the purchase price for the Cabot Acquisition and for general corporate purposes. | |||||||||
The Company determined that the fair value of the 2020 Convertible Notes at the date of issuance was approximately $140.2 million, and designated the residual value of approximately $32.3 million as the equity component. Additionally, the Company allocated approximately $4.9 million of the $6.0 million original 2020 Convertible Notes issuance cost as debt issuance costs and the remaining $1.1 million as equity issuance costs. | |||||||||
The balances of the liability and equity components of all of the convertible notes outstanding were as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Liability component—principal amount | $ | 287,500 | $ | 115,000 | |||||
Unamortized debt discount | (42,240 | ) | (14,442 | ) | |||||
Liability component—net carrying amount | $ | 245,260 | $ | 100,558 | |||||
Equity component | $ | 46,954 | $ | 14,702 | |||||
The debt discount is being amortized into interest expense over the remaining life of the convertible notes using the effective interest rates, which are 6.0 % and 6.35% for the 2017 and 2020 Convertible Notes, respectively. | |||||||||
Interest expense related to the convertible notes was as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Interest expense—stated coupon rate | $ | 6,108 | $ | 307 | |||||
Interest expense—amortization of debt discount | 4,492 | 260 | |||||||
Total interest expense—convertible notes | $ | 10,600 | $ | 567 | |||||
Propel Facility | |||||||||
Propel has a $160.0 million syndicated loan facility (the “Propel Facility”). | |||||||||
The Propel Facility expires in May 2015 and includes the following key provisions: | |||||||||
• | Interest at Propel’s option, at either: (1) LIBOR, plus a spread that ranges from 300 to 375 basis points, depending on Propel’s cash flow leverage ratio; or (2) Prime Rate, which is defined in the agreement as the rate of interest per annum equal to the sum of (a) the interest rate quoted in the “Money Rates” section of The Wall Street Journal from time to time and designated as the “Prime Rate” plus (b) the Prime Rate Margin, which is a spread that ranges from 0 to 75 basis points, depending on Propel’s cash flow leverage ratio; | ||||||||
• | A borrowing base of 90% of the face value of the tax lien collateralized payment arrangements; | ||||||||
• | Interest payable monthly; principal and interest due at maturity; | ||||||||
• | Restrictions and covenants, which limit, among other things, the payment of dividends and the incurrence of additional indebtedness and liens; | ||||||||
• | Events of default which, upon occurrence, may permit the lender to terminate the Propel Facility and declare all amounts outstanding to be immediately due and payable; and | ||||||||
• | A $40.0 million accordion feature. | ||||||||
The Propel Facility is primarily collateralized by the Tax Liens in Texas and requires Propel to maintain various financial covenants, including a minimum interest coverage ratio and a maximum cash flow leverage ratio. | |||||||||
On December 27, 2013, Propel exercised the existing accordion feature, increasing the Propel Facility from $160.0 million to $200.0 million. At December 31, 2013, the outstanding balance on the Propel Facility was $152.3 million, which bore a weighted average interest rate of 3.19% and 3.37% for the year ended December 31, 2013 and 2012, respectively. | |||||||||
Propel Wells Fargo Facility | |||||||||
On May 9, 2013, the Company, through subsidiaries of Propel, entered into a $100.0 million revolving credit facility with Wells Fargo Bank N.A. (the “Propel Wells Fargo Facility”). The Propel Wells Fargo Facility is used to purchase tax liens directly from taxing authorities in various other states. | |||||||||
The Propel Wells Fargo Facility expires in May 2017 and includes the following key provisions: | |||||||||
• | During the first two years of the four-year term, the committed amount can be drawn on a revolving basis. During the following two years, no additional draws are permitted, and all proceeds from the tax liens are used to repay any amounts outstanding under the facility. After the four-year period ends, if any amounts are still outstanding, an alternate interest rate applies until all amounts owed are repaid; | ||||||||
• | Prior to the expiration of the four-year term, interest at a per annum floating rate equal to LIBOR plus a spread of 325 basis points; | ||||||||
• | Following the expiration of the four-year term or upon the occurrence of an event of default, interest at 400 basis points plus the greater of (i) a per annum floating rate equal to LIBOR plus a spread of 325 basis points, or (ii) Prime Rate, which is defined in the agreement as the rate most recently announced by the lender at its branch in San Francisco, California, from time to time as its prime commercial rate for United States dollar-denominated loans made in the United States; | ||||||||
• | Proceeds from the tax liens are applied to pay interest, principal and other obligations incurred in connection with the Propel Wells Fargo Facility on a monthly basis as defined in the agreement; | ||||||||
• | Special purpose entity covenants designed to protect the bankruptcy-remoteness of the borrowers and additional restrictions and covenants, which limit, among other things, the payment of certain dividends, the occurrence of additional indebtedness and liens and use of the collections proceeds from the certain Tax Liens; and | ||||||||
• | Events of default which, upon occurrence, may permit the lender to terminate the Propel Wells Fargo Facility and declare all amounts outstanding to be immediately due and payable. | ||||||||
The Propel Wells Fargo Facility is collateralized by the Tax Liens acquired under the Propel Wells Fargo Facility. At December 31, 2013, the outstanding balance on the Propel Wells Fargo Facility was $18.3 million and, for the year ended December 31, 2013, bore a weighted average interest rate of 3.64%. | |||||||||
Cabot Senior Secured Notes | |||||||||
On September 20, 2012, Cabot Financial (Luxembourg) S.A. (“Cabot Financial”), an indirect subsidiary of Janus Holdings, 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 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” and, together with the Cabot 2019 Notes, the “Cabot Notes”). Interest on the Cabot 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014. The total debt issuance cost associated with the Cabot 2020 Notes was approximately $4.9 million. | |||||||||
Of the proceeds from the issuance of the Cabot 2020 Notes, approximately £75.0 million (approximately $113.8 million) was used to repay all amounts outstanding under the senior credit facilities of Cabot Financial (UK) Limited (“Cabot Financial UK”), an indirect subsidiary of Janus Holdings, £25.0 million (approximately $37.9 million) was used to partially repay a portion of the J Bridge PECs (as anticipated in the Purchase Agreement discussed in Note 3, “Business Combinations”) to J.C. Flowers. | |||||||||
The Cabot Notes are fully and unconditionally guaranteed by the following indirect subsidiaries of the Company: Cabot, Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited (other than Cabot Financial). The Cabot Notes are secured by a first ranking security interest in all the outstanding shares of Cabot Financial and the guarantors (other than Cabot) and substantially all the assets of Cabot Financial and the guarantors (other than Cabot). | |||||||||
Interest expense related to the Cabot Notes was as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | |||||||||
Interest expense—stated coupon rate | $ | 27,496 | |||||||
Interest income—appreciation of debt premium | (2,826 | ) | |||||||
Total interest expense—Cabot Notes | $ | 24,670 | |||||||
Cabot Senior Revolving Credit Facility | |||||||||
On September 20, 2012, 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”). This agreement was amended and restated on June 28, 2013 to increase the size of the revolving credit facility to £85.0 million (approximately $140.6 million) (the “Cabot Credit Facility”). | |||||||||
The Cabot Credit Facility has a five-year term expiring in September 2017, and includes the following key provisions: | |||||||||
• | Interest at LIBOR plus a maximum of 4.0% depending on the loan to value (“LTV”) ratio determined quarterly, calculated as being the ratio of the net financial indebtedness of Cabot (as defined in the Cabot Credit Agreement) to Cabot’s estimated remaining collections capped at 84-months; | ||||||||
• | A restrictive covenant that limits the LTV ratio to 0.75; | ||||||||
• | 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: Cabot, Cabot Financial Limited, and all material subsidiaries of Cabot Financial Limited. The Cabot Notes are secured by a first ranking security interest in all the outstanding shares of Cabot Financial UK and the guarantors (other than Cabot) and substantially all the assets of Cabot Financial UK and the guarantors (other than Cabot). | |||||||||
At December 31, 2013, there were no outstanding borrowings under the Cabot Credit Facility. | |||||||||
On February 7, 2014, Cabot Financial UK acquired all of the equity interest of Marlin, a leading acquirer of non-performing consumer debt in the United Kingdom, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). The Acquisition was financed with £75.0 million (approximately $122.3 million) in borrowings under the Cabot Credit Facility and under new senior secured bridge facilities. Refer to Note 18, “Subsequent Events” for additional details related to the acquisition of Marlin and the new senior secured bridge facilities. | |||||||||
Preferred Equity Certificates | |||||||||
As discussed in Note 3, “Business Combinations,” on July 1, 2013, the Company, through Encore Europe, completed the Cabot Acquisition by acquiring E Bridge PECs, E PECs, and E Shares that 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 constitute J Bridge PECs, J PECs, and J shares owned by J.C. Flowers. All of the PECs accrue interest at 12% per annum. In accordance with authoritative guidance related to debt and equity securities, 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. As noted above, the J Bridge PECs, J PECs and Management PECs are included in debt in the Company’s accompanying consolidated statements of financial condition. However, as these liabilities are held by the noncontrolling interest holders and do not require the payment of cash interest expense, 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 interests of J.C. Flowers and management. | |||||||||
The Company determined, at the time of the Cabot Acquisition, that the fair value of the preferred equity certificates and the respective accrued interests approximated their face value. | |||||||||
As anticipated in the Purchase Agreement, and as discussed in Note 3, “Business Combinations,” in August 2013, Cabot made a payment of approximately $41.2 million to J.C. Flowers for a partial redemption of the J Bridge PECs. | |||||||||
As of December 31, 2013, the outstanding balance of the PECs and their accrued interests was approximately $199.8 million. | |||||||||
Capital Lease Obligations | |||||||||
The Company has capital lease obligations primarily for computer equipment. As of December 31, 2013, the Company’s combined obligations for these equipment leases were approximately $13.0 million. These lease obligations require monthly or quarterly payments through 2018 and have implicit interest rates that range from zero to approximately 13.3%. | |||||||||
Maturity Schedule | |||||||||
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 | |||||||||
2014 | $ | 40,989 | |||||||
2015 | 226,906 | ||||||||
2016 | 28,459 | ||||||||
2017 | 573,622 | ||||||||
2018 | 2,655 | ||||||||
Thereafter | 976,458 | ||||||||
Total(1) | $ | 1,849,089 | |||||||
(1) | On February 25, 2014, the Company amended its Credit Facility. The restated Credit Facility has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. The maturity schedule in the table above does not reflect the amended maturity schedule for the restated Credit Facility. |
Variable_Interest_Entity
Variable Interest Entity | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Variable Interest Entity | ' | ||||
Note 11: Variable Interest Entity | |||||
On July 1, 2013, the Company, through Encore Europe, completed its acquisition of 50.1% of the equity interest in Janus Holdings. See Note 3, “Business Combinations” for more information. The Company has determined that Janus Holdings is a VIE, and the Company is the primary beneficiary of the VIE. As a result, the financial results of Janus Holdings are consolidated under the VIE consolidation model. 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 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 Cabot’s immediate parent company, the Company controls the key operating activities at Cabot. The Company evaluates its relationships with the VIE on an ongoing basis to ensure that it continues to be the primary beneficiary. | |||||
The Company considers that the rights granted to J.C. Flowers under the contractual arrangements are more protective in nature rather than participating rights. | |||||
The Company does not intend to provide financial support to Janus Holdings. The Company did not apply push down accounting to Janus Holdings as a result of the business combination. | |||||
The Company’s consolidated assets as of December 31, 2013 included assets from Janus Holdings that can only be used to settle obligations of Janus Holdings. The Company’s consolidated liabilities as of December 31, 2013, included liabilities of Janus Holdings, whose creditors have no recourse to the Company. The following table presents Janus Holdings’ assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s consolidated statement of financial condition as of December 31, 2013 (in thousands): | |||||
December 31, | |||||
2013 | |||||
Assets | |||||
Cash and cash equivalents | $ | 62,403 | |||
Investment in receivable portfolios, net | 620,312 | ||||
Property and equipment, net | 13,755 | ||||
Other assets | 33,772 | ||||
Goodwill | 376,296 | ||||
Total assets | $ | 1,106,538 | |||
Liabilities | |||||
Accounts payable and accrued liabilities | $ | 47,219 | |||
Debt | 846,676 | ||||
Other liabilities | 1,897 | ||||
Total liabilities | $ | 895,792 |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 12: Stock-Based Compensation | |||||||||||||||||
On March 9, 2009, Encore’s Board of Directors (the “Board”) approved an amendment and restatement of the 2005 Stock Incentive Plan (“2005 Plan”), which was originally adopted on March 30, 2005, for Board members, employees, officers, and executives of, and consultants and advisors to, the Company. The amendment and restatement of the 2005 Plan increased by 2,000,000 shares the maximum number of shares of the Company’s common stock that may be issued or be subject to awards under the plan, established a new 10-year term for the plan, and made certain other amendments. The 2005 Plan amendment was approved by the Company’s stockholders on June 9, 2009. The 2005 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, and performance-based awards to eligible individuals. As amended, the 2005 Plan allows the granting of an aggregate of 3,500,000 shares of the Company’s common stock for awards. In addition, shares subject to options granted under the 2005 Plan that terminate or expire without being exercised will become available for grant under the 2005 Plan. The benefit provided under the 2005 Plan is 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, 2013, 2012, and 2011 was $12.6 million, $8.8 million, and $7.7 million, respectively. | |||||||||||||||||
The Company’s stock-based compensation arrangements are described below: | |||||||||||||||||
Stock Options | |||||||||||||||||
The 2005 Plan permits the granting of stock options to certain employees and members of the board of directors of the Company. Option awards are 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 was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions (there were no options granted during the year ended December 31, 2013): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Weighted average fair value of options granted | $ | 11.77 | $ | 13.26 | |||||||||||||
Risk free interest rate | 0.9 | % | 2 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Volatility factors of the expected market price of the Company’s common stock | 63 | % | 61 | % | |||||||||||||
Weighted-average expected life of options | 5 Years | 5 Years | |||||||||||||||
Unrecognized compensation cost related to stock options as of December 31, 2013, was $0.7 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding stock options was approximately 1.0 years. | |||||||||||||||||
A summary of the Company’s stock option activity as of December 31, 2013, and changes during the year then ended, is presented below: | |||||||||||||||||
Number of | Option Price | Weighted Average | Aggregate | ||||||||||||||
Shares | Per Share | Exercise Price | Intrinsic | ||||||||||||||
Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding at December 31, 2012 | 1,948,259 | $ | 2.89 –$24.65 | $ | 15.38 | ||||||||||||
Cancelled/forfeited | (61,332 | ) | 22.17 –24.65 | 23.03 | |||||||||||||
Exercised | (753,755 | ) | 2.89 –24.65 | 15.56 | |||||||||||||
Outstanding at December 31, 2013 | 1,133,172 | $ | 2.89 –$24.65 | $ | 14.84 | $ | 40,138 | ||||||||||
Exercisable at December 31, 2013 | 987,843 | $ | 2.89 –$24.65 | $ | 13.71 | $ | 36,103 | ||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012, and 2011 was $16.9 million, $9.1 million, and $10.5 million, respectively. As of December 31, 2013, the weighted-average remaining contractual life of options outstanding and options exercisable was 5.6 years and 5.2 years, respectively. | |||||||||||||||||
Non-Vested Shares | |||||||||||||||||
Under the Company’s 2005 Plan, employees, officers, executives and directors of, and consultants and advisors to, the Company are eligible to receive restricted stock units and restricted stock awards. In accordance with the authoritative guidance, the fair value of these non-vested shares is equal to the closing sale price of the Company’s common stock on the date of issuance. The total number of these awards expected to vest is adjusted by estimated forfeiture rates. | |||||||||||||||||
A summary of the status of the Company’s restricted stock units and restricted stock awards as of December 31, 2013, and changes during the year then ended, is presented below: | |||||||||||||||||
Non-Vested | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at December 31, 2012 | 744,016 | $ | 23.51 | ||||||||||||||
Awarded | 645,266 | $ | 35.03 | ||||||||||||||
Vested | (336,772 | ) | $ | 22.85 | |||||||||||||
Cancelled/forfeited | (66,775 | ) | $ | 26.39 | |||||||||||||
Non-vested at December 31, 2013 | 985,735 | $ | 31.07 | ||||||||||||||
Unrecognized compensation cost related to non-vested shares as of December 31, 2013, was $16.2 million. The weighted-average remaining expense period, based on the unamortized value of these outstanding non-vested shares, was approximately 2.2 years. The fair value of restricted stock units and restricted stock awards vested for the years ended December 31, 2013, 2012, and 2011 was $11.5 million, $7.0 million, and $7.1 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 13: Income Taxes | |||||||||||||
During the year ended December 31, 2013, the Company recorded an income tax provision of $45.4 million, reflecting an effective rate of 37.6% of pretax income from continuing operations. The effective tax rate for the year ended December 31, 2013, primarily consisted of a provision for federal income taxes of 33.0% (which is net of a benefit for state taxes of 2.0%), a provision for state taxes of 5.8% and a net benefit of 1.2%, due to permanent book versus tax differences. During the year ended December 31, 2012, the Company recorded an income tax provision of $51.8 million, reflecting an effective rate of 39.7% of pretax income from continuing operations. The effective tax rate for the year ended December 31, 2012, primarily consisted of a provision for federal income taxes of 32.7% (which is net of a benefit for state taxes of 2.3%), a provision for state taxes of 6.6% and a net provision of 0.4%, due to permanent book versus tax differences, and international rate differentials. | |||||||||||||
The effective tax rates for the respective periods are shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Federal provision | 35 | % | 35 | % | |||||||||
State provision | 5.8 | % | 6.6 | % | |||||||||
State benefit | (2.0 | %) | (2.3 | %) | |||||||||
Changes in state apportionment(1) | (0.2 | %) | 0 | % | |||||||||
Tax reserves(2) | 0 | % | 0.1 | % | |||||||||
International provision(3) | (2.2 | %) | (0.4 | %) | |||||||||
Permanent items(4) | 2.4 | % | 0.5 | % | |||||||||
Other | (1.2 | %) | 0.2 | % | |||||||||
Effective rate | 37.6 | % | 39.7 | % | |||||||||
(1) | Represents changes in state apportionment methodologies. | ||||||||||||
(2) | Represents reserves taken for certain tax position adopted by the Company. | ||||||||||||
(3) | Relates primarily to the lower tax rate on the income attributable to international operations. | ||||||||||||
-4 | Represents a provision for nondeductible items. | ||||||||||||
The pretax income consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 105,009 | $ | 122,423 | $ | 92,759 | |||||||
Foreign | 15,859 | 7,902 | 5,910 | ||||||||||
$ | 120,868 | $ | 130,325 | $ | 98,669 | ||||||||
The provision for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current expense: | |||||||||||||
Federal | $ | 50,304 | $ | 48,025 | $ | 30,822 | |||||||
State | 7,196 | 9,537 | 6,647 | ||||||||||
Foreign | 4,052 | 2,765 | 2,407 | ||||||||||
61,552 | 60,327 | 39,876 | |||||||||||
Deferred (benefit) expense: | |||||||||||||
Federal | (13,134 | ) | (6,801 | ) | (814 | ) | |||||||
State | (2,369 | ) | (1,301 | ) | 90 | ||||||||
Foreign | (661 | ) | (471 | ) | (1,076 | ) | |||||||
(16,164 | ) | (8,573 | ) | (1,800 | ) | ||||||||
$ | 45,388 | $ | 51,754 | $ | 38,076 | ||||||||
The components of deferred tax assets and liabilities consisted of the following for the years presented (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
State taxes | $ | 2,758 | $ | 1,408 | |||||||||
Stock-based compensation expense | 7,250 | 8,888 | |||||||||||
Accrued expenses | 5,015 | 2,957 | |||||||||||
Non-qualified plan | 97 | (136 | ) | ||||||||||
Deferred revenue | 38,529 | — | |||||||||||
Cash flow hedge instruments | 1,588 | 1,037 | |||||||||||
State and international operating losses | 6,490 | 51 | |||||||||||
Fixed asset basis—International | 86 | (26 | ) | ||||||||||
Capitalized legal fees—International | 1,609 | — | |||||||||||
Cumulative translation adjustment | 1,509 | — | |||||||||||
Tax benefit of uncertain tax positions | 4,237 | — | |||||||||||
Valuation allowance | (3,595 | ) | (13 | ) | |||||||||
65,573 | 14,166 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred court costs | (15,445 | ) | (15,013 | ) | |||||||||
Difference in basis of amortizable assets | (12,200 | ) | (7,898 | ) | |||||||||
Difference in basis of depreciable assets | (6,834 | ) | (4,134 | ) | |||||||||
Differences in income recognition related to receivable portfolios | (20,773 | ) | 5,723 | ||||||||||
Deferred debt cancellation income | (1,222 | ) | (1,222 | ) | |||||||||
Other | (2,289 | ) | 142 | ||||||||||
(58,763 | ) | (22,402 | ) | ||||||||||
Net deferred tax asset (liability) | $ | 6,810 | $ | (8,236 | ) | ||||||||
The differences between the total income tax expense and the income tax expense computed using the applicable federal income tax rate of 35% per annum were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed “expected” Federal income tax expense | $ | 42,304 | $ | 45,614 | $ | 34,534 | |||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
State income taxes, net | 3,138 | 5,551 | 4,200 | ||||||||||
Foreign non-taxed income, rate differential | (2,647 | ) | (481 | ) | (772 | ) | |||||||
Other adjustments, net | 2,593 | 1,070 | 114 | ||||||||||
$ | 45,388 | $ | 51,754 | $ | 38,076 | ||||||||
The Company has not provided for the United States income taxes or foreign withholding taxes on the undistributed earnings from continuing operations of its subsidiary operating outside of the United States. Undistributed earnings of the subsidiary for the year ended December 31, 2013, were approximately $5.6 million. Such undistributed earnings are considered permanently reinvested. If the earnings were to be distributed, it is estimated that taxes in the amount of approximately $2.2 million, before utilization of any foreign tax credits, would need to be reflected in the financial statements. | |||||||||||||
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, 2013 was immaterial. | |||||||||||||
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, 2012 | $ | 1,784 | |||||||||||
Current year deletions relating to prior years | (712 | ) | |||||||||||
Current year additions relating to prior years—acquisitions | 70,201 | ||||||||||||
Balance at December 31, 2013 | $ | 71,273 | |||||||||||
As of December 31, 2013, the Company had a gross unrecognized tax benefit of $83.0 million primarily related to an uncertain tax position resulting from the AACC Merger due to AACC’s tax revenue recognition policy. This uncertain tax position, if recognized, would result in a net tax benefit of $13.5 million and would have a positive effect on the Company’s effective tax rate. During the year ended December 31, 2013, there was an increase in the gross unrecognized tax benefit of $79.4 million primarily as a result of the AACC Merger as discussed in Note 3, “Business Combinations.” | |||||||||||||
During 2013, the Company accrued interest of $1.4 million related to prior years’ uncertain tax positions. In total as of December 31, 2013, the Company recorded a liability for potential interest of $11.7 million. The interest accrual is recorded as part of the provision for income taxes. | |||||||||||||
The Company believes that it is reasonably possible that its $83.0 million gross unrecognized tax benefits will decrease within the next 12 months. The majority of the gross unrecognized tax benefits relate to uncertain tax positions associated with the acquisition of AACC. The event that may significantly reduce the unrecognized tax benefits is the completion of a federal tax audit of AACC. The unrecognized tax benefits are included in other liabilities on the Company’s consolidated statements of financial condition. | |||||||||||||
The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2010 through 2013 tax years remain subject to examination by federal taxing authorities for Encore while tax years from 2008 forward remain open to adjustment for AACC. The 2008 through 2013 tax years generally remain subject to examination by state tax authorities, and the 2011 through 2013 tax years remain subject to examination by foreign tax authorities. | |||||||||||||
The Company’s UK subsidiary has a net operating loss carry forward in the amount of approximately $30.4 million, which can be carried forward indefinitely. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
Note 14: Commitments and Contingencies | |||||||||||||
Litigation | |||||||||||||
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, are 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 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 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 involve potential compensatory or punitive damage claims, fines, sanctions, or injunctive relief. Many continue on for some length of time and involve substantial litigation, effort, and negotiation 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 plaintiff sought actual and statutory damages for the class of Ohio residents, plus attorney’s fees and costs of class notice and class administration. The dollar amount of damages originally sought in the case was an unspecified amount in excess of $25,000. On August 12, 2011, the court issued an order granting final approval to the parties agreed upon settlement of this lawsuit, as well as two other pending lawsuits in the Northern District of Ohio entitled Franklin v. Midland Funding LLC and Vassalle v. Midland Funding LLC, on a national class basis, and dismissed the cases against the Midland Defendants with prejudice. That order was subsequently appealed by certain objectors to the settlement, and on February 26, 2013, the Court of Appeals for the Sixth Circuit reversed the district court’s order approving the settlement, vacated the judgment certifying a nationwide settlement class, and remanded the case back to the Northern District of Ohio for further proceedings consistent with the Sixth Circuit’s ruling. By agreement dated November 8, 2013, the parties entered into a revised agreement to settle the lawsuits on a national class basis, subject to obtaining court approval after notice to the class. The Company has vigorously denied the claims asserted against it in these matters, but has agreed to the 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 in connection with the previous proposed settlement. 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 November 27, 2013, the district court issued an order granting preliminary approval of the parties’ revised agreed upon settlement of this lawsuit, and will hold a hearing on the fairness and reasonableness of the agreement and whether final approval should be given to it on May 15, 2014. | |||||||||||||
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 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. On October 17, 2012, a national class action titled Hartman v. Midland Credit Management, Inc. was filed in the Middle District of Florida. The complaint in Hartman alleged that the Company’s subsidiary violated the TCPA by calling consumers’ cellular phones without their prior express consent. On November 20, 2012, the Hartman case was transferred to the Southern District of California to be consolidated with the multidistrict litigation. There have been, and may continue to be from time to time, similar claims filed against the Company alleging violations of the TCPA. | |||||||||||||
On March 8, 2013, March 19, 2013 and March 20, 2013, three actions entitled Shell v. Asset Acceptance Capital Corp., et. al., Neumann v. Asset Acceptance Capital Corp., et. al., and Jaluka v. Asset Acceptance Capital Corp. et. al., respectively, were filed in the Macomb County Circuit Court of the State of Michigan. On April 19, 2013, a fourth action entitled Dix v. Asset Acceptance Capital Corp. et al was filed in the Court of Chancery of the State of Delaware. These actions were brought by purported stockholders of AACC against the Company, AACC, and certain other named entities and individuals, and allege, among other things, that the Company has aided and abetted AACC’s directors in breaching their fiduciary duties of care, loyalty and candor or disclosure owed to AACC stockholders. Plaintiffs in the actions sought, among other things, injunctive relief prohibiting consummation of the proposed acquisition, or rescission of the proposed acquisition (in the event the transaction has already been consummated), as well as costs and disbursements, including reasonable attorneys’ and experts’ fees, and other equitable or injunctive relief as the court may deem just and proper. The plaintiffs did not specify the dollar amount of damages sought in each action. On June 2, 2013, AACC entered into a Memorandum of Understanding (the “MOU”) with the plaintiffs in the Michigan actions and Delaware action that sets forth the parties’ agreement in principle for settlement. As explained in the MOU, without admitting any wrongdoing, AACC agreed to make certain additional disclosures related to the proposed merger, and to enter into a stipulation of settlement providing for the certification of a class, for settlement purposes only, that includes certain persons or entities who held shares of AACC common stock and the release of all asserted claims. On September 16, 2013, AACC entered into a stipulation of settlement which sets forth the terms of the MOU. On December 16, 2013, the Michigan court issued an order granting final approval to the parties agreed upon settlement of the lawsuits, awarded the attorneys for the class members attorneys’ fees and costs in the amount of $550,000, and dismissed the Michigan actions with prejudice. On January 17, 2014, as a result of approval of the settlement by the Michigan court, the Delaware action was also dismissed with prejudice. | |||||||||||||
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 revises its estimates when additional information becomes available. As of December 31, 2013, the Company has no material reserves for litigation. Additionally, based on the current status of litigation 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, India, United Kingdom, Ireland, Costa Rica, Colombia, and Peru. The leases are structured as operating leases, and the Company incurred related rent expense in the amounts of $12.0 million, $6.9 million, and $5.8 million during the years ended December 31, 2013, 2012, and 2011, 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 | Operating | Total | |||||||||||
Leases | Leases | ||||||||||||
2014 | $ | 5,903 | $ | 17,582 | $ | 23,485 | |||||||
2015 | 4,242 | 15,824 | 20,066 | ||||||||||
2016 | 2,262 | 12,624 | 14,886 | ||||||||||
2017 | 519 | 10,861 | 11,380 | ||||||||||
2018 | 110 | 8,115 | 8,225 | ||||||||||
Thereafter | — | 20,540 | 20,540 | ||||||||||
Total minimal leases payments | 13,036 | $ | 85,546 | $ | 98,582 | ||||||||
Less: Interest | (817 | ) | |||||||||||
Present value of minimal lease payments | $ | 12,219 | |||||||||||
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, 2013, the Company has entered into agreements to purchase receivable portfolios with a face value of approximately $770.1 million for a purchase price of approximately $93.5 million. The Company has no purchase commitments extending 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, 2013, has no liabilities recorded for these agreements. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Note 15: Segment Information | |||||||||||||
The Company conducts business primarily through two reportable segments: portfolio purchasing and recovery and tax lien business. 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. The operating results from the Company’s tax lien business segment are immaterial to the Company’s total consolidated operating results. However, total assets from the tax lien business segment are significant as compared to the Company’s total consolidated assets. As a result, in accordance with authoritative guidance on segment reporting, the Company’s tax lien business segment is determined to be a reportable segment. | |||||||||||||
Segment operating income includes income from operations before depreciation, amortization of intangible assets, and stock-based compensation expense. The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues: | |||||||||||||
Portfolio purchasing and recovery | $ | 756,277 | $ | 545,419 | $ | 448,746 | |||||||
Tax lien business | 17,087 | 11,358 | — | ||||||||||
$ | 773,364 | $ | 556,777 | $ | 448,746 | ||||||||
Operating income: | |||||||||||||
Portfolio purchasing and recovery | $ | 219,510 | $ | 164,038 | $ | 131,970 | |||||||
Tax lien business | 5,045 | 5,677 | — | ||||||||||
224,555 | 169,715 | 131,970 | |||||||||||
Depreciation and amortization | (13,547 | ) | (5,840 | ) | (4,081 | ) | |||||||
Stock-based compensation | (12,649 | ) | (8,794 | ) | (7,709 | ) | |||||||
Other expense | (77,491 | ) | (24,756 | ) | (21,511 | ) | |||||||
Income from continuing operations before income taxes | $ | 120,868 | $ | 130,325 | $ | 98,669 | |||||||
Additionally, assets are allocated to operating segments for management review. As of December 31, 2013, total segment assets were $2.4 billion and $253.4 million for the portfolio purchasing and recovery segment and tax lien business segment, respectively. | |||||||||||||
The following presents information about geographic areas in which the Company operates (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues(1) : | |||||||||||||
United States | $ | 677,873 | $ | 556,777 | $ | 448,746 | |||||||
United Kingdom | 95,491 | — | — | ||||||||||
$ | 773,364 | $ | 556,777 | $ | 448,746 | ||||||||
(1) | Revenues are attributed to countries based on location of customer. |
Goodwill_and_Identifiable_Inta
Goodwill and Identifiable Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Identifiable Intangible Assets | ' | ||||||||||||||||||||||||
Note 16: Goodwill and Identifiable Intangible Assets | |||||||||||||||||||||||||
In accordance with authoritative guidance, goodwill is tested at the reporting unit level annually for impairment and in interim periods if certain events occur that indicate the fair value of a reporting unit may be below its carrying value. Goodwill was allocable to reporting units included in the Company’s reportable segments, as follows (in thousands): | |||||||||||||||||||||||||
Portfolio | Tax Lien | Total | |||||||||||||||||||||||
Purchasing and | Business | ||||||||||||||||||||||||
Recovery | |||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 6,047 | $ | 49,399 | $ | 55,446 | |||||||||||||||||||
Goodwill acquired | 429,621 | 3,887 | 433,508 | ||||||||||||||||||||||
Goodwill adjustment | (5,121 | ) | (4,009 | ) | (9,130 | ) | |||||||||||||||||||
Effect of foreign currency translation | 24,389 | — | 24,389 | ||||||||||||||||||||||
Balance, December 31, 2013 | $ | 454,936 | $ | 49,277 | $ | 504,213 | |||||||||||||||||||
The Company’s acquired intangible assets are summarized as follows (in thousands): | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Customer relationships | $ | 1,975 | $ | (75 | ) | $ | 1,901 | $ | — | $ | — | $ | — | ||||||||||||
Developed technologies | 4,909 | (468 | ) | 4,441 | — | — | — | ||||||||||||||||||
Trade name and other | 15,631 | (386 | ) | 15,245 | 570 | (83 | ) | 487 | |||||||||||||||||
Other intangibles—indefinite lived | 1,962 | — | 1,962 | — | — | — | |||||||||||||||||||
Total intangible assets | $ | 24,477 | $ | (929 | ) | $ | 23,549 | $ | 570 | $ | (83 | ) | $ | 487 | |||||||||||
The weighted-average useful lives of intangible assets at the time of acquisition are as follows: | |||||||||||||||||||||||||
Weighted-Average | |||||||||||||||||||||||||
Useful Lives | |||||||||||||||||||||||||
Customer relationships | 9 | ||||||||||||||||||||||||
Developed technologies | 5 | ||||||||||||||||||||||||
Trade name and other | 13 | ||||||||||||||||||||||||
The amortization expense for intangible assets that are subject to amortization was $0.8 million, less than $0.1 million, and $0.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. Estimated future amortization expense related to finite-lived intangible assets at December 31, 2013 is as follows: (in thousands): | |||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||
2014 | $ | 2,877 | |||||||||||||||||||||||
2015 | 2,809 | ||||||||||||||||||||||||
2016 | 2,619 | ||||||||||||||||||||||||
2017 | 2,482 | ||||||||||||||||||||||||
2018 | 1,741 | ||||||||||||||||||||||||
Thereafter | 9,059 | ||||||||||||||||||||||||
Total | $ | 21,587 | |||||||||||||||||||||||
Quarterly_Information
Quarterly Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Information | ' | ||||||||||||||||
Note 17: 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 | ||||||||||||||
2013 | |||||||||||||||||
Gross collections | $ | 270,170 | $ | 278,388 | $ | 379,670 | $ | 351,278 | |||||||||
Revenues | 144,586 | 156,121 | 235,558 | 237,099 | |||||||||||||
Total operating expenses | 105,872 | 126,238 | 174,429 | 168,466 | |||||||||||||
Income from continuing operations | 19,448 | 11,012 | 21,372 | 23,648 | |||||||||||||
Net income | 19,448 | 11,012 | 21,064 | 22,216 | |||||||||||||
Amounts attributable to Encore Capital Group, Inc.: | |||||||||||||||||
Income from continuing operations | 19,448 | 11,012 | 22,194 | 24,385 | |||||||||||||
Net income | 19,448 | 11,012 | 21,886 | 22,953 | |||||||||||||
Earnings per share attributable to Encore Capital Group, Inc.: | |||||||||||||||||
From continuing operations: | |||||||||||||||||
Basic | $ | 0.83 | $ | 0.46 | $ | 0.87 | $ | 0.95 | |||||||||
Diluted | 0.8 | 0.44 | 0.82 | 0.87 | |||||||||||||
From net income: | |||||||||||||||||
Basic | $ | 0.83 | $ | 0.46 | $ | 0.86 | $ | 0.9 | |||||||||
Diluted | 0.8 | 0.44 | 0.81 | 0.82 | |||||||||||||
2012 | |||||||||||||||||
Gross collections | $ | 231,028 | $ | 240,560 | $ | 245,977 | $ | 230,490 | |||||||||
Revenues | 126,410 | 141,246 | 145,218 | 143,903 | |||||||||||||
Total operating expenses | 91,394 | 102,809 | 103,621 | 103,872 | |||||||||||||
Income from continuing operations | 18,108 | 18,988 | 21,308 | 20,167 | |||||||||||||
Net income | 11,406 | 16,596 | 21,308 | 20,167 | |||||||||||||
Earnings per share: | |||||||||||||||||
From continuing operations: | |||||||||||||||||
Basic | $ | 0.73 | $ | 0.76 | $ | 0.85 | $ | 0.82 | |||||||||
Diluted | 0.7 | 0.74 | 0.82 | 0.79 | |||||||||||||
From net income: | |||||||||||||||||
Basic | $ | 0.46 | $ | 0.67 | $ | 0.85 | $ | 0.82 | |||||||||
Diluted | 0.44 | 0.64 | 0.82 | 0.79 |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 18: Subsequent Events | |
Marlin Acquisition | |
On February 7, 2014, Cabot, through its subsidiary Cabot Financial Holdings Group Limited (“Cabot Financial Holdings”), entered into a Share Sale and Purchase Agreement (the “Marlin Purchase Agreement”), pursuant to which Cabot acquired (a) the entire issued share capital of Marlin Financial Group Limited, a company organized under the laws of England (“Marlin”) and (b) certain subordinated fixed rate loan notes of Marlin Financial Intermediate Limited, a company organized under the laws of England, which is a direct wholly owned subsidiary of Marlin (the “Marlin Acquisition”), from funds managed by Duke Street and certain individuals, including certain executive management of Marlin (collectively, the “Sellers”). | |
Pursuant to the terms and conditions of the Marlin Purchase Agreement and certain ancillary agreements, Cabot Financial Holdings purchased from the Sellers all of the issued and outstanding equity securities of Marlin and certain subordinated fixed rate loan notes of Marlin Financial Intermediate Limited and assumed substantially all of the outstanding debt of Marlin Intermediate Holdings plc, a subsidiary of Marlin, for an aggregate purchase price of approximately £295.0 million (approximately $481.0 million). | |
Senior Secured Bridge Facilities | |
The Marlin Acquisition was financed with borrowings under the existing revolving credit facility of Cabot Financial (UK) Limited (the “Revolving Credit Facility”), a subsidiary of Cabot Financial Holdings, and under new senior secured bridge facilities (the “Senior Secured Bridge Facilities”) provided by J.P. Morgan Limited, Deutsche Bank AG, London Branch, Lloyds Bank plc, The Royal Bank of Scotland plc and UBS Limited entered into on February 7, 2014 pursuant to a Senior Secured Bridge Facilities Agreement. | |
The Senior Secured Bridge Facilities Agreement provides for (a) a senior secured bridge facility in an aggregate principal amount of up to £105.0 million (“Bridge Facility A”) and (b) a senior secured bridge facility in an aggregate principal amount of up to £151.5 million (“Bridge Facility B,” and together with Bridge Facility A, the “Bridge Facilities”). The purpose of Bridge Facility A is to provide funding for the financing, in full or in part, of the purchase price for the Marlin Acquisition and the payment of costs, fees and expenses in connection with the Marlin Acquisition, and was fully drawn on as of the closing of the Marlin Acquisition. The purpose of Bridge Facility B is to finance, in full or in part, the repurchase of any bonds tendered in any change of control offer required to be made to the holders of the £150 million 10.5% Senior Secured Notes due 2020 issued by Marlin Intermediate Holdings plc (the “Marlin Bonds”) and the premium payable thereon. Bridge Facility B was intended to be utilized only to the extent that any holders of the Marlin Bonds elect to tender their Marlin Bonds within a defined period. That period has expired, no Marlin Bonds were tendered and Bridge Facility B has expired without drawdown. The Senior Secured Bridge Facilities Agreement also provides for uncommitted incremental facilities in an amount of up to £80.0 million for the purposes of financing future debt portfolio acquisitions. The Senior Secured Bridge Facilities have an initial term of one year and an extended term of 6.5 years if they are not repaid during the first year of issuance. | |
Prior to their initial maturity date, the rate of interest payable under the Senior Secured Bridge Facilities is the aggregate, per annum, of (i) LIBOR, plus (ii) an initial spread of 6.00% per annum (such spread stepping up by 50 basis points for each three-month period that the Senior Secured Bridge Facilities remain outstanding), not to exceed total caps set forth in the Senior Secured Bridge Facilities Agreement. | |
The Senior Secured Bridge Facilities are subject to mandatory prepayment with equity proceeds or the proceeds of other debt financings (subject to certain exceptions), at par prior to their initial maturity date. The Senior Secured Bridge Facilities have covenants that are substantially similar to those set forth in the Revolving Credit Facility (but prior to the initial maturity date, restricting the group from certain types of debt incurrence or restricted payments). The Senior Secured Bridge Facilities are guaranteed by all of the subsidiaries of Cabot Financial Limited other than Cabot Financial Holdings and share in the collateral granted to the existing senior secured notes issued by Cabot Financial (Luxembourg) S.A. on a pari passu basis. The events of default under the Senior Secured Bridge Facilities are substantially similar to those set forth in the Revolving Credit Facility and include, among other things, payment and covenant breaches and insolvencies of Cabot Financial Holdings or significant subsidiaries. | |
Restated Credit Agreement | |
On February 25, 2014, Encore amended its Restated Credit Agreement. The Restated Credit Agreement includes a revolving credit facility tranche of $692.6 million, a term loan facility tranche of $153.8 million, and an accordion feature that would allow the Company to increase the revolving credit facility by an additional $250.0 million. Including the accordion feature, the maximum amount that can be borrowed under the Restated Credit Facility is $1.1 billion. The Restated Credit Agreement has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. Refer to Note 10, “Debt,” for additional information related to the Restated Credit Agreement. | |
Acquisition of Grove Holdings | |
On February 22, 2014, the Company agreed to acquire approximately 68.2% of equity ownership interest in Grove Holdings (“Grove”). Grove, through its subsidiaries, is a leading specialty investment firm focused on consumer non-performing loans, including insolvencies in the United Kingdom (in particular, individual voluntary arrangements, or IVAs) and non-bank receivables in Spain. The transaction is subject to regulatory approval and is anticipated to close in the first quarter of 2014. |
Ownership_Description_of_Busin1
Ownership, Description of Business, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Portfolio Purchasing and Recovery | ' | ||||||||||||
Portfolio Purchasing and Recovery | |||||||||||||
United States. The Company purchases receivable portfolios based on robust, account-level valuation methods and employs a suite of proprietary statistical and behavioral models across the full extent of its operations. These investments allow the Company to value portfolios accurately (and limit the risk of overpaying), avoid buying portfolios that are incompatible with its methods or goals and precisely align the accounts it purchases with its operational channels to maximize future collections. As a result, the Company has been able to realize significant returns from the receivables it acquires. The Company maintains strong relationships with many of the largest credit and telecommunication providers, and possesses one of the industry’s best collection staff retention rates. | |||||||||||||
The Company uses insights discovered during its purchasing process to build account collection strategies. The Company’s proprietary consumer-level collectability analysis is the primary determinant of whether an account will be actively serviced post-purchase. The Company continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. After the Company’s preliminary analysis, it seeks to collect on only a fraction of the accounts it purchases, through one or more of its collection channels. The channel identification process is analogous to a funneling system, where the Company first differentiates those consumers who it believes are not able to pay from those who are able to pay. Consumers who the Company believes are financially incapable of making any payments, facing extenuating circumstances or hardships (such as medical issues), serving in the military, or currently receiving social security as their only source of income are excluded from the next step of its collection process and are designated as inactive. The remaining pool of accounts in the funnel then receives further evaluation. At that point, the Company analyzes and determines a consumer’s perceived willingness to pay. Based on that analysis, the Company will pursue collections through letters and/or phone calls to its consumers. Despite its efforts to reach consumers and work out a settlement option, only a small number of consumers who are contacted choose to engage with the Company. Those who do are often offered deep discounts on their obligations, or are presented with payment plans that are better suited to meet their daily cash flow needs. The majority of contacted consumers, however, ignore both the Company’s calls and letters, and therefore the Company must then make the difficult decision whether or not to pursue collections through legal means. | |||||||||||||
The Company continually monitors applicable changes to laws governing statutes of limitations and disclosures to consumers. The Company maintains policies, system controls, and processes designed to ensure that accounts past the applicable statute of limitations do not get placed into legal collections. Additionally, in written and verbal communications with consumers, the Company provides disclosures to the consumer that the account is past its applicable statute of limitations and, therefore, the Company will not pursue collections through legal means. | |||||||||||||
United Kingdom. Through Cabot, portfolio receivables are purchased using a proprietary pricing model. This model allows Cabot to value portfolios with a high degree of accuracy and quantify portfolio performance in order to maximize future collections. As a result, Cabot has been able to realize significant returns from the assets it has acquired. Cabot maintains strong relationships with many of the largest financial service providers in the United Kingdom. | |||||||||||||
Cabot also uses insights discovered during its purchasing process to build account collection strategies. Cabot’s proprietary consumer-level collectability analysis is the primary determinant of how an account will be serviced post-purchase. Cabot continuously refines this analysis to determine the most effective collection strategy to pursue for each account it owns. In recent years, Cabot has concentrated on buying portfolios that are defined as semi-performing in which over 50% of the accounts in a portfolio have made a payment in three of the last four months immediately prior to the portfolio purchase. Cabot will try to establish contact with these consumers in order to transfer payment arrangements and gauge the willingness of these consumers to pay. Consumers who Cabot believes are financially incapable of making any payments, those having negative disposable income, or those experiencing hardships (such as medical issues or mental incapacity), are placed on hold and managed outside of normal collections routines. | |||||||||||||
The remaining pool of accounts then receives further evaluation. Cabot analyzes and estimates a consumer’s perceived willingness to pay. Based on that analysis, Cabot pursues collections through letters and/or phone calls to its consumers. Where contact is made and consumers indicate a willingness to pay, a patient approach of forbearance is applied using regulatory protocols within the United Kingdom to assess affordability and ensure that plans are fair and balanced and therefore sustainable. | |||||||||||||
Where consumers are not locatable or refuse to engage in a constructive dialogue, Cabot will pass these accounts through a litigation scorecard and rule set in order to assess suitability for legal action. | |||||||||||||
Colombia and Peru. The Company’s newly acquired Refinancia subsidiary is a market leader in management of non-performing loans in Colombia and Peru. In addition to purchasing defaulted receivables, Refinancia offers portfolio management services to banks for non-performing loans. Refinancia also specializes in non-traditional niches in the geographic areas in which it operates, including providing financial solutions to individuals with defaulted credit records, payment plan guarantee services through merchants and loan guarantee services to financial institutions. | |||||||||||||
Tax Lien Business | ' | ||||||||||||
Tax Lien Business | |||||||||||||
Propel’s principal activities are the acquisition and servicing of residential and commercial tax liens on real property. These liens take priority over most other liens. By funding tax liens, Propel provides state and local taxing authorities and governments with much needed tax revenue. To the extent permitted by local law, Propel works with property owners to structure affordable payment plans designed to allow them to keep their property while paying their property tax obligation over time. Propel maintains a foreclosure rate of less than one-half of one percent. | |||||||||||||
Propel’s receivables secured by property tax liens include Texas tax liens, Nevada tax liens, and tax lien certificates (collectively, “Tax Liens”). With Texas and Nevada Tax Liens, Texas or Nevada property owners choose to have the taxing authority transfer their tax lien to Propel. Propel pays their tax lien obligation to the taxing authority and the property owner pays Propel over time at a lower interest rate than is being assessed by the taxing authority. Propel’s arrangements with Texas and Nevada property owners provide them with repayment plans that are both affordable and flexible when compared with other payment options. Propel also purchases Tax Liens in various other states directly from taxing authorities, securing rights to future property tax payments, interest and penalties. In most cases, such Tax Liens continue to be serviced by the taxing authority. When the taxing authority is paid, it repays Propel the outstanding balance of the lien plus interest, which is established by statute or negotiated at the time of the purchase. | |||||||||||||
Basis of Consolidation | ' | ||||||||||||
Basis of Consolidation | |||||||||||||
The consolidated financial statements have been prepared in conformity with 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 Variable Interest Entities (“VIE”), 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) the obligation to absorb losses or the right to receive benefits. The Company has determined that its less than wholly owned subsidiary Janus Holdings is a VIE, and the Company is the primary beneficiary of the VIE. As a result, the financial results of Janus Holdings are consolidated under the VIE consolidation model. Refer to Note 11, “Variable Interest Entity,” for further details. The Company evaluates its relationships with the VIE on an ongoing basis to ensure that it continues to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||
On July 1, 2013, the Company completed its acquisition of Cabot. The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of Cabot’s parent Company, Janus Holdings, since the date of acquisition. On June 13, 2013, the Company completed its merger with Asset Acceptance Capital Corp. (“AACC”). The consolidated statements of income and comprehensive income for the year ended December 31, 2013, include the results of operations of AACC since the date of acquisition. On May 8, 2012, the Company completed its acquisition of Propel. The consolidated statements of income and comprehensive income for the year ended December 31, 2012, include the results of operations of Propel since the date of acquisition. Refer to Note 3, “Business Combinations,” for further details. | |||||||||||||
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 are translated as of the end of the balance sheet date and revenue and expenses are translated at an average rate over the period. Currency translation adjustments are recorded as a component of other comprehensive income. Transaction gains and losses are included in other (expense) income. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications | |||||||||||||
Certain immaterial amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, 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 a quarter are aggregated into pools based on common risk characteristics. 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. | |||||||||||||
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. | |||||||||||||
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 interests 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 | |||||||||||||
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 5 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 contracts with a nationwide network of attorneys that specialize in collection matters. The Company generally refers charged-off accounts to its contracted attorneys when it believes the related consumer has sufficient assets to repay the indebtedness and has, to date, been unwilling to pay. In connection with the Company’s agreement with the contracted attorneys, it advances certain out-of-pocket court costs (“Deferred Court Costs”). The Company capitalizes these 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 its analysis of court costs that have been advanced and those that have been recovered. Historically, the Company wrote off Deferred Court Costs not recovered within three years of placement. However, as a result of a history of court cost recoveries beyond three years, the Company has determined that court costs are recovered over a longer period of time. As a result, in January 2013, on a prospective basis, the Company began increasing its deferral period from three years to five years. Collections received from debtors are first applied to related court costs with the balance applied to the debtors’ account. See Note 7 “Deferred Court Costs, Net” for further discussion. | |||||||||||||
Receivables Secured by Property Tax Liens, Net | ' | ||||||||||||
Receivables Secured by Property Tax Liens, Net | |||||||||||||
Propel’s receivables are secured by Tax Liens. Repayment of the Tax Liens is generally dependent on the property owner but can also come through payments from other lien holders or foreclosure on the properties. Propel records these receivables secured by property tax liens at their outstanding principal balances, adjusted for, if any, charge-offs, allowance for losses, deferred fees or costs, and unamortized premiums or discounts. Interest income is reported on the interest method and includes amortization of net deferred fees and costs over the term of the agreements. Propel accrues interest on all past due receivables secured by tax liens as the receivables are collateralized by tax liens that are in a priority position over most other liens on the properties. If there is doubt about the ultimate collection of the accrued interest on a specific portfolio, it would be placed on non-accrual and, at that time, all accrued interest would be reversed. | |||||||||||||
The allowance for losses on receivables secured by property tax liens is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability in light of historical experience, the nature and volume of the receivable portfolios, adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral and prevailing economic conditions. The primary factor Propel uses to evaluate each receivable is the lien to value ratio, which is typically less than 15% and rarely exceeds 25%. Propel has not experienced any losses on receivables secured by Tax Liens in its portfolio. In addition, management believes, based on the fact that the Tax Liens are in a priority position over most other liens on the properties, that it will not experience any material losses on the ultimate collection of these receivables. Therefore, no allowance has been provided for as of December 31, 2013. | |||||||||||||
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 operations. The Company includes interest and penalties related to income taxes within its provision for income taxes. 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 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 | ' | ||||||||||||
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 its interest rate swap and foreign currency exchange contracts 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 (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 (expense) at that time. See Note 5 “Derivatives and Hedging Instruments” for further discussion. | |||||||||||||
Redeemable Noncontrolling Interests | ' | ||||||||||||
Redeemable Noncontrolling Interests | |||||||||||||
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, while others have the right to force a sale of the subsidiary if the Company chooses not to purchase their interests at fair value. The noncontrolling interests subject to these arrangements are included in temporary equity as redeemable noncontrolling interests, and are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments will 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. | |||||||||||||
A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding—basic | 24,659 | 24,855 | 24,572 | ||||||||||
Dilutive effect of stock-based awards | 950 | 981 | 1,118 | ||||||||||
Dilutive effect of convertible senior notes | 595 | — | — | ||||||||||
Weighted average common shares outstanding—diluted | 26,204 | 25,836 | 25,690 | ||||||||||
No anti-dilutive employee stock options were outstanding during the year ended December 31, 2013. Employee stock options to purchase approximately 352,000, and 167,000 shares of common stock as of December 31, 2012 and 2011, respectively, were outstanding but not included in the computation of diluted earnings per common share because the effect on diluted earnings per share would be anti-dilutive. | |||||||||||||
For the year ended December 31, 2013, diluted earnings per share includes the effect of common shares issuable upon conversion of the Company’s $115.0 million convertible senior notes due 2017. During the period, the notes were convertible at a conversion price equivalent to approximately $31.56 per share of the Company’s common stock as a result of the conditions of the notes. As a result, the amount in excess of the principal is presumed to be settled in common shares and is reflected in the calculation of diluted earnings per share. | |||||||||||||
During the fourth quarter of 2012, concurrent with the issuance of its $115.0 million convertible senior notes due 2017, the Company entered into privately negotiated transactions with certain counterparties and sold warrants to purchase approximately 3.6 million shares of its common stock. The sold warrants had an exercise price of $44.19. On December 16, 2013, the Company entered into amendments with the same counterparties to exchange the original warrants with new warrants with an exercise price of $60.00. All other terms and settlement provisions remain unchanged. Warrants representing approximately 358,000 shares of the Company’s common stock have been modified by December 31, 2013. The remaining 3.2 million shares represented by the warrants were modified between January 1, 2014 and February 6, 2014. Refer to Note 10, “Debt—Encore Convertible Senior Notes—2017 Convertible Senior Notes” for further details of the warrant restrike transaction. | |||||||||||||
The average market value of the Company’s shares did not exceed the exercise price of the original or new warrants during the year ended December 31, 2013 or 2012, and therefore the effect of the warrants was anti-dilutive for those periods. |
Ownership_Description_of_Busin2
Ownership, Description of Business, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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 5 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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding—basic | 24,659 | 24,855 | 24,572 | ||||||||||
Dilutive effect of stock-based awards | 950 | 981 | 1,118 | ||||||||||
Dilutive effect of convertible senior notes | 595 | — | — | ||||||||||
Weighted average common shares outstanding—diluted | 26,204 | 25,836 | 25,690 | ||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Revenue and Components of Discontinued Operations | ' | ||||||||||||
The following table presents the revenue and components of discontinued operations (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue | $ | — | $ | 5,704 | $ | 18,626 | |||||||
(Loss) income from discontinued operations before income taxes | $ | (2,900 | ) | $ | (11,942 | ) | $ | 595 | |||||
Income tax benefit (expense) | 1,160 | 4,678 | (230 | ) | |||||||||
(Loss) income from discontinued operations | (1,740 | ) | (7,264 | ) | 365 | ||||||||
Loss on sale of discontinued operations, before income taxes | — | (2,416 | ) | — | |||||||||
Income tax benefit | — | 586 | — | ||||||||||
Loss on sale of discontinued operations | — | (1,830 | ) | — | |||||||||
Total (loss) income from discontinued operations | $ | (1,740 | ) | $ | (9,094 | ) | $ | 365 | |||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Operating Performance | ' | ||||||||||||
The following table summarizes the operating performance of Janus Holdings and Encore Europe (in thousands): | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Janus | Encore | Encore Europe | |||||||||||
Holdings | Europe | Consolidated | |||||||||||
Total revenues | $ | 95,491 | $ | — | $ | 95,491 | |||||||
Total operating expenses | (48,890 | ) | — | (48,890 | ) | ||||||||
Income from operations | 46,601 | — | 46,601 | ||||||||||
Interest expense—non-PEC | (26,265 | ) | — | (26,265 | ) | ||||||||
PEC interest (expense) income | (21,616 | ) | 10,235 | (11,381 | ) | ||||||||
Other income | 98 | — | 98 | ||||||||||
(Loss) income before income taxes | (1,182 | ) | 10,235 | 9,053 | |||||||||
Provision for income taxes | (1,574 | ) | — | (1,574 | ) | ||||||||
Net (loss) income | (2,756 | ) | 10,235 | 7,479 | |||||||||
Net loss attributable to noncontrolling interests | 392 | 1,167 | 1,559 | ||||||||||
Net (loss) income attributable to Encore | $ | (2,364 | ) | $ | 11,402 | $ | 9,038 | ||||||
Pro Forma Consolidated Results of Operations | ' | ||||||||||||
The following unaudited pro forma financial information does not necessarily reflect the actual results that would have occurred had Encore, Cabot, and AACC been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies (in thousands): | |||||||||||||
(Unaudited) | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Consolidated pro forma revenue | $ | 949,337 | $ | 929,579 | |||||||||
Consolidated pro forma income from continuing operations | 92,378 | 101,762 | |||||||||||
Cabot Acquisition [Member] | ' | ||||||||||||
Components of Purchase Price Allocation for Acquisition/Merger | ' | ||||||||||||
The components of the purchase price allocation for the Cabot Acquisition are as follows (in thousands): | |||||||||||||
Purchase price: | |||||||||||||
Cash paid at acquisition | $ | 177,246 | |||||||||||
Allocation of purchase price: | |||||||||||||
Cash | $ | 57,520 | |||||||||||
Investment in receivable portfolios | 558,951 | ||||||||||||
Property and equipment | 13,672 | ||||||||||||
Other assets | 20,349 | ||||||||||||
Preferred equity certificates assumed | (211,549 | ) | |||||||||||
Debt assumed | (559,907 | ) | |||||||||||
Other liabilities assumed | (45,142 | ) | |||||||||||
Redeemable noncontrolling interests | (12,064 | ) | |||||||||||
Noncontrolling interests | (4,051 | ) | |||||||||||
Identifiable intangible assets | 7,559 | ||||||||||||
Goodwill | 351,908 | ||||||||||||
Total net assets acquired | $ | 177,246 | |||||||||||
AACC Merger [Member] | ' | ||||||||||||
Components of Purchase Price Allocation for Acquisition/Merger | ' | ||||||||||||
The components of the purchase price allocation for the AACC Merger are as follows (in thousands): | |||||||||||||
Purchase price: | |||||||||||||
Cash paid at acquisition | $ | 316,485 | |||||||||||
Stock consideration | 62,352 | ||||||||||||
Total purchase price | $ | 378,837 | |||||||||||
Allocation of purchase price: | |||||||||||||
Cash | $ | 23,156 | |||||||||||
Investment in receivable portfolios | 383,382 | ||||||||||||
Deferred court costs | 6,940 | ||||||||||||
Property and equipment | 11,003 | ||||||||||||
Other assets | 16,004 | ||||||||||||
Liabilities assumed | (126,059 | ) | |||||||||||
Identifiable intangible assets | 1,470 | ||||||||||||
Goodwill | 62,941 | ||||||||||||
Total net assets acquired | $ | 378,837 | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 46 | $ | — | $ | 46 | |||||||||
Interest rate cap contracts | — | 202 | — | 202 | |||||||||||||
Liabilities | |||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | (4,123 | ) | — | $ | (4,123 | ) | ||||||||
Temporary Equity | |||||||||||||||||
Redeemable noncontrolling interests | $ | — | $ | — | $ | (26,564 | ) | $ | (26,564 | ) | |||||||
Fair Value Measurements as of | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Liabilities | |||||||||||||||||
Interest rate swap agreements | $ | — | $ | (645 | ) | $ | — | $ | (645 | ) | |||||||
Foreign currency exchange contracts | — | (2,010 | ) | — | (2,010 | ) | |||||||||||
Change in Redeemable Noncontrolling Interests | ' | ||||||||||||||||
The components of the change in the redeemable noncontrolling interests for the periods ended December 31, 2013 are presented in the following table: | |||||||||||||||||
Amount | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Initial redeemable noncontrolling interest related to business combinations | 25,517 | ||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | (1,167 | ) | |||||||||||||||
Adjustment of the redeemable noncontrolling interests to fair value | 1,167 | ||||||||||||||||
Effect of foreign currency translation attributable to redeemable noncontrolling interests | 1,047 | ||||||||||||||||
Balance at December 31, 2013 | $ | 26,564 | |||||||||||||||
Derivatives_and_Hedging_Instru1
Derivatives and Hedging Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
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, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | Other liabilities | $ | (4,123 | ) | Other liabilities | $ | (2,010 | ) | |||||||||||||||||||||
Foreign currency exchange contracts | Other assets | 46 | — | — | |||||||||||||||||||||||||
Interest rate swaps | — | — | Other liabilities | (645 | ) | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
Interest rate cap | Other assets | 202 | — | — | |||||||||||||||||||||||||
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 on the Company’s statements of income for the years ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
Gain or (Loss) | Location of Gain | Gain or (Loss) | Location of | Amount of | |||||||||||||||||||||||||
Recognized in OCI- | or (Loss) | Reclassified | Gain or (Loss) | Gain or (Loss) | |||||||||||||||||||||||||
Effective Portion | Reclassified from | from OCI into | Recognized - | Recognized - | |||||||||||||||||||||||||
OCI into | Income - Effective | Ineffective | Ineffective | ||||||||||||||||||||||||||
Income - Effective | Portion | Portion and | Portion and | ||||||||||||||||||||||||||
Portion | Amount | Amount | |||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Interest rate swaps | $ | 645 | $ | 369 | Interest expense | $ | — | $ | — | Other (expense) | $ | — | $ | — | |||||||||||||||
income | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | (3,031 | ) | (1,224 | ) | Salaries and | (1,362 | ) | (1,230 | ) | Other (expense) | — | — | |||||||||||||||||
employee | income | ||||||||||||||||||||||||||||
benefits | |||||||||||||||||||||||||||||
Foreign currency exchange contracts | (658 | ) | (25 | ) | General and | (260 | ) | (212 | ) | Other (expense) | — | — | |||||||||||||||||
administrative | income | ||||||||||||||||||||||||||||
expenses |
Investment_in_Receivable_Portf1
Investment in Receivable Portfolios, Net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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 | Estimate of | Total | |||||||||||||||
Yield | Zero Basis | ||||||||||||||||
Cash Flows | |||||||||||||||||
Balance at December 31, 2011 | $ | 821,527 | $ | 32,676 | $ | 854,203 | |||||||||||
Revenue recognized, net | (519,136 | ) | (26,276 | ) | (545,412 | ) | |||||||||||
Net additions on existing portfolios(1) | 229,207 | 10,966 | 240,173 | ||||||||||||||
Additions for current purchases(1) | 453,346 | — | 453,346 | ||||||||||||||
Balance at December 31, 2012 | $ | 984,944 | $ | 17,366 | $ | 1,002,310 | |||||||||||
Revenue recognized, net | (717,733 | ) | (27,119 | ) | (744,852 | ) | |||||||||||
Net additions on existing portfolios(1) | 357,189 | 18,218 | 375,407 | ||||||||||||||
Additions for current purchases(1)(2) | 1,767,071 | — | 1,767,071 | ||||||||||||||
Balance at December 31, 2013 | $ | 2,391,471 | $ | 8,465 | $ | 2,399,936 | |||||||||||
(1) | Estimated remaining collections and accretable yield include anticipated collections beyond the 84 to 96 month collection forecast for United States portfolios. | ||||||||||||||||
(2) | Includes $383.4 million of portfolios acquired in connection with the AACC Merger and $559.0 million of portfolios acquired in connection with the Cabot Acquisition discussed in Note 3, “Business Combinations.” | ||||||||||||||||
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, 2013 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 873,119 | $ | — | $ | — | $ | 873,119 | |||||||||
Purchases of receivable portfolios (1) | 1,203,706 | 1,073 | — | 1,204,779 | |||||||||||||
Transfer of portfolios | (6,649 | ) | 6,649 | — | — | ||||||||||||
Gross collections(2) | (1,249,625 | ) | (2,764 | ) | (27,117 | ) | (1,279,506 | ) | |||||||||
Put-backs and recalls | (2,331 | ) | (296 | ) | (2 | ) | (2,629 | ) | |||||||||
Foreign currency adjustments | 49,634 | — | — | 49,634 | |||||||||||||
Revenue recognized | 715,458 | — | 17,201 | 732,659 | |||||||||||||
Portfolio allowance reversals, net | 2,275 | — | 9,918 | 12,193 | |||||||||||||
Balance, end of period | $ | 1,585,587 | $ | 4,662 | $ | — | $ | 1,590,249 | |||||||||
Revenue as a percentage of collections(3) | 57.3 | % | 0 | % | 63.4 | % | 57.3 | % | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 716,454 | $ | — | $ | — | $ | 716,454 | |||||||||
Purchases of receivable portfolios(1) | 562,335 | — | — | 562,335 | |||||||||||||
Gross collections(2) | (921,730 | ) | — | (26,276 | ) | (948,006 | ) | ||||||||||
Put-backs and recalls | (3,076 | ) | — | — | (3,076 | ) | |||||||||||
Revenue recognized | 518,617 | — | 22,574 | 541,191 | |||||||||||||
Portfolio allowance reversals, net | 519 | — | 3,702 | 4,221 | |||||||||||||
Balance, end of period | $ | 873,119 | $ | — | $ | — | $ | 873,119 | |||||||||
Revenue as a percentage of collections(3) | 56.3 | % | 0 | % | 85.9 | % | 57.1 | % | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Accrual Basis | Cost Recovery | Zero Basis | Total | ||||||||||||||
Portfolios | Portfolios | Portfolios | |||||||||||||||
Balance, beginning of period | $ | 644,753 | $ | — | $ | — | $ | 644,753 | |||||||||
Purchases of receivable portfolios(1) | 386,850 | — | — | 386,850 | |||||||||||||
Gross collections(2) | (740,402 | ) | — | (20,609 | ) | (761,011 | ) | ||||||||||
Put-backs and recalls | (2,843 | ) | — | (9 | ) | (2,852 | ) | ||||||||||
Revenue recognized | 443,367 | — | 16,170 | 459,537 | |||||||||||||
(Portfolio allowances) portfolio allowance reversals, net | (15,271 | ) | — | 4,448 | (10,823 | ) | |||||||||||
Balance, end of period | $ | 716,454 | $ | — | $ | — | $ | 716,454 | |||||||||
Revenue as a percentage of collections(3) | 59.9 | % | 0 | % | 78.5 | % | 60.4 | % | |||||||||
(1) | Purchases of portfolio receivables include $383.4 million acquired in connection with the AACC Merger in June 2013 and $559.0 million acquired in connection with the Cabot Acquisition in July 2013 discussed in Note 3, “Business Combinations.” | ||||||||||||||||
(2) | Does not include amounts collected on behalf of others. | ||||||||||||||||
(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, 2010 | $ | 98,671 | |||||||||||||||
Provision for portfolio allowances | 17,707 | ||||||||||||||||
Reversal of prior allowances | (6,884 | ) | |||||||||||||||
Balance at December 31, 2011 | $ | 109,494 | |||||||||||||||
Provision for portfolio allowances | 6,745 | ||||||||||||||||
Reversal of prior allowances | (10,966 | ) | |||||||||||||||
Balance at December 31, 2012 | $ | 105,273 | |||||||||||||||
Provision for portfolio allowances | 479 | ||||||||||||||||
Reversal of prior allowances | (12,672 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 93,080 | |||||||||||||||
Deferred_Court_Costs_Net_Table
Deferred Court Costs, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Schedule of Deferred Court Costs | ' | ||||||||||||
Deferred Court Costs consist of the following as of the dates presented (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Court costs advanced | $ | 399,274 | $ | 279,314 | |||||||||
Court costs recovered | (147,166 | ) | (94,827 | ) | |||||||||
Court costs reserve | (210,889 | ) | (149,080 | ) | |||||||||
$ | 41,219 | $ | 35,407 | ||||||||||
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, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of period | $ | (149,080 | ) | $ | (130,454 | ) | $ | (113,239 | ) | ||||
Provision for court costs | (61,809 | ) | (53,946 | ) | (54,939 | ) | |||||||
Write-off of reserve after the 36th month | — | 35,320 | 37,724 | ||||||||||
Balance at end of period | $ | (210,889 | ) | $ | (149,080 | ) | $ | (130,454 | ) | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
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, | ||||||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 15,955 | $ | 7,605 | |||||
Computer equipment and software | 79,765 | 33,189 | |||||||
Telecommunications equipment | 3,589 | 6,033 | |||||||
Leasehold improvements | 15,145 | 6,692 | |||||||
Other | 1,086 | — | |||||||
115,540 | 53,519 | ||||||||
Less: accumulated depreciation and amortization | (59,757 | ) | (30,296 | ) | |||||
$ | 55,783 | $ | 23,223 | ||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
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, | ||||||||
2013 | 2012 | ||||||||
Service fee receivables | $ | 29,931 | $ | — | |||||
Debt issuance costs, net of amortization | 28,066 | 14,397 | |||||||
Identifiable intangible assets, net | 23,549 | 487 | |||||||
Prepaid expenses | 23,487 | 6,399 | |||||||
Deferred tax assets | 13,974 | — | |||||||
Other financial receivables | 7,962 | — | |||||||
Interest receivable | 7,956 | 4,042 | |||||||
Prepaid income taxes | 5,009 | — | |||||||
Recoverable legal fees | 3,049 | 1,521 | |||||||
Security deposits | 2,500 | 1,696 | |||||||
Other | 9,300 | 2,993 | |||||||
$ | 154,783 | $ | 31,535 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Obligation Under Borrowings | ' | ||||||||
The Company is obligated under borrowings as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Encore revolving credit facility | $ | 356,000 | $ | 258,000 | |||||
Encore term loan facility | 140,625 | 148,125 | |||||||
Encore senior secured notes | 58,750 | 72,500 | |||||||
Encore convertible notes | 287,500 | 115,000 | |||||||
Less: Debt discount | (42,240 | ) | (14,442 | ) | |||||
Propel facility | 152,292 | 117,601 | |||||||
Propel Wells Fargo facility | 18,338 | — | |||||||
Cabot senior secured notes | 603,272 | — | |||||||
Add: Debt premium | 43,583 | — | |||||||
Preferred equity certificates | 199,821 | — | |||||||
Capital lease obligations | 12,219 | 9,252 | |||||||
Other | 20,271 | — | |||||||
$ | 1,850,431 | $ | 706,036 | ||||||
Balances of the Liability and Equity Components | ' | ||||||||
The balances of the liability and equity components of all of the convertible notes outstanding were as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Liability component—principal amount | $ | 287,500 | $ | 115,000 | |||||
Unamortized debt discount | (42,240 | ) | (14,442 | ) | |||||
Liability component—net carrying amount | $ | 245,260 | $ | 100,558 | |||||
Equity component | $ | 46,954 | $ | 14,702 | |||||
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 | |||||||||
2014 | $ | 40,989 | |||||||
2015 | 226,906 | ||||||||
2016 | 28,459 | ||||||||
2017 | 573,622 | ||||||||
2018 | 2,655 | ||||||||
Thereafter | 976,458 | ||||||||
Total(1) | $ | 1,849,089 | |||||||
(1) | On February 25, 2014, the Company amended its Credit Facility. The restated Credit Facility has a five-year maturity, expiring in February 2019, except with respect to two subtranches of the term loan facility of $60.0 million and $6.3 million, expiring in February 2017 and November 2017, respectively. The maturity schedule in the table above does not reflect the amended maturity schedule for the restated Credit Facility. | ||||||||
Cabot Senior Secured Notes [Member] | ' | ||||||||
Interest Expense | ' | ||||||||
Interest expense related to the Cabot Notes was as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 31, 2013 | |||||||||
Interest expense—stated coupon rate | $ | 27,496 | |||||||
Interest income—appreciation of debt premium | (2,826 | ) | |||||||
Total interest expense—Cabot Notes | $ | 24,670 | |||||||
Convertible Notes [Member] | ' | ||||||||
Interest Expense | ' | ||||||||
Interest expense related to the convertible notes was as follows (in thousands): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Interest expense—stated coupon rate | $ | 6,108 | $ | 307 | |||||
Interest expense—amortization of debt discount | 4,492 | 260 | |||||||
Total interest expense—convertible notes | $ | 10,600 | $ | 567 | |||||
Variable_Interest_Entity_Table
Variable Interest Entity (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Assets and Liabilities of Variable Interest Entity | ' | ||||
The following table presents Janus Holdings’ assets and liabilities (after elimination of intercompany transactions and balances) in the Company’s consolidated statement of financial condition as of December 31, 2013 (in thousands): | |||||
December 31, | |||||
2013 | |||||
Assets | |||||
Cash and cash equivalents | $ | 62,403 | |||
Investment in receivable portfolios, net | 620,312 | ||||
Property and equipment, net | 13,755 | ||||
Other assets | 33,772 | ||||
Goodwill | 376,296 | ||||
Total assets | $ | 1,106,538 | |||
Liabilities | |||||
Accounts payable and accrued liabilities | $ | 47,219 | |||
Debt | 846,676 | ||||
Other liabilities | 1,897 | ||||
Total liabilities | $ | 895,792 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Weighted-Average Assumptions | ' | ||||||||||||||||
The fair value for options granted was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions (there were no options granted during the year ended December 31, 2013): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Weighted average fair value of options granted | $ | 11.77 | $ | 13.26 | |||||||||||||
Risk free interest rate | 0.9 | % | 2 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Volatility factors of the expected market price of the Company’s common stock | 63 | % | 61 | % | |||||||||||||
Weighted-average expected life of options | 5 Years | 5 Years | |||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of the Company’s stock option activity as of December 31, 2013, and changes during the year then ended, is presented below: | |||||||||||||||||
Number of | Option Price | Weighted Average | Aggregate | ||||||||||||||
Shares | Per Share | Exercise Price | Intrinsic | ||||||||||||||
Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding at December 31, 2012 | 1,948,259 | $ | 2.89 –$24.65 | $ | 15.38 | ||||||||||||
Cancelled/forfeited | (61,332 | ) | 22.17 –24.65 | 23.03 | |||||||||||||
Exercised | (753,755 | ) | 2.89 –24.65 | 15.56 | |||||||||||||
Outstanding at December 31, 2013 | 1,133,172 | $ | 2.89 –$24.65 | $ | 14.84 | $ | 40,138 | ||||||||||
Exercisable at December 31, 2013 | 987,843 | $ | 2.89 –$24.65 | $ | 13.71 | $ | 36,103 | ||||||||||
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, 2013, and changes during the year then ended, is presented below: | |||||||||||||||||
Non-Vested | Weighted Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at December 31, 2012 | 744,016 | $ | 23.51 | ||||||||||||||
Awarded | 645,266 | $ | 35.03 | ||||||||||||||
Vested | (336,772 | ) | $ | 22.85 | |||||||||||||
Cancelled/forfeited | (66,775 | ) | $ | 26.39 | |||||||||||||
Non-vested at December 31, 2013 | 985,735 | $ | 31.07 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Effective Tax Rates | ' | ||||||||||||
The effective tax rates for the respective periods are shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Federal provision | 35 | % | 35 | % | |||||||||
State provision | 5.8 | % | 6.6 | % | |||||||||
State benefit | (2.0 | %) | (2.3 | %) | |||||||||
Changes in state apportionment(1) | (0.2 | %) | 0 | % | |||||||||
Tax reserves(2) | 0 | % | 0.1 | % | |||||||||
International provision(3) | (2.2 | %) | (0.4 | %) | |||||||||
Permanent items(4) | 2.4 | % | 0.5 | % | |||||||||
Other | (1.2 | %) | 0.2 | % | |||||||||
Effective rate | 37.6 | % | 39.7 | % | |||||||||
(1) | Represents changes in state apportionment methodologies. | ||||||||||||
(2) | Represents reserves taken for certain tax position adopted by the Company. | ||||||||||||
(3) | Relates primarily to the lower tax rate on the income attributable to international operations. | ||||||||||||
-4 | Represents a provision for nondeductible items. | ||||||||||||
Components of Pretax Income | ' | ||||||||||||
The pretax income consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 105,009 | $ | 122,423 | $ | 92,759 | |||||||
Foreign | 15,859 | 7,902 | 5,910 | ||||||||||
$ | 120,868 | $ | 130,325 | $ | 98,669 | ||||||||
Components of Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current expense: | |||||||||||||
Federal | $ | 50,304 | $ | 48,025 | $ | 30,822 | |||||||
State | 7,196 | 9,537 | 6,647 | ||||||||||
Foreign | 4,052 | 2,765 | 2,407 | ||||||||||
61,552 | 60,327 | 39,876 | |||||||||||
Deferred (benefit) expense: | |||||||||||||
Federal | (13,134 | ) | (6,801 | ) | (814 | ) | |||||||
State | (2,369 | ) | (1,301 | ) | 90 | ||||||||
Foreign | (661 | ) | (471 | ) | (1,076 | ) | |||||||
(16,164 | ) | (8,573 | ) | (1,800 | ) | ||||||||
$ | 45,388 | $ | 51,754 | $ | 38,076 | ||||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The components of deferred tax assets and liabilities consisted of the following for the years presented (in thousands): | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
State taxes | $ | 2,758 | $ | 1,408 | |||||||||
Stock-based compensation expense | 7,250 | 8,888 | |||||||||||
Accrued expenses | 5,015 | 2,957 | |||||||||||
Non-qualified plan | 97 | (136 | ) | ||||||||||
Deferred revenue | 38,529 | — | |||||||||||
Cash flow hedge instruments | 1,588 | 1,037 | |||||||||||
State and international operating losses | 6,490 | 51 | |||||||||||
Fixed asset basis—International | 86 | (26 | ) | ||||||||||
Capitalized legal fees—International | 1,609 | — | |||||||||||
Cumulative translation adjustment | 1,509 | — | |||||||||||
Tax benefit of uncertain tax positions | 4,237 | — | |||||||||||
Valuation allowance | (3,595 | ) | (13 | ) | |||||||||
65,573 | 14,166 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred court costs | (15,445 | ) | (15,013 | ) | |||||||||
Difference in basis of amortizable assets | (12,200 | ) | (7,898 | ) | |||||||||
Difference in basis of depreciable assets | (6,834 | ) | (4,134 | ) | |||||||||
Differences in income recognition related to receivable portfolios | (20,773 | ) | 5,723 | ||||||||||
Deferred debt cancellation income | (1,222 | ) | (1,222 | ) | |||||||||
Other | (2,289 | ) | 142 | ||||||||||
(58,763 | ) | (22,402 | ) | ||||||||||
Net deferred tax asset (liability) | $ | 6,810 | $ | (8,236 | ) | ||||||||
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% per annum were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed “expected” Federal income tax expense | $ | 42,304 | $ | 45,614 | $ | 34,534 | |||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||
State income taxes, net | 3,138 | 5,551 | 4,200 | ||||||||||
Foreign non-taxed income, rate differential | (2,647 | ) | (481 | ) | (772 | ) | |||||||
Other adjustments, net | 2,593 | 1,070 | 114 | ||||||||||
$ | 45,388 | $ | 51,754 | $ | 38,076 | ||||||||
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, 2012 | $ | 1,784 | |||||||||||
Current year deletions relating to prior years | (712 | ) | |||||||||||
Current year additions relating to prior years—acquisitions | 70,201 | ||||||||||||
Balance at December 31, 2013 | $ | 71,273 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||
Future Minimum Lease Payments under Lease Obligations | ' | ||||||||||||
Future minimum lease payments under lease obligations consist of the following for the years ending December 31 (in thousands): | |||||||||||||
Capital | Operating | Total | |||||||||||
Leases | Leases | ||||||||||||
2014 | $ | 5,903 | $ | 17,582 | $ | 23,485 | |||||||
2015 | 4,242 | 15,824 | 20,066 | ||||||||||
2016 | 2,262 | 12,624 | 14,886 | ||||||||||
2017 | 519 | 10,861 | 11,380 | ||||||||||
2018 | 110 | 8,115 | 8,225 | ||||||||||
Thereafter | — | 20,540 | 20,540 | ||||||||||
Total minimal leases payments | 13,036 | $ | 85,546 | $ | 98,582 | ||||||||
Less: Interest | (817 | ) | |||||||||||
Present value of minimal lease payments | $ | 12,219 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Reconciliation of Revenue and Operating Income from Segments to Consolidated | ' | ||||||||||||
The following table provides a reconciliation of revenue and segment operating income by reportable segment to consolidated results and was derived from the segments’ internal financial information as used for corporate management purposes (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues: | |||||||||||||
Portfolio purchasing and recovery | $ | 756,277 | $ | 545,419 | $ | 448,746 | |||||||
Tax lien business | 17,087 | 11,358 | — | ||||||||||
$ | 773,364 | $ | 556,777 | $ | 448,746 | ||||||||
Operating income: | |||||||||||||
Portfolio purchasing and recovery | $ | 219,510 | $ | 164,038 | $ | 131,970 | |||||||
Tax lien business | 5,045 | 5,677 | — | ||||||||||
224,555 | 169,715 | 131,970 | |||||||||||
Depreciation and amortization | (13,547 | ) | (5,840 | ) | (4,081 | ) | |||||||
Stock-based compensation | (12,649 | ) | (8,794 | ) | (7,709 | ) | |||||||
Other expense | (77,491 | ) | (24,756 | ) | (21,511 | ) | |||||||
Income from continuing operations before income taxes | $ | 120,868 | $ | 130,325 | $ | 98,669 | |||||||
Schedule of Geographical Areas of Which Company Operates | ' | ||||||||||||
The following presents information about geographic areas in which the Company operates (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues(1) : | |||||||||||||
United States | $ | 677,873 | $ | 556,777 | $ | 448,746 | |||||||
United Kingdom | 95,491 | — | — | ||||||||||
$ | 773,364 | $ | 556,777 | $ | 448,746 | ||||||||
(1) | Revenues are attributed to countries based on location of customer. |
Goodwill_and_Identifiable_Inta1
Goodwill and Identifiable Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Weighted-Average Useful Lives of Intangible Assets | ' | ||||||||||||||||||||||||
The weighted-average useful lives of intangible assets at the time of acquisition are as follows: | |||||||||||||||||||||||||
Weighted-Average | |||||||||||||||||||||||||
Useful Lives | |||||||||||||||||||||||||
Customer relationships | 9 | ||||||||||||||||||||||||
Developed technologies | 5 | ||||||||||||||||||||||||
Trade name and other | 13 | ||||||||||||||||||||||||
Estimated Future Amortization Expense | ' | ||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived intangible assets at December 31, 2013 is as follows: (in thousands): | |||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||
2014 | $ | 2,877 | |||||||||||||||||||||||
2015 | 2,809 | ||||||||||||||||||||||||
2016 | 2,619 | ||||||||||||||||||||||||
2017 | 2,482 | ||||||||||||||||||||||||
2018 | 1,741 | ||||||||||||||||||||||||
Thereafter | 9,059 | ||||||||||||||||||||||||
Total | $ | 21,587 | |||||||||||||||||||||||
Schedule of Reportable Segments by Reporting Units | ' | ||||||||||||||||||||||||
Goodwill was allocable to reporting units included in the Company’s reportable segments, as follows (in thousands): | |||||||||||||||||||||||||
Portfolio | Tax Lien | Total | |||||||||||||||||||||||
Purchasing and | Business | ||||||||||||||||||||||||
Recovery | |||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 6,047 | $ | 49,399 | $ | 55,446 | |||||||||||||||||||
Goodwill acquired | 429,621 | 3,887 | 433,508 | ||||||||||||||||||||||
Goodwill adjustment | (5,121 | ) | (4,009 | ) | (9,130 | ) | |||||||||||||||||||
Effect of foreign currency translation | 24,389 | — | 24,389 | ||||||||||||||||||||||
Balance, December 31, 2013 | $ | 454,936 | $ | 49,277 | $ | 504,213 | |||||||||||||||||||
Summary of Acquired Intangible Assets | ' | ||||||||||||||||||||||||
The Company’s acquired intangible assets are summarized as follows (in thousands): | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Customer relationships | $ | 1,975 | $ | (75 | ) | $ | 1,901 | $ | — | $ | — | $ | — | ||||||||||||
Developed technologies | 4,909 | (468 | ) | 4,441 | — | — | — | ||||||||||||||||||
Trade name and other | 15,631 | (386 | ) | 15,245 | 570 | (83 | ) | 487 | |||||||||||||||||
Other intangibles—indefinite lived | 1,962 | — | 1,962 | — | — | — | |||||||||||||||||||
Total intangible assets | $ | 24,477 | $ | (929 | ) | $ | 23,549 | $ | 570 | $ | (83 | ) | $ | 487 | |||||||||||
Quarterly_Information_Tables
Quarterly Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Quarterly Financial Data for Periods | ' | ||||||||||||||||
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 | ||||||||||||||
2013 | |||||||||||||||||
Gross collections | $ | 270,170 | $ | 278,388 | $ | 379,670 | $ | 351,278 | |||||||||
Revenues | 144,586 | 156,121 | 235,558 | 237,099 | |||||||||||||
Total operating expenses | 105,872 | 126,238 | 174,429 | 168,466 | |||||||||||||
Income from continuing operations | 19,448 | 11,012 | 21,372 | 23,648 | |||||||||||||
Net income | 19,448 | 11,012 | 21,064 | 22,216 | |||||||||||||
Amounts attributable to Encore Capital Group, Inc.: | |||||||||||||||||
Income from continuing operations | 19,448 | 11,012 | 22,194 | 24,385 | |||||||||||||
Net income | 19,448 | 11,012 | 21,886 | 22,953 | |||||||||||||
Earnings per share attributable to Encore Capital Group, Inc.: | |||||||||||||||||
From continuing operations: | |||||||||||||||||
Basic | $ | 0.83 | $ | 0.46 | $ | 0.87 | $ | 0.95 | |||||||||
Diluted | 0.8 | 0.44 | 0.82 | 0.87 | |||||||||||||
From net income: | |||||||||||||||||
Basic | $ | 0.83 | $ | 0.46 | $ | 0.86 | $ | 0.9 | |||||||||
Diluted | 0.8 | 0.44 | 0.81 | 0.82 | |||||||||||||
2012 | |||||||||||||||||
Gross collections | $ | 231,028 | $ | 240,560 | $ | 245,977 | $ | 230,490 | |||||||||
Revenues | 126,410 | 141,246 | 145,218 | 143,903 | |||||||||||||
Total operating expenses | 91,394 | 102,809 | 103,621 | 103,872 | |||||||||||||
Income from continuing operations | 18,108 | 18,988 | 21,308 | 20,167 | |||||||||||||
Net income | 11,406 | 16,596 | 21,308 | 20,167 | |||||||||||||
Earnings per share: | |||||||||||||||||
From continuing operations: | |||||||||||||||||
Basic | $ | 0.73 | $ | 0.76 | $ | 0.85 | $ | 0.82 | |||||||||
Diluted | 0.7 | 0.74 | 0.82 | 0.79 | |||||||||||||
From net income: | |||||||||||||||||
Basic | $ | 0.46 | $ | 0.67 | $ | 0.85 | $ | 0.82 | |||||||||
Diluted | 0.44 | 0.64 | 0.82 | 0.79 |
Ownership_Description_of_Busin3
Ownership, Description of Business, and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 27, 2012 | Feb. 06, 2014 | Dec. 31, 2012 | Dec. 16, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | |
Cabot Acquisition [Member] | AACC Merger [Member] | Propel Acquisition [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | ||||
Subsequent Event [Member] | Before Amendment [Member] | After Amendment [Member] | |||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of payment made for portfolios purchase | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreclosure rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' |
Business acquisition, date of acquisition | ' | ' | ' | 1-Jul-13 | 13-Jun-13 | 8-May-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Court Costs not recovered, years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in deferral period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '3 years |
Typical lien to value ratio, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' |
Rare lien to value ratio, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Allowance for financial receivables | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options to purchase common shares, excluded from computation of diluted earnings per share | 0 | 352,000 | 167,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial conversion price per share | ' | ' | ' | ' | ' | ' | $31.56 | ' | $31.56 | ' | ' | ' | ' | ' | ' |
Common shares issuable upon conversion of convertible senior notes | ' | ' | ' | ' | ' | ' | 115,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants sold to purchase common stock | ' | ' | ' | ' | ' | ' | 358,000 | 3,600,000 | ' | 3,200,000 | ' | ' | ' | ' | ' |
Warrants exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.19 | 60 | ' | ' | ' |
Convertible senior notes issuance | $287,500,000 | $115,000,000 | ' | ' | ' | ' | ' | $115,000,000 | $115,000,000 | ' | ' | ' | ' | ' | ' |
Ownership_Description_of_Busin4
Ownership, Description of Business, and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
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 | '5 years |
Ownership_Description_of_Busin5
Ownership, Description of Business, and Summary of Significant Accounting Policies - Reconciliation of Shares Used in Calculating Earnings Per Basic and Diluted Shares (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Basic And Diluted [Abstract] | ' | ' | ' |
Weighted average common shares outstanding-basic | 24,659 | 24,855 | 24,572 |
Dilutive effect of stock-based awards | 950 | 981 | 1,118 |
Dilutive effect of convertible senior notes | 595 | ' | ' |
Weighted average common shares outstanding-diluted | 26,204 | 25,836 | 25,690 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | 16-May-12 | Jun. 30, 2012 | Dec. 31, 2013 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Additional recognition of loss contingency | $4 | ' | ' |
Description of payment of earn-out of EBITDA from discontinued operation | 'Company will be paid an earn-out equal to 40% of Ascension's EBITDA, for the first five years commencing May 16, 2012. | ' | ' |
Recognized loss contingency | ' | 4 | ' |
Loss incurred to resolve legacy contractual claims | ' | ' | 2.2 |
Additional loss incurred | ' | ' | $0.70 |
Discontinued_Operations_Revenu
Discontinued Operations - Revenue and Components of Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Revenue | ' | $5,704 | $18,626 |
(Loss) income from discontinued operations before income taxes | -2,900 | -11,942 | 595 |
Income tax benefit (expense) | 1,160 | 4,678 | -230 |
(Loss) income from discontinued operations | -1,740 | -7,264 | 365 |
Loss on sale of discontinued operations, before income taxes | ' | -2,416 | ' |
Income tax benefit | ' | 586 | ' |
Loss on sale of discontinued operations | ' | -1,830 | ' |
Total (loss) income from discontinued operations | ($1,740) | ($9,094) | $365 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 8-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 07, 2014 | Feb. 07, 2014 | Jul. 02, 2013 | Dec. 31, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Dec. 31, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jun. 13, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | J.C. Flowers [Member] | Preferred Equity Certificate [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Encore Europe Consolidated [Member] | Encore Europe Consolidated [Member] | Other Acquisition [Member] | Propel Acquisition [Member] | Propel Acquisition [Member] | Marlin Acquisition [Member] | Marlin Acquisition [Member] | Marlin Acquisition [Member] | Cabot Credit Management [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | Cabot Holdings [Member] | AACC Merger [Member] | AACC Merger [Member] | |
USD ($) | Preferred Equity Certificate [Member] | USD ($) | Preferred Equity Certificate [Member] | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Janus Holdings [Member] | USD ($) | A Shares [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | J.C. Flowers [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | Janus Holdings [Member] | USD ($) | USD ($) | ||||||||
USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | E Shares [Member] | E Bridge PECs [Member] | E Bridge PECs [Member] | E PECs [Member] | E PECs [Member] | A Shares [Member] | J.C. Flowers [Member] | J.C. Flowers [Member] | J.C. Flowers [Member] | J.C. Flowers [Member] | J.C. Flowers [Member] | |||||||||||||||||||
USD ($) | GBP (£) | USD ($) | GBP (£) | J Shares [Member] | J Bridge PECs [Member] | J Bridge PECs [Member] | J PECs [Member] | J PECs [Member] | |||||||||||||||||||||||||||
USD ($) | GBP (£) | USD ($) | GBP (£) | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.10% | ' | ' | ' | ' | 42.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument purchased, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,500,000 | £ 10,218,574 | $147,100,000 | £ 96,729,661 | ' | ' | ' | $15,500,000 | £ 10,177,781 | ' | ' | ' | ' |
Number of shares acquired | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,498,563 | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,484,597 | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 481,000,000 | 295,000,000 | ' | ' | ' | 175,000,000 | 115,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minority interest percentage | ' | ' | ' | ' | ' | 49.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.90% | ' | ' | ' | ' | ' | ' | ' |
Debt instrument purchased, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146,500,000 | 96,343,515 | ' | ' |
Debt instrument, interest rate | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 504,213,000 | 55,446,000 | ' | ' | 376,296,000 | ' | ' | ' | ' | 13,500,000 | 45,400,000 | ' | ' | ' | ' | ' | 351,908,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,941,000 |
Acquisition and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,100,000 |
Revenue included in condensed consolidated statement of income | ' | ' | ' | ' | 95,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,100,000 |
Net income included in condensed consolidated statement of income | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,600,000 |
Net loss attributable to noncontrolling interests | 1,559,000 | ' | ' | ' | 392,000 | ' | ' | 1,559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PEC interest (expense) income | 15,906,000 | 10,460,000 | ' | ' | ' | ' | -21,616,000 | ' | -11,381,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, date of acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-May-12 | 7-Feb-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186,800,000 | ' | ' | ' | ' | ' | 177,246,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,800,000 | 316,485,000 |
Business acquisition, common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' |
Business acquisition, common stock issued, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37.30 | ' |
Business acquisition, debt paid off on the closing date of AACC Merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 165,700,000 |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | 7,559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,470,000 |
Liabilities, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $126,059,000 |
Business_Combinations_Componen
Business Combinations - Components of Purchase Price Allocation for Acquisition/Merger (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 13, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Cabot Acquisition [Member] | AACC Merger [Member] | AACC Merger [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash paid at acquisition | ' | ' | $177,246 | $150,800 | $316,485 |
Stock consideration | ' | ' | ' | ' | 62,352 |
Total net assets acquired | ' | ' | 177,246 | ' | 378,837 |
Allocation of purchase price: | ' | ' | ' | ' | ' |
Cash | ' | ' | 57,520 | ' | 23,156 |
Investment in receivable portfolios | ' | ' | 558,951 | ' | 383,382 |
Deferred court costs | ' | ' | ' | ' | 6,940 |
Property and equipment | ' | ' | 13,672 | ' | 11,003 |
Other assets | ' | ' | 20,349 | ' | 16,004 |
Preferred equity certificates assumed | ' | ' | -211,549 | ' | ' |
Liabilities assumed | ' | ' | ' | ' | -126,059 |
Debt assumed | ' | ' | -559,907 | ' | ' |
Other liabilities assumed | ' | ' | -45,142 | ' | ' |
Redeemable noncontrolling interests | ' | ' | -12,064 | ' | ' |
Noncontrolling interests | ' | ' | -4,051 | ' | ' |
Identifiable intangible assets | ' | ' | 7,559 | ' | 1,470 |
Goodwill | 504,213 | 55,446 | 351,908 | ' | 62,941 |
Total net assets acquired | ' | ' | 177,246 | ' | 378,837 |
Total net assets acquired | ' | ' | $177,246 | ' | $378,837 |
Business_Combinations_Summary_
Business Combinations - Summary of Operating Performance (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $237,099 | $235,558 | $156,121 | $144,586 | $143,903 | $145,218 | $141,246 | $126,410 | $773,364 | $556,777 | $448,746 |
Total operating expenses | -168,466 | -174,429 | -126,238 | -105,872 | -103,872 | -103,621 | -102,809 | -91,394 | -575,005 | -401,696 | -328,566 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 198,359 | 155,081 | 120,180 |
Interest expense-non-PEC | ' | ' | ' | ' | ' | ' | ' | ' | -73,269 | -25,564 | -21,116 |
PEC interest (expense) income | ' | ' | ' | ' | ' | ' | ' | ' | 15,906 | 10,460 | ' |
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 120,868 | 130,325 | 98,669 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -45,388 | -51,754 | -38,076 |
Net (loss) income | 22,216 | 21,064 | 11,012 | 19,448 | ' | ' | ' | ' | 73,740 | 69,477 | 60,958 |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 1,559 | ' | ' |
Net (loss) income attributable to Encore | 22,953 | 21,886 | 11,012 | 19,448 | 20,167 | 21,308 | 16,596 | 11,406 | 75,299 | 69,477 | 60,958 |
Janus Holdings [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 95,491 | ' | ' |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -48,890 | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 46,601 | ' | ' |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 98 | ' | ' |
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,182 | ' | ' |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,574 | ' | ' |
Net (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -2,756 | ' | ' |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 392 | ' | ' |
Net (loss) income attributable to Encore | ' | ' | ' | ' | ' | ' | ' | ' | -2,364 | ' | ' |
Janus Holdings [Member] | Non Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense-non-PEC | ' | ' | ' | ' | ' | ' | ' | ' | -26,265 | ' | ' |
Janus Holdings [Member] | Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PEC interest (expense) income | ' | ' | ' | ' | ' | ' | ' | ' | -21,616 | ' | ' |
Encore Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 10,235 | ' | ' |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | 10,235 | ' | ' |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 1,167 | ' | ' |
Net (loss) income attributable to Encore | ' | ' | ' | ' | ' | ' | ' | ' | 11,402 | ' | ' |
Encore Europe [Member] | Non Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense-non-PEC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Encore Europe [Member] | Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PEC interest (expense) income | ' | ' | ' | ' | ' | ' | ' | ' | 10,235 | ' | ' |
Encore Europe Consolidated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 95,491 | ' | ' |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -48,890 | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 46,601 | ' | ' |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 98 | ' | ' |
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 9,053 | ' | ' |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -1,574 | ' | ' |
Net (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | 7,479 | ' | ' |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 1,559 | ' | ' |
Net (loss) income attributable to Encore | ' | ' | ' | ' | ' | ' | ' | ' | 9,038 | ' | ' |
Encore Europe Consolidated [Member] | Non Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense-non-PEC | ' | ' | ' | ' | ' | ' | ' | ' | -26,265 | ' | ' |
Encore Europe Consolidated [Member] | Preferred Equity Certificate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PEC interest (expense) income | ' | ' | ' | ' | ' | ' | ' | ' | ($11,381) | ' | ' |
Business_Combinations_Pro_Form
Business Combinations - Pro Forma Consolidated Results of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ' | ' |
Consolidated pro forma revenue | $949,337 | $929,579 |
Consolidated pro forma income from continuing operations | $92,378 | $101,762 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Foreign currency exchange contracts | $46 | ' |
Interest rate cap contracts | 202 | ' |
Liabilities | ' | ' |
Interest rate swap agreements | ' | -645 |
Foreign currency exchange contracts | -4,123 | -2,010 |
Temporary Equity | ' | ' |
Redeemable noncontrolling interests | -26,564 | ' |
Level 1 [Member] | ' | ' |
Assets | ' | ' |
Foreign currency exchange contracts | ' | ' |
Interest rate cap contracts | ' | ' |
Liabilities | ' | ' |
Interest rate swap agreements | ' | ' |
Foreign currency exchange contracts | ' | ' |
Temporary Equity | ' | ' |
Redeemable noncontrolling interests | ' | ' |
Level 2 [Member] | ' | ' |
Assets | ' | ' |
Foreign currency exchange contracts | 46 | ' |
Interest rate cap contracts | 202 | ' |
Liabilities | ' | ' |
Interest rate swap agreements | ' | -645 |
Foreign currency exchange contracts | -4,123 | -2,010 |
Temporary Equity | ' | ' |
Redeemable noncontrolling interests | ' | ' |
Level 3 [Member] | ' | ' |
Assets | ' | ' |
Foreign currency exchange contracts | ' | ' |
Interest rate cap contracts | ' | ' |
Liabilities | ' | ' |
Interest rate swap agreements | ' | ' |
Foreign currency exchange contracts | ' | ' |
Temporary Equity | ' | ' |
Redeemable noncontrolling interests | ($26,564) | ' |
Fair_Value_Measurements_Change
Fair Value Measurements - Change in Redeemable Noncontrolling Interests (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' |
Balance at beginning of period | ' |
Initial redeemable noncontrolling interest related to business combinations | 25,517 |
Net loss attributable to redeemable noncontrolling interests | -1,167 |
Adjustment of the redeemable noncontrolling interests to fair value | 1,167 |
Effect of foreign currency translation attributable to redeemable noncontrolling interests | 1,047 |
Balance at end of period | $26,564 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Cabot Acquisition [Member] | Cost to collect [Member] | Discount rate [Member] | United States [Member] | United Kingdom [Member] | |||||
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase or decrease of the fair value | ' | ' | ' | ' | ' | $19,500,000 | $18,100,000 | ' | ' |
Fluctuation in discount rate | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated market participant cost to collect | ' | ' | ' | ' | ' | ' | ' | 50.30% | 29.70% |
Discount rate | ' | ' | ' | ' | ' | ' | ' | 12.00% | 18.20% |
Carrying value of investment in receivable portfolios | 1,590,249,000 | 873,119,000 | 716,454,000 | 644,753,000 | ' | ' | ' | ' | ' |
Convertible senior notes, carrying value | 287,500,000 | 115,000,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible senior notes, debt discount | 42,240,000 | 14,442,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value estimate of convertible senior notes incorporates quoted market prices | 412,400,000 | 128,300,000 | ' | ' | 680,700,000 | ' | ' | ' | ' |
Senior secured notes, carrying value | 58,750,000 | 72,500,000 | ' | ' | 646,900,000 | ' | ' | ' | ' |
Senior secured notes, debt premium | $43,583,000 | ' | ' | ' | $43,600,000 | ' | ' | ' | ' |
Derivatives_and_Hedging_Instru2
Derivatives and Hedging Instruments - Additional Information (Detail) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 07, 2013 | Jun. 07, 2013 |
In Millions, unless otherwise specified | Cabot Acquisition [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Forward Contracts [Member] | Zero-cost Collar Foreign Exchange Contract [Member] | Zero-cost Collar Foreign Exchange Contract [Member] | Zero-cost Collar Foreign Exchange Contract [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instrument, Notional amount | $206.60 | ' | $48 | ' | ' | ' | $206 | € 132.10 |
Period of forward contracts entered for cash payments of future forecasted transactions in Indian rupees, maximum | ' | ' | '36 months | ' | ' | ' | ' | ' |
Net derivative loss included in OCI will be reclassified into earnings | ' | ' | 2 | ' | ' | ' | ' | ' |
Gains or losses were reclassified from OCI into earnings | ' | ' | 0 | 0 | 0 | ' | ' | ' |
Derivative expiry date | ' | ' | ' | ' | ' | 13-Aug-13 | ' | ' |
Foreign exchange contract loss | ' | -3.6 | ' | ' | ' | ' | ' | ' |
Decrease in estimated purchase price by offsetting foreign exchange loss | ' | $4.30 | $4.30 | ' | ' | ' | ' | ' |
Derivatives_and_Hedging_Instru3
Derivatives and Hedging Instruments - Summary of Fair Value of Derivative Instruments as Recorded in Company's Consolidated Statements of Financial Condition (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivatives designated as hedging instruments | ($4,123) | ($2,010) |
Other Liabilities [Member] | Interest Rate Cap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivatives designated as hedging instruments | ' | -645 |
Other Assets [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivatives designated as hedging instruments | 46 | ' |
Other Assets [Member] | Interest Rate Cap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivatives not designated as hedging instruments | $202 | ' |
Derivatives_and_Hedging_Instru4
Derivatives and Hedging Instruments - Summary of Effects of Derivatives on Cash Flow Hedging Relationships in Company's Statements of Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Recognized in OCI - Effective Portion | $645 | $369 |
Foreign Currency Exchange Contracts 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Recognized in OCI - Effective Portion | -3,031 | -1,224 |
Foreign Currency Exchange Contracts 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Recognized in OCI - Effective Portion | -658 | -25 |
Other (expense) income [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | ' | ' |
Other (expense) income [Member] | Foreign Currency Exchange Contracts 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | ' | ' |
Other (expense) income [Member] | Foreign Currency Exchange Contracts 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized - Ineffective Portion and Amount Excluded from Effectiveness Testing | ' | ' |
Interest Expense [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | ' | ' |
Salaries and Employee Benefits [Member] | Foreign Currency Exchange Contracts 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | -1,362 | -1,230 |
General and Administrative Expenses [Member] | Foreign Currency Exchange Contracts 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gain or (Loss) Reclassified from OCI into Income - Effective Portion | ($260) | ($212) |
Investment_in_Receivable_Portf2
Investment in Receivable Portfolios, Net - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Investment Receivables AACC [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||
Cabot Holdings [Member] | |||||||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collection forecast estimated on receivable portfolios | ' | ' | ' | ' | ' | ' | '84 months | '96 months | '120 months |
Investment in receivable portfolios collection forecast estimate | $129,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income recognized under cost recovery method | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of receivable portfolios | 84,900,000,000 | 11,400,000,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price of receivable portfolios | 1,204,779,000 | 562,335,000 | 386,850,000 | 383,400,000 | 559,000,000 | 559,000,000 | ' | ' | ' |
Purchase cost as a percentage of face value | 1.40% | 4.20% | ' | ' | ' | ' | ' | ' | ' |
Estimated future collections at acquisition for receivable portfolios | 1,300,000,000 | 842,800,000 | ' | ' | ' | ' | ' | ' | ' |
Zero Basis Revenue | $17,200,000 | $22,600,000 | $20,600,000 | ' | ' | ' | ' | ' | ' |
Investment_in_Receivable_Portf3
Investment in Receivable Portfolios, Net - Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' |
Beginning Balance | $1,002,310 | $854,203 |
Revenue recognized, net | -744,852 | -545,412 |
Net additions on existing portfolios | 375,407 | 240,173 |
Additions for current purchases | 1,767,071 | 453,346 |
Ending Balance | 2,399,936 | 1,002,310 |
Accretable Yield [Member] | ' | ' |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' |
Beginning Balance | 984,944 | 821,527 |
Revenue recognized, net | -717,733 | -519,136 |
Net additions on existing portfolios | 357,189 | 229,207 |
Additions for current purchases | 1,767,071 | 453,346 |
Ending Balance | 2,391,471 | 984,944 |
Estimate of Zero Basis Cash Flows [Member] | ' | ' |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' |
Beginning Balance | 17,366 | 32,676 |
Revenue recognized, net | -27,119 | -26,276 |
Net additions on existing portfolios | 18,218 | 10,966 |
Additions for current purchases | ' | ' |
Ending Balance | $8,465 | $17,366 |
Investment_in_Receivable_Portf4
Investment in Receivable Portfolios, Net - Summary of Accretable Yield and an Estimate of Zero Basis Future Cash Flows (Parenthetical) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Cabot Acquisition [Member] | Cabot Acquisition [Member] | Investment Receivables AACC [Member] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' |
Purchase price of receivable portfolios | $1,204,779 | $562,335 | $386,850 | $559,000 | $559,000 | $383,400 |
Investment_in_Receivable_Portf5
Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ' | $873,119 | ' | ' | ' | $716,454 | $873,119 | $716,454 | $644,753 |
Purchases of receivable portfolios | ' | ' | ' | ' | ' | ' | ' | ' | 1,204,779 | 562,335 | 386,850 |
Transfer of portfolios | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross collections | -351,278 | -379,670 | -278,388 | -270,170 | -230,490 | -245,977 | -240,560 | -231,028 | -1,279,506 | -948,006 | -761,011 |
Put-backs and recalls | ' | ' | ' | ' | ' | ' | ' | ' | -2,629 | -3,076 | -2,852 |
Foreign currency adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 49,634 | ' | ' |
Revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | 732,659 | 541,191 | 459,537 |
Portfolio allowance reversals, net | ' | ' | ' | ' | ' | ' | ' | ' | 12,193 | 4,221 | -10,823 |
Balance, end of period | 1,590,249 | ' | ' | ' | 873,119 | ' | ' | ' | 1,590,249 | 873,119 | 716,454 |
Revenue as a percentage of collections | ' | ' | ' | ' | ' | ' | ' | ' | 57.30% | 57.10% | 60.40% |
Accrual Basis Portfolios [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ' | 873,119 | ' | ' | ' | 716,454 | 873,119 | 716,454 | 644,753 |
Purchases of receivable portfolios | ' | ' | ' | ' | ' | ' | ' | ' | 1,203,706 | 562,335 | 386,850 |
Transfer of portfolios | ' | ' | ' | ' | ' | ' | ' | ' | -6,649 | ' | ' |
Gross collections | ' | ' | ' | ' | ' | ' | ' | ' | -1,249,625 | -921,730 | -740,402 |
Put-backs and recalls | ' | ' | ' | ' | ' | ' | ' | ' | -2,331 | -3,076 | -2,843 |
Foreign currency adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 49,634 | ' | ' |
Revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | 715,458 | 518,617 | 443,367 |
Portfolio allowance reversals, net | ' | ' | ' | ' | ' | ' | ' | ' | 2,275 | 519 | -15,271 |
Balance, end of period | 1,585,587 | ' | ' | ' | 873,119 | ' | ' | ' | 1,585,587 | 873,119 | 716,454 |
Revenue as a percentage of collections | ' | ' | ' | ' | ' | ' | ' | ' | 57.30% | 56.30% | 59.90% |
Cost Recovery Portfolios [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of receivable portfolios | ' | ' | ' | ' | ' | ' | ' | ' | 1,073 | ' | ' |
Transfer of portfolios | ' | ' | ' | ' | ' | ' | ' | ' | 6,649 | ' | ' |
Gross collections | ' | ' | ' | ' | ' | ' | ' | ' | -2,764 | ' | ' |
Put-backs and recalls | ' | ' | ' | ' | ' | ' | ' | ' | -296 | ' | ' |
Foreign currency adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portfolio allowance reversals, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, end of period | 4,662 | ' | ' | ' | ' | ' | ' | ' | 4,662 | ' | ' |
Revenue as a percentage of collections | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% |
Zero Basis Portfolios [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of receivable portfolios | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of portfolios | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross collections | ' | ' | ' | ' | ' | ' | ' | ' | -27,117 | -26,276 | -20,609 |
Put-backs and recalls | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | -9 |
Foreign currency adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | 17,201 | 22,574 | 16,170 |
Portfolio allowance reversals, net | ' | ' | ' | ' | ' | ' | ' | ' | 9,918 | 3,702 | 4,448 |
Balance, end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue as a percentage of collections | ' | ' | ' | ' | ' | ' | ' | ' | 63.40% | 85.90% | 78.50% |
Investment_in_Receivable_Portf6
Investment in Receivable Portfolios, Net - Summary of Changes in Balance of Investment in Receivable Portfolios (Parenthetical) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2013 |
AACC Merger [Member] | Cabot Acquisition [Member] | Cabot Acquisition [Member] | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount Net [Line Items] | ' | ' | ' | ' | ' | ' |
Purchase price of receivable portfolios | $1,204,779 | $562,335 | $386,850 | $383,400 | $559,000 | $559,000 |
Investment_in_Receivable_Portf7
Investment in Receivable Portfolios, Net - Summary of Change in Valuation Allowance for Investment in Receivable Portfolios (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract] | ' | ' | ' |
Balance at beginning of period | $105,273 | $109,494 | $98,671 |
Provision for portfolio allowances | 479 | 6,745 | 17,707 |
Reversal of prior allowances | -12,672 | -10,966 | -6,884 |
Balance at end of period | $93,080 | $105,273 | $109,494 |
Deferred_Court_Costs_Net_Addit
Deferred Court Costs, Net - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' |
Deferred Court Costs not recovered, years | '3 years |
Extended Deferred Court Costs not recovered, years | '5 years |
Deferred_Court_Costs_Net_Sched
Deferred Court Costs, Net - Schedule of Deferred Court Costs (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' | ' |
Court costs advanced | $399,274 | $279,314 | ' | ' |
Court costs recovered | -147,166 | -94,827 | ' | ' |
Court costs reserve | -210,889 | -149,080 | -130,454 | -113,239 |
Deferred court costs, net | $41,219 | $35,407 | ' | ' |
Deferred_Court_Costs_Net_Sched1
Deferred Court Costs, Net - Schedule of Court Cost Reserve (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of period | ($149,080) | ($130,454) | ($113,239) |
Provision for court costs | -61,809 | -53,946 | -54,939 |
Write-off of reserve after the 36th month | ' | 35,320 | 37,724 |
Balance at end of period | ($210,889) | ($149,080) | ($130,454) |
Property_and_Equipment_Net_Pro
Property and Equipment, Net - Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $115,540 | $53,519 |
Less: accumulated depreciation and amortization | -59,757 | -30,296 |
Property and equipment, net | 55,783 | 23,223 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 15,955 | 7,605 |
Computer Equipment and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 79,765 | 33,189 |
Telecommunications Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 3,589 | 6,033 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 15,145 | 6,692 |
Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,086 | ' |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization expense | $12.70 | $5.80 | $4.10 |
Other_Assets_Components_of_Oth
Other Assets - Components of Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Service fee receivables | $29,931 | ' |
Debt issuance costs, net of amortization | 28,066 | 14,397 |
Identifiable intangible assets, net | 23,549 | 487 |
Prepaid expenses | 23,487 | 6,399 |
Deferred tax assets | 13,974 | ' |
Other financial receivables | 7,962 | ' |
Interest receivable | 7,956 | 4,042 |
Prepaid income taxes | 5,009 | ' |
Recoverable legal fees | 3,049 | 1,521 |
Security deposits | 2,500 | 1,696 |
Other | 9,300 | 2,993 |
Total other assets | $154,783 | $31,535 |
Debt_Components_of_Debt_Detail
Debt - Components of Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Encore revolving credit facility | $356,000 | $258,000 |
Encore term loan facility | 140,625 | 148,125 |
Encore senior secured notes | 58,750 | 72,500 |
Encore convertible notes | 287,500 | 115,000 |
Less: Debt discount | -42,240 | -14,442 |
Add: Debt premium | 43,583 | ' |
Preferred equity certificates | 199,821 | ' |
Capital lease obligations | 12,219 | 9,252 |
Debt and capital lease obligations, total | 1,850,431 | 706,036 |
Other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Encore senior secured notes | 20,271 | ' |
Propel Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Encore revolving credit facility | 152,292 | 117,601 |
Propel Wells Fargo Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Encore revolving credit facility | 18,338 | ' |
Cabot Senior Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Encore senior secured notes | $603,272 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | |
Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Term Loan [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | |||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Restated Credit Agreement [Member] | Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $692,600,000 | ' | ' | ' | ' | ' | ' | ' |
Term loan facility | 140,625,000 | 148,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,800,000 | ' | 60,000,000 | ' | ' | 6,300,000 | ' |
Additional line of revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity including accordion agreement after amendment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility expiry date | ' | ' | 28-Feb-19 | ' | ' | ' | ' | ' | ' | 28-Feb-19 | 28-Feb-19 | ' | ' | 28-Feb-17 | 25-Feb-17 | 28-Feb-17 | 3-Nov-17 | 3-Nov-17 | 3-Nov-17 |
Subordinated debt basket | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in unrestricted subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, description of loan | ' | ' | ' | 'A revolving loan of $692.6 million, interest at a floating rate equal to, at the Company's option, either: (1) reserve adjusted London Interbank Offered Rate ("LIBOR"), plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 250 to 300 basis points; or (2) Alternate Base Rate, plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 150 to 200 basis points. "Alternate Base Rate," as defined in the 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, as in effect from time to time, (ii)the federal funds effective rate from time to time, plus 0.5% per annum and (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest paid, plus 1.0% per annum; | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term; | ' | ' | 'A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term; | ' |
Basis spread on variable rate | ' | ' | ' | ' | 2.50% | 1.50% | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_1_
Debt - Additional Information 1 (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 | Feb. 25, 2014 |
Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Term Loan One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||
Term Loan One [Member] | Term Loan One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Term Loan One [Member] | Term Loan One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | ||||||||||
LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, description of loan | ' | ' | ' | ' | 'An $87.5 million five-year term loan, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $4.4 million in 2014, $4.4 million in 2015, $6.6 million in 2016, $8.8 million in 2017, and $8.8 million in 2018 with the remaining principal due at the end of the term; | 'A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term; | ' | 'A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term; | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan facility | $140,625,000 | $148,125,000 | ' | ' | $87,500,000 | $60,000,000 | ' | $6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 1.50% | 2.00% | 1.00% | 2.50% | 1.50% | 3.00% | 2.00% | 2.50% | 1.50% | 3.00% | 2.00% |
Principal amount amortized, 2014 | ' | ' | ' | ' | 4,400,000 | 3,000,000 | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount amortized, 2015 | ' | ' | ' | ' | 4,400,000 | 3,000,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount amortized, 2016 | ' | ' | ' | ' | 6,600,000 | 4,500,000 | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount amortized, 2017 | ' | ' | ' | ' | 8,800,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount amortized, 2018 | ' | ' | ' | ' | $8,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility expiry date | ' | ' | 28-Feb-17 | 3-Nov-17 | ' | 25-Feb-17 | 28-Feb-17 | 3-Nov-17 | 3-Nov-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_2_
Debt - Additional Information 2 (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 25, 2014 |
In Millions, unless otherwise specified | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' |
Eligible estimated remaining collections for consumer receivables | ' | ' | 55.00% |
Total estimated remaining collections | ' | ' | 35.00% |
Borrowing base as percentage of eligible estimated collection range start | ' | ' | 30.00% |
Borrowing base as percentage of eligible estimated collection range end | ' | ' | 35.00% |
Percentage of eligible estimated remaining collections | ' | ' | 33.00% |
Percentage of multiplying factor | ' | ' | 95.00% |
Borrowing base description | ' | ' | 'A borrowing base equal to (1) the lesser of (i) (a) 55% of eligible estimated remaining collections for consumer receivables subject to bankruptcy proceedings, provided that the amount described in this clause (i)(a) may not exceed 35% of the amount described in clauses (i)(a) and (i)(b), plus (b) 30%b35% (depending on the Companybs trailing 12-month cost per dollar collected) of all other eligible estimated remaining collections, initially set at 33%, and (ii) the product of the net book value of all receivable portfolios acquired on or after January 1, 2005 multiplied by 95%, minus (2) (x) the aggregate principal amount outstanding of the Senior Secured Notes (as defined below) plus (y) the aggregate principal amount outstanding under the term loans; |
Allowance of additional unsecured indebtedness | ' | ' | $450 |
Company's repurchases, common stock | ' | ' | 50 |
Percentage of acquisitions excluded | ' | ' | 50.00% |
Acquisition limit per acquisition | ' | ' | 75 |
Acquisition limit | ' | ' | 225 |
Amount outstanding | $496.60 | ' | ' |
Revolving credit facility, interest rate | 3.11% | 4.06% | ' |
Debt_Additional_Information_3_
Debt - Additional Information 3 (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 27, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 9-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 20, 2012 | Sep. 20, 2012 | Aug. 02, 2013 | Aug. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 07, 2014 | Feb. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 20, 2012 | Sep. 20, 2012 | Dec. 31, 2013 | Jun. 28, 2013 | Jun. 28, 2012 | Feb. 07, 2014 | Feb. 07, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Propel Facility [Member] | Propel Facility [Member] | Propel Facility [Member] | Propel Wells Fargo Facility [Member] | Propel Wells Fargo Facility [Member] | Cabot Corporation [Member] | Cabot Corporation [Member] | Cabot 2019 Notes [Member] | Cabot 2019 Notes [Member] | Cabot 2020 Notes [Member] | Cabot 2020 Notes [Member] | J Bridge PECs [Member] | J Bridge PECs [Member] | 2011 Senior Secured Notes [Member] | 2010 Senior Secured Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prime Rate [Member] | Prime Rate [Member] | Cabot Credit Agreement [Member] | Cabot Credit Agreement [Member] | Cabot Credit Facility [Member] | Cabot Credit Facility [Member] | Cabot Credit Facility [Member] | Cabot Credit Facility [Member] | Cabot Credit Facility [Member] | Cabot Credit Facility [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | USD ($) | Marlin Acquisition [Member] | Marlin Acquisition [Member] | Propel Facility [Member] | Propel Facility [Member] | Propel Wells Fargo Facility [Member] | Propel Facility [Member] | Propel Facility [Member] | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | LIBOR [Member] | |||||
USD ($) | GBP (£) | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Marlin Acquisition [Member] | Marlin Acquisition [Member] | ||||||||||||||||||||||||||
USD ($) | GBP (£) | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Notes | $58,750,000 | $72,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | $438,400,000 | £ 265,000,000 | $151,700,000 | £ 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Notes, aggregate amount | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.38% | 10.38% | 8.38% | ' | ' | ' | 7.38% | 7.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Notes, periodic principal repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Frequency of repayment, Senior Secured Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Quarterly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019 | '2019 | ' | ' | ' | ' | '2018 | '2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | 160,000,000 | 200,000,000 | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,700,000 | 50,000,000 | ' | 85,000,000 | 140,600,000 | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | '2015-05 | ' | ' | '2017-05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.75% | 3.25% | 0.00% | 0.75% | ' | ' | ' | ' | ' | ' | ' | 4.00% |
Borrowing base of the face value of the tax lien collateralized notes | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, accordion feature | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, outstanding amount | ' | ' | ' | 152,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 122,300,000 | 75,000,000 | ' |
Weighted average interest rate | 3.11% | 4.06% | ' | 3.19% | ' | 3.37% | 3.64% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional draws | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Amount outstanding | 496,600,000 | ' | ' | ' | ' | ' | 18,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year | 'Interest on the Cabot 2019 Notes is payable semi-annually, in arrears, on April 1 and October 1 of each year | 'Interest on the Cabot 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of senior credit facility | 630,163,000 | 289,673,000 | 143,000,000 | ' | ' | ' | ' | ' | 113,800,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of J Bridge PECs | 39,743,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,900,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility expiry date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Sep-17 | ' | ' | ' | ' | ' |
LTV ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $481,000,000 | £ 295,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_4_
Debt - Additional Information 4 (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
Aug. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 06, 2014 | Dec. 31, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Nov. 27, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 06, 2012 | Dec. 31, 2012 | Dec. 16, 2013 | Feb. 06, 2014 | Jun. 24, 2013 | Dec. 31, 2013 | Jul. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
After Amendment [Member] | Subsequent Event [Member] | Warrants [Member] | Cabot Acquisition [Member] | Janus Holdings [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2017 Convertible Senior Notes [Member] | 2020 Convertible Senior Notes [Member] | 2020 Convertible Senior Notes [Member] | 2020 Convertible Senior Notes [Member] | Preferred Equity Certificate [Member] | Computer Hardware and Software [Member] | ||||
Before Amendment [Member] | After Amendment [Member] | Subsequent Event [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument description of discount rate | ' | '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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread over the current Treasury Rate | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible senior notes sold | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | $15,000,000 | ' | ' | ' | $150,000,000 | ' | $22,500,000 | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | 12.00% | ' |
Convertible senior notes, Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 27-Nov-17 | ' | ' | ' | ' | ' | ' | 1-Jul-20 | ' | ' | ' | ' |
Convertible senior notes outstanding | ' | 287,500,000 | 115,000,000 | ' | ' | ' | ' | ' | 115,000,000 | ' | 115,000,000 | ' | ' | ' | ' | ' | ' | 172,500,000 | ' | ' |
Debt instrument interest payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest on the 2017 Convertible Notes is payable semi-annually, in arrears, on May 27 and November 27 of each year | ' | ' | ' | ' | ' | ' | 'Interest on the 2020 Convertible Notes is payable semi-annually, in arrears, on January 1 and July 1 of each year | ' | ' | ' |
Initial conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | 31.6832 | ' | ' | ' | ' | ' | ' | 21.8718 | ' | ' | ' | ' |
Convertible senior notes, principal amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' |
Initial conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | $31.56 | $31.56 | ' | ' | ' | ' | ' | $45.72 | ' | ' | ' | ' |
Fair value of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,300,000 | ' | ' | ' | ' | ' | ' | 140,200,000 | ' | ' | ' |
Residual value | ' | 46,954,000 | 14,702,000 | ' | ' | ' | ' | ' | ' | 14,700,000 | ' | ' | ' | ' | ' | ' | 32,300,000 | ' | ' | ' |
Debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' |
Initial debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' |
Equity issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' |
Dilutive effect of convertible senior notes | ' | 595,000 | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective conversion price of Notes per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average share price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants strike price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.19 | 60 | ' | ' | ' | ' | ' | ' |
Number of warrants modified | ' | ' | ' | ' | ' | ' | ' | ' | ' | 358,000 | 3,600,000 | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' |
Amount paid to modify warrants, per warrant | ' | ' | ' | ' | ' | $7.66 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid to modify warrants | ' | ' | ' | 27,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant restrike costs | ' | 2,700,000 | ' | ' | 25,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capped Call Transactions cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ' | ' |
Cap price of capped call transactions per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61.55 | ' | ' | ' |
Proceeds from sale of Notes | ' | 172,500,000 | 115,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,400,000 | ' | ' | ' |
Net proceeds used for payment of convertible note hedge transaction cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ' | ' |
Effective interest rate on the liability component | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | 6.35% | ' | ' | ' |
Percentage of equity interest acquired | ' | ' | ' | ' | ' | ' | 50.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minority interest percentage | ' | ' | ' | ' | ' | ' | ' | 49.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of J Bridge PECs | 41,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred equity certificates | ' | 199,821,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations | ' | $12,219,000 | $9,252,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,000,000 |
Capital lease obligations, minimum percentage | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations, maximum percentage | ' | 13.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Balances_of_Liability_and
Debt - Balances of Liability and Equity Components (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Liability component-principal amount | $287,500 | $115,000 |
Unamortized debt discount | -42,240 | -14,442 |
Liability component-net carrying amount | 245,260 | 100,558 |
Equity component | $46,954 | $14,702 |
Debt_Interest_Expense_Detail
Debt - Interest Expense (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest expense-stated coupon rate | $6,108 | $307 |
Interest expense - amortization/appreciation of debt discount/premium | 4,492 | 260 |
Total interest expense-Cabot Notes | 10,600 | 567 |
Cabot Senior Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest expense-stated coupon rate | 27,496 | ' |
Interest expense - amortization/appreciation of debt discount/premium | -2,826 | ' |
Total interest expense-Cabot Notes | $24,670 | ' |
Debt_Summary_of_Debt_and_Capit
Debt - Summary of Debt and Capital Lease Obligations Maturities (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Equity Method Investments And Cost Method Investments [Abstract] | ' |
2014 | $40,989 |
2015 | 226,906 |
2016 | 28,459 |
2017 | 573,622 |
2018 | 2,655 |
Thereafter | 976,458 |
Total | $1,849,089 |
Debt_Summary_of_Debt_and_Capit1
Debt - Summary of Debt and Capital Lease Obligations Maturities (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Restated Credit Agreement [Member] | Restated Credit Agreement [Member] | Restated Credit Agreement [Member] | ||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Line of credit facility expiry date | ' | ' | 28-Feb-17 | 25-Feb-17 | 28-Feb-17 | 3-Nov-17 | 3-Nov-17 | 3-Nov-17 | 28-Feb-19 | 28-Feb-19 | 28-Feb-19 |
Term loan facility | $140,625 | $148,125 | ' | $60,000 | ' | ' | $6,300 | ' | ' | ' | ' |
Variable_Interest_Entity_Addit
Variable Interest Entity - Additional Information (Detail) (Cabot Credit Management [Member], Janus Holdings [Member]) | Jul. 02, 2013 |
Cabot Credit Management [Member] | Janus Holdings [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Percentage of equity interest acquired | 50.10% |
Variable_Interest_Entity_Asset
Variable Interest Entity - Assets and Liabilities of Variable Interest Entity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ||
Cash and cash equivalents | $126,213 | $17,510 | $8,047 | $10,905 | ||
Investment in receivable portfolios, net | 1,590,249 | 873,119 | 716,454 | 644,753 | ||
Property and equipment, net | 55,783 | 23,223 | ' | ' | ||
Other assets | 154,783 | 31,535 | ' | ' | ||
Goodwill | 504,213 | 55,446 | ' | ' | ||
Total assets | 2,685,274 | [1] | 1,171,340 | [1] | ' | ' |
Liabilities | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 137,272 | 43,909 | ' | ' | ||
Debt | 1,850,431 | 706,036 | ' | ' | ||
Other liabilities | 87,936 | 7,343 | ' | ' | ||
Total liabilities | 2,082,803 | [1] | 765,524 | [1] | ' | ' |
Janus Holdings [Member] | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and cash equivalents | 62,403 | ' | ' | ' | ||
Investment in receivable portfolios, net | 620,312 | ' | ' | ' | ||
Property and equipment, net | 13,755 | ' | ' | ' | ||
Other assets | 33,772 | ' | ' | ' | ||
Goodwill | 376,296 | ' | ' | ' | ||
Total assets | 1,106,538 | ' | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 47,219 | ' | ' | ' | ||
Debt | 846,676 | ' | ' | ' | ||
Other liabilities | 1,897 | ' | ' | ' | ||
Total liabilities | $895,792 | ' | ' | ' | ||
[1] | The Company's consolidated assets as of December 31, 2013 included $1,106,538 of assets from its variable interest entity, or VIE, that can only be used to settle obligations of the VIE. These assets include cash and cash equivalents of $62,403; investment in receivable portfolios, net, of $620,312; property and equipment, net, of $13,755; other assets of $33,772; and goodwill of $376,296. The Company's consolidated liabilities as of December 31, 2013, included $895,792 of liabilities of its VIE, whose creditors have no recourse to the Company. These liabilities include accounts payable and accrued liabilities of $47,219; debt of $846,676; and other liabilities of $1,897. See further details of the assets and liabilities of the Company's VIE in Note 11, "Variable Interest Entity." |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of additional shares available under the Stock Incentive Plan | 2,000,000 | ' | ' |
Stock-based compensation, contractual terms | '10-year | ' | ' |
Shares available for grant | 3,500,000 | ' | ' |
Stock-based compensation expense | $12,649,000 | $8,794,000 | $7,709,000 |
Unrecognized compensation cost, stock options | 700,000 | ' | ' |
Stock options intrinsic value | 16,900,000 | 9,100,000 | 10,500,000 |
Weighted-average remaining contractual life, options outstanding | '5 years 7 months 6 days | ' | ' |
Weighted-average remaining contractual life, options exercisable | '5 years 2 months 12 days | ' | ' |
Unrecognized compensation cost, non vested shares | 16,200,000 | ' | ' |
Fair value of restricted stock units and restricted stock awards vested | $11,500,000 | $7,000,000 | $7,100,000 |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation, contractual terms | '10-year | ' | ' |
Weighted-average period in years, unrecognized compensation cost | '1 year | ' | ' |
Non-Vested Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average period in years, unrecognized compensation cost | '2 years 2 months 12 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 | ' | ' |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Assumptions (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Weighted-average fair value of options granted | $11.77 | $13.26 |
Risk free interest rate | 0.90% | 2.00% |
Dividend yield | 0.00% | 0.00% |
Volatility factors of the expected market price of the Company's common stock | 63.00% | 61.00% |
Weighted-average expected life of options | '5 years | '5 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding, Beginning Balance | 1,948,259 |
Number of Shares, Cancelled/forfeited | -61,332 |
Number of Shares, Exercised | -753,755 |
Number of Shares, Outstanding, Ending Balance | 1,133,172 |
Number of Shares, Exercisable, Ending Balance | 987,843 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $15.38 |
Weighted Average Exercise Price, Cancelled/forfeited | $23.03 |
Weighted Average Exercise Price, Exercised | $15.56 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $14.84 |
Weighted Average Exercise Price, Exercisable, Ending Balance | $13.71 |
Aggregate Intrinsic Value, Outstanding at December 31, 2013 | $40,138 |
Aggregate Intrinsic Value, Exercisable at December 31, 2013 | $36,103 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Option Price Per Share, Outstanding, Beginning Balance | $2.89 |
Option Price Per Share, Cancelled/forfeited | $22.17 |
Option Price Per Share, Exercised | $2.89 |
Option Price Per Share, Outstanding, Ending Balance | $2.89 |
Option Price Per Share, Exercisable, Ending Balance | $2.89 |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Option Price Per Share, Outstanding, Beginning Balance | $24.65 |
Option Price Per Share, Cancelled/forfeited | $24.65 |
Option Price Per Share, Exercised | $24.65 |
Option Price Per Share, Outstanding, Ending Balance | $24.65 |
Option Price Per Share, Exercisable, Ending Balance | $24.65 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Non-vested at December 31, 2012 | 744,016 |
Non-Vested Shares, Awarded | 645,266 |
Non-Vested Shares, Vested | -336,772 |
Non-Vested Shares, Cancelled/forfeited | -66,775 |
Non-vested at December 31, 2013 | 985,735 |
Weighted Average Grant Date Fair Value, Non-vested at December 31,2012 | $23.51 |
Weighted Average Grant Date Fair Value, Awarded | $35.03 |
Weighted Average Grant Date Fair Value, Vested | $22.85 |
Weighted Average Grant Date Fair Value, Cancelled/forfeited | $26.39 |
Weighted Average Grant Date Fair Value, Non-vested at December 31,2013 | $31.07 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' |
Provision for income taxes | $45,388,000 | $51,754,000 | $38,076,000 |
Effective tax rate | 37.60% | 39.70% | ' |
Provision for federal income taxes rate | 33.00% | 32.70% | ' |
Net benefit for state taxes rate | 2.00% | 2.30% | ' |
Provision for state taxes rate | 5.80% | 6.60% | ' |
Net provision for permanent book versus tax differences rate | -2.20% | -0.40% | ' |
Federal income tax rate | 35.00% | 35.00% | ' |
Undistributed earnings | 5,600,000 | ' | ' |
Net earnings distributed | 2,200,000 | ' | ' |
Income tax holiday, description | '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, 2013 was immaterial. | ' | ' |
Unrecognized tax benefit | 71,273,000 | 1,784,000 | ' |
Net tax benefit from unrecognized tax benefits, if recognized | 13,500,000 | ' | ' |
Increase in gross unrecognized tax benefit | 79,400,000 | ' | ' |
Prior years' uncertain tax positions, interest | 1,400,000 | ' | ' |
Accrued potential interest | 11,700,000 | ' | ' |
Net operating loss carry forward | 30,400,000 | ' | ' |
AACC Merger [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Unrecognized tax benefit | $83,000,000 | ' | ' |
Costa Rica [Member] | Tax Holiday Through December 31, 2018 [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Holiday tax rate | 100.00% | ' | ' |
Costa Rica [Member] | Subsequent Four Years [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Holiday tax rate | 50.00% | ' | ' |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Federal provision | 35.00% | 35.00% |
State provision | 5.80% | 6.60% |
State benefit | -2.00% | -2.30% |
Changes in state apportionment | -0.20% | 0.00% |
Tax reserves | 0.00% | 0.10% |
International provision | -2.20% | -0.40% |
Permanent items | 2.40% | 0.50% |
Other | -1.20% | 0.20% |
Effective rate | 37.60% | 39.70% |
Income_Taxes_Components_of_Pre
Income Taxes - Components of Pretax Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $105,009 | $122,423 | $92,759 |
Foreign | 15,859 | 7,902 | 5,910 |
Income from continuing operations before income taxes | $120,868 | $130,325 | $98,669 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current expense: | ' | ' | ' |
Federal | $50,304 | $48,025 | $30,822 |
State | 7,196 | 9,537 | 6,647 |
Foreign | 4,052 | 2,765 | 2,407 |
Total current income tax expense | 61,552 | 60,327 | 39,876 |
Deferred (benefit) expense: | ' | ' | ' |
Federal | -13,134 | -6,801 | -814 |
State | -2,369 | -1,301 | 90 |
Foreign | -661 | -471 | -1,076 |
Total deferred income tax expense | -16,164 | -8,573 | -1,800 |
Total income tax expense (benefit) | $45,388 | $51,754 | $38,076 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
State taxes | $2,758 | $1,408 |
Stock-based compensation expense | 7,250 | 8,888 |
Accrued expenses | 5,015 | 2,957 |
Non-qualified plan | 97 | -136 |
Deferred revenue | 38,529 | ' |
Cash flow hedge instruments | 1,588 | 1,037 |
State and international operating losses | 6,490 | 51 |
Fixed asset basis-International | 86 | -26 |
Capitalized legal fees-International | 1,609 | ' |
Cumulative translation adjustment | 1,509 | ' |
Tax benefit of uncertain tax positions | 4,237 | ' |
Valuation allowance | -3,595 | -13 |
Net deferred tax assets | 65,573 | 14,166 |
Deferred tax liabilities: | ' | ' |
Deferred court costs | -15,445 | -15,013 |
Difference in basis of amortizable assets | -12,200 | -7,898 |
Difference in basis of depreciable assets | -6,834 | -4,134 |
Differences in income recognition related to receivable portfolios | -20,773 | 5,723 |
Deferred debt cancellation income | -1,222 | -1,222 |
Other | -2,289 | 142 |
Deferred tax liabilities gross | -58,763 | -22,402 |
Net deferred tax asset (liability) | $6,810 | ($8,236) |
Income_Taxes_Differences_betwe
Income Taxes - Differences between Total Income Tax Expense and Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Computed "expected" Federal income tax expense | $42,304 | $45,614 | $34,534 |
Increase (decrease) in income taxes resulting from: | ' | ' | ' |
State income taxes, net | 3,138 | 5,551 | 4,200 |
Foreign non-taxed income, rate differential | -2,647 | -481 | -772 |
Other adjustments, net | 2,593 | 1,070 | 114 |
Total income tax expense (benefit) | $45,388 | $51,754 | $38,076 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefit (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Balance at December 31, 2012 | $1,784 |
Current year deletions relating to prior years | -712 |
Current year additions relating to prior years-acquisitions | 70,201 |
Balance at December 31, 2013 | $71,273 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||
19-May-08 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 17, 2010 | Nov. 02, 2010 | |
Subsidiary | ClassAction | ClassAction | ||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Number of defendant subsidiaries | 2 | ' | ' | ' | ' | ' |
Payment of settlement awards, fees and costs | ' | $5,200,000 | ' | ' | ' | ' |
Number of class actions filed | ' | ' | ' | ' | 2 | 2 |
Attorneys' fees and costs awarded to plaintiffs | ' | 550,000 | ' | ' | ' | ' |
Material reserves for litigation | ' | 0 | ' | ' | ' | ' |
Rent expense | ' | 12,000,000 | 6,900,000 | 5,800,000 | ' | ' |
Purchase price of receivable portfolios | ' | 770,100,000 | ' | ' | ' | ' |
Purchase price | ' | 93,500,000 | ' | ' | ' | ' |
Purchase commitments in past one year | ' | 0 | ' | ' | ' | ' |
Estimated fair value, liability | ' | 0 | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Damages sought by plaintiffs | 25,000 | ' | ' | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Total settlement amount | ' | $5,700,000 | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Lease Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Capital lease obligation, 2014 | $5,903 |
Capital lease obligation, 2015 | 4,242 |
Capital lease obligation, 2016 | 2,262 |
Capital lease obligation, 2017 | 519 |
Capital lease obligation, 2018 | 110 |
Capital lease obligation, Thereafter | ' |
Total minimal leases payments, Capital Leases | 13,036 |
Less: Interest | -817 |
Present value of minimal lease payments | 12,219 |
Operating lease obligation, 2014 | 17,582 |
Operating lease obligation, 2015 | 15,824 |
Operating lease obligation, 2016 | 12,624 |
Operating lease obligation, 2017 | 10,861 |
Operating lease obligation, 2018 | 8,115 |
Operating lease obligation, Thereafter | 20,540 |
Total minimal leases payments, Operating Leases | 85,546 |
Total lease, 2014 | 23,485 |
Total lease, 2015 | 20,066 |
Total lease, 2016 | 14,886 |
Total lease, 2017 | 11,380 |
Total lease, 2018 | 8,225 |
Total lease, Thereafter | 20,540 |
Total minimal leases payments | $98,582 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Segment | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Number of reportable segments | 2 | ' | ||
Assets | $2,685,274 | [1] | $1,171,340 | [1] |
Portfolio Purchasing and Recovery [Member] | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Assets | 2,400,000 | ' | ||
Tax Lien Transfer [Member] | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ||
Assets | $253,400 | ' | ||
[1] | The Company's consolidated assets as of December 31, 2013 included $1,106,538 of assets from its variable interest entity, or VIE, that can only be used to settle obligations of the VIE. These assets include cash and cash equivalents of $62,403; investment in receivable portfolios, net, of $620,312; property and equipment, net, of $13,755; other assets of $33,772; and goodwill of $376,296. The Company's consolidated liabilities as of December 31, 2013, included $895,792 of liabilities of its VIE, whose creditors have no recourse to the Company. These liabilities include accounts payable and accrued liabilities of $47,219; debt of $846,676; and other liabilities of $1,897. See further details of the assets and liabilities of the Company's VIE in Note 11, "Variable Interest Entity." |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Revenue and Operating Income from Segments to Consolidated (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $237,099 | $235,558 | $156,121 | $144,586 | $143,903 | $145,218 | $141,246 | $126,410 | $773,364 | $556,777 | $448,746 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -13,547 | -5,840 | -4,081 |
Other expense | ' | ' | ' | ' | ' | ' | ' | ' | -77,491 | -24,756 | -21,511 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 120,868 | 130,325 | 98,669 |
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 773,364 | 556,777 | 448,746 |
Operating income loss before depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 224,555 | 169,715 | 131,970 |
Operating Segments [Member] | Portfolio Purchasing and Recovery [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 756,277 | 545,419 | 448,746 |
Operating income loss before depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 219,510 | 164,038 | 131,970 |
Operating Segments [Member] | Tax Lien Transfer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 17,087 | 11,358 | ' |
Operating income loss before depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,045 | 5,677 | ' |
Segment Reconciling Items [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -13,547 | -5,840 | -4,081 |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | -12,649 | -8,794 | -7,709 |
Other expense | ' | ' | ' | ' | ' | ' | ' | ' | ($77,491) | ($24,756) | ($21,511) |
Segment_Information_Schedule_o
Segment Information - Schedule of Geographical Areas of Which Company Operates (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $237,099 | $235,558 | $156,121 | $144,586 | $143,903 | $145,218 | $141,246 | $126,410 | $773,364 | $556,777 | $448,746 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 677,873 | 556,777 | 448,746 |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $95,491 | ' | ' |
Goodwill_and_Identifiable_Inta2
Goodwill and Identifiable Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $0.80 | $0.10 | $0.30 |
Goodwill_and_Identifiable_Inta3
Goodwill and Identifiable Intangible Assets - Schedule of Reportable Segments by Reporting Units (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill [Line Items] | ' |
Balance, December 31, 2012 | $55,446 |
Goodwill acquired | 433,508 |
Goodwill adjustment | -9,130 |
Effect of foreign currency translation | 24,389 |
Balance, December 31, 2013 | 504,213 |
Portfolio Purchasing and Recovery [Member] | ' |
Goodwill [Line Items] | ' |
Balance, December 31, 2012 | 6,047 |
Goodwill acquired | 429,621 |
Goodwill adjustment | -5,121 |
Effect of foreign currency translation | 24,389 |
Balance, December 31, 2013 | 454,936 |
Tax Lien Transfer [Member] | ' |
Goodwill [Line Items] | ' |
Balance, December 31, 2012 | 49,399 |
Goodwill acquired | 3,887 |
Goodwill adjustment | -4,009 |
Effect of foreign currency translation | ' |
Balance, December 31, 2013 | $49,277 |
Goodwill_and_Identifiable_Inta4
Goodwill and Identifiable Intangible Assets - Summary of Acquired Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $24,477 | $570 |
Accumulated Amortization | -929 | -83 |
Net Carrying Amount | 21,587 | ' |
Other intangibles - indefinite lived | 1,962 | ' |
Net Carrying Amount | 23,549 | 487 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,975 | ' |
Accumulated Amortization | -75 | ' |
Net Carrying Amount | 1,901 | ' |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount | 4,441 | ' |
Trade Name and Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 15,631 | 570 |
Accumulated Amortization | -386 | -83 |
Net Carrying Amount | 15,245 | 487 |
Developed Technologies [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,909 | ' |
Accumulated Amortization | ($468) | ' |
Goodwill_and_Identifiable_Inta5
Goodwill and Identifiable Intangible Assets - Weighted-Average Useful Lives of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-Average Useful Lives | '9 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 | '13 years |
Goodwill_and_Identifiable_Inta6
Goodwill and Identifiable Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $2,877 |
2015 | 2,809 |
2016 | 2,619 |
2017 | 2,482 |
2018 | 1,741 |
Thereafter | 9,059 |
Total | $21,587 |
Quarterly_Information_Summary_
Quarterly Information - Summary of Quarterly Financial Data for Periods (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross collections | $351,278 | $379,670 | $278,388 | $270,170 | $230,490 | $245,977 | $240,560 | $231,028 | $1,279,506 | $948,006 | $761,011 |
Revenues | 237,099 | 235,558 | 156,121 | 144,586 | 143,903 | 145,218 | 141,246 | 126,410 | 773,364 | 556,777 | 448,746 |
Total operating expenses | 168,466 | 174,429 | 126,238 | 105,872 | 103,872 | 103,621 | 102,809 | 91,394 | 575,005 | 401,696 | 328,566 |
Income from continuing operations | 23,648 | 21,372 | 11,012 | 19,448 | 20,167 | 21,308 | 18,988 | 18,108 | 75,480 | 78,571 | 60,593 |
Net income | 22,216 | 21,064 | 11,012 | 19,448 | ' | ' | ' | ' | 73,740 | 69,477 | 60,958 |
Net income attributable to Encore Capital Group, Inc. stockholders | 22,953 | 21,886 | 11,012 | 19,448 | 20,167 | 21,308 | 16,596 | 11,406 | 75,299 | 69,477 | 60,958 |
Amounts attributable to Encore Capital Group, Inc.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | 24,385 | 22,194 | 11,012 | 19,448 | ' | ' | ' | ' | 77,039 | 78,571 | 60,593 |
Net income | $22,953 | $21,886 | $11,012 | $19,448 | $20,167 | $21,308 | $16,596 | $11,406 | $75,299 | $69,477 | $60,958 |
Earnings per share attributable to Encore Capital Group, Inc.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.95 | $0.87 | $0.46 | $0.83 | $0.82 | $0.85 | $0.76 | $0.73 | $3.12 | $3.16 | $2.47 |
Diluted | $0.87 | $0.82 | $0.44 | $0.80 | $0.79 | $0.82 | $0.74 | $0.70 | $2.94 | $3.04 | $2.36 |
Basic | $0.90 | $0.86 | $0.46 | $0.83 | $0.82 | $0.85 | $0.67 | $0.46 | $3.05 | $2.80 | $2.48 |
Diluted | $0.82 | $0.81 | $0.44 | $0.80 | $0.79 | $0.82 | $0.64 | $0.44 | $2.87 | $2.69 | $2.37 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 07, 2014 | Feb. 07, 2014 | Feb. 22, 2014 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Feb. 07, 2014 | Feb. 07, 2014 | Feb. 07, 2014 | Dec. 31, 2013 | Feb. 07, 2014 | Dec. 31, 2013 | Feb. 25, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 25, 2014 |
USD ($) | USD ($) | Marlin Acquisition [Member] | Marlin Acquisition [Member] | Grove Holdings [Member] | Term Loan [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term Loan Subtranche One [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Term loan Subtranche Two [Member] | Bridge Facility A [Member] | Bridge Facility B [Member] | Marlin Intermediate Holdings [Member] | Senior Secured Bridge Facilities [Member] | Senior Secured Bridge Facilities [Member] | Restated Credit Agreement [Member] | Restated Credit Agreement [Member] | Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | 10.5% Senior Secured Notes Due 2020 [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | GBP (£) | GBP (£) | Subsequent Event [Member] | GBP (£) | USD ($) | USD ($) | ||||||||||||
GBP (£) | ||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | $481,000,000 | £ 295,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000,000 | 151,500,000 | ' | ' | ' | ' | ' | ' | ' | 692,600,000 |
Senior Secured Notes | 58,750,000 | 72,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.50% | ' | ' | ' | ' | ' | ' | ' |
Credit facility, incremental facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '5 years | ' | ' | ' |
Debt instrument, extended term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 6 months | ' | ' | ' | ' | ' |
Debt instrument, interest rate terms | ' | ' | ' | ' | ' | ' | ' | 'A $60.0 million term loan maturing on February 25, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 200 to 250 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 100 to 150 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $3.0 million in 2014, $3.0 million in 2015, and $4.5 million in 2016 with the remaining principal due at the end of the term; | ' | ' | 'A $6.3 million term loan maturing on November 3, 2017, interest at a floating rate equal to, at the Companybs option, either: (1) reserve adjusted LIBOR, plus a spread that ranges from 250 to 300 basis points, depending on the Companybs cash flow leverage ratio; or (2) Alternate Base Rate, plus a spread that ranges from 150 to 200 basis points, depending on the Companybs cash flow leverage ratio. Principal amortizes $0.4 million in 2014, $0.5 million in 2015, $0.6 million in 2016 and $0.5 million in 2017 with the remaining principal due at the end of the term; | ' | ' | ' | ' | 'The rate of interest payable under the Senior Secured Bridge Facilities is the aggregate, per annum, of (i) LIBOR, plus (ii) an initial spread of 6.00% per annum (such spread stepping up by 50 basis points for each three-month period that the Senior Secured Bridge Facilities remain outstanding), not to exceed total caps set forth in the Senior Secured Bridge Facilities Agreement. | ' | ' | ' | ' | 'A revolving loan of $692.6 million, interest at a floating rate equal to, at the Company's option, either: (1) reserve adjusted London Interbank Offered Rate ("LIBOR"), plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 250 to 300 basis points; or (2) Alternate Base Rate, plus a spread that ranges from, depending on the Company's cash flow leverage ratio, 150 to 200 basis points. "Alternate Base Rate," as defined in the 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, as in effect from time to time, (ii)the federal funds effective rate from time to time, plus 0.5% per annum and (iii) reserved adjusted LIBOR determined on a daily basis for a one month interest paid, plus 1.0% per annum; | ' |
Debt instrument, initial spread percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' |
Incremental percentage on basis points | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' |
Basis spread rate increase interval period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' |
Equity ownership interest | ' | ' | ' | ' | 68.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan facility | 140,625,000 | 148,125,000 | ' | ' | ' | 153,800,000 | ' | 60,000,000 | ' | ' | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional line of revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 |
Maximum borrowing capacity including accordion agreement after amendment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000,000 | ' | ' | ' |
Line of credit facility expiry date | ' | ' | ' | ' | ' | ' | 28-Feb-17 | 25-Feb-17 | 28-Feb-17 | 3-Nov-17 | 3-Nov-17 | 3-Nov-17 | ' | ' | ' | ' | ' | 28-Feb-19 | 28-Feb-19 | 28-Feb-19 | ' | ' |