Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 06, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'PRAA | ' |
Entity Registrant Name | 'PRA GROUP INC | ' |
Entity Central Index Key | '0001185348 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 50,079,501 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $70,300 | $162,004 |
Finance receivables, net | 1,913,710 | 1,239,191 |
Other receivables, net | 18,217 | 12,359 |
Income taxes receivable | 11,506 | 11,710 |
Net deferred tax asset | 4,639 | 1,361 |
Property and equipment, net | 45,969 | 31,541 |
Goodwill | 594,401 | 103,843 |
Intangible assets, net | 12,315 | 15,767 |
Other assets | 86,372 | 23,456 |
Total assets | 2,757,429 | 1,601,232 |
Liabilities: | ' | ' |
Accounts payable | 15,352 | 14,819 |
Accrued expenses and other liabilities | 65,294 | 27,655 |
Income taxes payable | 5,547 | 0 |
Accrued compensation | 21,466 | 27,431 |
Net deferred tax liability | 237,201 | 210,071 |
Interest-bearing deposits | 27,300 | 0 |
Borrowings | 1,425,409 | 451,780 |
Total liabilities | 1,797,569 | 731,756 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares - 0 | 0 | 0 |
Common stock, par value $0.01, 100,000 authorized shares, 50,077 issued and outstanding shares at September 30, 2014, and 49,840 issued and outstanding shares at December 31, 2013 | 501 | 498 |
Additional paid-in capital | 141,490 | 135,441 |
Retained earnings | 859,019 | 729,505 |
Accumulated other comprehensive (loss)/income | -41,150 | 4,032 |
Total stockholders’ equity | 959,860 | 869,476 |
Total liabilities and equity | $2,757,429 | $1,601,232 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 60,000,000 |
Common stock, shares issued | 50,077,000 | 49,840,000 |
Common stock, shares outstanding | 50,077,000 | 49,840,000 |
Consolidated_Income_Statements
Consolidated Income Statements (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Income recognized on finance receivables, net | $224,326 | $171,456 | $584,814 | $494,818 |
Fee income | 12,882 | 26,306 | 43,659 | 55,464 |
Other revenue | 1,765 | 0 | 1,765 | 0 |
Total revenues | 238,973 | 197,762 | 630,238 | 550,282 |
Operating expenses: | ' | ' | ' | ' |
Compensation and employee services | 65,237 | 52,882 | 169,083 | 146,081 |
Legal collection fees | 13,778 | 10,206 | 35,982 | 31,343 |
Legal collection costs | 20,367 | 19,801 | 72,329 | 63,020 |
Agency fees | 5,988 | 1,404 | 8,902 | 4,293 |
Outside fees and services | 17,221 | 8,707 | 40,125 | 24,789 |
Communications | 8,907 | 6,645 | 26,019 | 21,398 |
Rent and occupancy | 3,018 | 1,950 | 7,384 | 5,462 |
Depreciation and amortization | 4,949 | 3,753 | 13,107 | 10,653 |
Other operating expenses | 11,311 | 6,549 | 25,068 | 17,665 |
Impairment of goodwill | 0 | 6,397 | 0 | 6,397 |
Total operating expenses | 150,776 | 118,294 | 397,999 | 331,101 |
Income from operations | 88,197 | 79,468 | 232,239 | 219,181 |
Other income and (expense): | ' | ' | ' | ' |
Interest income | 0 | 0 | 2 | 0 |
Interest expense | -11,808 | -3,995 | -21,736 | -9,607 |
Foreign exchange gain/(loss) | 3,251 | 0 | -2,961 | 0 |
Income before income taxes | 79,640 | 75,473 | 207,544 | 209,574 |
Provision for income taxes | 28,473 | 26,262 | 78,030 | 78,432 |
Net income | 51,167 | 49,211 | 129,514 | 131,142 |
Adjustment for net income attributable to redeemable noncontrolling interest | 0 | 1,873 | 0 | 1,605 |
Net income attributable to PRA Group, Inc. | $51,167 | $47,338 | $129,514 | $129,537 |
Net income per common share attributable to PRA Group, Inc: | ' | ' | ' | ' |
Basic (in dollars per share) | $1.02 | $0.94 | $2.59 | $2.56 |
Diluted (in dollars per share) | $1.01 | $0.93 | $2.57 | $2.54 |
Weighted average number of shares outstanding: | ' | ' | ' | ' |
Basic (shares) | 50,075 | 50,154 | 50,023 | 50,571 |
Diluted (shares) | 50,439 | 50,660 | 50,413 | 51,039 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $51,167 | $49,211 | $129,514 | $131,142 |
Other comprehensive (loss)/income: | ' | ' | ' | ' |
Foreign currency translation adjustments | -47,541 | 4,425 | -45,182 | 1 |
Total other comprehensive (loss)/income | -47,541 | 4,425 | -45,182 | 1 |
Comprehensive income | 3,626 | 53,636 | 84,332 | 131,143 |
Comprehensive income attributable to noncontrolling interest | 0 | 1,873 | 0 | 1,605 |
Comprehensive income attributable to PRA Group, Inc. | $3,626 | $51,763 | $84,332 | $129,538 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2013 | $869,476 | $498 | $135,441 | $729,505 | $4,032 |
Beginning Balance, Shares at Dec. 31, 2013 | 49,840 | 49,840 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income attributable to Portfolio Recovery Associates, Inc. | 129,514 | ' | ' | 129,514 | ' |
Foreign currency translation adjustment | -45,182 | ' | ' | ' | -45,182 |
Vesting of nonvested shares, shares | ' | 237 | ' | ' | ' |
Vesting of nonvested shares | ' | 3 | -3 | ' | ' |
Amortization of share-based compensation | 9,456 | ' | 9,456 | ' | ' |
Income tax benefit from share-based compensation | 4,159 | ' | 4,159 | ' | ' |
Employee stock relinquished for payment of taxes | -7,563 | ' | -7,563 | ' | ' |
Ending Balance at Sep. 30, 2014 | $959,860 | $501 | $141,490 | $859,019 | ($41,150) |
Ending Balance, Shares at Sep. 30, 2014 | 50,077 | 50,077 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $129,514 | $131,142 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of share-based compensation | 9,456 | 10,209 |
Depreciation and amortization | 13,107 | 10,653 |
Impairment of goodwill | 0 | 6,397 |
Amortization of debt discount | 3,027 | 525 |
Amortization of debt fair value | -3,595 | 0 |
Deferred tax expense | 31,055 | 2,359 |
Changes in operating assets and liabilities: | ' | ' |
Other assets | 1,622 | -1,147 |
Other receivables | 4,225 | -1,497 |
Accounts payable | -16,507 | 2,237 |
Income taxes receivable/payable, net | -111 | -5,062 |
Accrued expenses | 11,205 | 8,604 |
Accrued compensation | -13,504 | 7,660 |
Net cash provided by operating activities | 169,494 | 172,080 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -16,513 | -9,913 |
Acquisition of finance receivables, net of buybacks | -412,740 | -546,201 |
Collections applied to principal on finance receivables | 420,570 | 368,693 |
Business acquisitions, net of cash acquired | -851,183 | 0 |
Net cash used in investing activities | -859,866 | -187,421 |
Cash flows from financing activities: | ' | ' |
Income tax benefit from share-based compensation | 4,159 | 2,742 |
Proceeds from lines of credit | 485,000 | 217,000 |
Principal payments on lines of credit | -48,500 | -344,000 |
Repurchases of common stock | 0 | -58,511 |
Cash paid for purchase of portion of noncontrolling interest | 0 | -1,150 |
Distributions paid to noncontrolling interest | 0 | -51 |
Principal payments on long-term debt | -7,500 | -4,109 |
Proceeds from long-term debt | 169,938 | 0 |
Net increase in interest-bearing deposits | 51 | 0 |
Proceeds from convertible debt, net | 0 | 279,285 |
Net cash provided by financing activities | 603,148 | 91,206 |
Effect of exchange rate on cash | -4,480 | 153 |
Net (decrease)/increase in cash and cash equivalents | -91,704 | 76,018 |
Cash and cash equivalents, beginning of period | 162,004 | 32,687 |
Cash and cash equivalents, end of period | 70,300 | 108,705 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 21,097 | 9,333 |
Cash paid for income taxes | 41,682 | 78,434 |
Supplemental disclosure of non-cash information: | ' | ' |
Adjustment of the redeemable noncontrolling interest measurement amount | 0 | 393 |
Distributions payable relating to the redeemable noncontrolling interest | 0 | 1,237 |
Purchase of redeemable noncontrolling interest | 0 | 9,162 |
Employee stock relinquished for payment of taxes | ($7,563) | ($4,103) |
Organization_and_Business
Organization and Business | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Organization and Business | ' | |||||||||||||||
Organization and Business: | ||||||||||||||||
Throughout this report, the terms "PRA Group," "our," "we," "us," the "Company" or similar terms refer to PRA Group, Inc. and its subsidiaries (formerly known as Portfolio Recovery Associates, Inc.). | ||||||||||||||||
PRA Group, Inc., a Delaware corporation, and its subsidiaries, is a financial and business service company operating in North America and Europe. The Company’s primary business is the purchase, collection and management of portfolios of defaulted consumer receivables. The Company also services receivables on behalf of clients, provides business tax revenue administration, audit, discovery and recovery services for state and local governments in the U.S. and provides class action claims settlement recovery services and related payment processing to corporate clients. | ||||||||||||||||
On July 1, 2014, the Company acquired certain operating assets from Pamplona Capital Management, LLP ("PCM"). These assets include PCM’s IVA ("Individual Voluntary Arrangement") Master Servicing Platform as well as other operating assets associated with PCM’s IVA business. The purchase price of these assets was approximately $5 million and was paid from the Company’s existing cash balances. The Company's consolidated income statements and statements of comprehensive income include the results of operations of PCM for the period from July 1, 2014 through September 30, 2014. | ||||||||||||||||
On July 16, 2014, the Company completed the purchase of the outstanding equity of Aktiv Kapital AS (“Aktiv”), a Norway-based company specializing in the acquisition and servicing of non-performing consumer loans throughout Europe and in Canada, for a purchase price of approximately $861.3 million, and assumed approximately $433.7 million of Aktiv’s corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion. The Company's consolidated income statements and statements of comprehensive income include the results of operations of Aktiv for the period from July 16, 2014 through September 30, 2014. | ||||||||||||||||
A publicly traded company from 1997 until early 2012 (traded on the Oslo Stock Exchange under the symbol "AIK"), Aktiv has developed a mixed in-house and outsourced collection strategy. This acquisition has provided the Company entry into thirteen new markets, providing additional geographical diversity in portfolio purchasing and collection. Aktiv maintains in-house servicing platforms in eight markets and owns portfolios in fifteen markets. Aktiv has more than 20 years of experience and data in a wide variety of consumer asset classes across an extensive geographic background. Refer to Note 12 "Business Acquisitions" for more information. | ||||||||||||||||
The consolidated financial statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and include the accounts of all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Under the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280 “Segment Reporting” (“ASC 280”), the Company has determined that it has several operating segments that meet the aggregation criteria of ASC 280, and, therefore, it has one reportable segment, accounts receivable management, based on similarities among the operating units including the nature of the products and services, the nature of the production processes, the types or class of customer for their products and services, the methods used to distribute their products, and services and the nature of the regulatory environment. | ||||||||||||||||
The following table shows the amount of revenue generated for the three and nine months ended September 30, 2014 and 2013 and long-lived assets held at September 30, 2014 and 2013 for the United States, the Company's country of domicile, and outside of the United States (amounts in thousands): | ||||||||||||||||
As Of And For The | As Of And For The | |||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | |||||||||||||||
Revenues | Long-Lived Assets | Revenues | Long-Lived Assets | |||||||||||||
United States | $ | 188,134 | $ | 35,411 | $ | 194,769 | $ | 26,289 | ||||||||
Outside the United States | 50,839 | 10,558 | 2,993 | 1,770 | ||||||||||||
Total | $ | 238,973 | $ | 45,969 | $ | 197,762 | $ | 28,059 | ||||||||
As Of And For The | As Of And For The | |||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||
Revenues | Long-Lived Assets | Revenues | Long-Lived Assets | |||||||||||||
United States | $ | 573,048 | $ | 35,411 | $ | 542,048 | $ | 26,289 | ||||||||
Outside the United States | 57,190 | 10,558 | 8,234 | 1,770 | ||||||||||||
Total | $ | 630,238 | $ | 45,969 | $ | 550,282 | $ | 28,059 | ||||||||
Revenues are attributed to countries based on the location of the related operations. Long-lived assets consist of net property and equipment. | ||||||||||||||||
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of the Company, however, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated balance sheet as of September 30, 2014, its consolidated income statements and statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013, its consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2014, and its consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013. The consolidated income statements of the Company for the three and nine months ended September 30, 2014 may not be indicative of future results. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2013 Annual Report on Form 10-K, filed on February 28, 2014. |
Finance_Receivables_net
Finance Receivables, net | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Finance Receivables, net | ' | |||||||||||||||
Finance Receivables, net: | ||||||||||||||||
Changes in finance receivables, net for the three and nine months ended September 30, 2014 and 2013 were as follows (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 1,219,595 | $ | 1,236,859 | $ | 1,239,191 | $ | 1,078,951 | ||||||||
Acquisitions of finance receivables (1) | 894,779 | 138,854 | 1,146,947 | 546,201 | ||||||||||||
Foreign currency translation adjustment | (52,247 | ) | 1,304 | (51,858 | ) | 363 | ||||||||||
Cash collections | (372,743 | ) | (291,651 | ) | (1,005,384 | ) | (863,511 | ) | ||||||||
Income recognized on finance receivables, net | 224,326 | 171,456 | 584,814 | 494,818 | ||||||||||||
Cash collections applied to principal | (148,417 | ) | (120,195 | ) | (420,570 | ) | (368,693 | ) | ||||||||
Balance at end of period | $ | 1,913,710 | $ | 1,256,822 | $ | 1,913,710 | $ | 1,256,822 | ||||||||
(1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. It also includes the acquisition date finance receivable portfolio that was acquired in connection with the Aktiv acquisition. Refer to Note 12 "Business Acquisitions" for more information. | ||||||||||||||||
At the time of acquisition, the life of each pool is generally estimated to be between 80 and 120 months based on projected amounts and timing of future cash collections using the proprietary models of the Company. At September 30, 2014, the weighted average remaining life of the Company's pools is estimated to be approximately 97 months. Based upon current projections, cash collections applied to principal on finance receivables as of September 30, 2014 are estimated to be as follows for the twelve months in the periods ending (amounts in thousands): | ||||||||||||||||
30-Sep-15 | $ | 537,091 | ||||||||||||||
30-Sep-16 | 432,202 | |||||||||||||||
30-Sep-17 | 342,063 | |||||||||||||||
30-Sep-18 | 249,614 | |||||||||||||||
30-Sep-19 | 146,023 | |||||||||||||||
30-Sep-20 | 93,697 | |||||||||||||||
30-Sep-21 | 87,561 | |||||||||||||||
30-Sep-22 | 25,459 | |||||||||||||||
$ | 1,913,710 | |||||||||||||||
At September 30, 2014, the estimated remaining collections (“ERC”) on the receivables purchased in the three and nine months ended September 30, 2014, were $1.86 billion and $2.25 billion, respectively. At September 30, 2014, the ERC on the receivables purchased in the three and nine months ended September 30, 2013, were $184.2 million and $676.0 million, respectively. At September 30, 2014, the Company had unamortized purchased principal (purchase price) in pools accounted for under the cost recovery method of $21.1 million; at December 31, 2013, the amount was $26.1 million. | ||||||||||||||||
Accretable yield represents the amount of income recognized on finance receivables the Company can expect to generate over the remaining life of its existing portfolios based on estimated future cash flows as of the balance sheet date. Additions represent the original expected accretable yield, on portfolios purchased during the period, to be earned by the Company based on its proprietary buying models. Net reclassifications from nonaccretable difference to accretable yield primarily result from the Company’s increase in its estimate of future cash flows. When applicable, net reclassifications to nonaccretable difference from accretable yield result from the Company’s decrease in its estimates of future cash flows and allowance charges that exceed the Company’s increase in its estimate of future cash flows. Changes in accretable yield for the three and nine months ended September 30, 2014 and 2013 were as follows (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 1,481,826 | $ | 1,400,906 | $ | 1,430,067 | $ | 1,239,674 | ||||||||
Income recognized on finance receivables, net | (224,326 | ) | (171,456 | ) | (584,814 | ) | (494,818 | ) | ||||||||
Additions (1) | 1,172,796 | 122,976 | 1,377,416 | 472,666 | ||||||||||||
Net reclassifications from nonaccretable difference | 84,074 | 63,031 | 290,431 | 201,823 | ||||||||||||
Foreign currency translation adjustment | (59,040 | ) | 509 | (57,770 | ) | (3,379 | ) | |||||||||
Balance at end of period | $ | 2,455,330 | $ | 1,415,966 | $ | 2,455,330 | $ | 1,415,966 | ||||||||
(1) Additions include the acquisition date accretable yield that was acquired in connection with the Aktiv acquisition. Refer to Note 12 "Business Acquisitions" for more information. | ||||||||||||||||
A valuation allowance is recorded for significant decreases in expected cash flows or a change in the expected timing of cash flows that would otherwise require a reduction in the stated yield on a pool of accounts. In any given period, the Company may be required to record valuation allowances due to pools of receivables underperforming previous expectations. Factors that may contribute to the recording of valuation allowances include both external and internal factors. External factors that may have an impact on the collectability, and subsequently on the overall profitability of purchased pools of defaulted consumer receivables, would include: new laws or regulations relating to collections, new interpretations of existing laws or regulations, and the overall condition of the economy. Internal factors that may have an impact on the collectability, and subsequently the overall profitability of purchased pools of defaulted consumer receivables, would include: necessary revisions to initial and post-acquisition scoring and modeling estimates, non-optimal operational activities (which relate to the collection and movement of accounts on both the collection floor of the Company and external channels), and decreases in productivity related to turnover and tenure of the Company’s collection staff. The following is a summary of activity within the Company’s valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 86,849 | $ | 94,111 | $ | 91,101 | $ | 93,123 | ||||||||
Allowance charges | 2,992 | 1,500 | 5,765 | 7,060 | ||||||||||||
Reversal of previous recorded allowance charges | (4,690 | ) | (4,081 | ) | (11,715 | ) | (8,653 | ) | ||||||||
Net allowance reversals | (1,698 | ) | (2,581 | ) | (5,950 | ) | (1,593 | ) | ||||||||
Ending balance | $ | 85,151 | $ | 91,530 | $ | 85,151 | $ | 91,530 | ||||||||
Borrowings
Borrowings | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Borrowings | ' | ||||||||||||||||
Borrowings: | |||||||||||||||||
The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): | |||||||||||||||||
30-Sep-14 | December 31, 2013 | ||||||||||||||||
Domestic revolving credit | $ | 436,500 | $ | — | |||||||||||||
Domestic term loan | 187,500 | 195,000 | |||||||||||||||
Seller note payable | 169,938 | — | |||||||||||||||
Aktiv revolving credit | 239,680 | — | |||||||||||||||
Aktiv term loan | 79,712 | — | |||||||||||||||
Aktiv multicurrency term loan bridge facility | 22,833 | — | |||||||||||||||
Aktiv subordinated loan | 29,439 | — | |||||||||||||||
Convertible senior notes | 287,500 | 287,500 | |||||||||||||||
Less: Debt discount | (27,693 | ) | (30,720 | ) | |||||||||||||
Total | $ | 1,425,409 | $ | 451,780 | |||||||||||||
Domestic Revolving Credit and Term Loan | |||||||||||||||||
On December 19, 2012, the Company entered into a credit facility with Bank of America, N.A., as administrative agent, and a syndicate of lenders named therein (the “Credit Agreement”). The credit facility contained an accordion loan feature that allowed the Company to request an increase of up to $214.5 million in the amount available for borrowing under the facility, whether from existing or new lenders, subject to terms of the Credit Agreement. The Credit Agreement was amended and modified during 2013. On April 1, 2014, the Company entered into a Lender Joinder Agreement and Lender Commitment Agreement (collectively, the “Commitment Increase Agreements”) to exercise the accordion feature. The Commitment Increase Agreements expanded the maximum amount of revolving credit availability under the Credit Agreement by $214.5 million, by elevating the revolving credit commitments of certain lenders and added three new lenders to the Credit Agreement. Giving effect to the $214.5 million increase in the amount of revolving credit availability pursuant to the Commitment Increase Agreements, the total credit facility under the Credit Agreement now includes an aggregate principal amount of $837.5 million (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $187.5 million term loan, (ii) a $630 million domestic revolving credit facility, of which $193.5 million is available to be drawn, and (iii) a $20 million multi-currency revolving credit facility, of which $20 million is available to be drawn. The facilities all mature on December 19, 2017. The term and revolving loans accrue interest, at the option of the Company, at either the base rate or the Eurodollar rate (as defined in the Credit Agreement) for the applicable term plus 2.50% per annum in the case of the Eurodollar rate loans and 1.50% in the case of the base rate loans. The base rate is the highest of (a) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.50%, (b) Bank of America’s prime rate, and (c) the Eurodollar rate plus 1.00%. The Company’s revolving credit facility includes a $20 million swingline loan sublimit, a $20 million letter of credit sublimit and a $20 million alternative currency equivalent sublimit. | |||||||||||||||||
Effective June 5, 2014, the Company entered into a Third Amendment to the Credit Agreement to amend a provision of the Credit Agreement to increase a basket for permitted indebtedness for the issuance of senior, unsecured convertible notes or other unsecured financings from an aggregate amount not to exceed $300 million to an aggregate amount not to exceed $500 million (without respect to the Company’s 3.00% Convertible Senior Notes due 2020). | |||||||||||||||||
The Credit Agreement is secured by a first priority lien on substantially all of the Company’s assets. The Credit Agreement, as amended and modified, contains restrictive covenants and events of default including the following: | |||||||||||||||||
• | borrowings may not exceed 33% of the ERC of all eligible asset pools plus 75% of eligible accounts receivable; | ||||||||||||||||
• | the consolidated leverage ratio (as defined in the Credit Agreement) cannot exceed 2.0 to 1.0 as of the end of any fiscal quarter; | ||||||||||||||||
• | consolidated tangible net worth (as defined in the Credit Agreement) must equal or exceed $455.1 million plus 50% of positive cumulative consolidated net income for each fiscal quarter beginning with the quarter ended December 31, 2012, plus 50% of the cumulative net proceeds of any equity offering; | ||||||||||||||||
• | capital expenditures during any fiscal year cannot exceed $40 million; | ||||||||||||||||
• | cash dividends and distributions during any fiscal year cannot exceed $20 million; | ||||||||||||||||
• | stock repurchases during the term of the agreement cannot exceed $250 million and cannot exceed $100 million in a single fiscal year; | ||||||||||||||||
• | investments in loans and/or capital contributions cannot exceed $950 million to consummate the acquisition of the equity of Aktiv; | ||||||||||||||||
• | permitted acquisitions (as defined in the Credit Agreement) during any fiscal year cannot exceed $250 million except for the fiscal year ending December 31, 2014, during which fiscal year permitted acquisitions (excluding the Aktiv acquisition) cannot exceed $25 million; | ||||||||||||||||
• | indebtedness in the form of senior, unsecured convertible notes or other unsecured financings cannot exceed $500 million in the aggregate (without respect to the Company’s 3.00% Convertible Senior Notes due 2020); | ||||||||||||||||
• | the Company must maintain positive consolidated income from operations (as defined in the Credit Agreement) during any fiscal quarter; and | ||||||||||||||||
• | restrictions on changes in control. | ||||||||||||||||
The revolving credit facility also bears an unused line fee of 0.375% per annum, payable quarterly in arrears. | |||||||||||||||||
The Company's borrowings on this credit facility at September 30, 2014 consisted of $187.5 million outstanding on the term loan with an annual interest rate as of September 30, 2014 of 2.65% and $436.5 million outstanding in 30-day Eurodollar rate loans on the revolving facility with a weighted average interest rate of 2.65%. At December 31, 2013, the Company's borrowings on this credit facility consisted of $195.0 million outstanding on the term loan with an annual interest rate as of December 31, 2013 of 2.67%. | |||||||||||||||||
Seller Note Payable | |||||||||||||||||
In conjunction with the closing of the Aktiv business acquisition on July 16, 2014, the Company entered into a $169.9 million promissory note (the "Seller Note") with an affiliate of the seller. The Seller Note bears interest at the three-month London Interbank Offered Rate (“LIBOR”) plus 3.75% and matures on July 16, 2015. The quarterly interest due can be paid or rolled into the Seller Note balance at the Company's option. On September 30, 2014, the Company paid the first quarterly interest payment that was due of $1.4 million. At September 30, 2014, the balance due on the Seller Note was $169.9 million with an annual interest rate of 3.99%. | |||||||||||||||||
Aktiv Revolving Credit | |||||||||||||||||
On May 4, 2012, Aktiv entered into a credit agreement with DNB Bank ASA for a Revolving Credit Facility (“the Aktiv Revolving Credit Agreement”). Under the terms of the Aktiv Revolving Credit Agreement the credit facility included an aggregate amount of up to NOK 1,500,000,000 (approximately $232 million), including an option of NOK 500,000,000 (approximately $77 million). The Aktiv revolving credit facility accrued interest at the Interbank Offered Rate ("IBOR") plus 3.00%, beared an unused fee of 1.2% per annum, payable monthly in arrears, and matured on October 28, 2014. At maturity, any outstanding balances owed on this facility were automatically transferred to the Multicurrency Revolving Credit Facility Agreement as described in Note 14 "Subsequent Event." | |||||||||||||||||
At September 30, 2014, the balance on the Aktiv revolving credit facility was $239.7 million, with an annual interest rate of 3.53%. Due to fluctuations in foreign exchange rates, Aktiv's borrowings under this facility exceeded the facility limit. Aktiv requested and received a waiver from the lender which allowed them to be in excess of the limit until the facility matured on October 28, 2014. | |||||||||||||||||
Aktiv Term Loan | |||||||||||||||||
On March 29, 2011, Aktiv entered into a credit agreement with DNB Bank ASA for a Term Loan Facility (“the Aktiv Term Loan Credit Agreement”). Under the terms of the Aktiv Term Loan Credit Agreement, the credit facility included an aggregate amount of NOK 2,000,000,000 (approximately $310 million) in four different currencies. The Aktiv term loan credit facility accrued interest at the IBOR plus 2.25% - 2.75% (as determined by the Borrowing Base Ratio as defined in the Aktiv Term Loan Credit Agreement), and matured on October 28, 2014. At maturity, any outstanding balances owed on this facility were automatically transferred to the Multicurrency Revolving Credit Facility Agreement as described in Note 14 "Subsequent Event." | |||||||||||||||||
At September 30, 2014, the balance on the Aktiv term loan credit facility was $79.7 million, with an annual interest rate of 2.66%. | |||||||||||||||||
Aktiv Multicurrency Term Loan Bridge Facility | |||||||||||||||||
On June 24, 2014, Aktiv entered into a credit agreement with DNB Bank ASA for a Multicurrency Term Loan Bridge Facility (“the Aktiv Bridge Loan Credit Agreement”). Under the terms of the Aktiv Bridge Loan Credit Agreement the credit facility included an aggregate amount of NOK 350,000,000 (approximately $54 million). The Aktiv bridge loan credit facility accrued interest at the IBOR plus 4%, beared an unused line fee of 0.35% per annum, payable quarterly in arrears, is subordinated to the Aktiv revolving and term loan credit facilities, and matured on October 28, 2014. At maturity, any outstanding balances owed on this facility were automatically transferred to the Multicurrency Revolving Credit Facility Agreement as described in Note 14 "Subsequent Event." | |||||||||||||||||
At September 30, 2014, the balance on the Aktiv bridge loan credit facility was $22.8 million, with an annual interest rate of 4.22%. | |||||||||||||||||
The Aktiv Revolving Credit Agreement, the Aktiv Term Loan Agreement and the Aktiv Multicurrency Term Loan Bridge Agreement are all secured by i) the shares of most of the subsidiaries of Aktiv ii) all intercompany loans to its subsidiaries and iii) most of the portfolios held by its various subsidiaries. They also contain restrictive covenants and events of default including the following: | |||||||||||||||||
• | borrowing base may not exceed 65% of portfolio book value for portfolios leveraged under the Aktiv Revolving Credit Facility | ||||||||||||||||
• | borrowing base may not exceed 50% of portfolio book value for portfolios leveraged under the Aktiv Term Loan Facility | ||||||||||||||||
• | the debt service-coverage ratio (as defined in the Aktiv Revolving and Term Loan Credit Agreements) must exceed 1.1 to 1.0 as of the end of any fiscal quarter; | ||||||||||||||||
• | the leverage ratio (as defined in the Aktiv Revolving and Term Loan Credit Agreements) cannot exceed 3.5 to 1.0 as of the end of any fiscal quarter; | ||||||||||||||||
• | interest bearing deposits in AK Nordic AB cannot exceed SEK 200,000,000 (approximately $28 million); | ||||||||||||||||
• | cash collections must exceed 100% of Aktiv's IFRS forecast. | ||||||||||||||||
Aktiv Subordinated Loan | |||||||||||||||||
On December 16, 2011, Aktiv entered into a subordinated loan agreement with Metrogas Holding Inc., an affiliate with Geveran Trading Co. Ltd. Under the terms of the subordinated loan agreement (the “Commitment”), Aktiv is able to drawdown a commitment in the aggregate amount of up to NOK 200,000,000 (approximately $31 million) for a period of 90 days from the date of the agreement (the “Availability Period”). Aktiv may draw all or a part of the Commitment in the Availability Period, and may utilize the Commitment in up to three drawdowns. The Commitment bears interest at LIBOR plus 3.75%. The maturity date is January 16, 2016. The Commitment does not contain any covenants. | |||||||||||||||||
As of September 30, 2014, the balance on the Aktiv subordinated loan was $29.4 million, with an annual interest rate of 3.99%. | |||||||||||||||||
Convertible Senior Notes | |||||||||||||||||
On August 13, 2013, the Company completed the private offering of $287.5 million in aggregate principal amount of the Company’s 3.00% Convertible Senior Notes due 2020 (the “Notes”). The Notes were issued pursuant to an Indenture, dated August 13, 2013 (the "Indenture") between the Company and Wells Fargo Bank, National Association, as trustee. The Indenture contains customary terms and covenants, including certain events of default after which the Notes may be due and payable immediately. The Notes are senior unsecured obligations of the Company. Interest on the Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year. Prior to February 1, 2020, the Notes will be convertible only upon the occurrence of specified events. On or after February 1, 2020, the Notes will be convertible at any time. Upon conversion, the Notes may be settled, at the Company’s option, in cash, shares of the Company’s common stock, or any combination thereof. Holders of the Notes have the right to require the Company to repurchase all or some of their Notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change (as defined in the Indenture). In addition, upon the occurrence of a make-whole fundamental change (as defined in the Indenture), the Company may, under certain circumstances, be required to increase the conversion rate for the Notes converted in connection with such a make-whole fundamental change. The conversion rate for the Notes is initially 15.2172 shares per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $65.72 per share of the Company’s common stock, and is subject to adjustment in certain circumstances pursuant to the Indenture. The Company does not have the right to redeem the Notes prior to maturity. As of September 30, 2014, none of the conditions allowing holders of the Notes to convert their Notes had occurred. | |||||||||||||||||
As noted above, upon conversion, holders of the 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., the Notes will be converted 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 $65.72. | |||||||||||||||||
The net proceeds from the sale of the Notes were approximately $279.3 million, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by the Company. The Company used $174.0 million of the net proceeds from this offering to repay the outstanding balance on its revolving credit facility and used $50.0 million to repurchase shares of its common stock. | |||||||||||||||||
ASC 470-20, "Debt with Conversion and Other Options" (“ASC 470-20”), requires that, for convertible debt instruments that may be settled fully or partially in cash upon conversion, issuers 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 Notes at the date of issuance was approximately $255.3 million, and designated the residual value of approximately $32.2 million as the equity component. Additionally, the Company allocated approximately $7.3 million of the $8.2 million original Notes issuance cost as debt issuance cost and the remaining $0.9 million as equity issuance cost. | |||||||||||||||||
The balances of the liability and equity components of all of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Liability component - principal amount | $ | 287,500 | $ | 287,500 | |||||||||||||
Unamortized debt discount | (27,693 | ) | (30,720 | ) | |||||||||||||
Liability component - net carrying amount | 259,807 | 256,780 | |||||||||||||||
Equity component | $ | 31,306 | $ | 31,306 | |||||||||||||
The debt discount is being amortized into interest expense over the remaining life of the Notes using the effective interest rate, which is 4.92%. | |||||||||||||||||
Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): | |||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||
Interest expense - stated coupon rate | $ | 2,156 | $ | 1,150 | $ | 6,469 | $ | 1,150 | |||||||||
Interest expense - amortization of debt discount | 1,023 | 525 | 3,027 | 525 | |||||||||||||
Total interest expense - convertible notes | $ | 3,179 | $ | 1,675 | $ | 9,496 | $ | 1,675 | |||||||||
The Company was in compliance with all covenants under its financing arrangements as of December 31, 2013. As of September 30, 2014, the Company was in compliance with all covenants under its financing arrangements with the exception of certain of the Aktiv credit agreements, for which the Company requested and received waivers as described above under the caption, Aktiv Revolving Credit, and in Note 14, "Subsequent Event." | |||||||||||||||||
The following principal payments are due on the Company's borrowings as of September 30, 2014 for the twelve month periods ending (amounts in thousands): | |||||||||||||||||
30-Sep-15 | $ | 555,352 | |||||||||||||||
30-Sep-16 | 18,750 | ||||||||||||||||
30-Sep-17 | 35,000 | ||||||||||||||||
30-Sep-18 | 556,500 | ||||||||||||||||
30-Sep-19 | — | ||||||||||||||||
Thereafter | 287,500 | ||||||||||||||||
Total | $ | 1,453,102 | |||||||||||||||
Property_and_Equipment_net
Property and Equipment, net | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property And Equipment, Net | ' | |||||||
Property and Equipment, net: | ||||||||
Property and equipment, at cost, consisted of the following as of the dates indicated (amounts in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Software | $ | 52,377 | $ | 34,108 | ||||
Computer equipment | 21,365 | 17,072 | ||||||
Furniture and fixtures | 10,937 | 8,616 | ||||||
Equipment | 13,606 | 10,351 | ||||||
Leasehold improvements | 13,497 | 11,147 | ||||||
Building and improvements | 7,044 | 7,026 | ||||||
Land | 1,269 | 1,269 | ||||||
Accumulated depreciation and amortization | (74,126 | ) | (58,048 | ) | ||||
Property and equipment, net | $ | 45,969 | $ | 31,541 | ||||
Depreciation and amortization expense relating to property and equipment for the three and nine months ended September 30, 2014, was $3.6 million and $9.5 million, respectively. Depreciation and amortization expense relating to property and equipment for the three and nine months ended September 30, 2013, was $2.6 million and $7.1 million, respectively. | ||||||||
The Company, in accordance with the guidance of FASB ASC Topic 350-40 “Internal-Use Software” (“ASC 350-40”), capitalizes qualifying computer software costs incurred during the application development stage and amortizes them over their estimated useful lives of three to seven years on a straight-line basis beginning when the project is completed. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company’s policy provides for the capitalization of certain direct payroll costs for employees who are directly associated with internal use computer software projects, as well as external direct costs of services associated with developing or obtaining internal use software. Capitalizable personnel costs are limited to the time directly spent on such projects. As of September 30, 2014 and December 31, 2013, the Company incurred and capitalized approximately $12.5 million and $10.3 million, respectively, of these direct payroll costs and external direct costs related to software developed for internal use. Of these costs, at September 30, 2014 and December 31, 2013, approximately $2.1 million and $1.7 million, respectively, were for projects that were in the development stage and, therefore are a component of “Other Assets.” Once the projects are completed, the costs are transferred to Software and amortized over their estimated useful lives. Amortization expense relating to these projects for the three and nine months ended September 30, 2014, was approximately $0.5 million and $1.4 million, respectively. Amortization expense relating to these projects for the three and nine months ended September 30, 2013, was approximately $0.4 million and $1.1 million, respectively. The remaining unamortized costs relating to internally developed software at September 30, 2014 and December 31, 2013 were approximately $4.9 million and $4.4 million, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, net | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill And Intangible Assets, Net | ' | |||||||||||||||
Goodwill and Intangible Assets, net: | ||||||||||||||||
In connection with the Company’s business acquisitions, the Company acquired certain tangible and intangible assets. Intangible assets purchased included client and customer relationships, non-compete agreements, trademarks and goodwill. Pursuant to ASC 350, goodwill is not amortized but rather is reviewed at least annually for impairment. The Company underwent its annual review of goodwill on October 1, 2013. Based upon the results of this review, no impairment charges to goodwill or other intangible assets were necessary. The Company believes that no events have occurred or circumstances have changed that would more likely than not reduce the fair value of a reporting unit below its carrying amount since the review was performed, and thereby necessitate further evaluation of goodwill or other intangible assets. The Company expects to perform its next annual goodwill review during the fourth quarter of 2014. | ||||||||||||||||
At September 30, 2014 and December 31, 2013, the carrying value of goodwill was $594.4 million and $103.8 million, respectively. The following table represents the changes in goodwill for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 105,122 | $ | 106,953 | $ | 103,843 | $ | 109,488 | ||||||||
Acquisition of Aktiv and PCM | 512,049 | — | 512,049 | — | ||||||||||||
Impairment of goodwill | — | (6,397 | ) | — | (6,397 | ) | ||||||||||
Foreign currency translation adjustment | (22,770 | ) | 2,335 | (21,491 | ) | (200 | ) | |||||||||
Balance at end of period | $ | 594,401 | $ | 102,891 | $ | 594,401 | $ | 102,891 | ||||||||
Goodwill recognized from the acquisitions of Aktiv and PCM represents, among other things, a significant dataset, portfolio modeling, an established workforce, the future economic benefits arising from expected synergies and expanded geographical diversity. The acquired goodwill is not deductible for U.S. income tax purposes. Refer to Note 12 "Business Acquisitions" for more information. | ||||||||||||||||
Intangible assets, excluding goodwill, consisted of the following at September 30, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||
Gross Amount | Accumulated | Gross Amount | Accumulated | |||||||||||||
Amortization | Amortization | |||||||||||||||
Client and customer relationships | $ | 35,683 | $ | 24,346 | $ | 40,870 | $ | 26,581 | ||||||||
Non-compete agreements | 627 | 546 | 3,880 | 3,723 | ||||||||||||
Trademarks | 3,474 | 2,577 | 3,491 | 2,170 | ||||||||||||
Total | $ | 39,784 | $ | 27,469 | $ | 48,241 | $ | 32,474 | ||||||||
In accordance with ASC 350, the Company amortizes intangible assets over their estimated useful lives. Total intangible asset amortization expense for the three and nine months ended September 30, 2014 was $1.3 million and $3.5 million, respectively. Total intangible asset amortization expense for the three and nine months ended September 30, 2013 was $1.2 million and $3.5 million, respectively. The Company reviews these intangible assets for possible impairment if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount and thereby necessitate further evaluation of these intangible assets. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Share-Based Compensation | ' | ||||||
Share-Based Compensation: | |||||||
The Company has an Omnibus Incentive Plan to assist the Company in attracting and retaining selected individuals to serve as employees and directors, who are expected to contribute to the Company's success and to achieve long-term objectives that will benefit stockholders of the Company. The 2013 Omnibus Incentive Plan (the “Plan”) was approved by the Company's stockholders at the 2013 Annual Meeting of Stockholders. The Plan enables the Company to award shares of the Company's common stock to select employees and directors, not to exceed 5,400,000 shares, as described in and authorized by the Plan. The Plan replaced the 2010 Stock Plan. | |||||||
As of September 30, 2014, total future compensation costs related to nonvested awards of nonvested shares (not including nonvested shares granted under the Long-Term Incentive ("LTI") Program) is estimated to be $11.7 million with a weighted average remaining life for all nonvested shares of 1.9 years (not including nonvested shares granted under the LTI program). | |||||||
Total share-based compensation expense was $4.0 million and $9.5 million for the three and nine months ended September 30, 2014, respectively. Total share-based compensation expense was $3.5 million and $10.2 million for the three and nine months ended September 30, 2013, respectively. Tax benefits resulting from tax deductions in excess of share-based compensation expense (windfall tax benefits) recognized under the provisions of ASC Topic 718 "Compensation-Stock Compensation" ("ASC 718") are credited to additional paid-in capital in the Company's Consolidated Balance Sheets. Realized tax shortfalls, if any, are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. The total tax benefit realized from share-based compensation was approximately $0.3 million and $7.9 million for the three and nine months ended September 30, 2014, respectively. The total tax benefit realized from share-based compensation was approximately $0.1 million and $5.0 million for the three and nine months ended September 30, 2013, respectively. | |||||||
Nonvested Shares | |||||||
With the exception of the awards made pursuant to the LTI program and a few employee and director grants, the nonvested shares vest ratably over three to five years and are expensed over their vesting period. | |||||||
The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2012 through September 30, 2014 (share amounts in thousands): | |||||||
Nonvested Shares | Weighted-Average | ||||||
Outstanding | Price at Grant Date | ||||||
December 31, 2012 | 288 | $ | 20.84 | ||||
Granted | 110 | 37.31 | |||||
Vested | (143 | ) | 19.75 | ||||
Cancelled | (29 | ) | 20.57 | ||||
December 31, 2013 | 226 | 29.58 | |||||
Granted | 212 | 56.07 | |||||
Vested | (112 | ) | 29.33 | ||||
Cancelled | (2 | ) | 24.76 | ||||
30-Sep-14 | 324 | $ | 47.03 | ||||
The total grant date fair value of shares vested during the three and nine months ended September 30, 2014, was $0.2 million and $3.3 million, respectively. The total grant date fair value of shares vested during the three and nine months ended September 30, 2013, was $0.2 million and $2.7 million, respectively. | |||||||
Pursuant to the Plan, the Compensation Committee may grant time-vested and performance based nonvested shares. All shares granted under the LTI program were granted to key employees of the Company. The following summarizes all LTI program share transactions from December 31, 2012 through September 30, 2014 (share amounts in thousands): | |||||||
Nonvested LTI Shares | Weighted-Average | ||||||
Outstanding | Price at Grant Date | ||||||
December 31, 2012 | 497 | $ | 21.71 | ||||
Granted at target level | 124 | 34.59 | |||||
Adjustments for actual performance | 108 | 17.91 | |||||
Vested | (279 | ) | 19.1 | ||||
Cancelled | (16 | ) | 25.01 | ||||
December 31, 2013 | 434 | 25.79 | |||||
Granted at target level | 111 | 49.6 | |||||
Adjustments for actual performance | 95 | 25.17 | |||||
Vested | (225 | ) | 25.17 | ||||
30-Sep-14 | 415 | $ | 32.35 | ||||
The total grant date fair value of shares vested during the three and nine months ended September 30, 2014, was $0.0 million and $5.7 million, respectively. The total grant date fair value of shares vested during the three and nine months ended September 30, 2013, was $0.0 million and $2.6 million, respectively. | |||||||
At September 30, 2014, total future compensation costs, assuming the current estimated performance levels are achieved, related to nonvested share awards granted under the LTI program are estimated to be approximately $7.1 million. The Company assumed a 7.5% forfeiture rate for these grants and the remaining shares have a weighted average life of 1.0 year at September 30, 2014. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||||||||||
Income Taxes: | ||||||||||||||||||||||||||||||||
The Company follows the guidance of FASB ASC Topic 740 “Income Taxes” (“ASC 740”) as it relates to the provision for income taxes and uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. | ||||||||||||||||||||||||||||||||
The income tax expense recognized for the three and nine months ended September 30, 2014 and 2013 is comprised of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Federal | State | Foreign | Total | Federal | State | Foreign | Total | |||||||||||||||||||||||||
Current tax expense | $ | 9,355 | $ | 1,659 | $ | 1,025 | $ | 12,039 | $ | 22,612 | $ | 3,329 | $ | 454 | $ | 26,395 | ||||||||||||||||
Deferred tax expense/(benefit) | 10,853 | 337 | 5,244 | 16,434 | 3,707 | (2,769 | ) | (1,071 | ) | (133 | ) | |||||||||||||||||||||
Total income tax expense/(benefit) | $ | 20,208 | $ | 1,996 | $ | 6,269 | $ | 28,473 | $ | 26,319 | $ | 560 | $ | (617 | ) | $ | 26,262 | |||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Federal | State | Foreign | Total | Federal | State | Foreign | Total | |||||||||||||||||||||||||
Current tax expense/(benefit) | $ | 38,279 | $ | 7,002 | $ | 375 | $ | 45,656 | $ | 64,591 | $ | 11,755 | $ | (269 | ) | $ | 76,077 | |||||||||||||||
Deferred tax expense/(benefit) | 23,446 | 3,684 | 5,244 | 32,374 | 5,264 | (2,018 | ) | (891 | ) | 2,355 | ||||||||||||||||||||||
Total income tax expense/(benefit) | $ | 61,725 | $ | 10,686 | $ | 5,619 | $ | 78,030 | $ | 69,855 | $ | 9,737 | $ | (1,160 | ) | $ | 78,432 | |||||||||||||||
The Company has recognized a net deferred tax liability of $232.6 million and $208.7 million as of September 30, 2014 and December 31, 2013, respectively. The components of the net deferred tax liability are as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||||||
Employee compensation | $ | 8,075 | $ | 9,365 | ||||||||||||||||||||||||||||
Allowance for doubtful accounts | 332 | 236 | ||||||||||||||||||||||||||||||
State tax credit carryforward | 879 | 879 | ||||||||||||||||||||||||||||||
Net operating loss carryforward - International | 70,938 | — | ||||||||||||||||||||||||||||||
Other | 4,900 | 240 | ||||||||||||||||||||||||||||||
Accrued liabilities | 4,643 | 4,642 | ||||||||||||||||||||||||||||||
Guaranteed payments | — | 890 | ||||||||||||||||||||||||||||||
Intangible assets and goodwill | 183 | 930 | ||||||||||||||||||||||||||||||
Depreciation expense | 590 | |||||||||||||||||||||||||||||||
Leases | 840 | 531 | ||||||||||||||||||||||||||||||
Acquisition costs | 384 | 687 | ||||||||||||||||||||||||||||||
Total deferred tax assets | 91,764 | 18,400 | ||||||||||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||||||
Depreciation expense | 4,888 | 4,250 | ||||||||||||||||||||||||||||||
Prepaid expenses | 1,392 | 1,604 | ||||||||||||||||||||||||||||||
Convertible debt | 10,731 | 11,931 | ||||||||||||||||||||||||||||||
Other | 339 | — | ||||||||||||||||||||||||||||||
Finance receivable revenue recognition - International | 38,375 | — | ||||||||||||||||||||||||||||||
Use of cost recovery for income tax purposes - U.S. | 234,985 | 209,325 | ||||||||||||||||||||||||||||||
Total deferred tax liability | 290,710 | 227,110 | ||||||||||||||||||||||||||||||
Valuation allowance | 33,616 | — | ||||||||||||||||||||||||||||||
Net deferred tax liability | $ | 232,562 | $ | 208,710 | ||||||||||||||||||||||||||||
A reconciliation of the Company’s expected tax expense at the statutory federal tax rate to actual tax expense for the three and nine months ended September, 2014 and 2013 is as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Expected tax expense at statutory federal rates | $ | 27,874 | $ | 26,415 | $ | 72,641 | $ | 73,351 | ||||||||||||||||||||||||
State tax expense, net of federal tax benefit | 2,139 | 2,412 | 7,217 | 8,138 | ||||||||||||||||||||||||||||
Other | (1,540 | ) | (2,565 | ) | (1,828 | ) | (3,057 | ) | ||||||||||||||||||||||||
Total income tax expense | $ | 28,473 | $ | 26,262 | $ | 78,030 | $ | 78,432 | ||||||||||||||||||||||||
For tax purposes, the Company utilizes the cost recovery method of accounting. Under the cost recovery method, collections on finance receivables are applied first to principal to reduce the finance receivables to zero before any taxable income is recognized. The Internal Revenue Service ("IRS") examined the Company's 2005 tax return and on March 19, 2009 issued Form 4549-A, Income Tax Examination Changes, for tax years ended December 31, 2005 through 2007. The IRS has asserted that tax revenue recognition using the cost recovery method does not clearly reflect taxable income. The Company believes it has sufficient support for the technical merits of its position, and believes cost recovery to be an acceptable tax revenue recognition method for companies in the bad debt purchasing industry. On April 22, 2009, the Company filed a formal protest of the IRS’s assessment. On August 26, 2011, the IRS issued a Notice of Deficiency for the tax years ended December 31, 2005 through 2007. The Company subsequently filed a petition in the United States Tax Court. If the Company is unsuccessful in the United States Tax Court, it can appeal to the federal Circuit Court of Appeals. On June 30, 2011, the Company was notified by the IRS that the audit period will be expanded to include the tax years ended December 31, 2008 and 2009. On July 7, 2014, the Company received a Notice of Deficiency for tax years ended December 31, 2008 through 2012. The proposed deficiencies relate to the cost recovery method of tax accounting. In response to this notice, the company filed a petition in the United States Tax Court on October 3, 2014. | ||||||||||||||||||||||||||||||||
ASC 740 requires the recognition of interest if the tax law would require interest to be paid on the underpayment of taxes, and recognition of penalties if a tax position does not meet the minimum statutory threshold to avoid payment of penalties. The Company believes it has sufficient support for the technical merits of its position and that it is more likely than not this position will be sustained. Accordingly, the Company has not accrued for interest or penalties on any of its tax positions, including the cost recovery matter. | ||||||||||||||||||||||||||||||||
If the Company is unsuccessful in the United States Tax Court and any potential appeals to the federal Circuit Court of Appeals, it may be required to pay interest. In accordance with the Internal Revenue Code, underpayments of federal tax accrue interest, compounded daily, at the applicable federal short term rate plus three percentage points. An additional two percentage points applies to large corporate underpayments of $100,000 or more to periods after the applicable date as defined in the Internal Revenue Code. The Company files taxes in multiple state jurisdictions; therefore, any underpayment of state tax will accrue interest in accordance with the respective state statute. The Company's estimate of the potential federal and state interest is $75.0 million as of September 30, 2014. Payment of the assessed taxes and interest could have an adverse effect on the Company’s financial condition, be material to the Company’s results of operations, and possibly require additional financing from other sources. | ||||||||||||||||||||||||||||||||
At September 30, 2014, the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2003, 2005 and subsequent years. The 2003 tax year remains open to examination because of a net operating loss that originated in that year but was not fully utilized until the 2005 tax year. The examination periods for the 2005 through 2012 tax years are suspended until a decision of the Tax Court becomes final. | ||||||||||||||||||||||||||||||||
The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. A valuation allowance for deferred tax assets was not recorded at December 31, 2013 since management believed it was more likely than not that the deferred tax assets would be realized. A valuation allowance has been recorded at September 30, 2014 because as part of the acquisition of Aktiv Kapital, the Company acquired a deferred tax asset of approximately $33.6 million related to tax losses in Norway which the Company believes does not meet the more likely than not requirement for realization. Because the valuation allowance was recorded in relation to the purchase accounting process, there is no impact to the current quarter earnings. In the event that all or part of the deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings in the period such determination is made. | ||||||||||||||||||||||||||||||||
There were no repatriations of unremitted earnings during the three or nine months ended September 30, 2014. The Company intends for predominantly all foreign earnings to be indefinitely reinvested in its foreign operations and, therefore, the recording of deferred tax liabilities for such unremitted earnings is not required. It is impracticable to determine the total amount of unrecognized deferred taxes with respect to these permanently reinvested earnings; however, foreign tax credits would be available to partially reduce U.S. income taxes in the event of a distribution. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||||
Earnings per Share: | ||||||||||||||||||||||
Basic earnings per share (“EPS”) are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS with the denominator adjusted for the dilutive effect of the Notes and nonvested share awards, if dilutive. For the Notes, 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 $65.72, which did not occur during the period from which the Notes were issued on August 13, 2013 through September 30, 2014. Share-based awards that are contingent upon the attainment of performance goals are not included in the computation of diluted EPS until the performance goals have been attained. The dilutive effect of nonvested shares is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the vesting of nonvested shares would be used to purchase common shares at the average market price for the period. The assumed proceeds include the windfall tax benefit that would be realized upon assumed exercise. | ||||||||||||||||||||||
The following tables reconcile the computation of basic EPS and diluted EPS for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands, except per share amounts): | ||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net Income | Weighted Average | EPS | Net Income | Weighted Average | EPS | |||||||||||||||||
attributable to PRA Group, Inc. | Common Shares | attributable to PRA Group, Inc. | Common Shares | |||||||||||||||||||
Basic EPS | $ | 51,167 | 50,075 | $ | 1.02 | $ | 47,338 | 50,154 | $ | 0.94 | ||||||||||||
Dilutive effect of nonvested share awards | 364 | 506 | ||||||||||||||||||||
Diluted EPS | $ | 51,167 | 50,439 | $ | 1.01 | $ | 47,338 | 50,660 | $ | 0.93 | ||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net Income | Weighted Average | EPS | Net Income | Weighted Average | EPS | |||||||||||||||||
attributable to PRA Group, Inc. | Common Shares | attributable to PRA Group, Inc. | Common Shares | |||||||||||||||||||
Basic EPS | $ | 129,514 | 50,023 | $ | 2.59 | $ | 129,537 | 50,571 | $ | 2.56 | ||||||||||||
Dilutive effect of nonvested share awards | 390 | 468 | ||||||||||||||||||||
Diluted EPS | $ | 129,514 | 50,413 | $ | 2.57 | $ | 129,537 | 51,039 | $ | 2.54 | ||||||||||||
There were no antidilutive options outstanding for the three or nine months ended September 30, 2014 and 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
Commitments and Contingencies: | |
Employment Agreements: | |
The Company has employment agreements, most of which expire on December 31, 2014, with all of its U.S. executive officers and with several members of its U.S. senior management group. Such agreements provide for base salary payments as well as bonuses that are based on the attainment of specific management goals. At September 30, 2014, the estimated future compensation under these agreements is approximately $5.2 million. The agreements also contain confidentiality and non-compete provisions. Outside the U.S., employment agreements are in place with employees pursuant to local country regulations. Generally, these agreements do not have expiration dates and therefore it is impractical to estimate the amount of future compensation under these agreements. Accordingly, the future compensation under these agreements is not included in the $5.2 million total above. | |
Leases: | |
The Company is party to various operating leases with respect to its facilities and equipment. The future minimum lease payments at September 30, 2014 total approximately $39.8 million. | |
Forward Flow Agreements: | |
The Company is party to several forward flow agreements that allow for the purchase of defaulted consumer receivables at pre-established prices. The maximum remaining amount to be purchased under forward flow agreements at September 30, 2014 is approximately $622.9 million. | |
Contingent Purchase Price: | |
The asset purchase agreement entered into in connection with the acquisition of certain finance receivables and certain operating assets of National Capital Management, LLC ("NCM") in 2012, includes an earn-out provision whereby the sellers are able to earn additional cash consideration for achieving certain cash collection thresholds over a five year period. The maximum amount of earn-out during the period is $15.0 million. The Company paid the year one earn-out during December 2013 in the amount of $6.2 million. As of September 30, 2014, the Company has recorded a present value amount for the expected remaining liability of $4.6 million. | |
Finance Receivables: | |
Certain agreements for the purchase of finance receivables portfolios contain provisions that may, in limited circumstances, require the Company to refund a portion or all of the collections subsequently received by the Company on particular accounts. The potential refunds as of the balance sheet date are not considered to be significant. | |
Litigation: | |
The Company is from time to time subject to routine legal claims and proceedings, most of which are incidental to the ordinary course of its business. The Company initiates lawsuits against customers and is occasionally countersued by them in such actions. Also, customers, either individually, as members of a class action, or through a governmental entity on behalf of customers, may initiate litigation against the Company in which they allege that the Company has violated a state or federal law in the process of collecting on an account. From time to time, other types of lawsuits are brought against the Company. Additionally, the Company receives subpoenas and other requests or demands for information from regulators or governmental authorities who are investigating the Company's debt collection activities. The Company makes every effort to respond appropriately to such requests. | |
The Company accrues for potential liability arising from legal proceedings when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated. This determination is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company's best estimate of such losses for those cases for which such estimates can be made. The Company's estimate involves significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages), the number of unresolved issues in many of the proceedings (including issues regarding class certification and the scope of many of the claims), and the related uncertainty of the potential outcomes of these proceedings. In making determinations of the likely outcome of pending litigation, the Company considers many factors, including, but not limited to, the nature of the claims, the Company's experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative mechanisms, the matter's current status and the damages sought or demands made. Accordingly, the Company's estimate will change from time to time, and actual losses could be more than the current estimate. | |
Subject to the inherent uncertainties involved in such proceedings, the Company believes, based upon its current knowledge and after consultation with counsel, that the legal proceedings currently pending against it, including those that fall outside of the Company's routine legal proceedings, should not, either individually or in the aggregate, have a material adverse impact on the Company's financial condition. However, it is possible in light of the uncertainties involved in such proceedings or due to unexpected future developments, that an unfavorable resolution of a legal proceeding or claim could occur which may be material to the Company's financial condition, results of operations, or cash flows for a particular period. | |
Excluding the matters described below and other putative class action suits that the Company believes are not material, the high end of the range of potential litigation losses in excess of the amount accrued is estimated by management to be less than $1,000,000 as of September 30, 2014. Notwithstanding our attempt to estimate a range of possible losses in excess of the amount accrued based on current information, actual future losses may exceed both the Company's accrual and the range of potential litigation losses disclosed above. | |
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. Loss estimates and accruals for potential liability related to legal proceedings are exclusive of potential recoveries, if any, under the Company's insurance policies or third party indemnities. The Company has not recorded any potential recoveries under the Company's insurance policies or third party indemnities. | |
The matters described below fall outside of the normal parameters of the Company’s routine legal proceedings. | |
Telephone Consumer Protection Act Litigation | |
The Company has been named as defendant in a number of putative class action cases, each alleging that the Company violated the Telephone Consumer Protection Act ("TCPA") by calling consumers' cellular telephones without their prior express consent. On December 21, 2011, the United States Judicial Panel on Multi-District Litigation entered an order transferring these matters into one consolidated proceeding in the United States District Court for the Southern District of California (the "Court"). On November 14, 2012, the putative class plaintiffs filed their amended consolidated complaint in the matter, now styled as In re Portfolio Recovery Associates, LLC Telephone Consumer Protection Act Litigation, case No. 11-md-02295 (the “MDL action”). On May 20, 2014, the Court stayed this litigation until such time as the United States Federal Communications Commission has ruled on various petitions concerning the TCPA. | |
Internal Revenue Service Audit | |
The Internal Revenue Service ("IRS") examined the Company's 2005 tax return and on March 19, 2009 issued Form 4549-A, Income Tax Examination Changes, for tax years ended December 31, 2005 through 2007. The IRS has asserted that tax revenue recognition using the cost recovery method does not clearly reflect taxable income. The Company believes it has sufficient support for the technical merits of its position, and believes cost recovery to be an acceptable tax revenue recognition method for companies in the bad debt purchasing industry. On April 22, 2009, the Company filed a formal protest of the IRS’s assessment On August 26, 2011, the IRS issued a Notice of Deficiency for the tax years ended December 31, 2005 through 2007. The Company subsequently filed a petition in the United States Tax Court. If the Company is unsuccessful in the United States Tax Court, it can appeal to the federal Circuit Court of Appeals. On June 30, 2011, the Company was notified by the IRS that the audit period will be expanded to include the tax years ended December 31, 2008 and 2009. On July 7, 2014, the Company received a Notice of Deficiency for tax years ended December 31, 2008 through 2012. The proposed deficiencies relate to the cost recovery method of tax accounting. In response to this notice, the company filed a petition in the United States Tax Court on October 3, 2014. Refer to Note 7 “Income Taxes” for additional information. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements And Disclosures | ' | |||||||||||||||
Fair Value Measurements and Disclosures: | ||||||||||||||||
As defined by FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also requires the consideration of differing levels of inputs in the determination of fair values. Those levels of input are summarized as follows: | ||||||||||||||||
•Level 1 - Quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
• | Level 2 - Observable inputs other than level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||
The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||||||||||||||
Financial Instruments Not Required To Be Carried at Fair Value | ||||||||||||||||
In accordance with the disclosure requirements of FASB ASC Topic 825, “Financial Instruments” (“ASC 825”), the table below summarizes fair value estimates for the Company’s financial instruments. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company. The carrying amounts in the table are recorded in the consolidated balance sheets at September 30, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 70,300 | $ | 70,300 | $ | 162,004 | $ | 162,004 | ||||||||
Finance receivables, net | 1,913,710 | 2,362,165 | 1,239,191 | 1,722,100 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Revolving lines of credit | 676,180 | 676,180 | — | — | ||||||||||||
Term loans | 290,045 | 290,045 | 195,000 | 195,000 | ||||||||||||
Notes and loans payable | 199,377 | 199,377 | — | — | ||||||||||||
Interest-bearing deposits | 27,300 | 27,300 | — | — | ||||||||||||
Convertible debt | 259,807 | 315,859 | 256,780 | 316,857 | ||||||||||||
Disclosure of the estimated fair values of financial instruments often requires the use of estimates. The Company uses the following methods and assumptions to estimate the fair value of financial instruments: | ||||||||||||||||
Cash and cash equivalents: The carrying amount approximates fair value and quoted prices for identical assets can be found in active markets. Accordingly, the Company estimates the fair value of cash and cash equivalents using level 1 inputs. | ||||||||||||||||
Finance receivables, net: The Company records purchased receivables at cost, which represents a significant discount from the contractual receivable balances due. The Company computed the estimated fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company's fair value estimates use level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. | ||||||||||||||||
Revolving lines of credit: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
Term loans: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
Notes and loans payable: The carrying amount approximates fair value due to the short-term nature of the loan terms and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
Interest-bearing deposits: The carrying amount approximates fair value due to the short-term nature of the deposits and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
Convertible debt: The Notes are carried at historical cost, adjusted for the debt discount. The fair value estimates for these Notes incorporates quoted market prices which were obtained from secondary market broker quotes which were derived from a variety of inputs including client orders, information from their pricing vendors, modeling software, and actual trading prices when they occur. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
Financial Instruments Required To Be Carried At Fair Value | ||||||||||||||||
The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at September 30, 2014 (amounts in thousands): | ||||||||||||||||
Fair Value Measurements as of September 30, 214 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments (recorded in other assets) | $ | — | $ | — | $ | 61,951 | $ | 61,951 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap contracts (recorded in accrued expenses) | $ | — | $ | 2,836 | $ | — | $ | 2,836 | ||||||||
Investments: The Company's investments are carried at fair value which is determined by using models for valuing similar assets. The Company’s fair value estimates use level 3 inputs as there is little observable market data available. | ||||||||||||||||
Interest rate swap contracts: The interest rate swap contracts are carried at fair value which is determined by 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 and other factors. Accordingly, the Company uses level 2 inputs for its fair value estimates. | ||||||||||||||||
There were no assets or liabilities measured at fair value on a recurring basis in the accompanying consolidated balance sheet at December 31, 2013. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements: | |
In March 2013, FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity," ("ASU 2013-05") which defines the treatment of the release of cumulative translation adjustments upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. ASU 2013-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted and prior periods should not be adjusted. The Company adopted ASU 2013-05 in the first quarter of 2014, and it had no material impact on the Company's Consolidated Financial Statements. | |
In April 2014, FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (“ASU 2014-08”) that amends the requirements for reporting discontinued operations. ASU 2014-08 requires the disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the entity’s operations and financial results. ASU 2014-08 also requires additional disclosures about discontinued operations and disclosures about the disposal of a significant component of an entity that does not qualify as a discontinued operation. ASU 2014-08 is effective prospectively for reporting periods beginning after December 15, 2014, with early adoption permitted. The Company is evaluating the potential impacts of the new standard. | |
In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (“ASU 2014-09”) that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. The Company is evaluating its implementation approach and the potential impacts of the new standard on its existing revenue recognition policies and procedures. | |
In June 2014, FASB issued ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing stock-based compensation awards. | |
The Company does not expect that any other recently issued accounting pronouncements will have a material effect on its financial statements. |
Business_Acquisitions
Business Acquisitions | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||
Business Acquisitions | ' | ||||||||||||||||||||
Business Acquisitions: | |||||||||||||||||||||
Aktiv Kapital, A.S. Acquisition | |||||||||||||||||||||
On July 16, 2014, the Company completed the purchase of the outstanding equity of Aktiv, for a purchase price of approximately $861.3 million, and assumed approximately $433.7 million of Aktiv’s corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion. The Company financed the transaction with cash of $206.4 million, $169.9 million in financing from an affiliate of the seller (which bears interest at a variable rate equal to LIBOR plus 3.75% per annum and matures on July 16, 2015), and $485.0 million from the Company’s domestic, revolving credit facility. | |||||||||||||||||||||
The Company incurred transaction costs of approximately $5.9 million and $14.3 million during the three and nine months ended September 30, 2014, respectively. Additionally, the Company recorded a foreign currency transaction loss as a result of entering into foreign currency exchange rate forward contracts during the second quarter of 2014 to acquire 518 million Euros in anticipation of closing the acquisition of Aktiv. As a result of the strengthening U.S. dollar relative to the Euro, the Company incurred losses of $2.0 million and $8.2 million on the forward contracts during the three and nine months ended September 30, 2014, respectively. | |||||||||||||||||||||
The Company accounted for this purchase in accordance with ASC Topic 805, “Business Combinations.” Under this guidance, an entity is required to recognize the assets acquired, liabilities assumed and the consideration given at their fair value on the acquisition date. The following tables summarize the fair value of the consideration given for Aktiv, as well as the fair value of the assets acquired and liabilities assumed as of the July 16, 2014 acquisition date. | |||||||||||||||||||||
Recognized amounts of identifiable assets and liabilities are as follows (amounts in thousands): | |||||||||||||||||||||
Purchase price | $ | 861,331 | |||||||||||||||||||
Cash | (15,624 | ) | |||||||||||||||||||
Other receivables, net | (10,087 | ) | |||||||||||||||||||
Finance receivables, net | (727,688 | ) | |||||||||||||||||||
Property and equipment, net | (7,715 | ) | |||||||||||||||||||
Net deferred tax asset | (33,426 | ) | |||||||||||||||||||
Other assets | (64,626 | ) | |||||||||||||||||||
Accounts payable | 15,862 | ||||||||||||||||||||
Accrued expenses | 27,714 | ||||||||||||||||||||
Income tax payable | 5,859 | ||||||||||||||||||||
Net deferred tax liability | 21,967 | ||||||||||||||||||||
Borrowings | 404,823 | ||||||||||||||||||||
Interest bearing deposits | 28,858 | ||||||||||||||||||||
Goodwill | $ | 507,248 | |||||||||||||||||||
The Company has recorded provisional amounts for the assets acquired and liabilities assumed in its consolidated financial statements and will adjust the allocations relative to the fair value of the assets and liabilities, as necessary, during the remainder of the one-year measurement period. | |||||||||||||||||||||
Aktiv Results | |||||||||||||||||||||
The Company's results for the third quarter and first nine months of 2014 include the operations of Aktiv from the acquisition date of July 16, 2014 through September 30, 2014. | |||||||||||||||||||||
The table below presents the estimated impact of the Aktiv acquisition on our revenue and income from continuing operations, net of tax for the third quarter and first nine months of 2014. The table also includes condensed pro forma information on our combined results of operations as they may have appeared assuming the Aktiv acquisition had been completed on January 1, 2013. These amounts include certain corporate expenses, transaction costs or merger related expenses that resulted from the acquisition and are therefore not representative of the actual results of the operations of these businesses on a stand-alone basis. As we continue to integrate this business into our existing operations over the remainder of the year, it may become impracticable to separately identify and to estimate these operating results. | |||||||||||||||||||||
Included in the combined pro forma results are adjustments to reflect the impact of certain purchase accounting adjustments, including adjustments to Income recognized on finance receivables, net, Outside fees and services, Depreciation and amortization, and Interest expense. | |||||||||||||||||||||
The pro forma condensed combined financial information is presented for illustrative purposes only and does not indicate the actual combined financial results had the closing of the Aktiv acquisition been completed on January 1, 2013 nor does it reflect the benefits obtained through the integration of business operations realized since acquisition. Furthermore, the information is not indicative of the results of operations in future periods. The pro forma condensed combined financial information does not reflect the impact of possible business model changes nor does it consider any potential impacts of market conditions, expense efficiencies or other factors. | |||||||||||||||||||||
Aktiv Impact | Combined Pro Forma Results | ||||||||||||||||||||
From July 16, 2014 through September 30, 2014 | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
(amounts in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | $ | 47,605 | $ | 250,407 | $ | 256,665 | $ | 769,503 | $ | 724,084 | |||||||||||
Net Income attributable to PRA Group, Inc. | 17,085 | 49,377 | 86,207 | 172,956 | 201,590 | ||||||||||||||||
Pamplona Capital Management, LLP Acquisition | |||||||||||||||||||||
On July 1, 2014, the Company acquired certain operating assets from PCM. These assets include PCM’s IVA Master Servicing Platform as well as other operating assets associated with PCM’s IVA business. The purchase price of these assets was approximately $5 million and was paid from the Company’s existing cash balances. Due to immateriality, no effect of this acquisition is included in the pro forma results and adjustments described above. |
Derivatives
Derivatives | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivatives | ' | ||||||||
Derivatives: | |||||||||
The Company’s activities are subject to various financial risks including market risk, currency and interest rate risk, credit risk, liquidity risk and cash flow risk. The Company’s overall financial risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company may periodically enter into derivative financial instruments, typically interest rate swap agreements, to reduce its exposure to fluctuations in interest rates on variable-rate debt and their impact on earnings and cash flows. The Company does not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed nor does it enter into or hold derivatives for trading or speculative purposes. The Company periodically reviews the creditworthiness of the swap counterparty to assess the counterparty’s ability to honor its obligation. Counterparty default would expose the Company to fluctuations in variable interest rates. Based on the guidance of FASB ASC Topic 815 “Derivatives and Hedging” (“ASC 815”), the Company records derivative financial instruments at fair value on the consolidated balance sheet. | |||||||||
The financing of portfolio investments is generally drawn in the same currencies as the underlying expected future cash flow from the portfolios. The interest rate risk related to the loan is reduced through the use of a combination of interest rate swaps in CAD, EUR, GBP, SEK and NOK. At September 30, 2014, approximately 75% of the net borrowing was hedged, reducing the related interest rate risk. | |||||||||
The Company’s financial derivative instruments are not designated as hedging instruments under ASC 815 and therefore the gain or loss on such hedge and the change in fair value of the derivative is recorded in interest (income)/expense in its consolidated financial statements. During both the three and nine months ended September 30, 2014, the Company recorded $0.7 million in interest (income)/expense in its consolidated income statements. There were no derivatives outstanding during the three or nine months ended September 30, 2013. | |||||||||
The following table sets forth the fair value amounts of the derivative instruments held by the Company as of the dates indicated (amounts in thousands): | |||||||||
30-Sep-14 | |||||||||
Derivatives not designated as hedging instruments under ASC 815 | Asset Derivatives | Liability Derivatives | |||||||
Interest rate swap contracts | $ | — | $ | 2,836 | |||||
Liability derivatives are recorded in accrued expenses in the accompanying consolidated balance sheets. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Event: | |
On October 23, 2014, the Company entered into a credit agreement with DNB Bank ASA for a Multicurrency Revolving Credit Facility (“the Multicurrency Revolving Credit Facility Agreement”). Under the terms of the Multicurrency Revolving Credit Facility Agreement, the credit facility includes an aggregate amount of $500,000,000, accrues interest at the IBOR plus 2.50-3.00% (as determined by the ERC Ratio as defined in the Multicurrency Revolving Credit Facility Agreement), bears an unused line fee of 0.35% per annum, payable monthly in arrears, and matures on October 23, 2019. The Multicurrency Revolving Credit Facility also includes an Overdraft Facility aggregate amount of $40,000,000, accrues interest at the IBOR plus 2.50-3.00% (as determined by the ERC Ratio as defined in the Multicurrency Revolving Credit Facility Agreement), bears a facility line fee of 0.50% per annum, payable quarterly in arrears, and also matures October 23, 2019. | |
Due to changes in control provisions of the Aktiv Revolving Credit Agreement, the Aktiv Term Loan Credit Agreement, and the Aktiv Bridge Loan Credit Agreement, the Company requested and obtained a waiver that extended the terms of these agreements through October 28, 2014. Upon closing of the Multicurrency Revolving Credit Facility Agreement, the Aktiv Revolving Credit, Aktiv Term Loan Credit, and Aktiv Bridge Loan Credit Agreements were terminated and any outstanding balances owed on the terminated facilities were automatically transferred to the Multicurrency Revolving Credit Facility Agreement. |
Organization_and_Business_Tabl
Organization and Business (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Revenue And Long-Lived Assets Held By Geographical Location | ' | |||||||||||||||
The following table shows the amount of revenue generated for the three and nine months ended September 30, 2014 and 2013 and long-lived assets held at September 30, 2014 and 2013 for the United States, the Company's country of domicile, and outside of the United States (amounts in thousands): | ||||||||||||||||
As Of And For The | As Of And For The | |||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | |||||||||||||||
Revenues | Long-Lived Assets | Revenues | Long-Lived Assets | |||||||||||||
United States | $ | 188,134 | $ | 35,411 | $ | 194,769 | $ | 26,289 | ||||||||
Outside the United States | 50,839 | 10,558 | 2,993 | 1,770 | ||||||||||||
Total | $ | 238,973 | $ | 45,969 | $ | 197,762 | $ | 28,059 | ||||||||
As Of And For The | As Of And For The | |||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||
Revenues | Long-Lived Assets | Revenues | Long-Lived Assets | |||||||||||||
United States | $ | 573,048 | $ | 35,411 | $ | 542,048 | $ | 26,289 | ||||||||
Outside the United States | 57,190 | 10,558 | 8,234 | 1,770 | ||||||||||||
Total | $ | 630,238 | $ | 45,969 | $ | 550,282 | $ | 28,059 | ||||||||
Finance_Receivables_net_Tables
Finance Receivables, net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||
Schedule of Changes in Finance Receivables | ' | |||||||||||||||
Changes in finance receivables, net for the three and nine months ended September 30, 2014 and 2013 were as follows (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 1,219,595 | $ | 1,236,859 | $ | 1,239,191 | $ | 1,078,951 | ||||||||
Acquisitions of finance receivables (1) | 894,779 | 138,854 | 1,146,947 | 546,201 | ||||||||||||
Foreign currency translation adjustment | (52,247 | ) | 1,304 | (51,858 | ) | 363 | ||||||||||
Cash collections | (372,743 | ) | (291,651 | ) | (1,005,384 | ) | (863,511 | ) | ||||||||
Income recognized on finance receivables, net | 224,326 | 171,456 | 584,814 | 494,818 | ||||||||||||
Cash collections applied to principal | (148,417 | ) | (120,195 | ) | (420,570 | ) | (368,693 | ) | ||||||||
Balance at end of period | $ | 1,913,710 | $ | 1,256,822 | $ | 1,913,710 | $ | 1,256,822 | ||||||||
Schedule of Cash Collections Applied to Principal | ' | |||||||||||||||
Based upon current projections, cash collections applied to principal on finance receivables as of September 30, 2014 are estimated to be as follows for the twelve months in the periods ending (amounts in thousands): | ||||||||||||||||
30-Sep-15 | $ | 537,091 | ||||||||||||||
30-Sep-16 | 432,202 | |||||||||||||||
30-Sep-17 | 342,063 | |||||||||||||||
30-Sep-18 | 249,614 | |||||||||||||||
30-Sep-19 | 146,023 | |||||||||||||||
30-Sep-20 | 93,697 | |||||||||||||||
30-Sep-21 | 87,561 | |||||||||||||||
30-Sep-22 | 25,459 | |||||||||||||||
$ | 1,913,710 | |||||||||||||||
Schedule of Changes in Accretable Yield | ' | |||||||||||||||
Changes in accretable yield for the three and nine months ended September 30, 2014 and 2013 were as follows (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 1,481,826 | $ | 1,400,906 | $ | 1,430,067 | $ | 1,239,674 | ||||||||
Income recognized on finance receivables, net | (224,326 | ) | (171,456 | ) | (584,814 | ) | (494,818 | ) | ||||||||
Additions (1) | 1,172,796 | 122,976 | 1,377,416 | 472,666 | ||||||||||||
Net reclassifications from nonaccretable difference | 84,074 | 63,031 | 290,431 | 201,823 | ||||||||||||
Foreign currency translation adjustment | (59,040 | ) | 509 | (57,770 | ) | (3,379 | ) | |||||||||
Balance at end of period | $ | 2,455,330 | $ | 1,415,966 | $ | 2,455,330 | $ | 1,415,966 | ||||||||
Schedule of Valuation Allowance Account | ' | |||||||||||||||
The following is a summary of activity within the Company’s valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 86,849 | $ | 94,111 | $ | 91,101 | $ | 93,123 | ||||||||
Allowance charges | 2,992 | 1,500 | 5,765 | 7,060 | ||||||||||||
Reversal of previous recorded allowance charges | (4,690 | ) | (4,081 | ) | (11,715 | ) | (8,653 | ) | ||||||||
Net allowance reversals | (1,698 | ) | (2,581 | ) | (5,950 | ) | (1,593 | ) | ||||||||
Ending balance | $ | 85,151 | $ | 91,530 | $ | 85,151 | $ | 91,530 | ||||||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Debt | ' | ||||||||||||||||
The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): | |||||||||||||||||
30-Sep-14 | December 31, 2013 | ||||||||||||||||
Domestic revolving credit | $ | 436,500 | $ | — | |||||||||||||
Domestic term loan | 187,500 | 195,000 | |||||||||||||||
Seller note payable | 169,938 | — | |||||||||||||||
Aktiv revolving credit | 239,680 | — | |||||||||||||||
Aktiv term loan | 79,712 | — | |||||||||||||||
Aktiv multicurrency term loan bridge facility | 22,833 | — | |||||||||||||||
Aktiv subordinated loan | 29,439 | — | |||||||||||||||
Convertible senior notes | 287,500 | 287,500 | |||||||||||||||
Less: Debt discount | (27,693 | ) | (30,720 | ) | |||||||||||||
Total | $ | 1,425,409 | $ | 451,780 | |||||||||||||
Schedule of Liability and Equity Components | ' | ||||||||||||||||
The balances of the liability and equity components of all of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Liability component - principal amount | $ | 287,500 | $ | 287,500 | |||||||||||||
Unamortized debt discount | (27,693 | ) | (30,720 | ) | |||||||||||||
Liability component - net carrying amount | 259,807 | 256,780 | |||||||||||||||
Equity component | $ | 31,306 | $ | 31,306 | |||||||||||||
Schedule of Debt Interest Expense | ' | ||||||||||||||||
Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): | |||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||
Interest expense - stated coupon rate | $ | 2,156 | $ | 1,150 | $ | 6,469 | $ | 1,150 | |||||||||
Interest expense - amortization of debt discount | 1,023 | 525 | 3,027 | 525 | |||||||||||||
Total interest expense - convertible notes | $ | 3,179 | $ | 1,675 | $ | 9,496 | $ | 1,675 | |||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||
The following principal payments are due on the Company's borrowings as of September 30, 2014 for the twelve month periods ending (amounts in thousands): | |||||||||||||||||
30-Sep-15 | $ | 555,352 | |||||||||||||||
30-Sep-16 | 18,750 | ||||||||||||||||
30-Sep-17 | 35,000 | ||||||||||||||||
30-Sep-18 | 556,500 | ||||||||||||||||
30-Sep-19 | — | ||||||||||||||||
Thereafter | 287,500 | ||||||||||||||||
Total | $ | 1,453,102 | |||||||||||||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property and Equipment, at Cost | ' | |||||||
Property and equipment, at cost, consisted of the following as of the dates indicated (amounts in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Software | $ | 52,377 | $ | 34,108 | ||||
Computer equipment | 21,365 | 17,072 | ||||||
Furniture and fixtures | 10,937 | 8,616 | ||||||
Equipment | 13,606 | 10,351 | ||||||
Leasehold improvements | 13,497 | 11,147 | ||||||
Building and improvements | 7,044 | 7,026 | ||||||
Land | 1,269 | 1,269 | ||||||
Accumulated depreciation and amortization | (74,126 | ) | (58,048 | ) | ||||
Property and equipment, net | $ | 45,969 | $ | 31,541 | ||||
Recovered_Sheet1
Goodwill And Intangible Assets, net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Changes in Goodwill | ' | |||||||||||||||
The following table represents the changes in goodwill for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Balance at beginning of period | $ | 105,122 | $ | 106,953 | $ | 103,843 | $ | 109,488 | ||||||||
Acquisition of Aktiv and PCM | 512,049 | — | 512,049 | — | ||||||||||||
Impairment of goodwill | — | (6,397 | ) | — | (6,397 | ) | ||||||||||
Foreign currency translation adjustment | (22,770 | ) | 2,335 | (21,491 | ) | (200 | ) | |||||||||
Balance at end of period | $ | 594,401 | $ | 102,891 | $ | 594,401 | $ | 102,891 | ||||||||
Schedule of Intangible Assets | ' | |||||||||||||||
Intangible assets, excluding goodwill, consisted of the following at September 30, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||
Gross Amount | Accumulated | Gross Amount | Accumulated | |||||||||||||
Amortization | Amortization | |||||||||||||||
Client and customer relationships | $ | 35,683 | $ | 24,346 | $ | 40,870 | $ | 26,581 | ||||||||
Non-compete agreements | 627 | 546 | 3,880 | 3,723 | ||||||||||||
Trademarks | 3,474 | 2,577 | 3,491 | 2,170 | ||||||||||||
Total | $ | 39,784 | $ | 27,469 | $ | 48,241 | $ | 32,474 | ||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Nonvested Share Transactions | ' | ||||||
The following summarizes all LTI program share transactions from December 31, 2012 through September 30, 2014 (share amounts in thousands): | |||||||
Nonvested LTI Shares | Weighted-Average | ||||||
Outstanding | Price at Grant Date | ||||||
December 31, 2012 | 497 | $ | 21.71 | ||||
Granted at target level | 124 | 34.59 | |||||
Adjustments for actual performance | 108 | 17.91 | |||||
Vested | (279 | ) | 19.1 | ||||
Cancelled | (16 | ) | 25.01 | ||||
December 31, 2013 | 434 | 25.79 | |||||
Granted at target level | 111 | 49.6 | |||||
Adjustments for actual performance | 95 | 25.17 | |||||
Vested | (225 | ) | 25.17 | ||||
30-Sep-14 | 415 | $ | 32.35 | ||||
The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2012 through September 30, 2014 (share amounts in thousands): | |||||||
Nonvested Shares | Weighted-Average | ||||||
Outstanding | Price at Grant Date | ||||||
December 31, 2012 | 288 | $ | 20.84 | ||||
Granted | 110 | 37.31 | |||||
Vested | (143 | ) | 19.75 | ||||
Cancelled | (29 | ) | 20.57 | ||||
December 31, 2013 | 226 | 29.58 | |||||
Granted | 212 | 56.07 | |||||
Vested | (112 | ) | 29.33 | ||||
Cancelled | (2 | ) | 24.76 | ||||
30-Sep-14 | 324 | $ | 47.03 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of income tax expense | ' | |||||||||||||||||||||||||||||||
The income tax expense recognized for the three and nine months ended September 30, 2014 and 2013 is comprised of the following (amounts in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Federal | State | Foreign | Total | Federal | State | Foreign | Total | |||||||||||||||||||||||||
Current tax expense | $ | 9,355 | $ | 1,659 | $ | 1,025 | $ | 12,039 | $ | 22,612 | $ | 3,329 | $ | 454 | $ | 26,395 | ||||||||||||||||
Deferred tax expense/(benefit) | 10,853 | 337 | 5,244 | 16,434 | 3,707 | (2,769 | ) | (1,071 | ) | (133 | ) | |||||||||||||||||||||
Total income tax expense/(benefit) | $ | 20,208 | $ | 1,996 | $ | 6,269 | $ | 28,473 | $ | 26,319 | $ | 560 | $ | (617 | ) | $ | 26,262 | |||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Federal | State | Foreign | Total | Federal | State | Foreign | Total | |||||||||||||||||||||||||
Current tax expense/(benefit) | $ | 38,279 | $ | 7,002 | $ | 375 | $ | 45,656 | $ | 64,591 | $ | 11,755 | $ | (269 | ) | $ | 76,077 | |||||||||||||||
Deferred tax expense/(benefit) | 23,446 | 3,684 | 5,244 | 32,374 | 5,264 | (2,018 | ) | (891 | ) | 2,355 | ||||||||||||||||||||||
Total income tax expense/(benefit) | $ | 61,725 | $ | 10,686 | $ | 5,619 | $ | 78,030 | $ | 69,855 | $ | 9,737 | $ | (1,160 | ) | $ | 78,432 | |||||||||||||||
Components of deferred tax assets and liabilities | ' | |||||||||||||||||||||||||||||||
The components of the net deferred tax liability are as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||||||||||
Employee compensation | $ | 8,075 | $ | 9,365 | ||||||||||||||||||||||||||||
Allowance for doubtful accounts | 332 | 236 | ||||||||||||||||||||||||||||||
State tax credit carryforward | 879 | 879 | ||||||||||||||||||||||||||||||
Net operating loss carryforward - International | 70,938 | — | ||||||||||||||||||||||||||||||
Other | 4,900 | 240 | ||||||||||||||||||||||||||||||
Accrued liabilities | 4,643 | 4,642 | ||||||||||||||||||||||||||||||
Guaranteed payments | — | 890 | ||||||||||||||||||||||||||||||
Intangible assets and goodwill | 183 | 930 | ||||||||||||||||||||||||||||||
Depreciation expense | 590 | |||||||||||||||||||||||||||||||
Leases | 840 | 531 | ||||||||||||||||||||||||||||||
Acquisition costs | 384 | 687 | ||||||||||||||||||||||||||||||
Total deferred tax assets | 91,764 | 18,400 | ||||||||||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||||||||||
Depreciation expense | 4,888 | 4,250 | ||||||||||||||||||||||||||||||
Prepaid expenses | 1,392 | 1,604 | ||||||||||||||||||||||||||||||
Convertible debt | 10,731 | 11,931 | ||||||||||||||||||||||||||||||
Other | 339 | — | ||||||||||||||||||||||||||||||
Finance receivable revenue recognition - International | 38,375 | — | ||||||||||||||||||||||||||||||
Use of cost recovery for income tax purposes - U.S. | 234,985 | 209,325 | ||||||||||||||||||||||||||||||
Total deferred tax liability | 290,710 | 227,110 | ||||||||||||||||||||||||||||||
Valuation allowance | 33,616 | — | ||||||||||||||||||||||||||||||
Net deferred tax liability | $ | 232,562 | $ | 208,710 | ||||||||||||||||||||||||||||
Reconciliation of expected tax expense at federal tax rate to actual tax expense | ' | |||||||||||||||||||||||||||||||
A reconciliation of the Company’s expected tax expense at the statutory federal tax rate to actual tax expense for the three and nine months ended September, 2014 and 2013 is as follows (amounts in thousands): | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Expected tax expense at statutory federal rates | $ | 27,874 | $ | 26,415 | $ | 72,641 | $ | 73,351 | ||||||||||||||||||||||||
State tax expense, net of federal tax benefit | 2,139 | 2,412 | 7,217 | 8,138 | ||||||||||||||||||||||||||||
Other | (1,540 | ) | (2,565 | ) | (1,828 | ) | (3,057 | ) | ||||||||||||||||||||||||
Total income tax expense | $ | 28,473 | $ | 26,262 | $ | 78,030 | $ | 78,432 | ||||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Reconciliation Between the Computation of Basic and Diluted EPS | ' | |||||||||||||||||||||
The following tables reconcile the computation of basic EPS and diluted EPS for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands, except per share amounts): | ||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net Income | Weighted Average | EPS | Net Income | Weighted Average | EPS | |||||||||||||||||
attributable to PRA Group, Inc. | Common Shares | attributable to PRA Group, Inc. | Common Shares | |||||||||||||||||||
Basic EPS | $ | 51,167 | 50,075 | $ | 1.02 | $ | 47,338 | 50,154 | $ | 0.94 | ||||||||||||
Dilutive effect of nonvested share awards | 364 | 506 | ||||||||||||||||||||
Diluted EPS | $ | 51,167 | 50,439 | $ | 1.01 | $ | 47,338 | 50,660 | $ | 0.93 | ||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net Income | Weighted Average | EPS | Net Income | Weighted Average | EPS | |||||||||||||||||
attributable to PRA Group, Inc. | Common Shares | attributable to PRA Group, Inc. | Common Shares | |||||||||||||||||||
Basic EPS | $ | 129,514 | 50,023 | $ | 2.59 | $ | 129,537 | 50,571 | $ | 2.56 | ||||||||||||
Dilutive effect of nonvested share awards | 390 | 468 | ||||||||||||||||||||
Diluted EPS | $ | 129,514 | 50,413 | $ | 2.57 | $ | 129,537 | 51,039 | $ | 2.54 | ||||||||||||
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of financial instruments not required to be carried at fair value | ' | |||||||||||||||
The carrying amounts in the table are recorded in the consolidated balance sheets at September 30, 2014 and December 31, 2013 (amounts in thousands): | ||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 70,300 | $ | 70,300 | $ | 162,004 | $ | 162,004 | ||||||||
Finance receivables, net | 1,913,710 | 2,362,165 | 1,239,191 | 1,722,100 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Revolving lines of credit | 676,180 | 676,180 | — | — | ||||||||||||
Term loans | 290,045 | 290,045 | 195,000 | 195,000 | ||||||||||||
Notes and loans payable | 199,377 | 199,377 | — | — | ||||||||||||
Interest-bearing deposits | 27,300 | 27,300 | — | — | ||||||||||||
Convertible debt | 259,807 | 315,859 | 256,780 | 316,857 | ||||||||||||
Schedule of financial instruments required to be carried at fair value | ' | |||||||||||||||
The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at September 30, 2014 (amounts in thousands): | ||||||||||||||||
Fair Value Measurements as of September 30, 214 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments (recorded in other assets) | $ | — | $ | — | $ | 61,951 | $ | 61,951 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap contracts (recorded in accrued expenses) | $ | — | $ | 2,836 | $ | — | $ | 2,836 | ||||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||
Recognized Amounts of Identifiable Assets and Liabilities | ' | ||||||||||||||||||||
Recognized amounts of identifiable assets and liabilities are as follows (amounts in thousands): | |||||||||||||||||||||
Purchase price | $ | 861,331 | |||||||||||||||||||
Cash | (15,624 | ) | |||||||||||||||||||
Other receivables, net | (10,087 | ) | |||||||||||||||||||
Finance receivables, net | (727,688 | ) | |||||||||||||||||||
Property and equipment, net | (7,715 | ) | |||||||||||||||||||
Net deferred tax asset | (33,426 | ) | |||||||||||||||||||
Other assets | (64,626 | ) | |||||||||||||||||||
Accounts payable | 15,862 | ||||||||||||||||||||
Accrued expenses | 27,714 | ||||||||||||||||||||
Income tax payable | 5,859 | ||||||||||||||||||||
Net deferred tax liability | 21,967 | ||||||||||||||||||||
Borrowings | 404,823 | ||||||||||||||||||||
Interest bearing deposits | 28,858 | ||||||||||||||||||||
Goodwill | $ | 507,248 | |||||||||||||||||||
Schedule of Pro Forma Financial Information | ' | ||||||||||||||||||||
Aktiv Impact | Combined Pro Forma Results | ||||||||||||||||||||
From July 16, 2014 through September 30, 2014 | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
(amounts in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | $ | 47,605 | $ | 250,407 | $ | 256,665 | $ | 769,503 | $ | 724,084 | |||||||||||
Net Income attributable to PRA Group, Inc. | 17,085 | 49,377 | 86,207 | 172,956 | 201,590 | ||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Schedule of derivative instruments not designated as hedging instruments | ' | ||||||||
The following table sets forth the fair value amounts of the derivative instruments held by the Company as of the dates indicated (amounts in thousands): | |||||||||
30-Sep-14 | |||||||||
Derivatives not designated as hedging instruments under ASC 815 | Asset Derivatives | Liability Derivatives | |||||||
Interest rate swap contracts | $ | — | $ | 2,836 | |||||
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 01, 2014 | Jul. 16, 2014 | |
segment | United States [Member] | United States [Member] | United States [Member] | United States [Member] | Outside the United States [Member] | Outside the United States [Member] | Outside the United States [Member] | Outside the United States [Member] | Pamplona Capital Management, LLP [Member] | Aktiv Kapital AS [Member] | ||||
market | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | $861,331,000 |
Corporate debt assumed in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433,700,000 |
Total enterprise value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 |
New markets entered into through acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 |
Markets which maintain in-house servicing platforms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 |
Markets which in which acquisition owns portfolios | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 |
Years of experience and data in a variety of consumer asset classes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years |
Number of reportable segments | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | 238,973,000 | 197,762,000 | 630,238,000 | 550,282,000 | 188,134,000 | 194,769,000 | 573,048,000 | 542,048,000 | 50,839,000 | 2,993,000 | 57,190,000 | 8,234,000 | ' | ' |
Long-Lived Assets | $45,969,000 | $28,059,000 | $45,969,000 | $28,059,000 | $35,411,000 | $26,289,000 | $35,411,000 | $26,289,000 | $10,558,000 | $1,770,000 | $10,558,000 | $1,770,000 | ' | ' |
Finance_Receivables_net_Narrat
Finance Receivables, net (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Weighted average remaining life of pools | ' | ' | '97 months | ' | ' |
Estimated remaining collections on the receivables purchased | $1,860 | $184.20 | $2,250 | $676 | ' |
Unamortized purchased principal (purchase price) under the cost recovery method | $21.10 | ' | $21.10 | ' | $26.10 |
Minimum [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Estimated life time of pool at the time of acquisition (in months) | ' | ' | '80 months | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Estimated life time of pool at the time of acquisition (in months) | ' | ' | '120 months | ' | ' |
Finance_Receivables_net_Schedu
Finance Receivables, net (Schedule of Changes In Finance Receivables) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $1,219,595 | $1,236,859 | $1,239,191 | $1,078,951 |
Acquisitions of finance receivables (1) | 894,779 | 138,854 | 1,146,947 | 546,201 |
Foreign currency translation adjustment | -52,247 | 1,304 | -51,858 | 363 |
Cash collections | -372,743 | -291,651 | -1,005,384 | -863,511 |
Income recognized on finance receivables, net | 224,326 | 171,456 | 584,814 | 494,818 |
Cash collections applied to principal | -148,417 | -120,195 | -420,570 | -368,693 |
Balance at end of period | $1,913,710 | $1,256,822 | $1,913,710 | $1,256,822 |
Finance_Receivables_net_Schedu1
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | ' |
30-Sep-15 | $537,091 |
30-Sep-16 | 432,202 |
30-Sep-17 | 342,063 |
30-Sep-18 | 249,614 |
30-Sep-19 | 146,023 |
30-Sep-20 | 93,697 |
30-Sep-21 | 87,561 |
30-Sep-22 | 25,459 |
Total | $1,913,710 |
Finance_Receivables_net_Schedu2
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $1,481,826 | $1,400,906 | $1,430,067 | $1,239,674 |
Income recognized on finance receivables, net | -224,326 | -171,456 | -584,814 | -494,818 |
Additions (1) | 1,172,796 | 122,976 | 1,377,416 | 472,666 |
Net reclassifications from nonaccretable difference | 84,074 | 63,031 | 290,431 | 201,823 |
Foreign currency translation adjustment | -59,040 | 509 | -57,770 | -3,379 |
Balance at end of period | $2,455,330 | $1,415,966 | $2,455,330 | $1,415,966 |
Finance_Receivables_net_Schedu3
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $86,849 | $94,111 | $91,101 | $93,123 |
Allowance charges | 2,992 | 1,500 | 5,765 | 7,060 |
Reversal of previous recorded allowance charges | -4,690 | -4,081 | -11,715 | -8,653 |
Net allowance reversals | -1,698 | -2,581 | -5,950 | -1,593 |
Ending balance | $85,151 | $91,530 | $85,151 | $91,530 |
Borrowings_Components_of_Borro
Borrowings - Components of Borrowings (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Less: Debt discount | ($27,693) | ($30,720) |
Borrowings | 1,425,409 | 451,780 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 436,500 | 0 |
Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 187,500 | 195,000 |
Convertible Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 287,500 | 287,500 |
Less: Debt discount | -27,693 | -30,720 |
Aktiv Kapital AS [Member] | Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 239,680 | 0 |
Aktiv Kapital AS [Member] | Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 79,712 | 0 |
Aktiv Kapital AS [Member] | Subordinated Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 29,439 | 0 |
Seller Note Payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | 169,938 | 0 |
Multicurrency Term Loan Bridge Facility [Member] | Aktiv Kapital AS [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | $22,833 | $0 |
Borrowings_Revolving_Credit_an
Borrowings - Revolving Credit and Term Loan Facility (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Sep. 30, 2014 | Jun. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 13, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 01, 2014 | Sep. 30, 2014 | Dec. 19, 2012 | Apr. 01, 2014 | Apr. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Credit Agreement [Member] | Commitment Increase Agreements [Member] | Commitment Increase Agreements [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Term Loan [Member] | Term Loan [Member] | Base Rate [Member] | Federal Funds Rate [Member] | Eurodollar Rate [Member] | Eurodollar Rate [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Multi-Currency Domestic Revolving Credit Facility [Member] | Aktiv Kapital AS [Member] | Acquisition Subsequent to 2014 [Member] | Acquisitions in 2014 [Member] | |||
Senior Unsecured Debt other than Convertible Notes Due 2020 [Member] | Senior Unsecured Debt other than Convertible Notes Due 2020 [Member] | Senior Unsecured Debt other than Convertible Notes Due 2020 [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Commitment Increase Agreements [Member] | Line of Credit [Member] | Line of Credit [Member] | Commitment Increase Agreements [Member] | Credit Agreement [Member] | Credit Agreement [Member] | Credit Agreement [Member] | |||||||||||||||
Credit Agreement [Member] | Credit Agreement [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility Accordion Feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $214,500,000 | ' | ' | ' | ' | ' |
Increase in borrowing capacity | ' | ' | ' | 214,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 837,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 630,000,000 | ' | ' | ' | 20,000,000 | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 259,807,000 | 256,780,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,500,000 | ' | ' | ' | ' |
Basis spread variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 0.50% | 1.00% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lines Of Credit Current Swing Line Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' |
Lines Of Credit Current Letters Of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Capacity Available for Specific Purpose, Alternative Currency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Maximum Allowable Debt | ' | ' | ' | ' | ' | 500,000,000 | 300,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Maximum Level Of Borrowings Of ERC Of Eligible Asset Pools | ' | ' | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Maximum Level Of Borrowings Of Eligible Accounts Receivable | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Agreement Consolidated Leverage Ratio | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Net Worth Required for Compliance | ' | ' | 455,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Percentage Of Positive Consolidated Net Income For Compliance | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Percentage Of Net Proceeds Of Equity Offering | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Maximum Capital Expenditures | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Maximum Cash Dividends | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchases authorized amount | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Yearly Amount | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Maximum Allowance New Loan or Capital Related to Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 950,000,000 | ' | ' |
Debt Instrument, Covenant, Maximum Business Combinations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 25,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 193,500,000 | ' | ' | ' | 20,000,000 | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 436,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $290,045,000 | $195,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $187,500,000 | $195,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | 2.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Seller_Note_Payable
Borrowings - Seller Note Payable, Aktiv Revolving Credit, Aktiv Term Loan (Details) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 16, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 4-May-12 | 4-May-12 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 29, 2011 | Mar. 29, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | Seller Note Payable [Member] | Seller Note Payable [Member] | Seller Note Payable [Member] | Seller Note Payable [Member] | Revolving Credit Facility [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Minimum [Member] | Maximum [Member] | |
USD ($) | USD ($) | USD ($) | LIBOR [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | ||||
USD ($) | USD ($) | NOK | IBOR [Member] | USD ($) | USD ($) | NOK | Term Loan [Member] | Term Loan [Member] | ||||||||
currency | IBOR [Member] | IBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | $169,900,000 | ' | ' | ' | ' | ' | ' | ' | $310,000,000 | 2,000,000,000 | ' | ' |
Number of currencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' | ' |
Basis spread variable rate | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | 3.00% | ' | ' | ' | 2.25% | 2.75% |
Outstanding borrowings under long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,700,000 | ' | ' | ' | ' |
Quarterly interest payment | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance due | ' | ' | ' | 169,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | ' | ' | 3.99% | ' | ' | ' | ' | ' | ' | ' | 2.66% | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 232,000,000 | 1,500,000,000 | ' | ' | ' | ' | ' | ' |
Option to increase maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 77,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' |
Unused commitment fee | 0.38% | ' | ' | ' | ' | ' | ' | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings under credit facility | $676,180,000 | $0 | ' | ' | ' | ' | ' | $239,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | ' | ' | ' | ' | ' | 2.65% | 3.53% | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Aktiv_Bridge_Facili
Borrowings - Aktiv Bridge Facility and Subordinated Loan (Details) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Dec. 16, 2011 | Sep. 30, 2014 | Dec. 16, 2011 | Dec. 16, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 24, 2014 | Jun. 24, 2014 | Sep. 30, 2014 | |
Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Line of Credit [Member] | Line of Credit [Member] | Multicurrency Term Loan Bridge Facility [Member] | Multicurrency Term Loan Bridge Facility [Member] | Multicurrency Term Loan Bridge Facility [Member] | Multicurrency Term Loan Bridge Facility [Member] | ||
Subordinated Loan [Member] | Subordinated Loan [Member] | Subordinated Loan [Member] | Subordinated Loan [Member] | Subordinated Loan [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | ||
USD ($) | USD ($) | NOK | LIBOR [Member] | USD ($) | SEK | USD ($) | USD ($) | NOK | IBOR [Member] | |||
drawdown | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $54,000,000 | 350,000,000 | ' |
Basis spread variable rate | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | 4.00% |
Unused commitment fee | 0.38% | ' | ' | ' | ' | ' | ' | ' | 0.35% | ' | ' | ' |
Amount outstanding under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 22,800,000 | ' | ' | ' |
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | 4.22% | ' | ' | ' |
Restrictive covenants, maximum borrowing base, percent of portfolio book value of portfolios leveraged under Aktiv Revolving Credit Facility | ' | ' | ' | ' | ' | ' | 65.00% | 65.00% | ' | ' | ' | ' |
Restrictive covenants, maximum borrowing base, percent of portfolio book value for portfolios leveraged under Aktiv Term Loan Facility | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' |
Restrictive covenants, minimum debt service-coverage ratio | ' | ' | ' | ' | ' | ' | 1.1 | 1.1 | ' | ' | ' | ' |
Restrictive covenants, maximum leverage ratio | ' | ' | ' | ' | ' | ' | 3.5 | 3.5 | ' | ' | ' | ' |
Restrictive covenants, maximum interest bearing deposits | ' | ' | ' | ' | ' | ' | 28,000,000 | 200,000,000 | ' | ' | ' | ' |
Restrictive covenants, minimum cash collections, percent of IFRS forecast | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
Long-term debt, maximum borrowing capacity | ' | ' | ' | 31,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Availability period | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of drawdowns | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings under long-term debt | ' | ' | $29,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | ' | 3.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Balances_of_Liabili
Borrowings - Balances of Liability and Equity Components (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 13, 2013 |
Debt Instrument [Line Items] | ' | ' | ' |
Less: Debt discount | ($27,693,000) | ($30,720,000) | ' |
Convertible Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Liability component - principal amount | 287,500,000 | 287,500,000 | 287,500,000 |
Less: Debt discount | -27,693,000 | -30,720,000 | ' |
Total | 259,807,000 | 256,780,000 | ' |
Equity component | $31,306,000 | $31,306,000 | $32,200,000 |
Borrowings_Interest_Expense_De
Borrowings - Interest Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amortization of debt discount | ' | ' | $3,027 | $525 |
Convertible Senior Notes [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense - stated coupon rate | 2,156 | 1,150 | 6,469 | 1,150 |
Amortization of debt discount | 1,023 | 525 | 3,027 | 525 |
Total interest expense - convertible notes | $3,179 | $1,675 | $9,496 | $1,675 |
Borrowings_Convertible_Debt_an
Borrowings - Convertible Debt and Additional information (Details) (USD $) | 0 Months Ended | 9 Months Ended | ||
Aug. 13, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Minimum average share price triggering dilutive effect (usd per share) | ' | $65.72 | ' | ' |
Proceeds from convertible debt | $279,300,000 | ' | ' | ' |
Repayments of long-term debt | 174,000,000 | ' | ' | ' |
Repurchases of common stock | 50,000,000 | 0 | 58,511,000 | ' |
Convertible debt, estimated fair value | ' | 315,859,000 | ' | 316,857,000 |
Convertible Senior Notes [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Face amount | 287,500,000 | 287,500,000 | ' | 287,500,000 |
Stated percentage | 3.00% | ' | ' | ' |
Redemption price | 100.00% | ' | ' | ' |
Conversion ratio | 15.2172 | ' | ' | ' |
Minimum average share price triggering dilutive effect (usd per share) | $65.72 | $65.72 | ' | ' |
Convertible debt, estimated fair value | 255,300,000 | ' | ' | ' |
Carrying amount of convertible debt | 32,200,000 | 31,306,000 | ' | 31,306,000 |
Debt Issuance Cost | 7,300,000 | ' | ' | ' |
Equity and debt issuance costs | 8,200,000 | ' | ' | ' |
Equity Issuance Costs | $900,000 | ' | ' | ' |
Effective interest rate | ' | 4.92% | ' | ' |
Borrowings_LongTerm_Debt_Matur
Borrowings - Long-Term Debt Maturities (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
30-Sep-15 | $555,352 |
30-Sep-16 | 18,750 |
30-Sep-17 | 35,000 |
30-Sep-18 | 556,500 |
30-Sep-19 | 0 |
Thereafter | 287,500 |
Total | $1,453,102 |
Property_and_Equipment_Net_Nar
Property and Equipment, Net (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Depreciation and amortization expense | $3.60 | $2.60 | $9.50 | $7.10 | ' |
Direct payroll costs and external direct costs related to software | 12.5 | ' | 12.5 | ' | 10.3 |
Developing projects | 2.1 | ' | 2.1 | ' | 1.7 |
Amortization expense | 0.5 | 0.4 | 1.4 | 1.1 | ' |
Unamortized costs of software | $4.90 | ' | $4.90 | ' | $4.40 |
Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Minimum estimated useful life of computer software (in years) | ' | ' | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Minimum estimated useful life of computer software (in years) | ' | ' | '7 years | ' | ' |
Property_and_Equipment_Net_Pro
Property and Equipment, Net (Property And Equipment, At Cost) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment, Net [Abstract] | ' | ' |
Software | $52,377 | $34,108 |
Computer equipment | 21,365 | 17,072 |
Furniture and fixtures | 10,937 | 8,616 |
Equipment | 13,606 | 10,351 |
Leasehold improvements | 13,497 | 11,147 |
Building and improvements | 7,044 | 7,026 |
Land | 1,269 | 1,269 |
Accumulated depreciation and amortization | -74,126 | -58,048 |
Property and equipment, net | $45,969 | $31,541 |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets, Net (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $594,401,000 | $102,891,000 | $594,401,000 | $102,891,000 | $105,122,000 | $103,843,000 | $106,953,000 | $109,488,000 |
Amortization expenses | $1,300,000 | $1,200,000 | $3,500,000 | $3,500,000 | ' | ' | ' | ' |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets, Net Schedule of Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $105,122 | $106,953 | $103,843 | $109,488 |
Acquisition of Aktiv and PCM | 512,049 | 0 | 512,049 | 0 |
Impairment of goodwill | 0 | -6,397 | 0 | -6,397 |
Foreign currency translation adjustment | -22,770 | 2,335 | -21,491 | -200 |
Balance at end of period | $594,401 | $102,891 | $594,401 | $102,891 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets, Net (Schedule Of Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Client and customer relationships | $35,683 | $40,870 |
Non-compete agreements | 627 | 3,880 |
Trademarks | 3,474 | 3,491 |
Total | 39,784 | 48,241 |
Client and customer relationships, Accumulated Amortization | 24,346 | 26,581 |
Non-compete agreements, Accumulated Amortization | 546 | 3,723 |
Trademarks, Accumulated Amortization | 2,577 | 2,170 |
Total, Accumulated Amortization | $27,469 | $32,474 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares authorized | 5,400,000 | ' | 5,400,000 | ' |
Share-based compensation expense | $4 | $3.50 | $9.50 | $10.20 |
Tax benefit realized from share-based compensation | 0.3 | 0.1 | 7.9 | 5 |
Grant date fair value of shares vested | 0.2 | 0.2 | 3.3 | 2.7 |
Long-Term Incentive Programs [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Future compensation cost related to stock option | 7.1 | ' | 7.1 | ' |
Weighted average remaining life of nonvested shares (in years) | '1 year 0 months | ' | ' | ' |
Grant date fair value of shares vested | 0 | 0 | 5.7 | 2.6 |
Forfeiture rate for share awards granted under LTI Programs | 7.50% | ' | 7.50% | ' |
Nonvested Awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Future compensation cost related to stock option | $11.70 | ' | $11.70 | ' |
Weighted average remaining life of nonvested shares (in years) | ' | ' | '1 year 10 months 15 days | ' |
Nonvested Awards [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Nonvested Awards [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
ShareBased_Compensation_Nonves
Share-Based Compensation (Nonvested Share Transactions) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Nonvested Shares Outstanding | ' | ' |
Nonvested Shares Outstanding, Beginning Balance | 226 | 288 |
Nonvested Shares Outstanding, Granted | 212 | 110 |
Nonvested Shares Outstanding, Vested | -112 | -143 |
Nonvested Shares Outstanding, Cancelled | -2 | -29 |
Nonvested Shares Outstanding, Ending Balance | 324 | 226 |
Weighted-Average Price at Grant Date (in dollars per share) | ' | ' |
Weighted-Average Price at Grant Date, Beginning Balance | $29.58 | $20.84 |
Weighted-Average Price at Grant Date, Granted | $56.07 | $37.31 |
Weighted-Average Price at Grant Date, Vested | $29.33 | $19.75 |
Weighted-Average Price at Grant Date, Cancelled | $24.76 | $20.57 |
Weighted-Average Price at Grant Date, Ending Balance | $47.03 | $29.58 |
Long-Term Incentive Programs [Member] | ' | ' |
Nonvested Shares Outstanding | ' | ' |
Nonvested Shares Outstanding, Beginning Balance | 434 | 497 |
Nonvested Shares Outstanding, Granted | 111 | 124 |
Nonvested Shares Outstanding, Adjustments for actual performance | 95 | 108 |
Nonvested Shares Outstanding, Vested | -225 | -279 |
Nonvested Shares Outstanding, Cancelled | ' | -16 |
Nonvested Shares Outstanding, Ending Balance | 415 | 434 |
Weighted-Average Price at Grant Date (in dollars per share) | ' | ' |
Weighted-Average Price at Grant Date, Beginning Balance | $25.79 | $21.71 |
Weighted-Average Price at Grant Date, Granted | $49.60 | $34.59 |
Weighted-Average Price at Grant Date, Adjustments for actual performance (in dollars per share) | $25.17 | $17.91 |
Weighted-Average Price at Grant Date, Vested | $25.17 | $19.10 |
Weighted-Average Price at Grant Date, Cancelled | ' | $25.01 |
Weighted-Average Price at Grant Date, Ending Balance | $32.35 | $25.79 |
Income_Taxes_Additional_Disclo
Income Taxes - Additional Disclosures (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ' | ' | ' |
Finance receivables reduction | $0 | $0 | ' |
Amount of underpayments required for the application of additional two percentage points to large corporate as defined in the internal revenue code | 100,000 | ' | ' |
Estimate of federal and state interest | ' | 75,000,000 | ' |
Deferred tax asset related to tax losses in Norway | 70,938,000 | 70,938,000 | 0 |
Norway [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Deferred tax asset related to tax losses in Norway | $33,600,000 | $33,600,000 | ' |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Current tax expense/(benefit) | ' | ' | ' | ' |
Federal | $9,355 | $22,612 | $38,279 | $64,591 |
State | 1,659 | 3,329 | 7,002 | 11,755 |
Foreign | 1,025 | 454 | 375 | -269 |
Total | 12,039 | 26,395 | 45,656 | 76,077 |
Deferred tax expense/(benefit) | ' | ' | ' | ' |
Federal | 10,853 | 3,707 | 23,446 | 5,264 |
State | 337 | -2,769 | 3,684 | -2,018 |
Foreign | 5,244 | -1,071 | 5,244 | -891 |
Total | 16,434 | -133 | 32,374 | 2,355 |
Total income tax expense/(benefit) | ' | ' | ' | ' |
Federal | 20,208 | 26,319 | 61,725 | 69,855 |
State | 1,996 | 560 | 10,686 | 9,737 |
Foreign | 6,269 | -617 | 5,619 | -1,160 |
Total income tax expense (benefit) | $28,473 | $26,262 | $78,030 | $78,432 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Employee compensation | $8,075 | $9,365 |
Allowance for doubtful accounts | 332 | 236 |
State tax credit carryforward | 879 | 879 |
Net operating loss carryforward - International | 70,938 | 0 |
Other | 4,900 | 240 |
Accrued liabilities | 4,643 | 4,642 |
Guaranteed payments | 0 | 890 |
Intangible assets and goodwill | 183 | 930 |
Depreciation expense | 590 | ' |
Leases | 840 | 531 |
Acquisition costs | 384 | 687 |
Total deferred tax assets | 91,764 | 18,400 |
Deferred tax liabilities: | ' | ' |
Depreciation expense | 4,888 | 4,250 |
Prepaid expenses | 1,392 | 1,604 |
Convertible debt | 10,731 | 11,931 |
Other | 339 | 0 |
Finance receivable revenue recognition - International | 38,375 | 0 |
Use of cost recovery for income tax purposes - U.S. | 234,985 | 209,325 |
Total deferred tax liability | 290,710 | 227,110 |
Valuation allowance | 33,616 | 0 |
Net deferred tax liability | $232,562 | $208,710 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Expected tax expense at statutory federal rates | $27,874 | $26,415 | $72,641 | $73,351 |
State tax expense, net of federal tax benefit | 2,139 | 2,412 | 7,217 | 8,138 |
Other | -1,540 | -2,565 | -1,828 | -3,057 |
Total income tax expense (benefit) | $28,473 | $26,262 | $78,030 | $78,432 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Minimum average share price triggering dilutive effect (usd per share) | ' | ' | $65.72 | ' |
Net income attributable to Portfolio Recovery Associates, Inc. | $51,167 | $47,338 | $129,514 | $129,537 |
Weighted Average Common Shares, Basic EPS | 50,075,000 | 50,154,000 | 50,023,000 | 50,571,000 |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 364,000 | 506,000 | 390,000 | 468,000 |
Weighted Average Common Shares, Diluted EPS | 50,439,000 | 50,660,000 | 50,413,000 | 51,039,000 |
EPS, Basic (in dollars per share) | $1.02 | $0.94 | $2.59 | $2.56 |
EPS, Diluted (in dollars per share) | $1.01 | $0.93 | $2.57 | $2.54 |
Antidilutive options outstanding | 0 | 0 | 0 | 0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended |
Dec. 31, 2013 | Sep. 30, 2014 | |
Loss Contingencies [Line Items] | ' | ' |
Employee agreements expiration date | ' | 'December 31, 2014 |
Future compensation under employment agreements | ' | $5,200,000 |
Total future minimum lease payments | ' | 39,800,000 |
Amount to be purchased under forward flow agreements | ' | 622,900,000 |
Maximum [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Estimated litigation liability (less than $1 million) | ' | 1,000,000 |
NCM [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Contingent consideration earn out period | ' | '5 years |
Maximum value of contingent consideration | ' | 15,000,000 |
Payments of contingent consideration | 6,200,000 | ' |
Contingent consideration liability | ' | $4,600,000 |
Recovered_Sheet2
Fair Value Measurements And Disclosures - Financial Instruments Not Required to be Carried at Fair Value (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Financial assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents, carrying amount | $70,300 | ' | $162,004 | $108,705 | ' | $32,687 |
Cash and cash equivalents, estimated fair value | 70,300 | ' | 162,004 | ' | ' | ' |
Finance receivables, net, carrying amount | 1,913,710 | 1,219,595 | 1,239,191 | 1,256,822 | 1,236,859 | 1,078,951 |
Finance receivables, net, estimated fair value | 2,362,165 | ' | 1,722,100 | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ' | ' |
Outstanding borrowings under credit facility | 676,180 | ' | 0 | ' | ' | ' |
Revolving lines of credit, estimated fair value | 676,180 | ' | 0 | ' | ' | ' |
Term loans, carrying amount | 290,045 | ' | 195,000 | ' | ' | ' |
Term loans, estimated fair value | 290,045 | ' | 195,000 | ' | ' | ' |
Notes and loans payable, carrying value | 199,377 | ' | 0 | ' | ' | ' |
Notes and loans payable, fair value disclosure | 199,377 | ' | 0 | ' | ' | ' |
Interest-bearing deposits, carrying value | 27,300 | ' | 0 | ' | ' | ' |
Interest-bearing deposits, fair value | 27,300 | ' | 0 | ' | ' | ' |
Convertible debt | 259,807 | ' | 256,780 | ' | ' | ' |
Convertible debt, estimated fair value | $315,859 | ' | $316,857 | ' | ' | ' |
Recovered_Sheet3
Fair Value Measurements And Disclosures Fair Value Measurements and Disclosures - Financial Instruments Required to be Carried at Fair Value (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Other Assets [Member] | ' |
Assets: | ' |
Investments (recorded in other assets) | $61,951 |
Other Assets [Member] | Level 1 [Member] | ' |
Assets: | ' |
Investments (recorded in other assets) | 0 |
Other Assets [Member] | Level 2 [Member] | ' |
Assets: | ' |
Investments (recorded in other assets) | 0 |
Other Assets [Member] | Level 3 [Member] | ' |
Assets: | ' |
Investments (recorded in other assets) | 61,951 |
Interest Rate Swap [Member] | ' |
Liabilities: | ' |
Interest rate swap contracts (recorded in accrued expenses) | 2,836 |
Interest Rate Swap [Member] | Accrued Expenses [Member] | ' |
Liabilities: | ' |
Interest rate swap contracts (recorded in accrued expenses) | 2,836 |
Interest Rate Swap [Member] | Accrued Expenses [Member] | Level 1 [Member] | ' |
Liabilities: | ' |
Interest rate swap contracts (recorded in accrued expenses) | 0 |
Interest Rate Swap [Member] | Accrued Expenses [Member] | Level 2 [Member] | ' |
Liabilities: | ' |
Interest rate swap contracts (recorded in accrued expenses) | 2,836 |
Interest Rate Swap [Member] | Accrued Expenses [Member] | Level 3 [Member] | ' |
Liabilities: | ' |
Interest rate swap contracts (recorded in accrued expenses) | $0 |
Business_Acquisitions_Narrativ
Business Acquisitions (Narrative) (Detail) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
Jul. 16, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jul. 01, 2014 | Jul. 16, 2014 | |
Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Pamplona Capital Management, LLP [Member] | LIBOR [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | Aktiv Kapital AS [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Consideration transferred | $861,331,000 | ' | ' | ' | $5,000,000 | ' |
Corporate debt assumed in acquisition | 433,700,000 | ' | ' | ' | ' | ' |
Total enterprise value | 1,300,000,000 | ' | ' | ' | ' | ' |
Cash paid to acquire business | 206,400,000 | ' | ' | ' | ' | ' |
Financing provided by affiliate of seller | 169,900,000 | ' | ' | ' | ' | ' |
Basis spread variable rate | ' | ' | ' | ' | ' | 3.75% |
Maximum amount financed from existing credit facility | 485,000,000 | ' | ' | ' | ' | ' |
Acquisition transaction costs | ' | 5,900,000 | ' | 14,300,000 | ' | ' |
Foreign currency contracts | ' | ' | 518,000,000 | ' | ' | ' |
Losses on forward contracts | ' | $2,000,000 | ' | $8,200,000 | ' | ' |
Business_Acquisitions_Recogniz
Business Acquisitions (Recognized Amounts of Identifiable Assets and Liabilities) (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jul. 16, 2014 | Jul. 16, 2014 | Jul. 16, 2014 |
In Thousands, unless otherwise specified | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | Aktiv Kapital AS [Member] | ||||||
Other Receivable [Member] | Financing Receivable [Member] | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | $861,331 | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | -15,624 | ' | ' |
Receivables, net | ' | ' | ' | ' | ' | ' | ' | -10,087 | -727,688 |
Property and equipment, net | ' | ' | ' | ' | ' | ' | -7,715 | ' | ' |
Net deferred tax asset | ' | ' | ' | ' | ' | ' | -33,426 | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | -64,626 | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | 15,862 | ' | ' |
Accrued expenses | ' | ' | ' | ' | ' | ' | 27,714 | ' | ' |
Income tax payable | ' | ' | ' | ' | ' | ' | 5,859 | ' | ' |
Net deferred tax liability | ' | ' | ' | ' | ' | ' | 21,967 | ' | ' |
Borrowings | ' | ' | ' | ' | ' | ' | 404,823 | ' | ' |
Interest bearing deposits | ' | ' | ' | ' | ' | ' | 28,858 | ' | ' |
Goodwill | $594,401 | $105,122 | $103,843 | $102,891 | $106,953 | $109,488 | $507,248 | ' | ' |
Business_Acquisitions_Pro_Form
Business Acquisitions (Pro Forma) (Details) (Aktiv Kapital AS [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Aktiv Kapital AS [Member] | ' | ' | ' | ' | ' |
Aktiv Impact | ' | ' | ' | ' | ' |
Revenue | $47,605 | ' | ' | ' | ' |
Net Income attributable to PRA Group, Inc. | 17,085 | ' | ' | ' | ' |
Combined Pro Forma Results | ' | ' | ' | ' | ' |
Revenue | ' | 250,407 | 256,665 | 769,503 | 724,084 |
Net Income attributable to PRA Group, Inc. | ' | $49,377 | $86,207 | $172,956 | $201,590 |
Derivatives_Details
Derivatives (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Derivative [Line Items] | ' | ' |
Percent of net borrowings hedged | 75.00% | 75.00% |
Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset derivatives | $0 | $0 |
Liability derivatives | 2,836,000 | 2,836,000 |
Interest (Income)/Expense [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Loss on derivative | $700,000 | $700,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | |
Multicurrency Revolving Credit Facility [Member] | Multicurrency Revolving Credit Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | IBOR [Member] | IBOR [Member] | IBOR [Member] | IBOR [Member] | ||
Multicurrency Revolving Credit Facility [Member] | Overdraft Facility [Member] | Multicurrency Revolving Credit Facility [Member] | Overdraft Facility [Member] | ||||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $500,000,000 | ' | $40,000,000 | ' | ' | ' | ' |
Basis spread variable rate | ' | ' | ' | ' | ' | 2.50% | 2.50% | 3.00% | 3.00% |
Unused commitment fee | 0.38% | 0.35% | ' | ' | ' | ' | ' | ' | ' |
Facility line fee | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' |