Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PRAA | |
Entity Registrant Name | PRA GROUP INC | |
Entity Central Index Key | 1,185,348 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,336,415 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 56,811 | $ 39,661 |
Investments | 88,295 | 89,703 |
Finance receivables, net | 2,012,552 | 2,001,790 |
Other receivables, net | 18,443 | 12,959 |
Income taxes receivable | 1,580 | 0 |
Net deferred tax asset | 125 | 6,126 |
Property and equipment, net | 46,215 | 48,258 |
Goodwill | 503,001 | 527,445 |
Intangible assets, net | 9,450 | 10,933 |
Other assets | 47,284 | 41,876 |
Total assets | 2,783,756 | 2,778,751 |
Liabilities: | ||
Accounts payable | 3,933 | 4,446 |
Accrued expenses | 77,007 | 89,361 |
Income taxes payable | 9,758 | 11,020 |
Other liabilities | 5,933 | 5,962 |
Net deferred tax liability | 252,638 | 255,587 |
Interest bearing deposits | 33,248 | 27,704 |
Borrowings | 1,503,363 | 1,482,456 |
Total liabilities | $ 1,885,880 | $ 1,876,536 |
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, 48,333 issued and outstanding shares at June 30, 2015, and 49,577 issued and outstanding shares at December 31, 2014 | 483 | 496 |
Additional paid-in capital | 35,360 | 111,659 |
Retained earnings | 1,015,570 | 906,010 |
Accumulated other comprehensive (loss) | (153,537) | (115,950) |
Total stockholders’ equity | 897,876 | 902,215 |
Total liabilities and equity | $ 2,783,756 | $ 2,778,751 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
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 | 100,000,000 |
Common stock, shares issued | 48,333,000 | 49,577,000 |
Common stock, shares outstanding | 48,333,000 | 49,577,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||||
Income recognized on finance receivables, net | $ 220,064 | $ 182,518 | $ 448,467 | $ 360,488 |
Fee income | 13,878 | 14,510 | 26,931 | 30,118 |
Other revenue | 3,255 | 315 | 7,005 | 659 |
Total revenues | 237,197 | 197,343 | 482,403 | 391,265 |
Operating expenses: | ||||
Compensation and employee services | 68,320 | 52,461 | 133,591 | 103,846 |
Legal collection fees | 14,114 | 11,371 | 27,805 | 22,204 |
Legal collection costs | 19,556 | 25,429 | 40,410 | 51,962 |
Agent fees | 7,784 | 1,464 | 16,045 | 2,914 |
Outside fees and services | 12,466 | 12,113 | 25,263 | 22,904 |
Communication | 8,073 | 7,765 | 18,491 | 16,728 |
Rent and occupancy | 3,479 | 2,411 | 7,039 | 4,749 |
Depreciation and amortization | 4,916 | 4,211 | 9,526 | 8,158 |
Other operating expenses | 9,610 | 7,681 | 19,188 | 13,781 |
Total operating expenses | 148,318 | 124,906 | 297,358 | 247,246 |
Income from operations | 88,879 | 72,437 | 185,045 | 144,019 |
Other income and (expense): | ||||
Interest expense | (13,452) | (5,067) | (28,228) | (9,926) |
Net foreign currency transaction gain/(loss) | 3,584 | (6,197) | 10,373 | (6,189) |
Income before income taxes | 79,011 | 61,173 | 167,190 | 127,904 |
Provision for income taxes | 27,586 | 23,666 | 57,630 | 49,557 |
Net income | $ 51,425 | $ 37,507 | $ 109,560 | $ 78,347 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.06 | $ 0.75 | $ 2.26 | $ 1.57 |
Diluted (in dollars per share) | $ 1.06 | $ 0.74 | $ 2.25 | $ 1.55 |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 48,325 | 50,065 | 48,525 | 49,997 |
Diluted (shares) | 48,529 | 50,437 | 48,790 | 50,400 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 51,425 | $ 37,507 | $ 109,560 | $ 78,347 |
Other comprehensive income/(loss): | ||||
Change in foreign currency translation, net of tax | 25,112 | 1,911 | (37,587) | 2,359 |
Total other comprehensive income/(loss) | 25,112 | 1,911 | (37,587) | 2,359 |
Comprehensive income | $ 76,537 | $ 39,418 | $ 71,973 | $ 80,706 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] |
Beginning Balance, Shares at Dec. 31, 2014 | 49,577 | 49,577 | |||
Beginning Balance at Dec. 31, 2014 | $ 902,215 | $ 496 | $ 111,659 | $ 906,010 | $ (115,950) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 109,560 | 109,560 | |||
Foreign currency translation adjustment | (37,587) | (37,587) | |||
Vesting of nonvested shares, shares | 234 | ||||
Vesting of nonvested shares | $ 2 | (2) | |||
Repurchase and cancellation of common stock, shares | 1,478 | ||||
Repurchase and cancellation of common stock | 77,802 | $ 15 | 77,787 | 0 | 0 |
Amortization of share-based compensation | 7,665 | 7,665 | |||
Income tax benefit from share-based compensation | 4,140 | 4,140 | |||
Employee stock relinquished for payment of taxes | $ (10,315) | (10,315) | |||
Ending Balance, Shares at Jun. 30, 2015 | 48,333 | 48,333 | |||
Ending Balance at Jun. 30, 2015 | $ 897,876 | $ 483 | $ 35,360 | $ 1,015,570 | $ (153,537) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 109,560 | $ 78,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of share-based compensation | 7,665 | 5,437 |
Depreciation and amortization | 9,526 | 8,158 |
Amortization of debt discount | 2,104 | 2,005 |
Deferred tax expense | 7,272 | 15,940 |
Net foreign currency transaction gain | (10,373) | 6,189 |
Changes in operating assets and liabilities: | ||
Other assets | (407) | (3,874) |
Other receivables | (5,484) | (34) |
Accounts payable | (515) | 4,831 |
Income taxes receivable/payable, net | (2,842) | 5,665 |
Accrued expenses | (20,424) | (7,150) |
Other liabilities | (28) | (6,950) |
Net cash provided by operating activities | 96,054 | 108,564 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (5,523) | (13,224) |
Acquisition of finance receivables, net of buybacks | (387,858) | (252,168) |
Collections applied to principal on finance receivables | 340,904 | 272,153 |
Purchase of investments | (43,007) | 0 |
Proceeds from sales and maturities of investments | 43,648 | 0 |
Net cash (used in)/ provided by investing activities | (51,836) | 6,761 |
Cash flows from financing activities: | ||
Income tax benefit from share-based compensation | 4,140 | 4,152 |
Proceeds from lines of credit | 326,039 | 0 |
Principal payments on lines of credit | (234,400) | 0 |
Repurchases of common stock | (77,802) | 0 |
Principal payments on long-term debt | (37,500) | (5,000) |
Payments of line of credit origination costs and fees | (5,000) | 0 |
Net increase in interest-bearing deposits | 7,176 | 0 |
Net cash used in financing activities | (17,347) | (848) |
Effect of exchange rate on cash and cash equivalents | (9,721) | (5,955) |
Net increase in cash and cash equivalents | 17,150 | 108,522 |
Cash and cash equivalents, beginning of period | 39,661 | 162,004 |
Cash and cash equivalents, end of period | 56,811 | 270,526 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 22,866 | 7,634 |
Cash paid for income taxes | 49,557 | 25,414 |
Supplemental disclosure of non-cash information: | ||
Employee stock relinquished for payment of taxes | $ (10,315) | $ (7,515) |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2015 | |
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. PRA Group, Inc., a Delaware corporation, and its subsidiaries, is a financial and business service company operating in the Americas 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., provides class action claims settlement recovery services and related payment processing to corporate clients, and provides vehicle location, skip tracing and collateral recovery services for auto lenders, governments and law enforcement. 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 six months ended June 30, 2015 and 2014 and long-lived assets held at June 30, 2015 and 2014 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 June 30, 2015 Three Months Ended June 30, 2014 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 184,191 $ 35,931 $ 193,726 $ 36,537 Outside the United States 53,006 10,284 3,617 2,365 Total $ 237,197 $ 46,215 $ 197,343 $ 38,902 As Of And For The As Of And For The Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 368,862 $ 35,931 $ 384,914 $ 36,537 Outside the United States 113,541 10,284 6,351 2,365 Total $ 482,403 $ 46,215 $ 391,265 $ 38,902 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 June 30, 2015 , its consolidated income statements and statements of comprehensive income for the three and six months ended June 30, 2015 and 2014 , its consolidated statement of changes in stockholders’ equity for the six months ended June 30, 2015 , and its consolidated statements of cash flows for the six months ended June 30, 2015 and 2014 . The consolidated income statements of the Company for the three and six months ended June 30, 2015 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 2014 Annual Report on Form 10-K, filed on March 2, 2015. |
Finance Receivables, net
Finance Receivables, net | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Changes in finance receivables, net for the three and six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 1,954,772 $ 1,253,961 $ 2,001,790 $ 1,239,191 Acquisitions of finance receivables (1) 204,030 102,081 387,858 252,168 Foreign currency translation adjustment 23,310 309 (36,192 ) 389 Cash collections (389,624 ) (319,274 ) (789,371 ) (632,641 ) Income recognized on finance receivables, net 220,064 182,518 448,467 360,488 Cash collections applied to principal (169,560 ) (136,756 ) (340,904 ) (272,153 ) Balance at end of period $ 2,012,552 $ 1,219,595 $ 2,012,552 $ 1,219,595 (1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. 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 June 30, 2015 , the weighted average remaining life of the Company's pools is estimated to be approximately 102 months . Based upon current projections, cash collections applied to principal on finance receivables as of June 30, 2015 are estimated to be as follows for the twelve months in the periods ending (amounts in thousands): June 30, 2016 $ 547,983 June 30, 2017 453,543 June 30, 2018 361,559 June 30, 2019 287,793 June 30, 2020 172,784 June 30, 2021 116,975 June 30, 2022 66,479 June 30, 2023 4,345 June 30, 2024 1,091 $ 2,012,552 At June 30, 2015 , the Company had unamortized purchased principal (purchase price) in pools accounted for under the cost recovery method of $16.1 million ; at December 31, 2014 , the amount was $17.1 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 six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 2,504,156 $ 1,451,001 $ 2,513,185 $ 1,430,067 Income recognized on finance receivables, net (220,064 ) (182,518 ) (448,467 ) (360,488 ) Additions 173,888 98,423 346,270 204,620 Net reclassifications from nonaccretable difference 49,729 114,721 168,981 206,357 Foreign currency translation adjustment 30,938 199 (41,322 ) 1,270 Balance at end of period $ 2,538,647 $ 1,481,826 $ 2,538,647 $ 1,481,826 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 six months ended June 30, 2015 and 2014 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Beginning balance $ 87,796 $ 89,148 $ 86,166 $ 91,101 Allowance charges 4,910 1,386 7,595 2,773 Reversal of previous recorded allowance charges (25 ) (3,685 ) (1,080 ) (7,025 ) Net allowance charges/(reversals) 4,885 (2,299 ) 6,515 (4,252 ) Ending balance $ 92,681 $ 86,849 $ 92,681 $ 86,849 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consist of the following at June 30, 2015 and December 31, 2014 (amounts in thousands): June 30, December 31, Trading Short-term investments $ 13,381 $ 37,405 Available-for-sale Securitized assets 6,486 3,721 Held-to-maturity Securitized assets 52,238 31,017 Other investments Private equity funds 16,190 17,560 $ 88,295 $ 89,703 Trading Short-term investments : The Company’s investments in money market mutual funds are stated at fair value. Fair value is estimated using the net asset value of the investment. Unrealized gains and losses are recorded in earnings. Available-for-Sale Investments in securitized assets : The Company holds a majority interest in a closed-end Polish investment fund. The fund was formed in December 2014 to acquire portfolios of nonperforming consumer loans in Poland. The Company’s investment consists of a 100% interest in the Series B certificates and a 20% interest in the Series C certificates. Each certificate comes with one vote and is governed by a co-investment agreement. Series C certificates, which share equally in the residual profit of the fund, are accounted for as debt securities classified as available-for-sale and are stated at fair value. Income is recognized using the effective yield method. Held-to-Maturity Investments in securitized assets : The Company holds a majority interest in a closed-end Polish investment fund. The fund was formed in December 2014 to acquire portfolios of nonperforming consumer loans in Poland. The Company’s investment consists of a 100% interest in the Series B certificates and a 20% interest in the Series C certificates. Each certificate comes with one vote and is governed by a co-investment agreement. Series B certificates, which provide a preferred return based on the expected net income of the portfolios, are accounted for as a beneficial interest in securitized financial assets and stated at amortized cost. The Company has determined it has the ability and intent to hold these certificates until maturity, which require repayment in fixed amounts on specific dates. The preferred return is not a guaranteed return. Income is recognized under ASC Topic 325-40, "Beneficial Interests in Securitized Financial Assets" ("ASC 325-40"). Income is recognized using the effective yield method. The Company adjusts the yield for changes in estimated cash flows prospectively through earnings. If the fair value of the investment falls below its carrying amount and the decline is deemed to be other than temporary, the investment is written down, with a corresponding charge to earnings. The underlying securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments. Accordingly, it is difficult to accurately predict the final maturity date of these investments. Revenues recognized on these investments were $1.9 million and $3.1 million during the three and six months ended June 30, 2015, and is recorded in the Other Revenue line item in the income statement. Other Investments Investments in private equity funds : Investments in private equity funds represent limited partnerships in which the Company has less than a 3% interest and are carried at cost. Distributions received from the partnerships are included in other revenue. Distributions received in excess of the Company's proportionate share of accumulated earnings are applied as a reduction of the cost of the investment. The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2015 and December 31, 2014 were as follows (amounts in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 6,112 374 — $ 6,486 Held-to-maturity Securitized assets 52,238 7,112 — 59,350 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 3,721 — — $ 3,721 Held-to-maturity Securitized assets 31,017 — — 31,017 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): June 30, 2015 December 31, 2014 Domestic revolving credit $ 462,500 $ 409,000 Domestic term loan 177,500 185,000 Seller note payable 169,938 169,938 Multicurrency revolving credit 430,483 427,680 Aktiv subordinated loan — 30,000 Convertible senior notes 287,500 287,500 Less: debt discount (24,558 ) (26,662 ) Total $ 1,503,363 $ 1,482,456 Domestic Revolving Credit and Term Loan The Company has a credit facility with Bank of America, N.A., as administrative agent, and a syndicate of lenders named therein (the “Credit Agreement”). The total credit facility under the Credit Agreement includes an aggregate principal amount of $827.5 million (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $177.5 million term loan, (ii) a $630 million domestic revolving credit facility, of which $185.5 million is available to be drawn, and (iii) a $20 million multi-currency revolving credit facility, of which $2.0 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. 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 Kapital AS ("Aktiv"); • permitted acquisitions (as defined in the Credit Agreement) during any fiscal year cannot exceed $250 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 June 30, 2015 consisted of $177.5 million outstanding on the term loan with an annual interest rate as of June 30, 2015 of 2.69% and $462.5 million outstanding in 30-day Eurodollar rate loans on the revolving facility with a weighted average interest rate of 2.72% . At December 31, 2014, the Company's borrowings on this credit facility consisted of $185.0 million outstanding on the term loan with an annual interest rate as of December 31, 2014 of 2.67% and $409.0 million outstanding in 30-day Eurodollar rate loans on the revolving facility with a weighted average interest rate of 2.68% . 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. On May 22, 2015, the Company amended the Seller Note to extend the maturity date to January, 19, 2016. The Seller Note bears interest at the three-month London Interbank Offered Rate (“LIBOR”) plus 3.75% . The quarterly interest due can be paid or added into the Seller Note balance at the Company's option. During the three and six months ended June 30, 2015, the Company paid the quarterly interest payments totaling $1.7 million and $3.4 million . respectively. At June 30, 2015, the balance due on the Seller Note was $169.9 million with an annual interest rate of 4.03% . Multicurrency Revolving Credit Facility 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 Agreement”). Subsequently, two other lenders joined the credit facility and on June 12, 2015, the Company entered into a first amendment to the Multicurrency Revolving Credit Agreement (“the Amended Multicurrency Revolving Credit Agreement”) which provided, among other things, an increase in the total commitments from $500 million to an aggregate of $750 million , subject to certain requirements, and an increase in the maximum ERC ratio from 28% to 33% , subject to the payment of additional associated fees. Under the terms of the Amended Multicurrency Revolving Credit Agreement, the credit facility includes an aggregate amount of $750 million , of which $319.5 million is available to be drawn, accrues interest at the Interbank Offered Rate ("IBOR") plus 2.50 - 3.30% (as determined by the ERC Ratio as defined in the Amended Multicurrency Revolving Credit Agreement), bears an unused line fee of 0.35% per annum, payable monthly in arrears, and matures on October 23, 2019. The Amended Multicurrency Revolving Credit Agreement also includes an Overdraft Facility aggregate amount of $40 million , of which $40.0 million is available to be drawn, accrues interest at the IBOR plus 2.50 - 3.30% (as determined by the ERC Ratio as defined in the Amended Multicurrency Revolving Credit Agreement), bears a facility line fee of 0.50% per annum, payable quarterly in arrears, and also matures October 23, 2019. The Amended Multicurrency Revolving Credit Agreement is secured by i) the shares of most of the subsidiaries of Aktiv ii) all intercompany loans to Aktiv's subsidiaries. The Amended Multicurrency Revolving Credit Agreement also contains restrictive covenants and events of default including the following: • the ERC Ratio (as defined in the Amended Multicurrency Revolving Credit Agreement) may not exceed 33% ; • the GIBD Ratio (as defined in the Amended Multicurrency Revolving Credit Agreement) cannot exceed 3.0 to 1.0 as of the end of any fiscal quarter; • interest bearing deposits in AK Nordic AB cannot exceed SEK 500,000,000 ; • cash collections must exceed 95% of Aktiv's ERC for the same set of portfolios, measured monthly on a quarterly basis. At June 30, 2015 , the balance on the Amended Multicurrency Revolving Credit Agreement was $430.5 million , with an annual interest rate of 3.23% . 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. During the first quarter of 2015, the Company elected to prepay (as allowed for in the agreement) the outstanding balance on the Aktiv subordinated loan of $30.0 million and terminate the agreement. The Aktiv subordinated loan accrued interest at LIBOR plus 3.75% , originally matured on January 16, 2016. 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 and mature on August 1, 2020. 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 June 30, 2015, 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 would 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, would be used to settle 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 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. 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 balances of the liability and equity components of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): June 30, 2015 December 31, 2014 Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (24,558 ) (26,662 ) Liability component - net carrying amount $ 262,942 $ 260,838 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense - stated coupon rate $ 2,156 $ 2,156 $ 4,312 $ 4,312 Interest expense - amortization of debt discount 1,056 1,007 2,104 2,005 Total interest expense - convertible notes $ 3,212 $ 3,163 $ 6,416 $ 6,317 The Company believes it is in compliance with all covenants under its financing arrangements as of June 30, 2015 and December 31, 2014. The following principal payments are due on the Company's borrowings as of June 30, 2015 for the twelve month periods ending (amounts in thousands): June 30, 2016 $ 187,438 June 30, 2017 30,000 June 30, 2018 592,500 June 30, 2019 — June 30, 2020 430,483 Thereafter 287,500 Total $ 1,527,921 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2015 | |
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): June 30, 2015 December 31, 2014 Software $ 58,216 $ 53,076 Computer equipment 20,805 20,488 Furniture and fixtures 13,193 11,502 Equipment 12,875 12,880 Leasehold improvements 13,042 14,429 Building and improvements 7,141 7,049 Land 1,296 1,269 Accumulated depreciation and amortization (80,353 ) (72,435 ) Property and equipment, net $ 46,215 $ 48,258 Depreciation and amortization expense relating to property and equipment for the three and six months ended June 30, 2015 , was $3.9 million and $7.7 million , respectively. Depreciation and amortization expense relating to property and equipment for the three and six months ended June 30, 2014 , was $3.1 million and $5.9 million , respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | Goodwill and Intangible Assets, net: In connection with the Company’s previous business acquisitions, the Company acquired certain tangible and intangible assets. Purchased intangible assets include client and customer relationships, non-compete agreements, trademarks and goodwill. Pursuant to ASC 350, the Company performs an annual review of goodwill on October 1 or more frequently if indicators of impairment exist. The Company performed an annual review of goodwill as of October 1, 2014, and concluded that it was more likely than not that the carrying value of goodwill did not exceed its fair value. The Company believes that nothing has occurred since the review was performed through June 30, 2015 that would indicate a triggering event 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 2015. At June 30, 2015 and 2014, the carrying value of goodwill was $503.0 million and $105.1 million , respectively. The following table represents the changes in goodwill for the three and six months ended June 30, 2015 and 2014 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period: Goodwill $ 503,050 $ 110,483 $ 533,842 $ 110,240 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) 496,653 104,086 527,445 103,843 Changes: Foreign currency translation adjustment 6,348 1,036 (24,444 ) 1,279 Net change in goodwill 6,348 1,036 (24,444 ) 1,279 Balance at end of the period: Goodwill 509,398 111,519 509,398 111,519 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) Balance at end of period $ 503,001 $ 105,122 $ 503,001 $ 105,122 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation: The Company has an Omnibus Incentive Plan (the "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 Plan enables the Company to award shares of the Company's common stock to select employees and directors, as described in the Plan, not to exceed 5,400,000 shares, as authorized by the Plan. As of June 30, 2015, 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 $14.1 million with a weighted average remaining life for all nonvested shares of 2.0 years (not including nonvested shares granted under the LTI program). Total share-based compensation expense was $3.6 million and $7.7 million for the three and six months ended June 30, 2015 , respectively. Total share-based compensation expense was $2.6 million and $5.4 million for the three and six months ended June 30, 2014 , 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 $7.8 million for the three and six months ended June 30, 2015 , respectively. The total tax benefit realized from share-based compensation was approximately $0.3 million and $7.8 million for the three and six months ended June 30, 2014 , 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, 2013 through June 30, 2015 (share amounts in thousands): Nonvested Shares Outstanding Weighted-Average Price at Grant Date December 31, 2013 226 $ 29.58 Granted 272 56.69 Vested (155 ) 37.34 Cancelled (4 ) 50.41 December 31, 2014 339 47.34 Granted 98 53.09 Vested (101 ) 34.97 Cancelled (3 ) 47.07 June 30, 2015 333 $ 52.79 The total grant date fair value of shares vested during the three and six months ended June 30, 2015 , was $0.7 million and $3.5 million , respectively. The total grant date fair value of shares vested during the three and six months ended June 30, 2014 , was $0.7 million and $3.1 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, 2013 through June 30, 2015 (share amounts in thousands): Nonvested LTI Shares Outstanding Weighted-Average Price at Grant Date December 31, 2013 434 $ 25.79 Granted at target level 111 49.60 Adjustments for actual performance 222 22.32 Vested (279 ) 24.21 December 31, 2014 488 30.52 Granted at target level 132 52.47 Vested (252 ) 20.21 Cancelled (7 ) 39.59 June 30, 2015 361 $ 45.58 The total grant date fair value of shares vested during the three and six months ended June 30, 2015 , was $0.0 million and $5.1 million , respectively. The total grant date fair value of shares vested during the three and six months ended June 30, 2014 , was $0.0 million and $5.7 million , respectively. At June 30, 2015 , 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 $11.6 million . The Company assumed a 7.5% forfeiture rate for these grants and the remaining shares have a weighted average life of 1.3 years at June 30, 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
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. 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 taxable income is recognized. The Internal Revenue Service ("IRS") examined the Company's 2005 through 2012 tax returns and 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. The IRS has issued Notices of Deficiency to the Company for tax years ended December 31, 2005 through 2012. The proposed deficiencies relate to the cost recovery method of tax accounting. In response to the notices, the Company filed petitions in the United States Tax Court. On April 30, 2015, the Company and the IRS filed a joint motion to continue the trial date that was previously set for June 22, 2015. The Tax Court granted the Motion on May 4, 2015. On July 10, 2015 and July 21, 2015, the IRS filed Motions for Summary Judgment for tax years 2008 through 2012 and 2005 through 2007 respectively. On August 7, 2015, the Company filed a motion requesting that the Tax Court defer its consideration of the IRS’s summary judgment motions until after the parties have completed discovery. If the Motion to Defer is denied, then the Company will have an opportunity to respond to the IRS's summary judgment motions. If the Tax Court judge grants the Motions for Summary Judgment in favor of the IRS, the Company can appeal to the federal Court of Appeals. See Note 10 “Commitments and Contingencies” for more information. At June 30, 2015, the tax years subject to examination by the major federal, state or 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. 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 . 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 six months ended June 30, 2015 and 2014 (amounts in thousands, except per share amounts): For the Three Months Ended June 30, 2015 2014 Net Income Weighted Average Common Shares EPS Net Income Weighted Average Common Shares EPS Basic EPS $ 51,425 48,325 $ 1.06 $ 37,507 50,065 $ 0.75 Dilutive effect of nonvested share awards 204 — 372 (0.01 ) Diluted EPS $ 51,425 48,529 $ 1.06 $ 37,507 50,437 $ 0.74 For the Six Months Ended June 30, 2015 2014 Net Income Weighted Average Common Shares EPS Net Income Weighted Average Common Shares EPS Basic EPS $ 109,560 48,525 $ 2.26 $ 78,347 49,997 $ 1.57 Dilutive effect of nonvested share awards 265 (0.01 ) 403 (0.02 ) Diluted EPS $ 109,560 48,790 $ 2.25 $ 78,347 50,400 $ 1.55 There were no antidilutive options outstanding for the six months ended June 30, 2015 and 2014. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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, 2017 , 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 June 30, 2015, the estimated future compensation under these agreements is approximately $22.4 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 $22.4 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 June 30, 2015 total approximately $39.7 million . Forward Flow Agreements and Other Finance Receivables Purchasing Obligations: 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 June 30, 2015 is approximately $418.8 million . In June 2015, the Company entered into an agreement for the purchase of certain defaulted consumer receivables for approximately $200.0 million in August 2015. The price is subject to adjustments for certain account exclusions and cash collections after the June 15, 2015 determination date. 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 . During 2014 and 2013, the Company paid the first two earn-out payments in the amount of $2.8 million and $6.2 million , respectively. As of June 30, 2015, the Company has recorded a present value amount for the expected remaining liability of $3.0 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 and Regulatory Matters: 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 evaluates and responds 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 or regulatory 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. 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”). Following the ruling of the United States Federal Communications Commission on June 10, 2015 on various petitions concerning the TCPA, the Court lifted the stay of these matters that had been in place since May 20, 2014. Internal Revenue Service Audit The Internal Revenue Service ("IRS") examined the Company's 2005 through 2012 tax returns and 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. The Company has received Notices of Deficiency for tax years ended December 31, 2005 through 2012. The proposed deficiencies relate to the cost recovery method of tax accounting. In response to the notices, the Company filed petitions in the United States Tax Court challenging the deficiency. On April 30, 2015, the Company and the IRS filed a joint motion to continue the trial date that was previously set for June 22, 2015. The Tax Court granted the Motion on May 4, 2015. On July 10, 2015 and July 21, 2015, the IRS filed Motions for Summary Judgment for tax years 2008 through 2012 and 2005 through 2007 respectively. On August 7, 2015, the Company filed a motion requesting that the Tax Court defer its consideration of the IRS’s summary judgment motions until after the parties have completed discovery. If the Motion to Defer is denied, then the Company will have an opportunity to respond to the IRS's summary judgment motions. If the Tax Court judge grants the Motions for Summary Judgment in favor of the IRS, the Company can appeal to the federal Court of Appeals. If the Company is unsuccessful in Tax Court and any potential appeals to the federal Circuit Court of Appeals, it may ultimately be required to pay the related deferred taxes, and possibly interest and penalties. Deferred tax liabilities related to this item were $246.2 million at June 30, 2015. Any adverse determination on this matter could result in the Company amending state tax returns for prior years, increasing its taxable income in those states. The Company files tax returns 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 $86.8 million as of June 30, 2015. Consumer Financial Protection Bureau ("CFPB") Investigation In response to an investigative demand from the CFPB, the Company has provided certain documents and data regarding its debt collection practices. Subsequently, the Company has provided comments and engaged in discussions, which have included a number of face-to-face meetings between the Company and the CFPB staff. The Company has also discussed a proposed resolution of matters related to the CFPB's investigation, involving possible penalties, restitution and the adoption of new practices and controls in the conduct of our business. The Company is not able to estimate the amount of such penalties or restitution at this time. In these discussions, the CFPB staff has taken certain positions with respect to legal requirements applicable to our debt collection practices with which the Company disagrees. If the Company is unable to resolve its differences with the CFPB through its ongoing discussions, it could become involved in litigation. Portfolio Recovery Associates, LLC v. Guadalupe Mejia On May 11, 2015, an unfavorable jury verdict was delivered against the Company in a matter pending in Jackson County, Missouri. The jury awarded Guadalupe Mejia $251,000 in compensatory damages and $82,009,549 in punitive damages (altogether, the “Award”) for her counter-claim against the Company, alleging malicious prosecution and impermissible collection practices. The Company believes the verdict and magnitude of the Award to be erroneous and has filed a motion to set aside the Award. Unless reduced or overturned, the Award will likely have a material adverse effect on the Company's financial condition and/or operations. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2015 | |
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 not required to be carried at fair value. 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 of the financial instruments in the following table are recorded in the consolidated balance sheets at June 30, 2015 and December 31, 2014 (amounts in thousands): June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents $ 56,811 $ 56,811 $ 39,661 $ 39,661 Held-to-maturity investments 52,238 59,350 31,017 31,017 Other investments 16,190 17,898 17,560 19,776 Finance receivables, net 2,012,552 2,550,891 2,001,790 2,460,787 Financial liabilities: Interest-bearing deposits 33,248 33,248 27,704 27,704 Revolving lines of credit 892,983 892,983 836,680 836,680 Term loans 177,500 177,500 185,000 185,000 Notes and loans payable 169,938 169,938 199,938 199,938 Convertible notes 262,942 328,854 260,838 324,757 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 the financial instruments in the above table: 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. Held-to-maturity investments: Fair value of the Company’s investment in Series B certificates of a closed-end Polish investment fund is estimated using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company estimates the fair value of its held-to-maturity investments using Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Other investments: This class of investments consists of private equity funds that invest primarily in loans and securities including single-family residential debt; corporate debt products; and financially-oriented, real-estate-rich and other operating companies in the Americas, Western Europe, and Japan. These investments are subject to certain restrictions regarding transfers and withdrawals. The investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through the liquidation of the underlying assets of the fund. The fair value of the Company’s interest is valued by the fund managers; accordingly, the Company estimates the fair value of these investments using Level 3 inputs. The investments are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over 1 to 4 years. 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. 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. 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. Convertible notes: 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 June 30, 2015 and December 31, 2014 (amounts in thousands): Fair Value Measurements as of June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Trading investments $ 13,381 $ — $ — $ 13,381 Available-for-sale investments — — 6,486 6,486 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 904 — 904 Fair Value Measurements as of December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Trading investments $ 37,405 $ — $ — $ 37,405 Available-for-sale investments — — 3,721 3,721 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 3,387 — 3,387 Trading investments: Fair value of the Company’s investments in money market mutual funds is reported using the closing price of the fund’s net asset value in an active market. Accordingly, the Company uses Level 1 inputs. Available-for-sale investments: Fair value of the Company’s investment in Series C certificates of a closed-end Polish investment fund is estimated using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company estimates the fair value of its available-for-sale investments using Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: 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 adopted ASU 2014-08 in the first quarter of 2015 which had no material impact on the Company's Consolidated Financial Statements. 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. In February 2015, FASB issued ASU 2015-02, "Consolidation (Topic 810), Amendments to the Consolidation Analysis" ("ASU 2015-02"). The amendments under the new guidance modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. ASU 2015-02 is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. A reporting entity also may apply the amendments retrospectively. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. In April 2015, FASB issued ASU 2015-03, “Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” ("ASU 2015-03"). ASU 2015-03 requires an entity to present debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public business entities, this update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. In April 2015, FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement” ("ASU 2015-05"). ASU 2015-05 provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, this update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity can elect to adopt the new guidance either prospectively for all arrangements entered into or materially modified after the effective date, or on a retrospective basis. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event: On August 4, 2015, the Company entered into a Fifth Amendment (the “Fifth Amendment”) to the Credit Agreement dated as of December 19, 2012. Among other things, the Fifth Amendment (a) adds Bank of America, N.A., acting through its Canada branch, as Canadian Administrative Agent under the Credit Agreement, (b) adds the Company’s wholly-owned subsidiary, PRA Group Canada Inc., as a Borrower under the Credit Agreement, (c) removes the Financial Covenant with respect to Consolidated Tangible Net Worth, (d) terminates the Multi Currency Revolving B Commitments, (e) adds $50.0 million of Canadian Revolving Commitments, (f) modifies the definition of Permitted Acquisitions to increase the baskets included therein, (g) permits Company subsidiaries organized under the laws of Brazil to borrow up to $150.0 million and to grant liens with respect to such borrowings, and (h) acknowledges the change of the Company’s legal name in October 2014 to PRA Group, Inc. The aggregate commitments under the Credit Agreement have not changed. |
Organization and Business (Tabl
Organization and Business (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 and long-lived assets held at June 30, 2015 and 2014 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 June 30, 2015 Three Months Ended June 30, 2014 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 184,191 $ 35,931 $ 193,726 $ 36,537 Outside the United States 53,006 10,284 3,617 2,365 Total $ 237,197 $ 46,215 $ 197,343 $ 38,902 As Of And For The As Of And For The Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 368,862 $ 35,931 $ 384,914 $ 36,537 Outside the United States 113,541 10,284 6,351 2,365 Total $ 482,403 $ 46,215 $ 391,265 $ 38,902 |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Changes in Finance Receivables | Changes in finance receivables, net for the three and six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 1,954,772 $ 1,253,961 $ 2,001,790 $ 1,239,191 Acquisitions of finance receivables (1) 204,030 102,081 387,858 252,168 Foreign currency translation adjustment 23,310 309 (36,192 ) 389 Cash collections (389,624 ) (319,274 ) (789,371 ) (632,641 ) Income recognized on finance receivables, net 220,064 182,518 448,467 360,488 Cash collections applied to principal (169,560 ) (136,756 ) (340,904 ) (272,153 ) Balance at end of period $ 2,012,552 $ 1,219,595 $ 2,012,552 $ 1,219,595 |
Schedule of Cash Collections Applied to Principal | Based upon current projections, cash collections applied to principal on finance receivables as of June 30, 2015 are estimated to be as follows for the twelve months in the periods ending (amounts in thousands): June 30, 2016 $ 547,983 June 30, 2017 453,543 June 30, 2018 361,559 June 30, 2019 287,793 June 30, 2020 172,784 June 30, 2021 116,975 June 30, 2022 66,479 June 30, 2023 4,345 June 30, 2024 1,091 $ 2,012,552 |
Schedule of Changes in Accretable Yield | Changes in accretable yield for the three and six months ended June 30, 2015 and 2014 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period $ 2,504,156 $ 1,451,001 $ 2,513,185 $ 1,430,067 Income recognized on finance receivables, net (220,064 ) (182,518 ) (448,467 ) (360,488 ) Additions 173,888 98,423 346,270 204,620 Net reclassifications from nonaccretable difference 49,729 114,721 168,981 206,357 Foreign currency translation adjustment 30,938 199 (41,322 ) 1,270 Balance at end of period $ 2,538,647 $ 1,481,826 $ 2,538,647 $ 1,481,826 |
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 six months ended June 30, 2015 and 2014 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Beginning balance $ 87,796 $ 89,148 $ 86,166 $ 91,101 Allowance charges 4,910 1,386 7,595 2,773 Reversal of previous recorded allowance charges (25 ) (3,685 ) (1,080 ) (7,025 ) Net allowance charges/(reversals) 4,885 (2,299 ) 6,515 (4,252 ) Ending balance $ 92,681 $ 86,849 $ 92,681 $ 86,849 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of the following at June 30, 2015 and December 31, 2014 (amounts in thousands): June 30, December 31, Trading Short-term investments $ 13,381 $ 37,405 Available-for-sale Securitized assets 6,486 3,721 Held-to-maturity Securitized assets 52,238 31,017 Other investments Private equity funds 16,190 17,560 $ 88,295 $ 89,703 |
Available-for-sale Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2015 and December 31, 2014 were as follows (amounts in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 6,112 374 — $ 6,486 Held-to-maturity Securitized assets 52,238 7,112 — 59,350 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 3,721 — — $ 3,721 Held-to-maturity Securitized assets 31,017 — — 31,017 |
Held-to-maturity Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2015 and December 31, 2014 were as follows (amounts in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 6,112 374 — $ 6,486 Held-to-maturity Securitized assets 52,238 7,112 — 59,350 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 3,721 — — $ 3,721 Held-to-maturity Securitized assets 31,017 — — 31,017 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): June 30, 2015 December 31, 2014 Domestic revolving credit $ 462,500 $ 409,000 Domestic term loan 177,500 185,000 Seller note payable 169,938 169,938 Multicurrency revolving credit 430,483 427,680 Aktiv subordinated loan — 30,000 Convertible senior notes 287,500 287,500 Less: debt discount (24,558 ) (26,662 ) Total $ 1,503,363 $ 1,482,456 |
Schedule of Liability and Equity Components | The balances of the liability and equity components of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): June 30, 2015 December 31, 2014 Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (24,558 ) (26,662 ) Liability component - net carrying amount $ 262,942 $ 260,838 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense - stated coupon rate $ 2,156 $ 2,156 $ 4,312 $ 4,312 Interest expense - amortization of debt discount 1,056 1,007 2,104 2,005 Total interest expense - convertible notes $ 3,212 $ 3,163 $ 6,416 $ 6,317 |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings as of June 30, 2015 for the twelve month periods ending (amounts in thousands): June 30, 2016 $ 187,438 June 30, 2017 30,000 June 30, 2018 592,500 June 30, 2019 — June 30, 2020 430,483 Thereafter 287,500 Total $ 1,527,921 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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): June 30, 2015 December 31, 2014 Software $ 58,216 $ 53,076 Computer equipment 20,805 20,488 Furniture and fixtures 13,193 11,502 Equipment 12,875 12,880 Leasehold improvements 13,042 14,429 Building and improvements 7,141 7,049 Land 1,296 1,269 Accumulated depreciation and amortization (80,353 ) (72,435 ) Property and equipment, net $ 46,215 $ 48,258 |
Goodwill And Intangible Asset26
Goodwill And Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the three and six months ended June 30, 2015 and 2014 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Balance at beginning of period: Goodwill $ 503,050 $ 110,483 $ 533,842 $ 110,240 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) 496,653 104,086 527,445 103,843 Changes: Foreign currency translation adjustment 6,348 1,036 (24,444 ) 1,279 Net change in goodwill 6,348 1,036 (24,444 ) 1,279 Balance at end of the period: Goodwill 509,398 111,519 509,398 111,519 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) Balance at end of period $ 503,001 $ 105,122 $ 503,001 $ 105,122 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Share Transactions | The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2013 through June 30, 2015 (share amounts in thousands): Nonvested Shares Outstanding Weighted-Average Price at Grant Date December 31, 2013 226 $ 29.58 Granted 272 56.69 Vested (155 ) 37.34 Cancelled (4 ) 50.41 December 31, 2014 339 47.34 Granted 98 53.09 Vested (101 ) 34.97 Cancelled (3 ) 47.07 June 30, 2015 333 $ 52.79 The following summarizes all LTI program share transactions from December 31, 2013 through June 30, 2015 (share amounts in thousands): Nonvested LTI Shares Outstanding Weighted-Average Price at Grant Date December 31, 2013 434 $ 25.79 Granted at target level 111 49.60 Adjustments for actual performance 222 22.32 Vested (279 ) 24.21 December 31, 2014 488 30.52 Granted at target level 132 52.47 Vested (252 ) 20.21 Cancelled (7 ) 39.59 June 30, 2015 361 $ 45.58 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014 (amounts in thousands, except per share amounts): For the Three Months Ended June 30, 2015 2014 Net Income Weighted Average Common Shares EPS Net Income Weighted Average Common Shares EPS Basic EPS $ 51,425 48,325 $ 1.06 $ 37,507 50,065 $ 0.75 Dilutive effect of nonvested share awards 204 — 372 (0.01 ) Diluted EPS $ 51,425 48,529 $ 1.06 $ 37,507 50,437 $ 0.74 For the Six Months Ended June 30, 2015 2014 Net Income Weighted Average Common Shares EPS Net Income Weighted Average Common Shares EPS Basic EPS $ 109,560 48,525 $ 2.26 $ 78,347 49,997 $ 1.57 Dilutive effect of nonvested share awards 265 (0.01 ) 403 (0.02 ) Diluted EPS $ 109,560 48,790 $ 2.25 $ 78,347 50,400 $ 1.55 |
Fair Value Measurements and D29
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents $ 56,811 $ 56,811 $ 39,661 $ 39,661 Held-to-maturity investments 52,238 59,350 31,017 31,017 Other investments 16,190 17,898 17,560 19,776 Finance receivables, net 2,012,552 2,550,891 2,001,790 2,460,787 Financial liabilities: Interest-bearing deposits 33,248 33,248 27,704 27,704 Revolving lines of credit 892,983 892,983 836,680 836,680 Term loans 177,500 177,500 185,000 185,000 Notes and loans payable 169,938 169,938 199,938 199,938 Convertible notes 262,942 328,854 260,838 324,757 |
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 June 30, 2015 and December 31, 2014 (amounts in thousands): Fair Value Measurements as of June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Trading investments $ 13,381 $ — $ — $ 13,381 Available-for-sale investments — — 6,486 6,486 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 904 — 904 Fair Value Measurements as of December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Trading investments $ 37,405 $ — $ — $ 37,405 Available-for-sale investments — — 3,721 3,721 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 3,387 — 3,387 |
Organization and Business (Deta
Organization and Business (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Revenues | $ 237,197 | $ 197,343 | $ 482,403 | $ 391,265 |
Long-Lived Assets | 46,215 | 38,902 | 46,215 | 38,902 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 184,191 | 193,726 | 368,862 | 384,914 |
Long-Lived Assets | 35,931 | 36,537 | 35,931 | 36,537 |
Outside the United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 53,006 | 3,617 | 113,541 | 6,351 |
Long-Lived Assets | $ 10,284 | $ 2,365 | $ 10,284 | $ 2,365 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted average remaining life of pools | 102 months | |
Unamortized purchased principal (purchase price) under the cost recovery method | $ 16.1 | $ 17.1 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated life time of pool at the time of acquisition (in months) | 80 months | |
Maximum | ||
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 (Sched
Finance Receivables, net (Schedule of Changes In Finance Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ||||
Balance at beginning of period | $ 1,954,772 | $ 1,253,961 | $ 2,001,790 | $ 1,239,191 |
Acquisitions of finance receivables | 204,030 | 102,081 | 387,858 | 252,168 |
Foreign currency translation adjustment | 23,310 | 309 | (36,192) | 389 |
Cash collections | (389,624) | (319,274) | (789,371) | (632,641) |
Income recognized on finance receivables, net | 220,064 | 182,518 | 448,467 | 360,488 |
Cash collections applied to principal | (169,560) | (136,756) | (340,904) | (272,153) |
Balance at end of period | $ 2,012,552 | $ 1,219,595 | $ 2,012,552 | $ 1,219,595 |
Finance Receivables, net (Sch33
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Receivables [Abstract] | |
June 30, 2016 | $ 547,983 |
June 30, 2017 | 453,543 |
June 30, 2018 | 361,559 |
June 30, 2019 | 287,793 |
June 30, 2020 | 172,784 |
June 30, 2021 | 116,975 |
June 30, 2022 | 66,479 |
June 30, 2023 | 4,345 |
June 30, 2024 | 1,091 |
Total | $ 2,012,552 |
Finance Receivables, net (Sch34
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 2,504,156 | $ 1,451,001 | $ 2,513,185 | $ 1,430,067 |
Income recognized on finance receivables, net | (220,064) | (182,518) | (448,467) | (360,488) |
Additions | 173,888 | 98,423 | 346,270 | 204,620 |
Net reclassifications from nonaccretable difference | 49,729 | 114,721 | 168,981 | 206,357 |
Foreign currency translation adjustment | 30,938 | 199 | (41,322) | 1,270 |
Balance at end of period | $ 2,538,647 | $ 1,481,826 | $ 2,538,647 | $ 1,481,826 |
Finance Receivables, net (Sch35
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | ||||
Beginning balance | $ 87,796 | $ 89,148 | $ 86,166 | $ 91,101 |
Allowance charges | 4,910 | 1,386 | 7,595 | 2,773 |
Reversal of previous recorded allowance charges | (25) | (3,685) | (1,080) | (7,025) |
Net allowance charges/(reversals) | 4,885 | (2,299) | 6,515 | (4,252) |
Ending balance | $ 92,681 | $ 86,849 | $ 92,681 | $ 86,849 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Trading | ||
Short-term investments | $ 13,381 | $ 37,405 |
Available-for-sale | ||
Securitized assets | 6,486 | 3,721 |
Held-to-maturity | ||
Securitized assets | 52,238 | 31,017 |
Other investments | ||
Private equity funds | 16,190 | 17,560 |
Investments | $ 88,295 | $ 89,703 |
Investments Narrative (Details)
Investments Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Dec. 31, 2014 | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)vote | |
Schedule of Equity Method Investments [Line Items] | |||
Number of votes | 1 | ||
Cost-method investment, ownership percentage | 3.00% | ||
Series B Certificates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in securitized assets, certificates, ownership percentage | 100.00% | ||
Series C Certificates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in securitized assets, certificates, ownership percentage | 20.00% | ||
Held-to-maturity Securities [Member] | Other Revenue [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment Income, Net | $ | $ 1.9 | $ 3.1 |
Investments Amortized Costs (De
Investments Amortized Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Amortized Cost | $ 6,112 | $ 3,721 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 374 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Aggregate Fair Value | 6,486 | 3,721 |
Held-to-maturity | ||
Amortized Cost | 52,238 | 31,017 |
Gross Unrealized Gains | 7,112 | 0 |
Gross Unrealized Losses | 0 | 0 |
Aggregate Fair Value | $ 59,350 | $ 31,017 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less: debt discount | $ (24,558) | $ (26,662) |
Borrowings | 1,503,363 | 1,482,456 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 462,500 | 409,000 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 177,500 | 185,000 |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 287,500 | 287,500 |
Less: debt discount | (24,558) | (26,662) |
Aktiv Kapital AS [Member] | Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 30,000 |
Seller Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 169,938 | 169,938 |
Revolving Credit Facility | Multicurrency Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 430,483 | $ 427,680 |
Borrowings - Revolving Credit a
Borrowings - Revolving Credit and Term Loan Facility (Details) | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 01, 2014USD ($) | Aug. 13, 2013 | |
Debt Instrument [Line Items] | ||||
Unused commitment fee | 0.375% | |||
Outstanding borrowings under credit facility | $ 892,983,000 | $ 836,680,000 | ||
Long-term debt | $ 177,500,000 | 185,000,000 | ||
Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
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% | |||
Maximum capital expenditures | $ 40,000,000 | |||
Maximum cash dividends | 20,000,000 | |||
Stock repurchases authorized amount | 250,000,000 | |||
Stock repurchase program, authorized yearly amount | 100,000,000 | |||
Commitment Increase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 827,500,000 | |||
Unsecured Debt [Member] | Senior Unsecured Debt other than Convertible Notes Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum allowable debt | 500,000,000 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 262,942,000 | 260,838,000 | ||
Stated percentage | 3.00% | 3.00% | ||
Interest rate at period end | 4.92% | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 177,500,000 | $ 185,000,000 | ||
Interest rate at period end | 2.69% | 2.67% | ||
Base Rate [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread variable rate | 1.50% | |||
Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread variable rate | 0.50% | |||
Eurodollar Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread variable rate | 1.00% | |||
Eurodollar Rate [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread variable rate | 2.50% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings under credit facility | $ 462,500,000 | $ 409,000,000 | ||
Interest rate at period end | 2.72% | 2.68% | ||
Revolving Credit Facility | Commitment Increase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 630,000,000 | |||
Remaining borrowing capacity | $ 185,500,000 | |||
Revolving Credit Facility | Line of Credit | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Lines of credit current swing line loans | 20,000,000 | |||
Lines of credit current letters of credit | 20,000,000 | |||
Capacity available for specific purpose, alternative currency | 20,000,000 | |||
Line of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 177,500,000 | |||
Multi-Currency Domestic Revolving Credit Facility [Member] | Commitment Increase Agreements [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
Remaining borrowing capacity | 2,000,000 | |||
Aktiv Kapital AS [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum allowance new loan or capital related to acquisition | 950,000,000 | |||
Acquisition Subsequent to 2014 [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum business combinations | $ 250,000,000 |
Borrowings - Seller Note Payabl
Borrowings - Seller Note Payable (Details) - Seller Note Payable [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jul. 16, 2014 | |
Debt Instrument [Line Items] | |||
Face amount | $ 169,900,000 | ||
Quarterly interest payment | $ 1,700,000 | $ 3,400,000 | |
Balance due | $ 169,900,000 | $ 169,900,000 | |
Interest rate at period end | 4.03% | 4.03% | |
LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread variable rate | 3.75% |
Borrowings -Multicurrency Revol
Borrowings -Multicurrency Revolving Credit Facility (Details) | Jun. 12, 2015USD ($) | Oct. 23, 2014USD ($) | Jun. 30, 2015SEK | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||
Unused commitment fee | 0.375% | ||||
Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 40,000,000 | ||||
Facility line fee | 0.50% | ||||
Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Remaining borrowing capacity | $ 319,500,000 | ||||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 33.00% | 28.00% | 33.00% | ||
Debt Instrument, covenant, interest bearing deposits, maximum | SEK | SEK 500,000,000 | ||||
Debt Instrument, covenant, minimum cash collection exceeding IFRS forecast | 95.00% | ||||
Overdraft Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Remaining borrowing capacity | 40,000,000 | ||||
Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 750,000,000 | $ 500,000,000 | |||
Unused commitment fee | 0.35% | ||||
Debt instrument, covenant, maximum GIBD | 300.00% | ||||
Long-term debt, gross | $ 430,483,000 | $ 427,680,000 | |||
Interest rate at period end | 3.23% | ||||
Minimum | Interbank Offered Rate (IBOR) | Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate | 250.00% | ||||
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate | 250.00% | ||||
Maximum | Interbank Offered Rate (IBOR) | Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate | 3.30% | ||||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate | 3.30% |
Borrowings - Aktiv Subordinated
Borrowings - Aktiv Subordinated Loan (Details) - Aktiv Kapital AS [Member] - Subordinated Loan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 30 | |
LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 3.75% |
Borrowings - Convertible Senior
Borrowings - Convertible Senior Notes (Details) | Aug. 13, 2013USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 65.72 | ||
Convertible debt, estimated fair value | $ 328,854,000 | $ 324,757,000 | |
Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount | $ 287,500,000 | $ 287,500,000 | 287,500,000 |
Stated percentage | 3.00% | 3.00% | |
Redemption price | 100.00% | ||
Conversion ratio | 15.2172 | ||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 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 | ||
Interest rate at period end | 4.92% |
Borrowings - Balances of Liabil
Borrowings - Balances of Liability and Equity Components (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Aug. 13, 2013 |
Debt Instrument [Line Items] | |||
Less: debt discount | $ (24,558,000) | $ (26,662,000) | |
Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Liability component - principal amount | 287,500,000 | 287,500,000 | $ 287,500,000 |
Less: debt discount | (24,558,000) | (26,662,000) | |
Total | 262,942,000 | 260,838,000 | |
Equity component | $ 31,306,000 | $ 31,306,000 | $ 32,200,000 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount | $ 2,104 | $ 2,005 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense - stated coupon rate | $ 2,156 | $ 2,156 | 4,312 | 4,312 |
Amortization of debt discount | 1,056 | 1,007 | 2,104 | 2,005 |
Total interest expense - convertible notes | $ 3,212 | $ 3,163 | $ 6,416 | $ 6,317 |
Borrowings - Long-Term Debt Mat
Borrowings - Long-Term Debt Maturities (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
June 30, 2016 | $ 187,438 |
June 30, 2017 | 30,000 |
June 30, 2018 | 592,500 |
June 30, 2019 | 0 |
June 30, 2020 | 430,483 |
Thereafter | 287,500 |
Total | $ 1,527,921 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment, Net [Abstract] | ||||
Depreciation and amortization expense | $ 3.9 | $ 3.1 | $ 7.7 | $ 5.9 |
Property and Equipment, Net (Pr
Property and Equipment, Net (Property And Equipment, At Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Software | $ 58,216 | $ 53,076 |
Computer equipment | 20,805 | 20,488 |
Furniture and fixtures | 13,193 | 11,502 |
Equipment | 12,875 | 12,880 |
Leasehold improvements | 13,042 | 14,429 |
Building and improvements | 7,141 | 7,049 |
Land | 1,296 | 1,269 |
Accumulated depreciation and amortization | (80,353) | (72,435) |
Property and equipment, net | $ 46,215 | $ 48,258 |
Goodwill And Intangible Asset50
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 503,001 | $ 496,653 | $ 527,445 | $ 105,122 | $ 104,086 | $ 103,843 |
Goodwill And Intangible Asset51
Goodwill And Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Roll Forward] | ||||
Goodwill, balance at beginning of year | $ 503,050 | $ 110,483 | $ 533,842 | $ 110,240 |
Accumulated impairment loss | (6,397) | (6,397) | (6,397) | (6,397) |
Goodwill | 496,653 | 104,086 | 527,445 | 103,843 |
Foreign currency translation adjustment | 6,348 | 1,036 | (24,444) | 1,279 |
Net change in goodwill | 6,348 | 1,036 | (24,444) | 1,279 |
Goodwill, balance at end of year | 509,398 | 111,519 | 509,398 | 111,519 |
Accumulated impairment loss | (6,397) | (6,397) | (6,397) | (6,397) |
Goodwill | $ 503,001 | $ 105,122 | $ 503,001 | $ 105,122 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
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 | $ 3.6 | $ 2.6 | $ 7.7 | $ 5.4 |
Tax benefit realized from share-based compensation | 0.3 | 0.3 | 7.8 | 7.8 |
Grant date fair value of shares vested | 0.7 | 0.7 | 3.5 | 3.1 |
Long-Term Incentive Programs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future compensation cost related to stock option | $ 11.6 | 11.6 | ||
Weighted average remaining life of nonvested shares (in years) | 1 year 3 months | |||
Grant date fair value of shares vested | $ 0 | $ 0 | $ 5.1 | $ 5.7 |
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 | $ 14.1 | $ 14.1 | ||
Weighted average remaining life of nonvested shares (in years) | 2 years | |||
Nonvested Awards [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Nonvested Awards [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years |
Share-Based Compensation (Nonve
Share-Based Compensation (Nonvested Share Transactions) (Details) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Nonvested Shares Outstanding | ||
Nonvested Shares Outstanding, Beginning Balance | 339 | 226 |
Nonvested Shares Outstanding, Granted | 98 | 272 |
Nonvested Shares Outstanding, Vested | (101) | (155) |
Nonvested Shares Outstanding, Cancelled | (3) | (4) |
Nonvested Shares Outstanding, Ending Balance | 333 | 339 |
Weighted-Average Price at Grant Date (in dollars per share) | ||
Weighted-Average Price at Grant Date, Beginning Balance | $ 47.34 | $ 29.58 |
Weighted-Average Price at Grant Date, Granted | 53.09 | 56.69 |
Weighted-Average Price at Grant Date, Vested | 34.97 | 37.34 |
Weighted-Average Price at Grant Date, Cancelled | 47.07 | 50.41 |
Weighted-Average Price at Grant Date, Ending Balance | $ 52.79 | $ 47.34 |
Long-Term Incentive Programs [Member] | ||
Nonvested Shares Outstanding | ||
Nonvested Shares Outstanding, Beginning Balance | 488 | 434 |
Nonvested Shares Outstanding, Granted | 132 | 111 |
Nonvested Shares Outstanding, Adjustments for actual performance | 222 | |
Nonvested Shares Outstanding, Vested | (252) | (279) |
Nonvested Shares Outstanding, Cancelled | (7) | |
Nonvested Shares Outstanding, Ending Balance | 361 | 488 |
Weighted-Average Price at Grant Date (in dollars per share) | ||
Weighted-Average Price at Grant Date, Beginning Balance | $ 30.52 | $ 25.79 |
Weighted-Average Price at Grant Date, Granted | 52.47 | 49.60 |
Weighted-Average Price at Grant Date, Adjustments for actual performance (in dollars per share) | 22.32 | |
Weighted-Average Price at Grant Date, Vested | 20.21 | 24.21 |
Weighted-Average Price at Grant Date, Cancelled | 39.59 | |
Weighted-Average Price at Grant Date, Ending Balance | $ 45.58 | $ 30.52 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) | Jun. 30, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Finance receivables reduction | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Minimum average share price triggering dilutive effect (usd per share) | $ 65.72 | |||
Net income | $ 51,425 | $ 37,507 | $ 109,560 | $ 78,347 |
Weighted Average Common Shares, Basic EPS | 48,325,000 | 50,065,000 | 48,525,000 | 49,997,000 |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 204,000 | 372,000 | 265,000 | 403,000 |
Weighted Average Common Shares, Diluted EPS | 48,529,000 | 50,437,000 | 48,790,000 | 50,400,000 |
EPS, Basic (in dollars per share) | $ 1.06 | $ 0.75 | $ 2.26 | $ 1.57 |
EPS, Dilutive effect of nonvested share awards (in dollars per share) | 0 | (0.01) | (0.01) | (0.02) |
EPS, Diluted (in dollars per share) | $ 1.06 | $ 0.74 | $ 2.25 | $ 1.55 |
Antidilutive options outstanding | 0 | 0 | 0 | 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | May. 11, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ||||||
Future compensation under employment agreements | $ 22,400,000 | $ 22,400,000 | $ 22,400,000 | |||
Total future minimum lease payments | 39,700,000 | 39,700,000 | 39,700,000 | |||
Amount to be purchased under forward flow agreements | 418,800,000 | 418,800,000 | 418,800,000 | |||
Purchase Commitments Other | 200,000,000 | |||||
Use of cost recovery for income tax purposes - U.S. | 246,200,000 | 246,200,000 | $ 246,200,000 | |||
Income tax examination, estimate of possible loss | 86,800,000 | |||||
NCM [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration earn out period | 5 years | |||||
Maximum value of contingent consideration | 15,000,000 | 15,000,000 | $ 15,000,000 | |||
Payments of contingent consideration | $ 2,800,000 | $ 6,200,000 | ||||
Contingent consideration liability | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | |||
Judicial Ruling - Compensatory Damages [Member] | Portfolio Recovery Associates, LLC v. Guadalupe Mejia [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 251,000 | |||||
Judicial Ruling - Punitive Damages [Member] | Portfolio Recovery Associates, LLC v. Guadalupe Mejia [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 82,009,549 |
Fair Value Measurements And D57
Fair Value Measurements And Disclosures - Financial Instruments Not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||||||
Cash and cash equivalents, carrying amount | $ 56,811 | $ 39,661 | $ 270,526 | $ 162,004 | ||
Cash and cash equivalents, estimated fair value | 56,811 | 39,661 | ||||
Securitized assets | 52,238 | 31,017 | ||||
Aggregate Fair Value | 59,350 | 31,017 | ||||
Finance receivables, net, carrying amount | 2,012,552 | $ 1,954,772 | 2,001,790 | $ 1,219,595 | $ 1,253,961 | $ 1,239,191 |
Finance receivables, net, estimated fair value | 2,550,891 | 2,460,787 | ||||
Financial liabilities: | ||||||
Interest-bearing deposits, carrying value | 33,248 | 27,704 | ||||
Interest-bearing deposits, fair value | 33,248 | 27,704 | ||||
Outstanding borrowings under credit facility | 892,983 | 836,680 | ||||
Revolving lines of credit, estimated fair value | 892,983 | 836,680 | ||||
Term loans, carrying amount | 177,500 | 185,000 | ||||
Term loans, estimated fair value | 177,500 | 185,000 | ||||
Notes and loans payable, carrying value | 169,938 | 199,938 | ||||
Notes and loans payable, fair value disclosure | 169,938 | 199,938 | ||||
Convertible debt | 262,942 | 260,838 | ||||
Convertible debt, estimated fair value | 328,854 | 324,757 | ||||
Reported Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments, Fair Value Disclosure | 16,190 | 17,560 | ||||
Estimate of Fair Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments, Fair Value Disclosure | $ 17,898 | $ 19,776 |
Fair Value Measurements And D58
Fair Value Measurements And Disclosures Fair Value Measurements and Disclosures - Financial Instruments Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost method investments, expected liquidation period, minimum | 1 year | |
Cost method investments, expected liquidation period, Maximum | 4 years | |
Assets: | ||
Short-term investments | $ 13,381 | $ 37,405 |
Securitized assets | 6,486 | 3,721 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 904 | 3,387 |
Level 1 [Member] | ||
Assets: | ||
Short-term investments | 13,381 | 37,405 |
Securitized assets | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Securitized assets | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 904 | 3,387 |
Level 3 [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Securitized assets | 6,486 | 3,721 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Revolving Credit Facility - Subsequent Event | Aug. 04, 2015USD ($) |
Canadian Revolving Commitments | |
Subsequent Event [Line Items] | |
Additional revolving commitments | $ 50,000,000 |
Company subsidiaries organized under laws of Brazil | |
Subsequent Event [Line Items] | |
Additional revolving commitments | $ 150,000,000 |