Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 25, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | PRA GROUP INC | ||
Entity Central Index Key | 1,185,348 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 46,221,037 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 2,970,224,983 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 71,372 | $ 39,661 |
Investments | 73,799 | 89,703 |
Finance receivables, net | 2,202,113 | 2,001,790 |
Other receivables, net | 30,771 | 12,959 |
Income taxes receivable | 1,717 | 0 |
Net deferred tax asset | 13,068 | 6,126 |
Property and equipment, net | 45,394 | 48,258 |
Goodwill | 495,156 | 527,445 |
Intangible assets, net | 23,788 | 10,933 |
Other assets | 39,528 | 41,876 |
Total assets | 2,996,706 | 2,778,751 |
Liabilities: | ||
Accounts payable | 4,190 | 4,446 |
Accrued expenses | 95,380 | 89,361 |
Income taxes payable | 21,236 | 11,020 |
Net deferred tax liability | 261,498 | 255,587 |
Interest-bearing deposits | 46,991 | 27,704 |
Borrowings | 1,723,268 | 1,482,456 |
Other liabilities | 4,396 | 5,962 |
Total liabilities | 2,156,959 | 1,876,536 |
Equity: | ||
Preferred stock, par value $0.01, authorized shares, 2,000, issued and outstanding shares, 0 | 0 | 0 |
Common stock, par value $0.01, authorized shares, 100,000, issued and outstanding shares, 46,173 at December 31, 2015; 100,000 authorized shares, 49,577 issued and outstanding shares at December 31, 2014 | 462 | 496 |
Additional paid-in capital | 64,622 | 111,659 |
Retained earnings | 964,270 | 906,010 |
Accumulated other comprehensive loss | (228,861) | (115,950) |
Total stockholders' equity - PRA Group, Inc. | 800,493 | 902,215 |
Noncontrolling interest | 39,254 | 0 |
Total equity | 839,747 | 902,215 |
Total liabilities and equity | $ 2,996,706 | $ 2,778,751 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD 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 (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,173,000 | 49,577,000 |
Common stock, shares outstanding | 46,173,000 | 49,577,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Income recognized on finance receivables, net | $ 865,122 | $ 807,474 | $ 663,546 |
Fee income | 64,383 | 65,675 | 71,532 |
Other revenue | 12,513 | 7,820 | 57 |
Total revenues | 942,018 | 880,969 | 735,135 |
Operating expenses: | |||
Compensation and employee services | 268,345 | 234,531 | 192,474 |
Legal collection fees | 53,393 | 51,107 | 41,488 |
Legal collection costs | 76,063 | 88,054 | 83,063 |
Agency fees | 32,188 | 16,399 | 5,901 |
Outside fees and services | 65,155 | 55,821 | 31,615 |
Communication | 33,113 | 33,085 | 28,161 |
Rent and occupancy | 14,714 | 11,509 | 8,311 |
Depreciation and amortization | 19,874 | 18,414 | 14,417 |
Other operating expenses | 68,829 | 29,981 | 25,781 |
Impairment of goodwill | 0 | 0 | 6,397 |
Total operating expenses | 631,674 | 538,901 | 437,608 |
Income from operations | 310,344 | 342,068 | 297,527 |
Other income and (expense): | |||
Interest expense | (60,336) | (35,226) | (14,466) |
Foreign exchange gain/(loss) | 7,514 | (5,829) | 4 |
Income before income taxes | 257,522 | 301,013 | 283,065 |
Provision for income taxes | 89,391 | 124,508 | 106,146 |
Net income | 168,131 | 176,505 | 176,919 |
Adjustment for net income attributable to noncontrolling interest | 205 | 0 | 1,605 |
Net income attributable to PRA Group, Inc. | $ 167,926 | $ 176,505 | $ 175,314 |
Net income per common share attributable to PRA Group, Inc.: | |||
Basic (USD per share) | $ 3.49 | $ 3.53 | $ 3.48 |
Diluted (USD per share) | $ 3.47 | $ 3.50 | $ 3.45 |
Weighted average number of shares outstanding: | |||
Basic (shares) | 48,128 | 49,990 | 50,366 |
Diluted (shares) | 48,405 | 50,421 | 50,873 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 168,131 | $ 176,505 | $ 176,919 |
Change in foreign currency translation | (119,043) | (119,982) | 1,181 |
Total other comprehensive income | 49,088 | 56,523 | 178,100 |
Adjustment for net income attributable to noncontrolling interest | 205 | 0 | 1,605 |
Change in foreign currency translation | (6,132) | 0 | 0 |
Comprehensive (loss)/income attributable to noncontrolling interest | (5,927) | 0 | 1,605 |
Comprehensive income attributable to PRA Group, Inc. | $ 55,015 | $ 56,523 | $ 176,495 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest |
Beginning Balance, shares at Dec. 31, 2012 | 50,727,000 | |||||
Beginning Balance at Dec. 31, 2012 | $ 708,427 | $ 507 | $ 150,878 | $ 554,191 | $ 2,851 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 175,314 | 175,314 | ||||
Net income | 176,919 | |||||
Foreign currency translation adjustment | 1,181 | 1,181 | ||||
Vesting of nonvested shares, shares | 316,000 | |||||
Vesting of nonvested shares | $ 2 | (2) | ||||
Repurchase and cancellation of common stock, shares | (1,203,000) | |||||
Repurchase and cancellation of common stock | (58,511) | $ (11) | (58,500) | |||
Amortization of share-based compensation | 12,272 | 12,272 | ||||
Excess income tax benefit from share-based compensation | 4,552 | 4,552 | ||||
Employee stock relinquished for payment of taxes | (7,350) | (7,350) | ||||
Component of convertible debt | 31,306 | 31,306 | ||||
Deferred taxes on component of convertible debt | (12,517) | (12,517) | ||||
Purchase of noncontrolling interest | 14,986 | 14,986 | ||||
Adjustment of the redeemable noncontrolling interest measurement amount | (184) | (184) | ||||
Ending Balance, shares at Dec. 31, 2013 | 49,840,000 | |||||
Ending Balance at Dec. 31, 2013 | $ 498 | 135,441 | 729,505 | 4,032 | 0 | |
Ending Balance at Dec. 31, 2013 | 869,476 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 176,505 | 176,505 | ||||
Net income | 176,505 | |||||
Foreign currency translation adjustment | (119,982) | (119,982) | ||||
Vesting of nonvested shares, shares | 311,000 | |||||
Vesting of nonvested shares | $ 4 | (4) | ||||
Repurchase and cancellation of common stock, shares | (574,000) | |||||
Repurchase and cancellation of common stock | (33,164) | $ (6) | (33,158) | |||
Amortization of share-based compensation | 14,968 | 14,968 | ||||
Excess income tax benefit from share-based compensation | 5,558 | 5,558 | ||||
Employee stock relinquished for payment of taxes | $ (11,146) | (11,146) | ||||
Ending Balance, shares at Dec. 31, 2014 | 49,577,000 | 49,577,000 | ||||
Ending Balance at Dec. 31, 2014 | $ 902,215 | $ 496 | 111,659 | 906,010 | (115,950) | 0 |
Ending Balance at Dec. 31, 2014 | 902,215 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 167,926 | |||||
Net income | 168,131 | 167,926 | 205 | |||
Foreign currency translation adjustment | (119,043) | (112,911) | (6,132) | |||
Initial noncontrolling interest related to business acquisition | 45,181 | 45,181 | ||||
Vesting of nonvested shares, shares | 279,000 | |||||
Vesting of nonvested shares | $ 3 | (3) | ||||
Repurchase and cancellation of common stock, shares | (3,683,000) | |||||
Repurchase and cancellation of common stock | (165,501) | $ (37) | (55,798) | (109,666) | ||
Amortization of share-based compensation | 16,325 | 16,325 | ||||
Excess income tax benefit from share-based compensation | 4,386 | 4,386 | ||||
Employee stock relinquished for payment of taxes | $ (11,947) | (11,947) | ||||
Ending Balance, shares at Dec. 31, 2015 | 46,173,000 | 46,173,000 | ||||
Ending Balance at Dec. 31, 2015 | $ 800,493 | $ 462 | $ 64,622 | $ 964,270 | $ (228,861) | $ 39,254 |
Ending Balance at Dec. 31, 2015 | $ 839,747 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 168,131 | $ 176,505 | $ 176,919 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of share-based compensation | 16,325 | 14,968 | 12,272 |
Depreciation and amortization | 19,874 | 18,414 | 14,417 |
Amortization of debt discount | 4,260 | 4,058 | 1,508 |
Amortization of debt fair value | 0 | (4,827) | 0 |
Impairment of goodwill | 0 | 0 | 6,397 |
Deferred tax (benefit)/expense | (8,569) | 52,978 | 11,011 |
Net foreign currency transaction (gain)/loss | (7,514) | 5,829 | 0 |
Changes in operating assets and liabilities: | |||
Other assets | 2,015 | (1,794) | (4,783) |
Other receivables, net | (18,124) | 9,435 | (1,786) |
Accounts payable | 786 | (20,265) | (928) |
Income taxes payable/receivable, net | 5,735 | 16,862 | (14,814) |
Accrued expenses | 5,299 | 9,746 | 28,958 |
Other liabilities | (1,553) | (14,007) | (4,044) |
Net cash provided by operating activities | 186,665 | 267,902 | 225,127 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (14,454) | (24,385) | (15,875) |
Acquisition of finance receivables, net of buybacks | (954,954) | (682,441) | (638,616) |
Collections applied to principal on finance receivables | 674,373 | 571,338 | 478,891 |
Business acquisitions, net of cash acquired | (1,423) | (851,183) | 0 |
Purchase of investments | (48,085) | (69,862) | 0 |
Proceeds from sales and maturities of investments | 62,217 | 25,821 | 0 |
Net cash used in investing activities | (282,326) | (1,030,712) | (175,600) |
Cash flows from financing activities: | |||
Excess income tax benefit from share-based compensation | 4,386 | 5,558 | 4,552 |
Payment of liability-classified contingent consideration | 0 | 0 | (5,240) |
Proceeds from lines of credit | 790,967 | 543,000 | 217,000 |
Principal payments on lines of credit | (463,733) | (134,000) | (344,000) |
Repurchases of common stock | (165,501) | (33,164) | (58,511) |
Payments of line of credit origination costs and fees | (5,000) | 0 | 0 |
Cash paid for purchase of portion of noncontrolling interest | 0 | 0 | (5,663) |
Distributions paid to noncontrolling interest | 0 | 0 | (2,075) |
Proceeds from long-term debt | 0 | 623,354 | 0 |
Principal payments on long-term debt | (47,374) | (359,281) | (5,542) |
Net increase in interest-bearing deposits | 22,721 | 2,492 | 0 |
Proceeds from convertible debt, net | 0 | 0 | 279,281 |
Net cash provided by financing activities | 136,466 | 647,959 | 79,802 |
Effect of exchange rate on cash | (9,094) | (7,492) | (12) |
Net increase/(decrease) in cash and cash equivalents | 31,711 | (122,343) | 129,317 |
Cash and cash equivalents, beginning of year | 39,661 | 162,004 | 32,687 |
Cash and cash equivalents, end of year | 71,372 | 39,661 | 162,004 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 49,777 | 31,831 | 9,830 |
Cash paid for income taxes | 86,255 | 47,947 | 105,719 |
Noncash investing and financing activities: | |||
Adjustment of the redeemable noncontrolling interest measurement amount | 0 | 0 | (184) |
Purchase of redeemable noncontrolling interest | $ 0 | $ 0 | $ 14,986 |
General and Summary of Signific
General and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
General and Summary of Significant Accounting Policies | General and Summary of Significant Accounting Policies : Nature of operations: 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 nonperforming loans. 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 United States, and provides class action claims settlement recovery services and related payment processing to corporate clients. Recent acquisitions: On August 3, 2015, the Company acquired 55% of the equity interest in RCB Investimentos S.A. ("RCB"). The remaining 45% of the equity interest in RCB is owned by the executive team and previous owners of RCB. RCB was founded in 2007 and is a leading master servicing platform for nonperforming loans in Brazil. RCB specializes in structuring, investing and operating receivable and credit-related assets. The founders of RCB each entered into long-term employment agreements with the Company and will continue to manage RCB's local business in Brazil. The Company's investment for the 55% ownership of RCB was paid for with approximately $55.2 million in cash which was borrowed under the Company's existing domestic revolving credit facility. The majority of cash the Company paid to acquire the equity interest in RCB is expected to be used in the ordinary course of business. As part of the investment and call option agreements, the Company has the right to purchase the remaining 45% of RCB at certain multiples of EBITDA beginning on August 3, 2019 and lasting for two years. In accordance with ASC Topic 810, "Consolidation," the Company has consolidated all financial statement accounts of RCB in its consolidated balance sheet as of December 31, 2015 and its consolidated income statement for the year ended December 31, 2015. The consolidated income statement for the year ended December 31, 2015 includes the results of operations of RCB from August 3, 2015 through December 31, 2015. The noncontrolling interest amount is included as a separate component of equity and represents the 45% interest not controlled by the Company. In addition, net income attributable to the noncontrolling interest is stated separately in the consolidated income statement for the year ended December 31, 2015. On July 16, 2014, the Company completed the acquisition of Aktiv Kapital AS ("Aktiv"), a Norway-based company specializing in the acquisition and servicing of non-performing loans throughout Europe and in Canada, for a purchase price of approximately $861.3 million , and assumed approximately $433.7 million of Aktiv's corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion . The Company's consolidated income statements and statements of comprehensive income, equity and cash flows include the results of operations of Aktiv for the period from July 16, 2014 through December 31, 2015. Basis of presentation: 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. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions. Segments: 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. Stock Split: On June 10, 2013, the Company's board of directors declared a three-for-one stock split by means of a stock dividend. The new shares were distributed on August 1, 2013, and the shares began trading on a split-adjusted basis beginning August 2, 2013. As a result of this action, approximately 33.8 million shares were issued to stockholders. The par value of the common stock remained at $0.01 per share and, accordingly, approximately $0.3 million was retroactively transferred from additional paid-in capital to common stock for all periods presented. Earnings per share, weighted average shares outstanding and other share related information are presented in this Form 10-K after the effect of the stock split. Translation of foreign currencies: The financial statements of certain of the Company's foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities are translated as of the balance sheet date and revenue and expenses are translated at an average rate over the period. Unrealized gains or losses resulting from currency translation adjustments are recorded as a component of other comprehensive income/(loss). Realized gains and losses from foreign currency transactions are recorded as a component of "Foreign exchange gain/(loss)" in the consolidated income statements. Revenues and long-lived assets by geographical location: Revenue for the years ended December 31, 2015 , 2014 and 2013 , and long-lived assets held at December 31, 2015 and 2014 , by geographic location (amounts in thousands) are: Years Ended December 31, As of December 31, 2015 2014 2013 2015 2014 Revenues Long-Lived Assets United States $ 722,393 $ 766,262 $ 725,649 $ 36,075 $ 37,335 Outside the United States 219,625 114,707 9,486 9,319 10,923 Total $ 942,018 $ 880,969 $ 735,135 $ 45,394 $ 48,258 Revenues are attributed to countries based on the location of the related operations. Long-lived assets consist of net property and equipment. The Company reports revenues earned from its debt purchasing and collection activities and its fee-based services. It is impracticable for the Company to report further breakdowns of revenues from external customers by product or service. Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Included in cash and cash equivalents are funds held on the behalf of others arising from the collection of accounts placed with the Company. The balance of the funds held on behalf of others was $3.9 million and $5.5 million at December 31, 2015 and 2014 , respectively. There is an offsetting liability that is included in "Accounts payable" on the accompanying consolidated balance sheets. Concentrations of credit risk: Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash, investments and finance receivables. Accumulated other comprehensive income/(loss): The Company records unrealized gains and losses on certain available-for-sale investments and foreign currency translation adjustments. Unrealized gains and losses on available for sale investments are reclassified to earnings as the gains or losses are realized upon sale of the securities. Translation gains or losses on foreign currency translation adjustments are reclassified to earnings upon the substantial sale or liquidation of investments in foreign operations. Investments: The Company accounts for its investments under the guidance of ASC Topic 320-10, "Investments-Debt and Equity Securities" ("ASC 320-10"). The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available for sale. Held-to-maturity securities are stated at amortized cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt and marketable equity securities not classified as held to maturity or as trading, are classified as available for sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders' equity. Finance receivables and income recognition: The Company accounts for its investment in finance receivables under the guidance of ASC Topic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" ("ASC 310-30"). The Company acquires portfolios of accounts that have experienced deterioration of credit quality between origination and the Company's acquisition of the accounts. The amount paid for a portfolio reflects the Company's determination that it is probable the Company will be unable to collect all amounts due according to an account's contractual terms. At acquisition, the Company reviews the accounts to determine whether there is evidence of deterioration of credit quality since origination, and if it is probable that the Company will be unable to collect all amounts due according to the loan's contractual terms. If both conditions exist, the Company then determines whether each such account is to be accounted for individually or whether such accounts will be assembled into pools based on common risk characteristics. The Company considers expected prepayments and estimates the amount and timing of undiscounted expected principal, interest and other cash flows (expected at acquisition) for each acquired portfolio based on the Company's proprietary models, and the Company subsequently aggregates portfolios of accounts into pools. The Company determines the excess of the pool's scheduled contractual principal and contractual interest payments over all cash flows expected at acquisition as an amount that should not be accreted (nonaccretable difference). The remaining amount, representing the excess of the pool's cash flows expected to be collected over the amount paid, is accreted into income recognized on finance receivables over the remaining estimated life of the pool (accretable yield). ASC 310-30 requires that the excess of the contractual cash flows over expected cash flows, based on the Company's estimates derived from proprietary collection models, not be recognized as an adjustment of revenue or expense or on the balance sheet. Each static pool is recorded at cost and is accounted for as a single unit for the recognition of income, payments applied to principal and loss provision. Once a static pool is established for a calendar quarter, individual receivable accounts are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). ASC 310-30, utilizing the interest method, initially freezes the yield, estimated when the accounts are purchased, as the basis for subsequent impairment testing. The yield is estimated and periodically recalculated based on the timing and amount of anticipated cash flows using our proprietary collection models. Income on finance receivables is accrued quarterly based on each static pool's effective yield. Significant increases in expected future cash flows may be recognized prospectively, through an upward adjustment of the yield, over a pool's remaining life. Any increase to the yield then becomes the new benchmark for impairment testing. Under ASC 310-30, rather than lowering the estimated yield if the collection estimates are not received or projected to be received, the carrying value of a pool would be written down to maintain the then current yield and is shown as a reduction in revenue in the consolidated income statements with a corresponding valuation allowance offsetting finance receivables, net, on the consolidated balance sheets. Cash flows greater than the interest accrual will reduce the carrying value of the static pool. This reduction in carrying value is defined as payments applied to principal (also referred to as principal amortization). Likewise, cash flows that are less than the interest accrual will accrete the carrying balance. Generally, the Company does not record accretion in the first six to twelve months of the estimated life of the pool; accordingly, the Company utilizes either the cost recovery method or cash method when necessary to prevent accretion as permitted by ASC 310-30. Under the cash method, revenue is recognized as it would be under the interest method up to the amount of cash collections. Under the cost recovery method, no revenue is recognized until the Company has fully collected the cost of the pool, or until such time that the Company considers the collections to be probable and estimable and begin to recognize income based on the interest method as described above. The Company also uses the cost recovery method when collections on a particular pool of accounts cannot be reasonably estimated. A pool can become fully amortized (zero carrying balance on the balance sheet) while still generating cash collections. In this case, all subsequent cash collections are recognized as revenue when received. The Company records a valuation allowance when significant decreases in expected cash flows are identified or there are changes in the timing of expected cash flows that would otherwise require a reduction in the stated yield on a pool of accounts. In any given period, the Company may be required to record valuation allowances due to pools of receivables underperforming previous expectations. Factors that may contribute to the recording of valuation allowances include both external and internal factors. External factors that may have an impact on the collectability, and subsequently on the overall profitability of purchased pools of nonperforming loans, would include: new laws or regulations relating to collections, new interpretations of existing laws or regulations, and the overall condition of the economy. Internal factors that may have an impact on the collectability, and subsequently the overall profitability of purchased pools of nonperforming loans, would include: necessary revisions to initial and post-acquisition scoring and modeling estimates, non-optimal operational activities (which relate to the collection and movement of accounts on both the collection floor of the Company and external channels), and decreases in productivity related to turnover and tenure of the Company's collection staff. The Company capitalizes certain fees paid to third parties related to the direct acquisition of a portfolio of accounts. These fees are added to the acquisition cost of the portfolio and accordingly are amortized over the life of the portfolio using the interest method. The agreements to purchase the aforementioned receivables include general representations and warranties from the sellers covering account holder death or bankruptcy and accounts settled or disputed prior to sale. The representation and warranty period permitting the return of these accounts from the Company to the seller is typically 90 to 180 days. Any funds received from the seller of finance receivables as a return of purchase price are referred to as buybacks. Buyback funds are applied against the finance receivable balance received and are not included in the Company's cash collections from operations. In some cases, the seller will replace the returned accounts with new accounts in lieu of returning the purchase price. In that case, the old account is removed from the pool and the new account is added. Fee income recognition: The Company utilizes the provisions of ASC Topic 605-45, "Principal Agent Considerations" ("ASC 605-45"), to account for fee income revenue from certain of its fee-for-service subsidiaries. ASC 605-45 requires an analysis to be completed to determine if certain revenues should be reported gross or reported net of their related operating expense. This analysis includes an assessment of who retains credit risk, controls vendor selection, establishes pricing and remains the primary obligor on the transaction. Each of these factors was considered to determine the correct method of recognizing revenue from these fee-based subsidiaries. Property and equipment: Property and equipment, including improvements that significantly add to the productive capacity or extend useful life, are recorded at cost. Maintenance and repairs are expensed currently. Property and equipment are depreciated over their useful lives using the straight-line method of depreciation. Software and computer equipment are amortized or depreciated over three to five years. Furniture and fixtures are depreciated over five to ten years. Equipment is depreciated over five to seven years. Leasehold improvements are depreciated over the lesser of the useful life, which ranges from three to ten years, or the remaining term of the lease. Building improvements are depreciated straight-line over ten to thirty-nine years. When property is sold or retired, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in the income statement. Business combinations: The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. Goodwill and intangible assets: Goodwill, in accordance with ASC Topic 350, "Intangibles-Goodwill and Other" ("ASC 350"), is not amortized but rather is reviewed for impairment annually or more frequently if indicators of potential impairment exist. The Company performs its annual assessment on October 1. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management conducts a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its carrying value. The Company estimates the fair values of its reporting units using a combination of the income, or discounted cash flows approach, the market approach, which utilizes comparable companies' data, and the transaction approach, which uses market multiples from comparable transactions where the acquisition target has similar operating and investment characteristics to the reporting unit. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, management performs the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. The amount, by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss . See Note 5 for additional information. Convertible senior notes: The Company accounts for its convertible senior notes (the "Notes") in accordance with ASC 470-20, "Debt with Conversion and Other Options." ASC 470-20 requires that, for convertible debt instruments that must 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. The excess of the principal amount of the liability component over its carrying amount is amortized to interest cost over the expected life of a similar liability that does not have an associated equity component, using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification under ASC 815-40, "Derivatives and Hedging - Contracts in Entity's Own Equity." Transaction costs incurred with third parties are allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. For diluted earnings per share purposes, based upon the Company's intent and ability to settle conversions of the Notes through a combination of cash and shares, 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 . Income taxes: The Company follows the guidance of ASC Topic 740 "Income Taxes" ("ASC 740") as it relates to the provision for income taxes and uncertainty in income taxes. Accordingly, the Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is estimated using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The evaluation of a tax position in accordance with the guidance is a two-step process. The first step is recognition: the enterprise determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the enterprise should presume that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense. In the event that all or part of the deferred tax assets are determined not to be realizable in the future, a valuation allowance would be established and charged to earnings in the period such determination is made. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings. The estimate of income tax expense involves significant judgment in evaluating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our results of operations and financial position. For domestic income tax purposes, the Company recognizes revenue using the cost recovery method with respect to the Company's debt purchasing business. The Company believes cost recovery to be an acceptable method for companies in the bad debt purchasing industry. Under the cost recovery method, collections on finance receivables are applied first to principal to reduce the finance receivables to zero before any income is recognized. Advertising costs: Advertising costs are expensed when incurred. Operating leases: General abatements or prepaid leasing costs are recognized on a straight-line basis over the life of the lease. Future minimum lease payments (including the impact of rent escalations) are expensed on a straight-line basis over the life of the lease. Material leasehold improvements are capitalized and amortized over the remaining life of the lease. Share-based compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires that compensation expense associated with share equity awards be recognized in the income statement. Based on historical experience, the Company estimates a forfeiture rate for most equity share grants. Time-based equity share awards generally vest between three and five years from the grant date and are expensed on a straight-line basis over the vesting period. Equity share awards that contain a performance metric, are expensed over the requisite service period, generally three years, in accordance with the performance level achieved at each reporting period. See Note 9 for additional information. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates have been made by management with respect to the timing and amount of future cash collections of the Company's finance receivables portfolios and the fair value of the assets acquired and liabilities assumed related to the acquisition of Aktiv. Actual results could differ from these estimates making it reasonably possible that a change in these estimates could occur within one year. Commitments and contingencies: We are subject to various claims and contingencies related to lawsuits, certain taxes, and commitments under contractual and other obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. We expense related legal costs as incurred. For additional information, see Note 15. Estimated fair value of financial instruments: The Company applies the provision of ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820"). ASC 820 defines fair value as 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. Disclosure of the estimated fair values of financial instruments often requires the use of estimates. See Note 8 for additional information. Reclassification of prior year presentation: Certain prior year amounts have been reclassified for consistency with the current year presentation. 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, 2017, 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 adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 |
Finance Receivables, net
Finance Receivables, net | 12 Months Ended |
Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Changes in finance receivables, net, for the years ended December 31, 2015 and 2014 , were as follows (amounts in thousands): 2015 2014 Balance at beginning of year $ 2,001,790 $ 1,239,191 Acquisitions of finance receivables (1) 954,954 1,427,436 Foreign currency translation adjustment (80,258 ) (93,499 ) Cash collections (1,539,495 ) (1,378,812 ) Income recognized on finance receivables, net 865,122 807,474 Cash collections applied to principal (674,373 ) (571,338 ) Balance at end of year $ 2,202,113 $ 2,001,790 (1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. It also includes the acquisition date finance receivable portfolio that was acquired in connection with the Aktiv acquisition in 2014 of $727.7 million . At the time of acquisition, the life of each pool is estimated based on projected amounts and timing of future cash collections using the proprietary models of the Company. Based upon current projections, cash collections applied to principal are estimated to be as follows for the following years ending December 31, (amounts in thousands): 2016 $ 582,464 2017 490,594 2018 385,772 2019 314,620 2020 211,479 2021 142,869 2022 66,748 Thereafter 7,567 Total estimated cash collections applied to principal $ 2,202,113 At December 31, 2015 and 2014 , the Company had aggregate net finance receivables balances in pools accounted for under the cost recovery method of $21.0 million and $17.1 million , respectively. 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 years ended December 31, 2015 and 2014 were as follows (amounts in thousands): 2015 2014 Balance at beginning of year $ 2,513,185 $ 1,430,067 Income recognized on finance receivables, net (865,122 ) (807,474 ) Additions (1) 756,628 1,609,340 Reclassifications from nonaccretable difference 502,665 390,255 Foreign currency translation adjustment (180,152 ) (109,003 ) Balance at end of year $ 2,727,204 $ 2,513,185 (1) Additions for 2014 include the acquisition date accretable yield that was acquired in connection with the Aktiv acquisition of approximately $1.0 billion . 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 years ended December 31, 2015 , 2014 and 2013 (amounts in thousands): 2015 2014 2013 Beginning balance $ 86,166 $ 91,101 $ 93,123 Allowance charges 31,974 8,010 9,666 Reversal of previous recorded allowance charges (2,605 ) (12,945 ) (11,688 ) Net allowance charges/(reversals) 29,369 (4,935 ) (2,022 ) Foreign currency translation adjustment (674 ) — — Ending balance $ 114,861 $ 86,166 $ 91,101 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consist of the following at December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Trading Short-term investments $ — $ 37,405 Available-for-sale Securitized assets 4,649 3,721 Government bonds and fixed income funds 3,405 — Held-to-maturity Securitized assets 50,247 31,017 Other investments Private equity funds 15,498 17,560 Total investments $ 73,799 $ 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 of the Series B certificates and a 20% interest of 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. There was no revenue recorded in 2015 or 2014 from this investment. Government bonds and fixed income funds: The Company's investments in government bonds and fixed income are classified as available-for-sale and are stated at fair value. Fair value is estimated using the net asset value of the investment. Unrealized gains and losses are included in comprehensive income and reported in equity. Held-to-Maturity Investments in securitized assets : The Company holds Series B certificates in a closed-end Polish investment fund. The 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 occurs when the fund terminates or liquidates its assets. 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. 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. Distributions received from investments carried at cost were $7.8 million and $7.1 million for 2015 and 2014 , respectively. The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at December 31, 2015 and 2014 were as follows (amounts in thousands): December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,855 $ — $ 1,206 $ 4,649 Government bonds and fixed income funds 3,405 — — 3,405 Held-to-maturity Securitized assets 50,247 5,366 — 55,613 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 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases: The Company leases office space and equipment under operating leases. Rental expense was $11.3 million , $8.7 million and $6.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Future minimum lease payments for operating leases at December 31, 2015 , are as follows for the years ending December 31, (amounts in thousands): 2016 $ 10,894 2017 9,351 2018 7,935 2019 4,924 2020 2,892 Thereafter 3,175 Total future minimum lease payments $ 39,171 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 12 Months Ended |
Dec. 31, 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. Intangible assets resulting from these acquisitions include client and customer relationships, non-compete agreements, trademarks and technology. 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, 2015, and concluded that no goodwill impairment was necessary. During 2013, the Company evaluated the goodwill associated with one of its reporting units, which had experienced a revenue and profitability decline, recent net losses, and the loss of a significant client. The Company estimated the fair value of the reporting unit using the present value of future cash flows and earnings and concluded that the carrying value of goodwill exceeded the implied fair value. Accordingly, the Company recorded a $6.4 million impairment of goodwill in the third quarter of 2013. This charge represents the full amount of goodwill recorded for the reporting unit. Goodwill recognized from the acquisitions of RCB, $38.5 million , in 2015 and Aktiv and Pamplona Capital Management, LLP, $512.0 million , in 2014 represents, among other things, a significant dataset, portfolio modeling, an established workforce, and the future economic benefits arising from expected synergies and expanded geographical diversity. The acquired goodwill is not deductible for U.S. income tax purposes. The following table represents the changes in goodwill for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Balance at beginning of period: Goodwill $ 533,842 $ 110,240 Accumulated impairment loss (6,397 ) (6,397 ) 527,445 103,843 Changes: Acquisitions 38,489 512,049 Foreign currency translation adjustment (70,778 ) (88,447 ) Net change in goodwill (32,289 ) 423,602 Balance at end of period: Goodwill 501,553 533,842 Accumulated impairment loss (6,397 ) (6,397 ) $ 495,156 $ 527,445 Intangible assets, excluding goodwill, consist of the following at December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Gross Accumulated Gross Accumulated Client and customer relationships $ 47,674 $ 28,064 $ 35,252 $ 25,132 Non-compete agreements 858 119 627 572 Trademarks 4,367 2,038 3,432 2,674 Technology 1,211 101 — — Total $ 54,110 $ 30,322 $ 39,311 $ 28,378 The Company amortizes the intangible assets over the estimated useful lives. Total amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $3.7 million , $4.8 million and $4.7 million , respectively. The Company reviews these intangible assets for possible impairment if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount and thereby necessitate further evaluation of these intangible assets. The future amortization of these intangible assets is estimated to be as follows as of December 31, 2015 for the following years ending December 31, (amounts in thousands): 2016 $ 4,692 2017 3,826 2018 3,275 2019 2,798 2020 2,293 Thereafter 6,904 Total $ 23,788 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): December 31, December 31, Domestic revolving credit $ 541,799 $ 409,000 Term loan 170,000 185,000 Note payable 169,938 169,938 Multicurrency revolving credit 576,433 427,680 Subordinated loan — 30,000 Convertible senior notes 287,500 287,500 Less: Debt discount (22,402 ) (26,662 ) Total $ 1,723,268 $ 1,482,456 Domestic Revolving Credit and Term Loan On December 19, 2012, the Company entered into a credit facility with Bank of America, N.A., as administrative agent, and a syndicate of lenders named therein (such agreement as later amended or modified, the "Credit Agreement"). On August 4, 2015, the Company entered into a fifth amendment to the Credit Agreement (the "Fifth Amendment"). Among other things, the Fifth Amendment (a) added Bank of America, N.A., acting through its Canada branch, as Canadian Administrative Agent under the Credit Agreement, (b) added the Company's wholly-owned subsidiary, PRA Group Canada Inc., as a Borrower under the Credit Agreement, (c) removed the Financial Covenant with respect to Consolidated Tangible Net Worth, (d) terminated the Multi Currency Revolving B Commitments, (e) added $50.0 million of Canadian Revolving Commitments, (f) modified 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) acknowledged the change of the Company's legal name in October 2014 to PRA Group, Inc. On September 30, 2015, the Company entered into a sixth amendment which increased the allowable amount of stock repurchases during the term of the agreement to $315 million and removed the requirement that the Company cannot exceed $100 million in share repurchases during a given year. On December 23, 2015, the Company fully exercised the $125 million accordion feature available under the Credit Agreement. The commitments of two existing Lenders under its domestic revolving credit facility were increased, and an additional Lender was included. This execution of the accordion feature under the Credit Agreement increased by $125 million the commitments under the domestic revolving credit facility, bringing the total amount available under the domestic revolving credit facility to an aggregate principal amount of $725 million . The total credit facility under the Credit Agreement includes an aggregate principal amount of $945.0 million (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $170.0 million term loan, (ii) a $725 million domestic revolving credit facility, of which $198.0 million is available to be drawn, and (iii) a $50 million Canadian revolving credit facility, of which $35.2 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, or (c) the Eurodollar rate plus 1.00% . The Company's revolving credit facility includes a $20 million swingline loan sublimit and a $20 million letter of credit sublimit. The Credit Agreement is secured by a first priority lien on substantially all of the Company's domestic 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; • 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 $315 million ; • 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 December 31, 2015 consisted of $170.0 million outstanding on the term loan with an annual interest rate as of December 31, 2015 of 2.92% and $541.8 million outstanding in 30-day Eurodollar rate loans on the revolving facility with a weighted average interest rate of 2.89% . 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% . 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 with an affiliate of the seller in the Aktiv acquisition. On December 30, 2015, the Company exercised its option to extend the maturity date to July 19, 2016. The note bears interest at the three-month London Interbank Offered Rate ("LIBOR") plus 3.75% . The quarterly interest due can be paid or rolled into the note payable balance at the Company's option. At December 31, 2015 and 2014 , the balance due on the note was $169.9 million with an annual interest rate of 4.36% and 4.01% , respectively. 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 (such agreement as later amended or modified, "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 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 28.0% to 33.0% , subject to the payment of additional associated fees. Under the terms of the Multicurrency Revolving Credit Agreement, the credit facility includes an aggregate amount of $750 million , of which $192.2 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 Multicurrency Revolving Credit Agreement), bears an unused line fee of 1.05% per annum, payable monthly in arrears, and matures on October 23, 2019 . The Multicurrency Revolving Credit Agreement also includes an Overdraft Facility aggregate amount of $40 million , of which $21.4 million is available to be drawn, accrues interest at the IBOR plus 2.50 - 3.00% (as determined by the ERC Ratio as defined in the Multicurrency Revolving Credit Agreement), bears a facility line fee of 0.125% per annum, payable quarterly in arrears, and also matures October 23, 2019. The Multicurrency Revolving Credit Agreement is secured by the shares of most of the Company's European subsidiaries and by all intercompany loan receivables in Europe. The Multicurrency Revolving Credit Agreement contains restrictive covenants and events of default including the following: • the ERC Ratio (as defined in the Multicurrency Revolving Credit Agreement) may not exceed 33% ; • the GIBD Ratio (as defined in the 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 Europe's ERC for the same set of portfolios, measured monthly on a quarterly basis. At December 31, 2015 , the balance on the Multicurrency Revolving Credit Agreement was $576.4 million , with a weighted average annual interest rate of 3.64% . At December 31, 2014 , the balance on the Multicurrency Revolving Credit Agreement was $427.7 million , with a weighted average annual interest rate of 4.25% . 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 (the "Commitment"). 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% , and originally was scheduled to mature 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. Interest on the Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014. 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 December 31, 2015 and 2014 , none of the conditions allowing holders of the Notes to convert their Notes had occurred. As noted above, upon conversion, holders of the Notes will receive cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. However, the Company's current intent is to settle conversions through combination settlement (i.e ., the Notes will be converted into cash up to the aggregate principal amount, and shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election, for the remainder). As a result and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company's common stock during any quarter exceeds $65.72 . The net proceeds from the sale of the Notes were approximately $279.3 million , after deducting the initial purchasers' discounts and commissions and the estimated offering expenses payable by the Company. The Company used $174.0 million of the net proceeds from this offering to repay the outstanding balance on its revolving credit facility and used $50.0 million to repurchase shares of its common stock. 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 all of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): December 31, December 31, Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (22,402 ) (26,662 ) Liability component - net carrying amount $ 265,098 $ 260,838 Equity component $ 31,306 $ 31,306 The debt discount is 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 years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 2013 Interest expense - stated coupon rate $ 8,625 $ 8,625 $ 3,306 Interest expense - amortization of debt discount 4,260 4,058 1,508 Total interest expense - convertible senior notes $ 12,885 $ 12,683 $ 4,814 The Company was in compliance with all covenants under its financing arrangements as of December 31, 2015 and 2014 . The following principal payments are due on the Company's borrowings at December 31, 2015 for the years ending December 31, (amounts in thousands): 2016 $ 189,938 2017 691,799 2018 — 2019 576,433 2020 287,500 Thereafter — Total $ 1,745,670 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | Property and Equipment, net: Property and equipment, at cost, consist of the following as of December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Software $ 62,198 $ 53,076 Computer equipment 21,109 20,488 Furniture and fixtures 11,888 11,502 Equipment 12,874 12,880 Leasehold improvements 15,112 14,429 Building and improvements 7,235 7,049 Land 1,296 1,269 Accumulated depreciation and amortization (86,318 ) (72,435 ) Property and equipment, net $ 45,394 $ 48,258 Depreciation and amortization expense relating to property and equipment for the years ended December 31, 2015 , 2014 and 2013 was $16.2 million , $13.6 million and $9.7 million , respectively. The Company, in accordance with the guidance of ASC Topic 350-40 "Internal-Use Software" ("ASC 350-40"), capitalizes qualifying computer software costs incurred during the application development stage and amortizes them over their estimated useful life on a straight-line basis beginning when the project is completed. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company's policy provides for the capitalization of certain direct payroll costs for employees who are directly associated with internal use computer software projects, as well as external direct costs of services associated with developing or obtaining internal use software. Capitalizable personnel costs are limited to the time directly spent on such projects. As of December 31, 2015 and 2014 , the Company has incurred and capitalized $15.0 million and $12.9 million , respectively, of these direct payroll costs related to software developed for internal use. As of December 31, 2015 and 2014 , $0.1 million and $1.0 million of these costs are for projects that are in the development stage and therefore are a component of "Other assets." Once the projects are completed, the costs will be transferred to Software and amortized over their estimated useful life of three to seven years. Amortization expense relating to this internally developed software for the years ended December 31, 2015 , 2014 and 2013 was $2.2 million , $1.9 million and $1.5 million , respectively. Remaining unamortized costs relating to this internally developed software as of December 31, 2015 , 2014 and 2013 were $6.6 million , $5.9 million and $4.4 million , respectively. |
Fair Value Measurements And Dis
Fair Value Measurements And Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: As defined by 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 ASC Topic 825, "Financial Instruments" ("ASC 825"), the table below summarizes fair value estimates for the Company's financial instruments that are 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 in the table are recorded in the consolidated balance sheets at December 31, 2015 and December 31, 2014 (amounts in thousands): December 31, 2015 December 31, 2014 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 71,372 $ 71,372 $ 39,661 $ 39,661 Held-to-maturity investments 50,247 55,613 31,017 31,017 Other investments 15,498 16,803 17,560 19,776 Finance receivables, net 2,202,113 2,704,432 2,001,790 2,460,787 Financial liabilities: Interest-bearing deposits 46,991 46,991 27,704 27,704 Revolving lines of credit 1,118,232 1,118,232 836,680 836,680 Term loans 170,000 170,000 185,000 185,000 Notes and loans payable 169,938 169,938 199,938 199,938 Convertible senior notes 265,098 241,126 260,838 324,757 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 financial instruments: Cash and cash equivalents: The carrying amount approximates fair value and quoted prices for identical assets can be found in active markets. Accordingly, the Company estimates the fair value of cash and cash equivalents using Level 1 inputs. 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 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 senior 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 December 31, 2015 and 2014 (amounts in thousands): Fair Value Measurements as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 3,405 $ — $ 4,649 $ 8,054 Liabilities: Interest rate swap contracts (recorded in accrued expenses) $ — $ 1,601 $ — $ 1,601 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 these 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. At December 31, 2015 , unrealized losses in other comprehensive income were $1.2 million . There were no unrealized gains or losses in other comprehensive income in 2014 . Fair value of the Company's investment in government bonds and fixed income funds is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [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. Total share-based compensation expense was $16.3 million , $15.0 million and $12.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Tax benefits resulting from tax deductions in excess of share-based compensation expense (windfall tax benefits) recognized under the provisions of ASC 718 are credited to additional paid-in capital. 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 $8.9 million , $10.8 million and $8.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Nonvested Shares As of December 31, 2015 , total future compensation costs related to nonvested awards of nonvested shares (not including nonvested shares granted under the Long-Term Incentive Program ("LTI") is estimated to be $8.8 million with a weighted average remaining life for all nonvested shares of 1.5 years . Grants made to key employees and directors of the Company were assumed to have no forfeiture rates associated with them due to the historically low turnover among this group. With the exception of the awards made pursuant to the LTI program and a few employee and director grants the nonvested shares vest ratably generally over three to five years and are expensed over their vesting period. The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2012 through December 31, 2015 (amounts in thousands, except per share amounts): Nonvested Shares Weighted-Average December 31, 2012 288 $ 20.84 Granted 110 37.31 Vested (143 ) 19.75 Canceled (29 ) 20.57 December 31, 2013 226 29.58 Granted 272 56.69 Vested (155 ) 37.34 Canceled (4 ) 50.41 December 31, 2014 339 47.34 Granted 100 53.29 Vested (151 ) 42.15 Canceled (4 ) 47.49 December 31, 2015 284 $ 52.20 The total grant date fair value of shares vested, excluding those granted under the LTI program, during the years ended December 31, 2015 , 2014 and 2013 , was $6.4 million , $5.8 million and $2.8 million , respectively. Long-Term Incentive Program 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 table summarizes all LTI share transactions from December 31, 2012 through December 31, 2015 (amounts in thousands, except per share amounts): Nonvested LTI Shares Weighted-Average December 31, 2012 497 $ 21.71 Granted at target level 124 34.59 Adjustments for actual performance 108 17.91 Vested (279 ) 19.10 Canceled (16 ) 25.01 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 Adjustments for actual performance 122 34.59 Vested (252 ) 20.21 Canceled (7 ) 40.05 December 31, 2015 483 $ 42.80 The total grant date fair value of LTI shares vested during the years ended December 31, 2015 , 2014 and 2013 , was $5.1 million , $6.8 million and $5.3 million , respectively. At December 31, 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 $8.8 million . The Company assumed a 7.5% forfeiture rate for these grants and the remaining shares have a weighted average life of 0.9 years at December 31, 2015 . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 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 shareholders 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 December 31, 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 received upon assumed exercise. The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the years ended December 31, 2015 , 2014 and 2013 (amounts in thousands, except per share amounts): 2015 2014 2013 Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Basic EPS $ 167,926 48,128 $ 3.49 $ 176,505 49,990 $ 3.53 $ 175,314 50,366 $ 3.48 Dilutive effect of nonvested share awards 277 (0.02 ) 431 (0.03 ) 507 (0.03 ) Diluted EPS $ 167,926 48,405 $ 3.47 $ 176,505 50,421 $ 3.50 $ 175,314 50,873 $ 3.45 There were no antidilutive options outstanding as of December 31, 2015 , 2014 and 2013 . |
Proforma Financial Information
Proforma Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Proforma Financial Information | : Aktiv Results The Company's results for the year ended December 31, 2014 include the operations of Aktiv from the acquisition date of July 16, 2014 through December 31, 2014. The table below presents the estimated impact of the Aktiv acquisition on our revenue and income from continuing operations, net of tax for the year ended December 31, 2014. The table also includes condensed pro forma information on our combined results of operations as they may have appeared assuming the Aktiv acquisition had been completed on January 1, 2013. These amounts include certain corporate expenses, transaction costs or merger related expenses that resulted from the acquisition and are therefore not representative of the actual results of the operations of these businesses on a stand-alone basis. Included in the combined pro forma results are adjustments to reflect the impact of certain purchase accounting adjustments, including adjustments to Income recognized on finance receivables, net; Outside fees and services; Depreciation and amortization; and Interest expense. The pro forma condensed combined financial information is presented for illustrative purposes only and does not indicate the actual combined financial results had the closing of the Aktiv acquisition been completed on January 1, 2013 nor does it reflect the benefits obtained through the integration of business operations realized since acquisition. Furthermore, the information is not indicative of the results of operations in future periods. The unaudited pro forma condensed combined financial information does not reflect the impact of possible business model changes nor does it consider any potential impacts of market conditions, expense efficiencies or other factors. Aktiv Impact Combined Pro Forma Results (Unaudited) From July 16, 2014 through December 31, 2014 Year Ended December 31, (amounts in thousands) 2014 2013 Revenues $ 102,098 $ 1,020,234 $ 970,148 Net income attributable to PRA Group, Inc. 22,537 219,947 320,470 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives: The Company's activities are subject to various financial risks including market risk, currency and interest rate risk, credit risk, liquidity risk and cash flow risk. The Company's overall financial risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. The Company may periodically enter into derivative financial instruments, typically interest rate swap agreements, to reduce its exposure to fluctuations in interest rates on variable-rate debt and their impact on earnings and cash flows. The Company does not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed nor does it enter into or hold derivatives for trading or speculative purposes. The Company periodically reviews the creditworthiness of the swap counterparty to assess the counterparty's ability to honor its obligation. Counterparty default would expose the Company to fluctuations in variable interest rates. Based on the guidance of ASC Topic 815 "Derivatives and Hedging" ("ASC 815"), the Company records derivative financial instruments at fair value on the consolidated balance sheets. The financing of portfolio investments is generally drawn in the same currencies as the underlying expected future cash flow from the portfolios. The interest rate risk related to the loans is reduced through the use of a combination of interest rate swaps in EUR, GBP, SEK, PLN and NOK. At December 31, 2015 and 2014, approximately 42% and 54% , respectively, of the net borrowings of PRA Europe was hedged, reducing the related interest rate risk. The Company's financial derivative instruments are not designated as hedging instruments under ASC 815 and therefore the gain or loss on such hedge and the change in fair value of the derivative is recorded in "interest income/(expense)" in the Company's consolidated financial statements. During the years ended December 31, 2015 and 2014 , the Company recorded $4.9 million and $1.8 million , respectively, in interest expense related to its interest rate swaps in its consolidated income statements. There were no derivatives outstanding during the year ended December 31, 2013. The following table sets forth the fair value amounts of the derivative instruments held by the Company as December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Derivatives not designated as hedging instruments under ASC 815 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest rate swap contracts $ — $ 1,602 $ — $ 3,387 Liabilities for derivatives are recorded in accrued expenses in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity: On December 10, 2014, the Company's board of directors authorized a share repurchase program to purchase up to $100.0 million of the Company's outstanding shares of common stock on the open market. During the year ended December 31, 2015 , the Company purchased 1,610,182 shares of its common stock under the plan at an average price of $53.10 per share, which represented the remaining shares allowed under the plan. On October 22, 2015 , the Company's board of directors authorized a new share repurchase program to purchase up to $125.0 million of the Company's outstanding shares of common stock on the open market. During the year ended December 31, 2015 , the Company purchased 2,072,721 shares of its common stock under the new plan at an average price of $38.60 per share. At December 31, 2015 , the maximum remaining purchase price for share repurchases under the plan is approximately $45.0 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The Company follows the guidance of ASC 740 as it relates to the provision for income taxes and uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The income tax expense/(benefit) recognized for the years ended December 31, 2015 , 2014 and 2013 is comprised of the following (amounts in thousands): Federal State Foreign Total For the year ended December 31, 2015: Current tax expense $ 62,869 $ 9,399 $ 25,692 $ 97,960 Deferred tax expense/(benefit) 2,887 (600 ) (10,856 ) (8,569 ) Total income tax expense $ 65,756 $ 8,799 $ 14,836 $ 89,391 For the year ended December 31, 2014: Current tax expense $ 57,336 $ 8,823 $ 5,342 $ 71,501 Deferred tax expense 30,319 4,717 17,971 53,007 Total income tax expense $ 87,655 $ 13,540 $ 23,313 $ 124,508 For the year ended December 31, 2013: Current tax expense $ 82,163 $ 12,163 $ 833 $ 95,159 Deferred tax expense/(benefit) 13,321 (550 ) (1,784 ) 10,987 Total income tax expense/(benefit) $ 95,484 $ 11,613 $ (951 ) $ 106,146 A reconciliation of the Company's expected tax expense at the statutory federal tax rate to actual tax expense for the years ended December 31, 2015 , 2014 and 2013 is as follows (amounts in thousands): 2015 2014 2013 Expected tax expense at statutory federal rates $ 90,133 $ 105,355 $ 99,073 State tax expense, net of federal tax benefit 5,719 8,565 7,548 Foreign taxable translation (708 ) 8,199 — Foreign rate difference (8,787 ) 90 820 Penalties 2,819 — — Acquisition expenses 234 2,169 — Other (19 ) 130 (1,295 ) Total income tax expense $ 89,391 $ 124,508 $ 106,146 The Company has recognized a net deferred tax liability of $248.4 million and $249.5 million as of December 31, 2015 and 2014 , respectively. The components of the net deferred tax liability are as follows (amounts in thousands): 2015 2014 Deferred tax assets: Employee compensation $ 13,845 $ 9,304 Net operating loss carryforward 39,080 33,026 Other 3,843 5,447 Accrued liabilities 8,429 3,334 Interest 10,664 7,876 Total deferred tax asset 75,861 58,987 Deferred tax liabilities: Depreciation expense 5,276 5,998 Intangible assets and goodwill 7,039 1,434 Convertible debt 8,653 10,332 Other 4,204 7,843 Finance receivable revenue recognition - international 2,063 11,677 Finance receivable revenue recognition - domestic 251,733 240,998 Total deferred tax liability 278,968 278,282 Valuation allowance 45,323 30,166 Net deferred tax liability $ 248,430 $ 249,461 A valuation allowance for deferred tax assets is recognized and charged to earnings in the period such determination is made, if it is determined that it is more likely than not that the deferred tax asset will not be realized. If the Company subsequently realized deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings in the period such determination is made. The determination for a valuation allowance is made on a jurisdiction by jurisdiction basis. At December 31, 2015 and 2014 , the valuation allowance relating to tax losses and interest limitations in Norway and Luxembourg is $45.3 million and $30.2 million , respectively. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. 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 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 ("Tax Court"). 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 October 30, 2015, the Tax Court held oral arguments on the IRS motions. On November 12, 2015 the IRS motions for summary judgment were denied. The court also set this matter for trial to begin on September 19, 2016. If the Company is unsuccessful in the Tax Court and any potential appeals, it may be required to pay the related deferred taxes, and possibly interest and penalties. At December 31, 2015 and 2014 deferred tax liabilities related to this item were $251.7 million and $241.0 million , respectively. 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. At December 31, 2015 and 2014 the Company's estimate of the potential federal and state interest was $91.0 million and $79.0 million , respectively. 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. At December 31, 2015 , the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2003, 2005 and subsequent years. The 2003 tax year remains open to examination because of a net operating loss that originated in that year but was not fully utilized until the 2005 tax year. The examination periods for the 2005 through 2012 tax years are suspended until a decision of the Tax Court becomes final. As of December 31, 2015 , the cumulative unremitted earnings of the Company's foreign subsidiaries are approximately $1.2 million . The Company intends for predominantly all foreign earnings to be indefinitely reinvested in its foreign operations and, therefore, the recording of deferred tax liabilities for such unremitted earnings is not required. It is impracticable to determine the total amount of unrecognized deferred taxes with respect to these permanently reinvested earnings. The amount of cash on hand related to foreign operations with permanently reinvested earnings was $51.5 million and $23.0 million as of December 31, 2015 and 2014 , respectively. The Company's foreign subsidiaries have $1.7 million and $10.7 million of net operating loss carryforwards net of valuation allowances as of December 31, 2015 and 2014 , respectively. Most of the net operating losses do not expire under local law and the remaining jurisdictions allow for a 7 to 20 year carryforward period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 which are based on the attainment of specific management goals. As of December 31, 2015 , estimated future compensation under these agreements is approximately $21.9 million . The agreements also contain confidentiality and non-compete provisions. Outside the United States, 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 $21.9 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 December 31, 2015 total approximately $39.2 million . Forward Flow Agreements: The Company is party to several forward flow agreements that allow for the purchase of nonperforming loans at pre-established prices. The maximum remaining amount to be purchased under forward flow agreements at December 31, 2015 is approximately $541.1 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, proceedings and regulatory matters, 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 and regulatory matters 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. The Company believes that the estimate of the aggregate range of reasonably possible losses in excess of the amount accrued for its legal proceedings outstanding at December 31, 2015, excluding the potential interest associated with the IRS matter described below, is from $0 to $80 million . 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, with the exception of the Telephone Consumer Protection Act Litigation matter. 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 U.S. Judicial Panel on Multi-District Litigation entered an order transferring these matters into one consolidated proceeding in the U.S. 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 U.S. 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. In January 2016, the parties reached a settlement agreement in principle under which the parties have agreed to seek court approval of class certification and the proposed settlement. The Company has fully accrued for the settlement amount as of December 31, 2015. During the years ended December 31, 2015, 2014 and 2013, the amounts charged to earnings through Outside fees and services expense, related to the accrual for this matter were $8.0 million , $0 and $1.2 million , respectively. The 2015 amount is net of expected insurance proceeds. Internal Revenue Service Audit The 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 the Company's 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 for finance receivables. In response to the notices, the Company filed petitions in the Tax Court challenging the deficiency. 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 October 30, 2015, the Tax Court held oral arguments on the IRS motions. On November 12, 2015, the IRS Motions for Summary Judgment were denied. The Tax Court also set this matter for trial, to begin on September 19, 2016. If the Company is unsuccessful in the Tax Court and any potential appeals to the Federal 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 $251.7 million at December 31, 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 $91.0 million as of December 31, 2015 , which has not been accrued. Consumer Financial Protection Bureau Investigation On September 9, 2015, Portfolio Recovery Associates, LLC, a wholly owned subsidiary of the Company, entered into a Consent Order with the Consumer Financial Protection Bureau (the "CFPB"), settling a previously disclosed investigation of certain debt collection practices of the subsidiary (the "Consent Order"). Among other things, the Consent Order requires the Company to: (i) vacate 837 judgments obtained after the applicable statute of limitations, refund $860,607 in payments received on account of such judgments and waive the remaining $3,411,094 of judgment balances; (ii) refund $18,184,836 in Litigation Department Calls Restitution, as defined in the Consent Order, and (iii) pay an $8,000,000 civil money penalty to the CFPB. All payments required by the Consent Order were made during 2015 and included in Other operating expenses. 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 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 appealed the award. Unless overturned or significantly reduced, the award could result in a loss of up to the amount of the jury award. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | Retirement Plans: The Company sponsors defined contribution plans both in the United States and Europe. The U.S. plan is organized as a 401(k) plan under which all employees over eighteen years of age are eligible to make voluntary contributions to the plan up to 100% of their compensation, subject to Internal Revenue Service limitations, after completing six months of service, as defined in the plan. The Company makes matching contributions of up to 4% of an employee's salary. For the defined contribution plans in Europe, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Total compensation expense related to the Company's contributions was $4.3 million , $2.8 million , and $1.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event: On February 19, 2016, the Company entered into a second amendment to the Multicurrency Revolving Credit Agreement which provided, among other things, (i) the extension of the final repayment date to February 19, 2021, (ii) an increase to the total commitments from $750 million to $900 million , subject to certain requirements, (iii) the ability to obtain shareholder loans of up to 10% of the Total Commitment (as defined in the Multicurrency Revolving Credit Agreement) under certain circumstances, and (iv) an ERC ratio (as defined in Multicurrency Revolving Credit Agreement) ranging from and an increase in the maximum ERC ratio from 32.2% to 38.7% depending on the mix of portfolios owned, subject to the payment of additional associated fees. |
General and Summary of Signif25
General and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of operations and Recent acquisitions | Nature of operations: 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 nonperforming loans. 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 United States, and provides class action claims settlement recovery services and related payment processing to corporate clients. Recent acquisitions: On August 3, 2015, the Company acquired 55% of the equity interest in RCB Investimentos S.A. ("RCB"). The remaining 45% of the equity interest in RCB is owned by the executive team and previous owners of RCB. RCB was founded in 2007 and is a leading master servicing platform for nonperforming loans in Brazil. RCB specializes in structuring, investing and operating receivable and credit-related assets. The founders of RCB each entered into long-term employment agreements with the Company and will continue to manage RCB's local business in Brazil. The Company's investment for the 55% ownership of RCB was paid for with approximately $55.2 million in cash which was borrowed under the Company's existing domestic revolving credit facility. The majority of cash the Company paid to acquire the equity interest in RCB is expected to be used in the ordinary course of business. As part of the investment and call option agreements, the Company has the right to purchase the remaining 45% of RCB at certain multiples of EBITDA beginning on August 3, 2019 and lasting for two years. In accordance with ASC Topic 810, "Consolidation," the Company has consolidated all financial statement accounts of RCB in its consolidated balance sheet as of December 31, 2015 and its consolidated income statement for the year ended December 31, 2015. The consolidated income statement for the year ended December 31, 2015 includes the results of operations of RCB from August 3, 2015 through December 31, 2015. The noncontrolling interest amount is included as a separate component of equity and represents the 45% interest not controlled by the Company. In addition, net income attributable to the noncontrolling interest is stated separately in the consolidated income statement for the year ended December 31, 2015. On July 16, 2014, the Company completed the acquisition of Aktiv Kapital AS ("Aktiv"), a Norway-based company specializing in the acquisition and servicing of non-performing loans throughout Europe and in Canada, for a purchase price of approximately $861.3 million , and assumed approximately $433.7 million of Aktiv's corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion . The Company's consolidated income statements and statements of comprehensive income, equity and cash flows include the results of operations of Aktiv for the period from July 16, 2014 through December 31, 2015. |
Basis of presentation and Segments | Basis of presentation: 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. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions. Segments: 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. Stock Split: On June 10, 2013, the Company's board of directors declared a three-for-one stock split by means of a stock dividend. The new shares were distributed on August 1, 2013, and the shares began trading on a split-adjusted basis beginning August 2, 2013. As a result of this action, approximately 33.8 million shares were issued to stockholders. The par value of the common stock remained at $0.01 per share and, accordingly, approximately $0.3 million was retroactively transferred from additional paid-in capital to common stock for all periods presented. Earnings per share, weighted average shares outstanding and other share related information are presented in this Form 10-K after the effect of the stock split. |
Translation of foreign currencies | Translation of foreign currencies: The financial statements of certain of the Company's foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities are translated as of the balance sheet date and revenue and expenses are translated at an average rate over the period. Unrealized gains or losses resulting from currency translation adjustments are recorded as a component of other comprehensive income/(loss). Realized gains and losses from foreign currency transactions are recorded as a component of "Foreign exchange gain/(loss)" in the consolidated income statements. |
Cash and cash equivalents | Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Included in cash and cash equivalents are funds held on the behalf of others arising from the collection of accounts placed with the Company. The balance of the funds held on behalf of others was $3.9 million and $5.5 million at December 31, 2015 and 2014 , respectively. There is an offsetting liability that is included in "Accounts payable" on the accompanying consolidated balance sheets. |
Concentrations of credit risk | Concentrations of credit risk: Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash, investments and finance receivables. |
Accumulated other comprehensive income/(loss) | Accumulated other comprehensive income/(loss): The Company records unrealized gains and losses on certain available-for-sale investments and foreign currency translation adjustments. Unrealized gains and losses on available for sale investments are reclassified to earnings as the gains or losses are realized upon sale of the securities. Translation gains or losses on foreign currency translation adjustments are reclassified to earnings upon the substantial sale or liquidation of investments in foreign operations. |
Investments | Investments: The Company accounts for its investments under the guidance of ASC Topic 320-10, "Investments-Debt and Equity Securities" ("ASC 320-10"). The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available for sale. Held-to-maturity securities are stated at amortized cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt and marketable equity securities not classified as held to maturity or as trading, are classified as available for sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders' equity. |
Finance receivables and income recognition | Finance receivables and income recognition: The Company accounts for its investment in finance receivables under the guidance of ASC Topic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" ("ASC 310-30"). The Company acquires portfolios of accounts that have experienced deterioration of credit quality between origination and the Company's acquisition of the accounts. The amount paid for a portfolio reflects the Company's determination that it is probable the Company will be unable to collect all amounts due according to an account's contractual terms. At acquisition, the Company reviews the accounts to determine whether there is evidence of deterioration of credit quality since origination, and if it is probable that the Company will be unable to collect all amounts due according to the loan's contractual terms. If both conditions exist, the Company then determines whether each such account is to be accounted for individually or whether such accounts will be assembled into pools based on common risk characteristics. The Company considers expected prepayments and estimates the amount and timing of undiscounted expected principal, interest and other cash flows (expected at acquisition) for each acquired portfolio based on the Company's proprietary models, and the Company subsequently aggregates portfolios of accounts into pools. The Company determines the excess of the pool's scheduled contractual principal and contractual interest payments over all cash flows expected at acquisition as an amount that should not be accreted (nonaccretable difference). The remaining amount, representing the excess of the pool's cash flows expected to be collected over the amount paid, is accreted into income recognized on finance receivables over the remaining estimated life of the pool (accretable yield). ASC 310-30 requires that the excess of the contractual cash flows over expected cash flows, based on the Company's estimates derived from proprietary collection models, not be recognized as an adjustment of revenue or expense or on the balance sheet. Each static pool is recorded at cost and is accounted for as a single unit for the recognition of income, payments applied to principal and loss provision. Once a static pool is established for a calendar quarter, individual receivable accounts are not added to the pool (unless replaced by the seller) or removed from the pool (unless sold or returned to the seller). ASC 310-30, utilizing the interest method, initially freezes the yield, estimated when the accounts are purchased, as the basis for subsequent impairment testing. The yield is estimated and periodically recalculated based on the timing and amount of anticipated cash flows using our proprietary collection models. Income on finance receivables is accrued quarterly based on each static pool's effective yield. Significant increases in expected future cash flows may be recognized prospectively, through an upward adjustment of the yield, over a pool's remaining life. Any increase to the yield then becomes the new benchmark for impairment testing. Under ASC 310-30, rather than lowering the estimated yield if the collection estimates are not received or projected to be received, the carrying value of a pool would be written down to maintain the then current yield and is shown as a reduction in revenue in the consolidated income statements with a corresponding valuation allowance offsetting finance receivables, net, on the consolidated balance sheets. Cash flows greater than the interest accrual will reduce the carrying value of the static pool. This reduction in carrying value is defined as payments applied to principal (also referred to as principal amortization). Likewise, cash flows that are less than the interest accrual will accrete the carrying balance. Generally, the Company does not record accretion in the first six to twelve months of the estimated life of the pool; accordingly, the Company utilizes either the cost recovery method or cash method when necessary to prevent accretion as permitted by ASC 310-30. Under the cash method, revenue is recognized as it would be under the interest method up to the amount of cash collections. Under the cost recovery method, no revenue is recognized until the Company has fully collected the cost of the pool, or until such time that the Company considers the collections to be probable and estimable and begin to recognize income based on the interest method as described above. The Company also uses the cost recovery method when collections on a particular pool of accounts cannot be reasonably estimated. A pool can become fully amortized (zero carrying balance on the balance sheet) while still generating cash collections. In this case, all subsequent cash collections are recognized as revenue when received. The Company records a valuation allowance when significant decreases in expected cash flows are identified or there are changes in the timing of expected cash flows that would otherwise require a reduction in the stated yield on a pool of accounts. In any given period, the Company may be required to record valuation allowances due to pools of receivables underperforming previous expectations. Factors that may contribute to the recording of valuation allowances include both external and internal factors. External factors that may have an impact on the collectability, and subsequently on the overall profitability of purchased pools of nonperforming loans, would include: new laws or regulations relating to collections, new interpretations of existing laws or regulations, and the overall condition of the economy. Internal factors that may have an impact on the collectability, and subsequently the overall profitability of purchased pools of nonperforming loans, would include: necessary revisions to initial and post-acquisition scoring and modeling estimates, non-optimal operational activities (which relate to the collection and movement of accounts on both the collection floor of the Company and external channels), and decreases in productivity related to turnover and tenure of the Company's collection staff. The Company capitalizes certain fees paid to third parties related to the direct acquisition of a portfolio of accounts. These fees are added to the acquisition cost of the portfolio and accordingly are amortized over the life of the portfolio using the interest method. The agreements to purchase the aforementioned receivables include general representations and warranties from the sellers covering account holder death or bankruptcy and accounts settled or disputed prior to sale. The representation and warranty period permitting the return of these accounts from the Company to the seller is typically 90 to 180 days. Any funds received from the seller of finance receivables as a return of purchase price are referred to as buybacks. Buyback funds are applied against the finance receivable balance received and are not included in the Company's cash collections from operations. In some cases, the seller will replace the returned accounts with new accounts in lieu of returning the purchase price. In that case, the old account is removed from the pool and the new account is added. |
Fee income recognition | Fee income recognition: The Company utilizes the provisions of ASC Topic 605-45, "Principal Agent Considerations" ("ASC 605-45"), to account for fee income revenue from certain of its fee-for-service subsidiaries. ASC 605-45 requires an analysis to be completed to determine if certain revenues should be reported gross or reported net of their related operating expense. This analysis includes an assessment of who retains credit risk, controls vendor selection, establishes pricing and remains the primary obligor on the transaction. Each of these factors was considered to determine the correct method of recognizing revenue from these fee-based subsidiaries. |
Property and equipment | Property and equipment: Property and equipment, including improvements that significantly add to the productive capacity or extend useful life, are recorded at cost. Maintenance and repairs are expensed currently. Property and equipment are depreciated over their useful lives using the straight-line method of depreciation. Software and computer equipment are amortized or depreciated over three to five years. Furniture and fixtures are depreciated over five to ten years. Equipment is depreciated over five to seven years. Leasehold improvements are depreciated over the lesser of the useful life, which ranges from three to ten years, or the remaining term of the lease. Building improvements are depreciated straight-line over ten to thirty-nine years. When property is sold or retired, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in the income statement. |
Business combinations | Business combinations: The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. |
Goodwill and intangible assets | Goodwill and intangible assets: Goodwill, in accordance with ASC Topic 350, "Intangibles-Goodwill and Other" ("ASC 350"), is not amortized but rather is reviewed for impairment annually or more frequently if indicators of potential impairment exist. The Company performs its annual assessment on October 1. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management conducts a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its carrying value. The Company estimates the fair values of its reporting units using a combination of the income, or discounted cash flows approach, the market approach, which utilizes comparable companies' data, and the transaction approach, which uses market multiples from comparable transactions where the acquisition target has similar operating and investment characteristics to the reporting unit. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, management performs the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. The amount, by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss . See Note 5 for additional information. |
Convertible senior notes | Convertible senior notes: The Company accounts for its convertible senior notes (the "Notes") in accordance with ASC 470-20, "Debt with Conversion and Other Options." ASC 470-20 requires that, for convertible debt instruments that must 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. The excess of the principal amount of the liability component over its carrying amount is amortized to interest cost over the expected life of a similar liability that does not have an associated equity component, using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification under ASC 815-40, "Derivatives and Hedging - Contracts in Entity's Own Equity." Transaction costs incurred with third parties are allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. For diluted earnings per share purposes, based upon the Company's intent and ability to settle conversions of the Notes through a combination of cash and shares, 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 . |
Income taxes | Income taxes: The Company follows the guidance of ASC Topic 740 "Income Taxes" ("ASC 740") as it relates to the provision for income taxes and uncertainty in income taxes. Accordingly, the Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is estimated using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The evaluation of a tax position in accordance with the guidance is a two-step process. The first step is recognition: the enterprise determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the enterprise should presume that the position will be examined by the appropriate taxing authority that would have full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense. In the event that all or part of the deferred tax assets are determined not to be realizable in the future, a valuation allowance would be established and charged to earnings in the period such determination is made. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings. The estimate of income tax expense involves significant judgment in evaluating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our results of operations and financial position. For domestic income tax purposes, the Company recognizes revenue using the cost recovery method with respect to the Company's debt purchasing business. The Company believes cost recovery to be an acceptable method for companies in the bad debt purchasing industry. Under the cost recovery method, collections on finance receivables are applied first to principal to reduce the finance receivables to zero before any income is recognized. |
Advertising costs | Advertising costs: Advertising costs are expensed when incurred. |
Operating leases | Operating leases: General abatements or prepaid leasing costs are recognized on a straight-line basis over the life of the lease. Future minimum lease payments (including the impact of rent escalations) are expensed on a straight-line basis over the life of the lease. Material leasehold improvements are capitalized and amortized over the remaining life of the lease. |
Share-based compensation | Share-based compensation: The Company accounts for share-based compensation in accordance with the provisions of ASC Topic 718 "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires that compensation expense associated with share equity awards be recognized in the income statement. Based on historical experience, the Company estimates a forfeiture rate for most equity share grants. Time-based equity share awards generally vest between three and five years from the grant date and are expensed on a straight-line basis over the vesting period. Equity share awards that contain a performance metric, are expensed over the requisite service period, generally three years, in accordance with the performance level achieved at each reporting period. See Note 9 for additional information. |
Use of estimates | Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates have been made by management with respect to the timing and amount of future cash collections of the Company's finance receivables portfolios and the fair value of the assets acquired and liabilities assumed related to the acquisition of Aktiv. Actual results could differ from these estimates making it reasonably possible that a change in these estimates could occur within one year. |
Commitments and contingencies | Commitments and contingencies: We are subject to various claims and contingencies related to lawsuits, certain taxes, and commitments under contractual and other obligations. We recognize liabilities for contingencies and commitments when a loss is probable and estimable. We expense related legal costs as incurred. For additional information, see Note 15. |
Estimated fair value of financial instruments | Estimated fair value of financial instruments: The Company applies the provision of ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820"). ASC 820 defines fair value as 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. Disclosure of the estimated fair values of financial instruments often requires the use of estimates. See Note 8 for additional information. |
Reclassification of prior year presentation | Reclassification of prior year presentation: Certain prior year amounts have been reclassified for consistency with the current year presentation. |
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, 2017, 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 adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 has debt issuance costs which will be reclassified upon adoption of the guidance, which is not expected to have a material impact on the Company's Consolidated Financial Statements. 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 adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments" ("ASU 2015-16") which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. ASU 2015-16 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The adoption of the new guidance will not have an impact on the Company's Consolidated Financial Statements. The Company does not expect that any other recently issued accounting pronouncements will have a material effect on its Consolidated Financial Statements. |
General and Summary of Signif26
General and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Revenues and Long-lived Assets by Geographical Location | Revenue for the years ended December 31, 2015 , 2014 and 2013 , and long-lived assets held at December 31, 2015 and 2014 , by geographic location (amounts in thousands) are: Years Ended December 31, As of December 31, 2015 2014 2013 2015 2014 Revenues Long-Lived Assets United States $ 722,393 $ 766,262 $ 725,649 $ 36,075 $ 37,335 Outside the United States 219,625 114,707 9,486 9,319 10,923 Total $ 942,018 $ 880,969 $ 735,135 $ 45,394 $ 48,258 |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
Schedule of Changes in Finance Receivables | Changes in finance receivables, net, for the years ended December 31, 2015 and 2014 , were as follows (amounts in thousands): 2015 2014 Balance at beginning of year $ 2,001,790 $ 1,239,191 Acquisitions of finance receivables (1) 954,954 1,427,436 Foreign currency translation adjustment (80,258 ) (93,499 ) Cash collections (1,539,495 ) (1,378,812 ) Income recognized on finance receivables, net 865,122 807,474 Cash collections applied to principal (674,373 ) (571,338 ) Balance at end of year $ 2,202,113 $ 2,001,790 (1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. It also includes the acquisition date finance receivable portfolio that was acquired in connection with the Aktiv acquisition in 2014 of $727.7 million . |
Schedule of Cash Collections Applied to Principal | Based upon current projections, cash collections applied to principal are estimated to be as follows for the following years ending December 31, (amounts in thousands): 2016 $ 582,464 2017 490,594 2018 385,772 2019 314,620 2020 211,479 2021 142,869 2022 66,748 Thereafter 7,567 Total estimated cash collections applied to principal $ 2,202,113 |
Schedule of Changes in Accretable Yield | Changes in accretable yield for the years ended December 31, 2015 and 2014 were as follows (amounts in thousands): 2015 2014 Balance at beginning of year $ 2,513,185 $ 1,430,067 Income recognized on finance receivables, net (865,122 ) (807,474 ) Additions (1) 756,628 1,609,340 Reclassifications from nonaccretable difference 502,665 390,255 Foreign currency translation adjustment (180,152 ) (109,003 ) Balance at end of year $ 2,727,204 $ 2,513,185 (1) Additions for 2014 include the acquisition date accretable yield that was acquired in connection with the Aktiv acquisition of approximately $1.0 billion . |
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 years ended December 31, 2015 , 2014 and 2013 (amounts in thousands): 2015 2014 2013 Beginning balance $ 86,166 $ 91,101 $ 93,123 Allowance charges 31,974 8,010 9,666 Reversal of previous recorded allowance charges (2,605 ) (12,945 ) (11,688 ) Net allowance charges/(reversals) 29,369 (4,935 ) (2,022 ) Foreign currency translation adjustment (674 ) — — Ending balance $ 114,861 $ 86,166 $ 91,101 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of the following at December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Trading Short-term investments $ — $ 37,405 Available-for-sale Securitized assets 4,649 3,721 Government bonds and fixed income funds 3,405 — Held-to-maturity Securitized assets 50,247 31,017 Other investments Private equity funds 15,498 17,560 Total investments $ 73,799 $ 89,703 |
Summary of Held-to-maturity Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at December 31, 2015 and 2014 were as follows (amounts in thousands): December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,855 $ — $ 1,206 $ 4,649 Government bonds and fixed income funds 3,405 — — 3,405 Held-to-maturity Securitized assets 50,247 5,366 — 55,613 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 |
Summary of Available-for-sale Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at December 31, 2015 and 2014 were as follows (amounts in thousands): December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,855 $ — $ 1,206 $ 4,649 Government bonds and fixed income funds 3,405 — — 3,405 Held-to-maturity Securitized assets 50,247 5,366 — 55,613 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 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for operating leases at December 31, 2015 , are as follows for the years ending December 31, (amounts in thousands): 2016 $ 10,894 2017 9,351 2018 7,935 2019 4,924 2020 2,892 Thereafter 3,175 Total future minimum lease payments $ 39,171 |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Balance at beginning of period: Goodwill $ 533,842 $ 110,240 Accumulated impairment loss (6,397 ) (6,397 ) 527,445 103,843 Changes: Acquisitions 38,489 512,049 Foreign currency translation adjustment (70,778 ) (88,447 ) Net change in goodwill (32,289 ) 423,602 Balance at end of period: Goodwill 501,553 533,842 Accumulated impairment loss (6,397 ) (6,397 ) $ 495,156 $ 527,445 |
Schedule of Intangible Assets | Intangible assets, excluding goodwill, consist of the following at December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Gross Accumulated Gross Accumulated Client and customer relationships $ 47,674 $ 28,064 $ 35,252 $ 25,132 Non-compete agreements 858 119 627 572 Trademarks 4,367 2,038 3,432 2,674 Technology 1,211 101 — — Total $ 54,110 $ 30,322 $ 39,311 $ 28,378 |
Schedule of Estimated Future Amortization of Intangible Assets | The future amortization of these intangible assets is estimated to be as follows as of December 31, 2015 for the following years ending December 31, (amounts in thousands): 2016 $ 4,692 2017 3,826 2018 3,275 2019 2,798 2020 2,293 Thereafter 6,904 Total $ 23,788 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): December 31, December 31, Domestic revolving credit $ 541,799 $ 409,000 Term loan 170,000 185,000 Note payable 169,938 169,938 Multicurrency revolving credit 576,433 427,680 Subordinated loan — 30,000 Convertible senior notes 287,500 287,500 Less: Debt discount (22,402 ) (26,662 ) Total $ 1,723,268 $ 1,482,456 |
Schedule of Liability and Equity Components | The balances of the liability and equity components of all of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): December 31, December 31, Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (22,402 ) (26,662 ) Liability component - net carrying amount $ 265,098 $ 260,838 Equity component $ 31,306 $ 31,306 |
Schedule of Debt Interest Expense | Interest expense related to the Notes was as follows for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 2013 Interest expense - stated coupon rate $ 8,625 $ 8,625 $ 3,306 Interest expense - amortization of debt discount 4,260 4,058 1,508 Total interest expense - convertible senior notes $ 12,885 $ 12,683 $ 4,814 |
Schedule of Principal Payments Due on Long-term Debt | The following principal payments are due on the Company's borrowings at December 31, 2015 for the years ending December 31, (amounts in thousands): 2016 $ 189,938 2017 691,799 2018 — 2019 576,433 2020 287,500 Thereafter — Total $ 1,745,670 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, at Cost | Property and equipment, at cost, consist of the following as of December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Software $ 62,198 $ 53,076 Computer equipment 21,109 20,488 Furniture and fixtures 11,888 11,502 Equipment 12,874 12,880 Leasehold improvements 15,112 14,429 Building and improvements 7,235 7,049 Land 1,296 1,269 Accumulated depreciation and amortization (86,318 ) (72,435 ) Property and equipment, net $ 45,394 $ 48,258 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying and Estimated Fair Value Recorded in the Consolidated Balance Sheet | The carrying amounts in the table are recorded in the consolidated balance sheets at December 31, 2015 and December 31, 2014 (amounts in thousands): December 31, 2015 December 31, 2014 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 71,372 $ 71,372 $ 39,661 $ 39,661 Held-to-maturity investments 50,247 55,613 31,017 31,017 Other investments 15,498 16,803 17,560 19,776 Finance receivables, net 2,202,113 2,704,432 2,001,790 2,460,787 Financial liabilities: Interest-bearing deposits 46,991 46,991 27,704 27,704 Revolving lines of credit 1,118,232 1,118,232 836,680 836,680 Term loans 170,000 170,000 185,000 185,000 Notes and loans payable 169,938 169,938 199,938 199,938 Convertible senior notes 265,098 241,126 260,838 324,757 |
Summary of Fair Value Assets Measured on a Recurring Basis | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at December 31, 2015 and 2014 (amounts in thousands): Fair Value Measurements as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 3,405 $ — $ 4,649 $ 8,054 Liabilities: Interest rate swap contracts (recorded in accrued expenses) $ — $ 1,601 $ — $ 1,601 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 |
Summary of Fair Value Liabilities Measured on a Recurring Basis | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at December 31, 2015 and 2014 (amounts in thousands): Fair Value Measurements as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 3,405 $ — $ 4,649 $ 8,054 Liabilities: Interest rate swap contracts (recorded in accrued expenses) $ — $ 1,601 $ — $ 1,601 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 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Nonvested Share Transactions | The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2012 through December 31, 2015 (amounts in thousands, except per share amounts): Nonvested Shares Weighted-Average December 31, 2012 288 $ 20.84 Granted 110 37.31 Vested (143 ) 19.75 Canceled (29 ) 20.57 December 31, 2013 226 29.58 Granted 272 56.69 Vested (155 ) 37.34 Canceled (4 ) 50.41 December 31, 2014 339 47.34 Granted 100 53.29 Vested (151 ) 42.15 Canceled (4 ) 47.49 December 31, 2015 284 $ 52.20 |
Summarization of Option Related Transactions | The following table summarizes all LTI share transactions from December 31, 2012 through December 31, 2015 (amounts in thousands, except per share amounts): Nonvested LTI Shares Weighted-Average December 31, 2012 497 $ 21.71 Granted at target level 124 34.59 Adjustments for actual performance 108 17.91 Vested (279 ) 19.10 Canceled (16 ) 25.01 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 Adjustments for actual performance 122 34.59 Vested (252 ) 20.21 Canceled (7 ) 40.05 December 31, 2015 483 $ 42.80 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation Between the Computation of Basic EPS and Diluted EPS | The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the years ended December 31, 2015 , 2014 and 2013 (amounts in thousands, except per share amounts): 2015 2014 2013 Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net income attributable to PRA Group, Inc. Weighted Average Common Shares EPS Basic EPS $ 167,926 48,128 $ 3.49 $ 176,505 49,990 $ 3.53 $ 175,314 50,366 $ 3.48 Dilutive effect of nonvested share awards 277 (0.02 ) 431 (0.03 ) 507 (0.03 ) Diluted EPS $ 167,926 48,405 $ 3.47 $ 176,505 50,421 $ 3.50 $ 175,314 50,873 $ 3.45 |
Proforma Financial Information
Proforma Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of Pro Forma Financial Information | The pro forma condensed combined financial information is presented for illustrative purposes only and does not indicate the actual combined financial results had the closing of the Aktiv acquisition been completed on January 1, 2013 nor does it reflect the benefits obtained through the integration of business operations realized since acquisition. Furthermore, the information is not indicative of the results of operations in future periods. The unaudited pro forma condensed combined financial information does not reflect the impact of possible business model changes nor does it consider any potential impacts of market conditions, expense efficiencies or other factors. Aktiv Impact Combined Pro Forma Results (Unaudited) From July 16, 2014 through December 31, 2014 Year Ended December 31, (amounts in thousands) 2014 2013 Revenues $ 102,098 $ 1,020,234 $ 970,148 Net income attributable to PRA Group, Inc. 22,537 219,947 320,470 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Not Designated as Hedging Instruments | The following table sets forth the fair value amounts of the derivative instruments held by the Company as December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Derivatives not designated as hedging instruments under ASC 815 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest rate swap contracts $ — $ 1,602 $ — $ 3,387 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense Recognized | The income tax expense/(benefit) recognized for the years ended December 31, 2015 , 2014 and 2013 is comprised of the following (amounts in thousands): Federal State Foreign Total For the year ended December 31, 2015: Current tax expense $ 62,869 $ 9,399 $ 25,692 $ 97,960 Deferred tax expense/(benefit) 2,887 (600 ) (10,856 ) (8,569 ) Total income tax expense $ 65,756 $ 8,799 $ 14,836 $ 89,391 For the year ended December 31, 2014: Current tax expense $ 57,336 $ 8,823 $ 5,342 $ 71,501 Deferred tax expense 30,319 4,717 17,971 53,007 Total income tax expense $ 87,655 $ 13,540 $ 23,313 $ 124,508 For the year ended December 31, 2013: Current tax expense $ 82,163 $ 12,163 $ 833 $ 95,159 Deferred tax expense/(benefit) 13,321 (550 ) (1,784 ) 10,987 Total income tax expense/(benefit) $ 95,484 $ 11,613 $ (951 ) $ 106,146 |
Schedule of Reconciliation of Expected Tax Expense at The Statutory Federal Tax Rate to Actual Tax Expense | A reconciliation of the Company's expected tax expense at the statutory federal tax rate to actual tax expense for the years ended December 31, 2015 , 2014 and 2013 is as follows (amounts in thousands): 2015 2014 2013 Expected tax expense at statutory federal rates $ 90,133 $ 105,355 $ 99,073 State tax expense, net of federal tax benefit 5,719 8,565 7,548 Foreign taxable translation (708 ) 8,199 — Foreign rate difference (8,787 ) 90 820 Penalties 2,819 — — Acquisition expenses 234 2,169 — Other (19 ) 130 (1,295 ) Total income tax expense $ 89,391 $ 124,508 $ 106,146 |
Summary of Components of Net Deferred Tax Liability | The Company has recognized a net deferred tax liability of $248.4 million and $249.5 million as of December 31, 2015 and 2014 , respectively. The components of the net deferred tax liability are as follows (amounts in thousands): 2015 2014 Deferred tax assets: Employee compensation $ 13,845 $ 9,304 Net operating loss carryforward 39,080 33,026 Other 3,843 5,447 Accrued liabilities 8,429 3,334 Interest 10,664 7,876 Total deferred tax asset 75,861 58,987 Deferred tax liabilities: Depreciation expense 5,276 5,998 Intangible assets and goodwill 7,039 1,434 Convertible debt 8,653 10,332 Other 4,204 7,843 Finance receivable revenue recognition - international 2,063 11,677 Finance receivable revenue recognition - domestic 251,733 240,998 Total deferred tax liability 278,968 278,282 Valuation allowance 45,323 30,166 Net deferred tax liability $ 248,430 $ 249,461 |
General and Summary of Signif39
General and Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | Aug. 03, 2015USD ($) | Jul. 16, 2014USD ($) | Jun. 10, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)segment$ / shares | Dec. 31, 2014USD ($)$ / shares |
Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Stock splits | shares | 33.8 | ||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Adjustments to additional capital stock split | $ 0.3 | ||||
Funds held on behalf of others | $ 3.9 | $ 5.5 | |||
Percentage of income tax positions likely to be realized | 50.00% | ||||
Possible change in estimates, in years | 1 year | ||||
Convertible Debt | |||||
Accounting Policies [Line Items] | |||||
Average share price of common stock (usd per share) | $ / shares | $ 65.72 | ||||
Minimum | |||||
Accounting Policies [Line Items] | |||||
Warranty period of permitting the return of accounts holder (in days) | 90 days | ||||
Property and equipment, useful life, in years | 3 years | ||||
Options and nonvested share awards vesting period, minimum, in years | 3 years | ||||
Minimum | Software | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 3 years | ||||
Minimum | Computer Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 3 years | ||||
Minimum | Furniture and Fixtures | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Minimum | Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Minimum | Leasehold Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 3 years | ||||
Minimum | Building Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 10 years | ||||
Maximum | |||||
Accounting Policies [Line Items] | |||||
Warranty period of permitting the return of accounts holder (in days) | 180 days | ||||
Property and equipment, useful life, in years | 7 years | ||||
Options and nonvested share awards vesting period, minimum, in years | 5 years | ||||
Maximum | Software | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Maximum | Computer Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Maximum | Furniture and Fixtures | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 10 years | ||||
Maximum | Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 7 years | ||||
Maximum | Leasehold Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 10 years | ||||
Maximum | Building Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 39 years | ||||
Aktiv Kapital AS | |||||
Accounting Policies [Line Items] | |||||
Purchase price | $ 861.3 | ||||
Liabilities assumed | 433.7 | ||||
Estimated total enterprise value | $ 1,300 | ||||
RCB | |||||
Accounting Policies [Line Items] | |||||
Acquired equity interest (as a percent) | 55.00% | ||||
Remaining equity interest owned by executive team and previous owners (as a percent) | 45.00% | ||||
Purchase price | $ 55.2 |
General and Summary of Signif40
General and Summary of Significant Accounting Policies (Revenue and Long-lived Assets by Geographical Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Revenues | $ 942,018 | $ 880,969 | $ 735,135 |
United States | |||
Property, Plant and Equipment [Line Items] | |||
Revenues | 722,393 | 766,262 | 725,649 |
Long-Lived Assets | 36,075 | 37,335 | |
Outside the United States | |||
Property, Plant and Equipment [Line Items] | |||
Revenues | 219,625 | 114,707 | $ 9,486 |
Long-Lived Assets | $ 9,319 | $ 10,923 |
Finance Receivables, net (Sched
Finance Receivables, net (Schedule of Changes In Finance Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 16, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ||||
Balance at beginning of year | $ 2,001,790 | $ 1,239,191 | ||
Acquisitions of finance receivables | 954,954 | 1,427,436 | ||
Foreign currency translation adjustment | (80,258) | (93,499) | ||
Cash collections | (1,539,495) | (1,378,812) | ||
Income recognized on finance receivables, net | 865,122 | 807,474 | $ 663,546 | |
Cash collections applied to principal | (674,373) | (571,338) | (478,891) | |
Balance at end of year | $ 2,202,113 | $ 2,001,790 | $ 1,239,191 | |
Aktiv Kapital AS | Financing Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivable portfolio acquired | $ 727,700 |
Finance Receivables, net (Sch42
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
2,016 | $ 582,464 |
2,017 | 490,594 |
2,018 | 385,772 |
2,019 | 314,620 |
2,020 | 211,479 |
2,021 | 142,869 |
2,022 | 66,748 |
Thereafter | 7,567 |
Total estimated cash collections applied to principal | $ 2,202,113 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | ||
Aggregate net finance receivables in pools accounted for under the cost recovery method | $ 21 | $ 17.1 |
Finance Receivables, net (Sch44
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | Jul. 16, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of year | $ 2,513,185 | $ 1,430,067 | ||
Income recognized on finance receivables, net | (865,122) | (807,474) | $ (663,546) | |
Additions | 756,628 | 1,609,340 | ||
Reclassifications from nonaccretable difference | 502,665 | 390,255 | ||
Foreign currency translation adjustment | (180,152) | (109,003) | ||
Balance at end of year | $ 2,727,204 | $ 2,513,185 | $ 1,430,067 | |
Aktiv Kapital AS | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Additions | $ 1,000,000 |
Finance Receivables, net (Sch45
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | |||
Beginning balance | $ 86,166 | $ 91,101 | $ 93,123 |
Allowance charges | 31,974 | 8,010 | 9,666 |
Reversal of previous recorded allowance charges | (2,605) | (12,945) | (11,688) |
Net allowance (reversal)/charge | 29,369 | (4,935) | (2,022) |
Foreign currency translation adjustment | (674) | 0 | 0 |
Ending balance | $ 114,861 | $ 86,166 | $ 91,101 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Trading | ||
Short-term investments | $ 0 | $ 37,405 |
Available-for-sale | ||
Available-for-sale | 8,054 | 3,721 |
Other investments | ||
Private equity funds | 15,498 | 17,560 |
Investments | 73,799 | 89,703 |
Securitized assets | ||
Available-for-sale | ||
Available-for-sale | 4,649 | 3,721 |
Held-to-maturity | ||
Securitized assets | 50,247 | 31,017 |
Government bonds and fixed income funds | ||
Available-for-sale | ||
Available-for-sale | $ 3,405 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015USD ($)vote | Dec. 31, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of votes per certificate | vote | 1 | ||
Cost-method investment, ownership percentage | 3.00% | ||
Cost-method investments, distributions received | $ | $ 7.8 | $ 7.1 | |
Series B Certificates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in securitized assets, ownership percentage | 100.00% | ||
Series C Certificates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in securitized assets, ownership percentage | 20.00% |
Investments (Amortized Cost) (D
Investments (Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Aggregate Fair Value | $ 8,054 | $ 3,721 |
Securitized assets | ||
Available-for-sale | ||
Amortized Cost | 5,855 | 3,721 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,206 | 0 |
Aggregate Fair Value | 4,649 | 3,721 |
Held-to-maturity | ||
Amortized Cost | 50,247 | 31,017 |
Gross Unrealized Gains | 5,366 | 0 |
Gross Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 55,613 | 31,017 |
Government bonds and fixed income funds | ||
Available-for-sale | ||
Amortized Cost | 3,405 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Aggregate Fair Value | $ 3,405 | $ 0 |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Operating [Abstract] | |||
Rental expense for office space and equipment under operating lease | $ 11.3 | $ 8.7 | $ 6 |
Operating Leases (Schedule Of F
Operating Leases (Schedule Of Future Minimum Lease Payments For Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases, Operating [Abstract] | |
2,016 | $ 10,894 |
2,017 | 9,351 |
2,018 | 7,935 |
2,019 | 4,924 |
2,020 | 2,892 |
Thereafter | 3,175 |
Total future minimum lease payments | $ 39,171 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of goodwill | $ 6,400 | $ 0 | $ 0 | $ 6,397 |
Amortization expense | $ 3,700 | $ 4,800 | $ 4,700 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, net (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, Balance at beginning of period | $ 533,842 | $ 110,240 |
Accumulated impairment loss, Balance at beginning of period | (6,397) | (6,397) |
Goodwill, Net, Balance at beginning of period | 527,445 | 103,843 |
Acquisitions | 38,489 | 512,049 |
Foreign currency translation adjustment | (70,778) | (88,447) |
Net change in goodwill | (32,289) | 423,602 |
Goodwill, Balance at end of period | 501,553 | 533,842 |
Accumulated impairment loss, Balance at end of period | (6,397) | (6,397) |
Goodwill, Net, Balance at end of period | $ 495,156 | $ 527,445 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets, net (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 54,110 | $ 39,311 |
Accumulated Amortization | 30,322 | 28,378 |
Client and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 47,674 | 35,252 |
Accumulated Amortization | 28,064 | 25,132 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 858 | 627 |
Accumulated Amortization | 119 | 572 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,367 | 3,432 |
Accumulated Amortization | 2,038 | 2,674 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,211 | 0 |
Accumulated Amortization | $ 101 | $ 0 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets, net (Schedule of Estimated Future Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 4,692 | |
2,017 | 3,826 | |
2,018 | 3,275 | |
2,019 | 2,798 | |
2,020 | 2,293 | |
Thereafter | 6,904 | |
Total | $ 23,788 | $ 10,933 |
Borrowings (Details)
Borrowings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 16, 2014 | Aug. 13, 2013 |
Debt Instrument [Line Items] | ||||
Total | $ 1,723,268,000 | $ 1,482,456,000 | ||
Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 576,433,000 | 427,680,000 | ||
Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 30,000,000 | ||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes | 287,500,000 | 287,500,000 | $ 287,500,000 | |
Less: Debt discount | (22,402,000) | (26,662,000) | ||
Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Note payable | $ 169,938,000 | $ 169,938,000 | ||
Convertible senior notes | $ 169,900,000 |
Borrowings Borrowings (Domestic
Borrowings Borrowings (Domestic and Canadian Revolving Credit and Term Loan) (Details) | Dec. 23, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 04, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 13, 2013 |
Debt Instrument [Line Items] | ||||||
Maximum share repurchases during a given year | $ 100,000,000 | |||||
Exercise of accordion feature | $ 125,000,000 | |||||
Unused commitment fee under revolving credit | 0.375% | |||||
Interest rate at period end (as a percent) | 4.92% | |||||
Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread variable rate (as a percent) | 1.00% | |||||
Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread variable rate (as a percent) | 0.50% | |||||
Commitment Increase Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Total credit facility available | $ 945,000,000 | |||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Stock repurchases authorized amount | $ 315,000,000 | $ 315,000,000 | ||||
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 | |||||
Debt instrument, covenant, maximum capital expenditures | $ 40,000,000 | |||||
Debt instrument, covenant, maximum cash dividends | $ 20,000,000 | |||||
Credit Agreement | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread variable rate (as a percent) | 2.50% | |||||
Credit Agreement | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread variable rate (as a percent) | 1.50% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Increase in borrowing capacity | 125,000,000 | $ 50,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 725,000,000 | |||||
Unsecured Debt | Senior Unsecured Debt other than Convertible Notes Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum allowable debt | $ 500,000,000 | |||||
Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 265,098,000 | $ 260,838,000 | ||||
Stated percentage | 3.00% | 3.00% | ||||
Medium-term Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 170,000,000 | $ 185,000,000 | ||||
Interest rate at period end (as a percent) | 2.92% | 2.67% | ||||
Outstanding borrowings on credit facility | $ 541,799,000 | $ 409,000,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (as a percent) | 2.89% | 2.68% | ||||
Revolving Credit Facility | Commitment Increase Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Total credit facility available | $ 725,000,000 | |||||
Line of credit facility, remaining borrowing capacity | 198,000,000 | |||||
Revolving Credit Facility | Line of Credit | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | 20,000,000 | |||||
Lines of credit current letters of credit | 20,000,000 | |||||
Multi-Currency Domestic Revolving Credit Facility | Commitment Increase Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Total credit facility available | 50,000,000 | |||||
Line of credit facility, remaining borrowing capacity | 35,000,000 | |||||
Line of Credit | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 170,000,000 | |||||
Acquisition Subsequent to 2014 | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, maximum business combinations | $ 250,000,000 | |||||
Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Total credit facility available | $ 150,000,000 |
Borrowings Borrowings (Note Pay
Borrowings Borrowings (Note Payable) (Details) - USD ($) | Jul. 16, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | |||
Interest rate at period end (as a percent) | 4.92% | ||
Notes Payable | |||
Short-term Debt [Line Items] | |||
Face amount | $ 169,900,000 | ||
Balance due on the Seller Note | $ 169,938,000 | $ 169,938,000 | |
Interest rate at period end (as a percent) | 4.36% | 4.01% | |
Notes Payable | LIBOR | |||
Short-term Debt [Line Items] | |||
Basis spread variable rate (as a percent) | 3.75% |
Borrowings Borrowings (Multicur
Borrowings Borrowings (Multicurrency Revolving Credit Facility) (Details) | Jun. 12, 2015SEK | Oct. 23, 2014USD ($) | Dec. 31, 2015USD ($) | Jun. 12, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||
Unused commitment fee under revolving credit | 0.375% | ||||
Interest rate at period end (as a percent) | 4.92% | ||||
Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total credit facility available | $ 40,000,000 | ||||
Line of credit facility, commitment fee percentage | 0.125% | ||||
Interbank Offered Rate (IBOR) | Minimum | Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 2.50% | ||||
Interbank Offered Rate (IBOR) | Maximum | Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 3.00% | ||||
Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | 192,200,000 | ||||
Debt covenant, maximum ERC ratio (as a percent) | 33.00% | 28.00% | |||
Debt covenant, maximum interest bearing deposits | SEK | SEK 500,000,000 | ||||
Debt covenant, minimum cash collections (as a percent) | 95.00% | ||||
Overdraft Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | 21,400,000 | ||||
Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total credit facility available | $ 500,000,000 | $ 750,000,000 | $ 750,000,000 | ||
Unused commitment fee under revolving credit | 1.05% | ||||
Debt covenant, maximum GIBD ratio | 300.00% | ||||
Long-term debt, gross | $ 576,433,000 | $ 427,680,000 | |||
Weighted average annual interest rate (as a percent) | 3.64% | 4.25% | |||
Line of Credit | Multicurrency Revolving Credit Facility | Interbank Offered Rate (IBOR) | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 2.50% | ||||
Line of Credit | Multicurrency Revolving Credit Facility | Interbank Offered Rate (IBOR) | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 3.30% |
Borrowings Borrowings (Aktiv Su
Borrowings Borrowings (Aktiv Subordinated Loan) (Details) - Aktiv Kapital AS - Subordinated Debt - USD ($) $ in Millions | Dec. 16, 2011 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Prepayment of subordinated loan | $ 30 | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate (as a percent) | 3.75% |
Borrowings (Convertible Debt an
Borrowings (Convertible Debt and Additional information) (Details) $ / shares in Units, $ in Thousands | Aug. 13, 2013USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)$ / shares |
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 100.00% | ||||
Conversion ratio | 15.2172 | ||||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 65.72 | $ 65.72 | |||
Proceeds from convertible debt | $ 279,300 | ||||
Repayments of long-term debt | 174,000 | ||||
Repurchases of common stock | 50,000 | $ 165,501 | $ 33,164 | $ 58,511 | |
Convertible debt, estimated fair value | 255,300 | ||||
Carrying amount of convertible debt | 32,200 | ||||
Debt issuance cost | 7,300 | ||||
Equity and debt issuance costs | 8,200 | ||||
Equity issuance costs | 900 | ||||
Effective interest rate (as a percent) | 4.92% | 4.92% | |||
Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 287,500 | $ 287,500 | 287,500 | $ 287,500 | |
Stated percentage | 3.00% | 3.00% | 3.00% | ||
Carrying amount of convertible debt | $ 31,306 | $ 31,306 | $ 31,306 |
Borrowings (Breakdown of Debt I
Borrowings (Breakdown of Debt Instrument) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 13, 2013 |
Debt Instrument [Line Items] | |||
Equity component | $ 32,200 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Liability component - principal amount | $ 287,500 | $ 287,500 | $ 287,500 |
Unamortized debt discount | (22,402) | (26,662) | |
Liability component - net carrying amount | 265,098 | 260,838 | |
Equity component | $ 31,306 | $ 31,306 |
Borrowings (Interest Expense) (
Borrowings (Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Interest expense - amortization of debt discount | $ 4,260 | $ 4,058 | $ 1,508 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest expense - stated coupon rate | 8,625 | 8,625 | 3,306 |
Interest expense - amortization of debt discount | 4,260 | 4,058 | 1,508 |
Total interest expense - convertible senior notes | $ 12,885 | $ 12,683 | $ 4,814 |
Borrowings (Long term debt Matu
Borrowings (Long term debt Maturities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 189,938 |
2,017 | 691,799 |
2,018 | 0 |
2,019 | 576,433 |
2,020 | 287,500 |
Thereafter | 0 |
Total | $ 1,745,670 |
Property and Equipment, net (Pr
Property and Equipment, net (Property and Equipment, at Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Software | $ 62,198 | $ 53,076 |
Computer equipment | 21,109 | 20,488 |
Furniture and fixtures | 11,888 | 11,502 |
Equipment | 12,874 | 12,880 |
Leasehold improvements | 15,112 | 14,429 |
Building and improvements | 7,235 | 7,049 |
Land | 1,296 | 1,269 |
Accumulated depreciation and amortization | (86,318) | (72,435) |
Property and equipment, net | $ 45,394 | $ 48,258 |
Property and Equipment, net (Na
Property and Equipment, net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 16.2 | $ 13.6 | $ 9.7 |
Direct payroll costs and external direct costs related to software | 15 | 12.9 | |
Developing projects | 0.1 | 1 | |
Amortization expense | 2.2 | 1.9 | 1.5 |
Unamortized costs of software | $ 6.6 | $ 5.9 | $ 4.4 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Minimum estimated useful life of computer software (in years) | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Minimum estimated useful life of computer software (in years) | 7 years |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Value Recorded In The Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 13, 2013 | Dec. 31, 2012 |
Assets: | |||||
Cash and cash equivalents, carrying amount | $ 71,372 | $ 39,661 | $ 162,004 | $ 32,687 | |
Finance receivables, net, carrying amount | 2,202,113 | 2,001,790 | $ 1,239,191 | ||
Financial liabilities: | |||||
Interest-bearing deposits, carrying amount | 46,991 | 27,704 | |||
Convertible notes, estimated fair value | $ 255,300 | ||||
Carrying Amount | |||||
Assets: | |||||
Cash and cash equivalents, carrying amount | 71,372 | 39,661 | |||
Held-to-maturity investments, carrying amount | 50,247 | 31,017 | |||
Other investments | 15,498 | 17,560 | |||
Finance receivables, net, carrying amount | 2,202,113 | 2,001,790 | |||
Financial liabilities: | |||||
Interest-bearing deposits, carrying amount | 46,991 | 27,704 | |||
Revolving lines of credit, carrying amount | 1,118,232 | 836,680 | |||
Term loans, carrying amount | 170,000 | 185,000 | |||
Notes and loans payable, carrying amount | 169,938 | 199,938 | |||
Convertible notes, carrying amount | 265,098 | 260,838 | |||
Estimated Fair Value | |||||
Assets: | |||||
Cash and cash equivalents, estimated fair value | 71,372 | 39,661 | |||
Held-to-maturity investments, estimated fair value | 55,613 | 31,017 | |||
Other investments | 16,803 | 19,776 | |||
Finance receivables, net, estimated fair value | 2,704,432 | 2,460,787 | |||
Financial liabilities: | |||||
Interest-bearing deposits, estimated fair value | 46,991 | 27,704 | |||
Revolving lines of credit, estimated fair value | 1,118,232 | 836,680 | |||
Term loans, estimated fair value | 170,000 | 185,000 | |||
Notes and loans payable, estimated fair value | 169,938 | 199,938 | |||
Convertible notes, estimated fair value | $ 241,126 | $ 324,757 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Cost method investments, expected liquidation period, minimum | 1 year | |
Cost method investments, expected liquidation period, maximum | 4 years | |
Unrealized gain (loss) in other comprehensive income | $ (1,200,000) | $ 0 |
Fair Value (Fair Value Assets a
Fair Value (Fair Value Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Trading investments | $ 0 | $ 37,405 |
Available-for-sale investments | 8,054 | 3,721 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 1,601 | 3,387 |
Level 1 | ||
Assets: | ||
Trading investments | 37,405 | |
Available-for-sale investments | 3,405 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading investments | 0 | |
Available-for-sale investments | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 1,601 | 3,387 |
Level 3 | ||
Assets: | ||
Trading investments | 0 | |
Available-for-sale investments | 4,649 | 3,721 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | $ 0 | $ 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized | 5,400,000 | ||
Total share-based compensation expense | $ 16.3 | $ 15 | $ 12.3 |
Total tax benefit realized from share-based compensation | 8.9 | 10.8 | 8.2 |
Grant date fair value of shares vested | 6.4 | 5.8 | 2.8 |
Long-Term Incentive Programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future compensation cost related to stock option | $ 8.8 | ||
Weighted average remaining life of nonvested shares (in years) | 10 months 24 days | ||
Grant date fair value of shares vested | $ 5.1 | $ 6.8 | $ 5.3 |
Forfeiture rate for share awards granted under LTI Programs (as a percent) | 7.50% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 5 years | ||
Nonvested Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future compensation cost related to stock option | $ 8.8 | ||
Weighted average remaining life of nonvested shares (in years) | 1 year 6 months | ||
Nonvested Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 3 years | ||
Nonvested Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 5 years |
Share-Based Compensation (Nonve
Share-Based Compensation (Nonvested Share Transactions) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Nonvested Shares Outstanding | |||
Beginning balance, shares | 339 | 226 | 288 |
Granted, shares | 100 | 272 | 110 |
Vested, shares | (151) | (155) | (143) |
Cancelled, shares | (4) | (4) | (29) |
Ending balance, shares | 284 | 339 | 226 |
Weighted-Average Price at Grant Date | |||
Beginning balance (usd per share) | $ 47.34 | $ 29.58 | $ 20.84 |
Granted (usd per share) | 53.29 | 56.69 | 37.31 |
Vested (usd per share) | 42.15 | 37.34 | 19.75 |
Cancelled (usd per share) | 47.49 | 50.41 | 20.57 |
Ending balance (usd per share) | $ 52.20 | $ 47.34 | $ 29.58 |
Long-Term Incentive Programs | |||
Nonvested Shares Outstanding | |||
Beginning balance, shares | 488 | 434 | 497 |
Granted, shares | 132 | 111 | 124 |
Adjustments for actual performance, shares | 122 | 222 | 108 |
Vested, shares | (252) | (279) | (279) |
Cancelled, shares | (7) | (16) | |
Ending balance, shares | 483 | 488 | 434 |
Weighted-Average Price at Grant Date | |||
Beginning balance (usd per share) | $ 30.52 | $ 25.79 | $ 21.71 |
Granted (usd per share) | 52.47 | 49.60 | 34.59 |
Adjustments for actual performance (usd per share) | 34.59 | 22.32 | 17.91 |
Vested (usd per share) | 20.21 | 24.21 | 19.10 |
Cancelled (usd per share) | 40.05 | 25.01 | |
Ending balance (usd per share) | $ 42.80 | $ 30.52 | $ 25.79 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 13, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 |
Earnings Per Share [Abstract] | |||||
Minimum average share price triggering dilutive effect (usd per share) | $ 65.72 | $ 65.72 | |||
Net income attributable to PRA Group, Inc. | $ 167,926 | $ 176,505 | $ 175,314 | ||
Weighted Average Common Shares, Basic EPS | 48,128,000 | 49,990,000 | 50,366,000 | ||
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 277,000 | 431,000 | 507,000 | ||
Weighted Average Common Shares, Diluted EPS | 48,405,000 | 50,421,000 | 50,873,000 | ||
Basic EPS (usd per share) | $ 3.49 | $ 3.53 | $ 3.48 | ||
Dilutive effect of nonvested share awards (usd per share) | (0.02) | (0.03) | (0.03) | ||
Diluted EPS (usd per share) | $ 3.47 | $ 3.50 | $ 3.45 | ||
Antidilutive options outstanding (in shares) | 0 | 0 | 0 |
Proforma Financial Informatio72
Proforma Financial Information (Details) - Aktiv Kapital AS - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Aktiv Impact | |||
Revenues | $ 102,098 | ||
Net income attributable to PRA Group, Inc. | $ 22,537 | ||
Combined Pro Forma Results (Unaudited) | |||
Revenues | $ 1,020,234 | $ 970,148 | |
Net income attributable to PRA Group, Inc. | $ 219,947 | $ 320,470 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Percent of borrowings hedged at foreign operations | 42.00% | 54.00% |
Liability Derivatives | $ 1,601 | $ 3,387 |
Interest rate swap contracts | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | 1,602 | 3,387 |
Derivatives Not Designated as Hedging Instruments | Interest Expense | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Derivative, interest expense | $ 4,900 | $ 1,800 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Oct. 22, 2015 | Dec. 10, 2014 | |
2014 Share Repurchase Program | |||
Shareholders Equity [Line Items] | |||
Stock repurchases authorized amount | $ 100 | ||
Number of shares repurchased and retired | 1,610,182 | ||
Average price of shares repurchased and retired (usd per share) | $ 53.10 | ||
2015 Share Repurchase Program | |||
Shareholders Equity [Line Items] | |||
Stock repurchases authorized amount | $ 125 | ||
Number of shares repurchased and retired | 2,072,721 | ||
Average price of shares repurchased and retired (usd per share) | $ 38.60 | ||
Stock repurchase program, authorized yearly amount | $ 45 |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current tax (benefit)/expense, Federal | $ 62,869 | $ 57,336 | $ 82,163 |
Current tax (benefit)/expense, State | 9,399 | 8,823 | 12,163 |
Current Foreign Tax Expense (Benefit) | 25,692 | 5,342 | 833 |
Current tax (benefit)/expense, Total | 97,960 | 71,501 | 95,159 |
Deferred tax expense, Federal | 2,887 | 30,319 | 13,321 |
Deferred tax expense, State | (600) | 4,717 | (550) |
Deferred Foreign Income Tax Expense (Benefit) | (10,856) | 17,971 | (1,784) |
Deferred tax expense, Total | (8,569) | 53,007 | 10,987 |
Total income tax expense, Federal | 65,756 | 87,655 | 95,484 |
Total income tax expense, State | 8,799 | 13,540 | 11,613 |
Foreign Income Tax Expense (Benefit), Continuing Operations | 14,836 | 23,313 | (951) |
Total income tax expense | $ 89,391 | $ 124,508 | $ 106,146 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Expected Tax Expense At Statutory Tax Rates to Actual Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense at statutory federal rates | $ 90,133 | $ 105,355 | $ 99,073 |
State tax expense, net of federal tax benefit | 5,719 | 8,565 | 7,548 |
Foreign taxable translation | (708) | 8,199 | 0 |
Foreign rate difference | (8,787) | 90 | 820 |
Penalties | 2,819 | 0 | 0 |
Acquisition expenses | 234 | 2,169 | 0 |
Other | (19) | 130 | (1,295) |
Total income tax expense | $ 89,391 | $ 124,508 | $ 106,146 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Net deferred tax liability | $ 248,430 | $ 249,461 |
Valuation allowance | 45,323 | 30,166 |
Finance receivable revenue recognition - domestic | 251,733 | 240,998 |
Estimate of potential federal and state interest | 91,000 | 79,000 |
Unremitted earnings of foreign subsidiaries | 1,200 | |
Foreign Tax Authority | ||
Business Acquisition [Line Items] | ||
Cash | 51,500 | 23,000 |
Operating loss carryforward, foreign subsidiaries | $ 1,700 | $ 10,700 |
Foreign Tax Authority | Minimum | ||
Business Acquisition [Line Items] | ||
Operating loss carryforward, carryforward period | 7 years | |
Foreign Tax Authority | Maximum | ||
Business Acquisition [Line Items] | ||
Operating loss carryforward, carryforward period | 20 years |
Income Taxes (Summary of Compon
Income Taxes (Summary of Components of Net Deferred Tax Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Employee compensation | $ 13,845 | $ 9,304 |
Net operating loss carryforward | 39,080 | 33,026 |
Other | 3,843 | 5,447 |
Accrued liabilities | 8,429 | 3,334 |
Interest | 10,664 | 7,876 |
Total deferred tax asset | 75,861 | 58,987 |
Deferred tax liabilities: | ||
Depreciation expense | 5,276 | 5,998 |
Intangible assets and goodwill | 7,039 | 1,434 |
Convertible debt | 8,653 | 10,332 |
Other | 4,204 | 7,843 |
Finance receivable revenue recognition - international | 2,063 | 11,677 |
Finance receivable revenue recognition - domestic | 251,733 | 240,998 |
Total deferred tax liability | 278,968 | 278,282 |
Valuation allowance | 45,323 | 30,166 |
Total deferred tax liability | $ 248,430 | $ 249,461 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 09, 2015USD ($)judgment | May. 11, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Future compensation under employment agreements | $ 21,900,000 | ||||
Total future minimum lease payments | 39,171,000 | ||||
Amount to be purchased under forward flow agreements | 541,100,000 | ||||
Range of possible loss, minimum | 0 | ||||
Range of possible loss, maximum | 80,000,000 | ||||
Charges to earnings through Outside fees and services expense | 8,000,000 | $ 0 | $ 1,200,000 | ||
Finance receivable revenue recognition - domestic | 251,733,000 | 240,998,000 | |||
Estimate of potential federal and state interest | $ 91,000,000 | $ 79,000,000 | |||
Loss contingency, number of judgments | judgment | 837 | ||||
Consumer Financial Protection Bureau Investigation | Judicial Ruling - Refund Payments | |||||
Litigation settlement | $ 860,607 | ||||
Consumer Financial Protection Bureau Investigation | Judicial Ruling - Wave Remaining Balances | |||||
Litigation settlement | 3,411,094 | ||||
Consumer Financial Protection Bureau Investigation | Judicial Ruling - Refund Litigation Department Calls Restitution | |||||
Litigation settlement | 18,184,836 | ||||
Consumer Financial Protection Bureau Investigation | Judicial Ruling - Civil Money Penalty | |||||
Litigation settlement | $ 8,000,000 | ||||
Portfolio Recovery Associates, LLC v. Guadalupe Mejia | Judicial Ruling - Compensatory Damages | |||||
Amount of damages awarded | $ 251,000 | ||||
Portfolio Recovery Associates, LLC v. Guadalupe Mejia | Judicial Ruling - Punitive Damages | |||||
Amount of damages awarded | $ 82,009,549 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Minimum eligible age to make voluntary contributions | 18 years | ||
Employee contribution, percentage of employee's compensation | 100.00% | ||
Employer contribution, percentage of employee's compensation | 4.00% | ||
Total compensation expense related to contribution plan | $ 4.3 | $ 2.8 | $ 1.8 |
Subsequent Event (Details)
Subsequent Event (Details) - Revolving Credit Facility - Multicurrency Revolving Credit Facility - USD ($) | Feb. 19, 2016 | Jun. 12, 2015 | Oct. 23, 2014 | Feb. 25, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||
Debt covenant, maximum ERC ratio (as a percent) | 33.00% | 28.00% | |||
Subsequent Event | Minimum | |||||
Subsequent Event [Line Items] | |||||
Debt covenant, maximum ERC ratio (as a percent) | 32.20% | ||||
Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Debt covenant, maximum ERC ratio (as a percent) | 38.70% | ||||
Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Total credit facility available | $ 750,000,000 | $ 500,000,000 | $ 750,000,000 | ||
Line of Credit | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Total credit facility available | $ 900,000,000 | ||||
Debt covenant, maximum percentage of total commitment | 10.00% |