Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PRAA | |
Entity Registrant Name | PRA GROUP INC | |
Entity Central Index Key | 1,185,348 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,343,827 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 117,071 | $ 71,372 |
Investments | 66,560 | 73,799 |
Finance receivables, net | 2,399,949 | 2,202,113 |
Other receivables, net | 30,079 | 30,771 |
Income taxes receivable | 13,871 | 1,717 |
Net deferred tax asset | 15,713 | 13,068 |
Property and equipment, net | 46,852 | 45,394 |
Goodwill | 544,337 | 495,156 |
Intangible assets, net | 32,655 | 23,788 |
Other assets | 38,509 | 33,389 |
Total assets | 3,305,596 | 2,990,567 |
Liabilities: | ||
Accounts payable | 3,719 | 4,190 |
Accrued expenses | 79,202 | 95,380 |
Income taxes payable | 20,888 | 21,236 |
Net deferred tax liability | 276,360 | 261,498 |
Interest-bearing deposits | 58,041 | 46,991 |
Borrowings | 1,912,283 | 1,717,129 |
Other liabilities | 19,922 | 4,396 |
Total liabilities | 2,370,415 | 2,150,820 |
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, 46,341 at June 30, 2016; 100,000 authorized shares, 46,173 issued and outstanding shares at December 31, 2015 | 463 | 462 |
Additional paid-in capital | 66,838 | 64,622 |
Retained earnings | 1,032,709 | 964,270 |
Accumulated other comprehensive loss | (213,933) | (228,861) |
Total stockholders' equity - PRA Group, Inc. | 886,077 | 800,493 |
Noncontrolling interest | 49,104 | 39,254 |
Total equity | 935,181 | 839,747 |
Total liabilities and equity | $ 3,305,596 | $ 2,990,567 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 46,341,000 | 46,173,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Income recognized on finance receivables, net | $ 204,008 | $ 220,064 | $ 410,515 | $ 448,467 |
Fee income | 22,347 | 13,878 | 38,613 | 26,931 |
Other revenue | 2,101 | 3,255 | 4,210 | 7,005 |
Total revenues | 228,456 | 237,197 | 453,338 | 482,403 |
Operating expenses: | ||||
Compensation and employee services | 64,793 | 68,320 | 131,558 | 133,591 |
Legal collection fees | 15,098 | 14,114 | 28,048 | 27,805 |
Legal collection costs | 18,799 | 19,556 | 35,981 | 40,410 |
Agency fees | 11,309 | 7,784 | 22,193 | 16,045 |
Outside fees and services | 15,876 | 12,466 | 31,684 | 25,263 |
Communication | 8,423 | 8,073 | 18,305 | 18,491 |
Rent and occupancy | 4,038 | 3,479 | 7,834 | 7,039 |
Depreciation and amortization | 6,085 | 4,916 | 12,155 | 9,526 |
Other operating expenses | 11,279 | 9,610 | 21,930 | 19,188 |
Total operating expenses | 155,700 | 148,318 | 309,688 | 297,358 |
Income from operations | 72,756 | 88,879 | 143,650 | 185,045 |
Other income and (expense): | ||||
Interest expense | (20,569) | (13,452) | (40,528) | (28,228) |
Foreign exchange gain/(loss) | 2,029 | 3,584 | 179 | 10,373 |
Income before income taxes | 54,216 | 79,011 | 103,301 | 167,190 |
Provision for income taxes | 17,348 | 27,586 | 33,580 | 57,630 |
Net income | 36,868 | 51,425 | 69,721 | 109,560 |
Adjustment for net income attributable to noncontrolling interest | 412 | 0 | 1,282 | 0 |
Net income attributable to PRA Group, Inc. | $ 36,456 | $ 51,425 | $ 68,439 | $ 109,560 |
Net income per common share attributable to PRA Group, Inc.: | ||||
Basic (in dollars per share) | $ 0.79 | $ 1.06 | $ 1.48 | $ 2.26 |
Diluted (in dollars per share) | $ 0.79 | $ 1.06 | $ 1.48 | $ 2.25 |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 46,333 | 48,325 | 46,288 | 48,525 |
Diluted (shares) | 46,402 | 48,529 | 46,387 | 48,790 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 36,868 | $ 51,425 | $ 69,721 | $ 109,560 |
Change in foreign currency translation | (12,980) | 25,112 | 23,714 | (37,587) |
Total other comprehensive income/(loss) | 23,888 | 76,537 | 93,435 | 71,973 |
Adjustment for net income attributable to noncontrolling interest | 412 | 0 | 1,282 | 0 |
Change in foreign currency translation | 4,818 | 0 | 8,786 | 0 |
Comprehensive income attributable to noncontrolling interest | 5,230 | 0 | 10,068 | 0 |
Comprehensive income/(loss) attributable to PRA Group, Inc. | $ 18,658 | $ 76,537 | $ 83,367 | $ 71,973 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Noncontrolling Interest [Member] |
Balance at December 31, 2015 at Dec. 31, 2015 | $ 839,747 | $ 462 | $ 64,622 | $ 964,270 | $ (228,861) | $ 39,254 |
Beginning Balance, Shares at Dec. 31, 2015 | 46,173,000 | 46,173,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 69,721 | 68,439 | 1,282 | |||
Foreign currency translation adjustment | 23,714 | 14,928 | 8,786 | |||
Distributions paid to noncontrolling interest | (218) | (218) | ||||
Vesting of nonvested shares, shares | 168,000 | |||||
Vesting of nonvested shares | $ 1 | (1) | ||||
Amortization of share-based compensation | 6,136 | 6,136 | ||||
Tax deficiency from share-based compensation | (1,477) | (1,477) | ||||
Employee stock relinquished for payment of taxes | $ (2,442) | (2,442) | ||||
Ending Balance, Shares at Jun. 30, 2016 | 46,341,000 | 46,341,000 | ||||
Balance at March 31, 2016 at Jun. 30, 2016 | $ 935,181 | $ 463 | $ 66,838 | $ 1,032,709 | $ (213,933) | $ 49,104 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 69,721 | $ 109,560 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of share-based compensation | 6,136 | 7,665 |
Depreciation and amortization | 12,155 | 9,526 |
Amortization of debt discount and issuance costs | 5,436 | 2,104 |
Deferred tax expense | 8,450 | 7,272 |
Net foreign currency transaction loss/(gain) | (481) | (10,373) |
Changes in operating assets and liabilities: | ||
Other assets | 1,908 | (407) |
Other receivables, net | 1,139 | (5,484) |
Accounts payable | (766) | (515) |
Income taxes payable, net | (14,485) | (2,842) |
Accrued expenses | (22,352) | (20,424) |
Other liabilities | 15,499 | (28) |
Net cash provided by operating activities | 82,360 | 96,054 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (9,450) | (5,523) |
Acquisition of finance receivables, net of buybacks | (538,122) | (387,858) |
Collections applied to principal on finance receivables | 361,020 | 340,904 |
Business acquisitions, net of cash acquired | 65,176 | 0 |
Purchase of investments | 0 | (43,007) |
Proceeds from sales and maturities of investments | 8,837 | 43,648 |
Net cash used in investing activities | (242,891) | (51,836) |
Cash flows from financing activities: | ||
Tax (deficiency)/benefit from share-based compensation | (1,477) | 4,140 |
Proceeds from lines of credit | 645,362 | 326,039 |
Principal payments on lines of credit | (465,426) | (234,400) |
Repurchases of common stock | 0 | (77,802) |
Distributions paid to noncontrolling interest | (218) | 0 |
Principal payments on long-term debt | (10,000) | (37,500) |
Payments of debt issuance costs | (8,552) | (5,000) |
Net increase in interest-bearing deposits | 10,220 | 7,176 |
Net cash provided by/(used in) financing activities | 169,909 | (17,347) |
Effect of exchange rate on cash | 36,321 | (9,721) |
Net increase in cash and cash equivalents | 45,699 | 17,150 |
Cash and cash equivalents, beginning of period | 71,372 | 39,661 |
Cash and cash equivalents, end of period | 117,071 | 56,811 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 30,469 | 22,866 |
Cash paid for income taxes | $ 39,572 | $ 49,557 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business: Throughout this report, the terms "PRA Group," "our," "we," "us," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries. PRA Group, Inc., a Delaware corporation, along with 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. The consolidated financial statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and include the accounts of all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Under the guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 280 "Segment Reporting" ("ASC 280"), the Company has determined that it has several operating segments that meet the aggregation criteria of ASC 280, and, therefore, it has one reportable segment, accounts receivable management, based on similarities among the operating units including the nature of the products and services, the nature of the production processes, the types or class of customer for their products and services, the methods used to distribute their products and services and the nature of the regulatory environment. The following table shows the amount of revenue generated for the three and six months ended June 30, 2016 and 2015 and long-lived assets held at June 30, 2016 and 2015 for the United States, the Company's country of domicile, and outside of the United States (amounts in thousands): As Of And For The As Of And For The Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 165,639 $ 35,542 $ 184,191 $ 35,931 Outside the United States 62,817 11,310 53,006 10,284 Total $ 228,456 $ 46,852 $ 237,197 $ 46,215 As Of And For The As Of And For The Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 336,146 $ 35,542 $ 368,862 $ 35,931 Outside the United States 117,192 11,310 113,541 10,284 Total $ 453,338 $ 46,852 $ 482,403 $ 46,215 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. The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the "SEC") and, therefore, do not include all information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of the Company, however, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's consolidated balance sheet as of June 30, 2016 , its consolidated income statements and statements of comprehensive income/(loss) for the three and six months ended June 30, 2016 and 2015 , its consolidated statement of changes in stockholders' equity for the six months ended June 30, 2016 , and its consolidated statements of cash flows for the six months ended June 30, 2016 and 2015 . The consolidated income statements of the Company for the three and six months ended June 30, 2016 may not be indicative of future results. Certain prior period amounts have been reclassified for consistency with the current period presentation. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2015 Annual Report on Form 10-K, filed on February 26, 2016. |
Finance Receivables, net
Finance Receivables, net | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Changes in finance receivables, net for the three and six months ended June 30, 2016 and 2015 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period $ 2,377,077 $ 1,954,772 $ 2,202,113 $ 2,001,790 Acquisitions of finance receivables (1) 245,477 204,030 581,856 387,858 Foreign currency translation adjustment (39,411 ) 23,310 (23,000 ) (36,192 ) Cash collections (387,202 ) (389,624 ) (771,535 ) (789,371 ) Income recognized on finance receivables, net 204,008 220,064 410,515 448,467 Cash collections applied to principal and net allowance charges (183,194 ) (169,560 ) (361,020 ) (340,904 ) Balance at end of period $ 2,399,949 $ 2,012,552 $ 2,399,949 $ 2,012,552 (1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. At the time of acquisition, the life of each pool is 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 on finance receivables as of June 30, 2016 are estimated to be as follows for the twelve months in the periods ending June 30, (amounts in thousands): 2017 $ 651,557 2018 524,675 2019 402,713 2020 320,795 2021 216,193 2022 121,244 2023 59,031 2024 49,815 2025 29,281 2026 15,436 Thereafter 9,209 Total $ 2,399,949 At June 30, 2016 , the Company had aggregate net finance receivables balances in pools accounted for under the cost recovery method of $113.3 million ; at December 31, 2015 , the amount was $21.0 million . Accretable yield represents the amount of income recognized on finance receivables the Company can expect to generate over the remaining life of its existing portfolios based on estimated future cash flows as of the balance sheet date. Additions represent the original expected accretable yield, on portfolios purchased during the period, to be earned by the Company based on its proprietary buying models. Net reclassifications from nonaccretable difference to accretable yield primarily result from the Company's increase in its estimate of future cash flows. When applicable, net reclassifications to nonaccretable difference from accretable yield result from the Company's decrease in its estimates of future cash flows and allowance charges that exceed the Company's increase in its estimate of future cash flows. Changes in accretable yield for the three and six months ended June 30, 2016 and 2015 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period $ 2,879,750 $ 2,504,156 $ 2,727,204 $ 2,513,185 Income recognized on finance receivables, net (204,008 ) (220,064 ) (410,515 ) (448,467 ) Additions 199,691 173,888 459,940 346,270 Reclassifications from nonaccretable difference 91,003 49,729 89,968 168,981 Foreign currency translation adjustment (35,010 ) 30,938 64,829 (41,322 ) Balance at end of period $ 2,931,426 $ 2,538,647 $ 2,931,426 $ 2,538,647 The following is a summary of activity within the Company's valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Beginning balance $ 124,588 $ 87,796 $ 114,861 $ 86,166 Allowance charges 13,422 4,910 23,440 7,595 Reversal of previously recorded allowance charges (502 ) (25 ) (622 ) (1,080 ) Net allowance charges 12,920 4,885 22,818 6,515 Foreign currency translation adjustment (756 ) — $ (927 ) $ — Ending balance $ 136,752 $ 92,681 $ 136,752 $ 92,681 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consist of the following at June 30, 2016 and December 31, 2015 (amounts in thousands): June 30, 2016 December 31, 2015 Available-for-sale Securitized assets $ 4,258 $ 4,649 Government bonds and fixed income funds 652 3,405 Held-to-maturity Securitized assets 46,004 50,247 Other investments Private equity funds 15,646 15,498 Total investments $ 66,560 $ 73,799 Available-for-Sale Investments in securitized assets : The Company holds a majority interest in a closed-end Polish investment fund. The fund was formed in December 2014 to acquire portfolios of nonperforming consumer loans in Poland. The Company's investment consists of a 100% interest in the Series B certificates and a 20% interest in the Series C certificates. Each certificate comes with one vote and is governed by a co-investment agreement. Series C certificates, which share equally in the residual profit of the fund, are accounted for as debt securities classified as available-for-sale and are stated at fair value. Income is recognized using the effective yield method. There was no revenue recorded during the three and six months ended June 30, 2016 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 a majority interest 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 FASB ASC Topic 325-40, "Beneficial Interest in Securitized Financial Assets" ("ASC 325-40"). Income is recognized using the effective yield method. The Company adjusts the yield for changes in estimated cash flows prospectively through earnings. If the fair value of the investment falls below its carrying amount and the decline is deemed to be other than temporary, the investment is written down, with a corresponding charge to earnings. The underlying securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments. Accordingly, it is difficult to accurately predict the final maturity date of these investments. Revenues recognized on these investments are recorded in the Other Revenue line item in the income statement. During the three and six months ended June 30, 2016, revenues recognized on these investments were $1.6 million and $3.2 million , respectively. During the three and six months ended June 30, 2015, revenues recognized on these investments were $1.9 million and $3.1 million respectively. 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 $0.3 million and $0.6 million during the three and six months ended June 30, 2016 . Distributions received from investments carried at cost were $3.1 million and $5.1 million during the three and six months ended June 30, 2015. The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2016 and December 31, 2015 were as follows (amounts in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,223 $ — $ 965 $ 4,258 Government bonds and fixed income funds 652 — — 652 Held-to-maturity Securitized assets 46,004 4,817 — 50,821 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 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Domestic and Canadian revolving credit $ 593,703 $ 541,799 Term loan 160,000 170,000 Note payable 169,938 169,938 Multicurrency revolving credit 716,324 576,433 Polish revolving credit 4,868 — Convertible senior notes 287,500 287,500 Bonds payable 6,476 — Less: Debt discount and issuance costs (26,526 ) (28,541 ) Total $ 1,912,283 $ 1,717,129 The following principal payments are due on the Company's borrowings as of June 30, 2016 for the twelve month periods ending June 30, (amounts in thousands): 2017 $ 211,282 2018 179,614 2019 10,000 2020 10,000 2021 1,527,913 Total $ 1,938,809 The Company believes it was in compliance with the covenants of its material financing arrangements as of June 30, 2016 and December 31, 2015 . Domestic and Canadian 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 March 24, 2016, the Company entered into a Loan Modification Agreement and Seventh Amendment (the “Seventh Amendment”) to the Credit Agreement which (a) extended the maturity date of loans and commitments under the Credit Agreement in an aggregate principal amount of approximately $745.9 million , including a $23.0 million net increase in the commitments of the extending lenders, to the earlier of December 21, 2020 (the "Notes") or 91 days prior to the maturity of the Company’s 3.00% Convertible Senior Notes due August 1, 2020, (b) modified the accordion feature under the Credit Agreement to allow the Company to request from new and existing lenders up to an additional $125.0 million in loans and commitments under the Credit Agreement, (c) increased the credit given in the domestic borrowing base for estimated remaining collections of eligible asset pools, (d) increased the baskets available for permitted investments, equity repurchases and redemptions of the Company’s convertible notes, and (e) increased the maximum total leverage ratio of the Company and its subsidiaries to 2.25 to 1.0. The total credit facility under the Credit Agreement includes an aggregate principal amount of $958.0 million (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $160.0 million term loan, (ii) a $748.0 million domestic revolving credit facility, and (iii) a $50 million Canadian revolving credit facility. The Company's domestic revolving credit facility includes an optional increase in commitments for a $20 million swingline loan sublimit and a $125.0 million accordion feature, and also provides for up to $20 million of letters of credit that would reduce amounts available for borrowing. The facility matures on the earlier of December 21, 2020 or 91 days prior to the maturity of the Notes. The term and revolving loans accrue interest, at the option of the Company, at either the base rate or the Eurodollar rate (as defined in the Credit Agreement) for the applicable term plus 2.50% per annum in the case of the Eurodollar rate loans and 1.50% in the case of the base rate loans. The base rate is the highest of (a) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.50% , (b) Bank of America's prime rate, and (c) the Eurodollar rate plus 1.00% . As of June 30, 2016, the unused portion of the domestic and Canadian revolving credit facilities was $204.3 million . Considering borrowing base restrictions, as of June 30, 2016, the amount available to be drawn was $178.9 million . On July 18, 2016, the Company paid the outstanding principal balance plus accrued interest due on the note payable of $169.9 million incurred in connection with the acquisition of Aktiv Kapital AS ("Aktiv") which was funded mainly by a draw on its domestic revolving credit facility. The Credit Agreement is secured by a first priority lien on substantially all of the Company's assets. The Credit Agreement, as amended and modified, contains restrictive covenants and events of default including the following: • borrowings may not exceed 35% 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 2.25 to 1.0 as of the end of any fiscal quarter; • consolidated 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 any fiscal year cannot exceed $100 million plus 50% of the prior year's net income; • 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 outstanding borrowings under this credit facility at June 30, 2016 consisted of $160.0 million on the term loan with an annual interest rate of 2.96% and $593.7 million on the revolving credit facilities with a weighted average interest rate of 3.01% . At December 31, 2015 , the Company's outstanding borrowings on this credit facility consisted of $170.0 million on the term loan with an annual interest rate of 2.92% and $541.8 million on the revolving credit facilities with a weighted average interest rate of 2.89% . 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. On December 30, 2015, the Company exercised its option to extend the maturity date of the promissory note to July 19, 2016. The promissory note bears interest at the three-month London Interbank Offered Rate ("LIBOR") plus 3.75% . The quarterly interest due can be paid or added into the promissory note balance at the Company's option. At June 30, 2016 , the balance due on the note was $169.9 million with an annual interest rate of 4.40% . On July 18, 2016, the Company paid the outstanding principal balance due of $169.9 million plus accrued interest. 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"). On February 19, 2016, the Company entered into a Second Amendment to the Multicurrency Revolving Credit Agreement which provided for, (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, and (iii) an ERC ratio (as defined in the Multicurrency Revolving Credit Agreement) ranging from 32.2% to 38.7% depending on the mix of portfolios owned, 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 $900 million (subject to the borrowing base), 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 35% of the margin, currently 1.16% per annum, payable monthly in arrears, and matures on February 19, 2021. The Multicurrency Revolving Credit Agreement also includes an Overdraft Facility aggregate amount of $40 million (subject to the borrowing base), accrues interest (per currency) at the daily rates as published by the facility agent, bears a facility line fee of 0.125% per annum, payable quarterly in arrears, and also matures February 19, 2021. As of June 30, 2016, the unused portion of the Multicurrency Revolving Credit Agreement (including the Overdraft Facility) was $223.7 million . Considering borrowing base restrictions and other covenants, as of June 30, 2016, the amount available to be drawn under the Multicurrency Revolving Credit Agreement (including the Overdraft Facility) was $19.4 million . The Multicurrency Revolving Credit Agreement is secured by i) the shares of most of the Company's European subsidiaries and ii) all intercompany loan receivables in Europe. The Multicurrency Revolving Credit Agreement also contains restrictive covenants and events of default including the following: • the ERC Ratio (as defined in the Multicurrency Revolving Credit Agreement) in Europe can range from 32.2% to 38.7% depending on the mix of portfolios owned, subject to the payment of additional associated fees; • the GIBD Ratio (as defined in the Multicurrency Revolving Credit Agreement) in Europe cannot exceed 3.0 to 1.0 as of the end of any fiscal quarter (except for the quarters ended March 31 and June 30, 2016, for which the GIBD Ratio could not exceed 3.75 to 1.0 and 3.25 to 1.0, respectively); • 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 June 30, 2016 , the outstanding balance on the Multicurrency Revolving Credit Agreement was $716.3 million , with a weighted average annual interest rate of 3.65% . At December 31, 2015 , the outstanding balance on the Multicurrency Revolving Credit Agreement was $576.4 million , with a weighted average annual interest rate of 3.64% . 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 (the "Notes"). The Notes were issued pursuant to an Indenture, dated August 13, 2013 (the "Indenture") between the Company and Wells Fargo Bank, National Association, as trustee. The Indenture contains customary terms and covenants, including certain events of default after which the Notes may be due and payable immediately. The Notes are senior unsecured obligations of the Company and mature on August 1, 2020. Interest on the Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year. Prior to February 1, 2020, the Notes will be convertible only upon the occurrence of specified events. On or after February 1, 2020, the Notes will be convertible at any time. Upon conversion, the Notes may be settled, at the Company's option, in cash, shares of the Company's common stock, or any combination thereof. Holders of the Notes have the right to require the Company to repurchase all or some of their Notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change (as defined in the Indenture). In addition, upon the occurrence of a make-whole fundamental change (as defined in the Indenture), the Company may, under certain circumstances, be required to increase the conversion rate for the Notes converted in connection with such a make-whole fundamental change. The conversion rate for the Notes is initially 15.2172 shares per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $65.72 per share of the Company's common stock, and is subject to adjustment in certain circumstances pursuant to the Indenture. The Company does not have the right to redeem the Notes prior to maturity. As of June 30, 2016 , none of the conditions allowing holders of the Notes to convert their Notes had occurred. As noted above, upon conversion, holders of the Notes will receive cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. However, the Company's current intent is to settle conversions through combination settlement (i.e ., the Notes would be converted into cash up to the aggregate principal amount, and shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election, would be used to settle the remainder). As a result, and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company's common stock during any quarter exceeds $65.72 . The Company determined that the fair value of the Notes at the date of issuance was approximately $255.3 million , and designated the residual value of approximately $32.2 million as the equity component. Additionally, the Company allocated approximately $7.3 million of the $8.2 million original Notes issuance cost as debt issuance cost and the remaining $0.9 million as equity issuance cost. FASB ASC 470-20, "Debt with Conversion and Other Options" ("ASC 470-20"), requires that, for convertible debt instruments that may be settled fully or partially in cash upon conversion, issuers must separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Additionally, debt issuance costs are required to be allocated in proportion to the allocation of the liability and equity components and accounted for as debt issuance costs and equity issuance costs, respectively. The balances of the liability and equity components of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (20,193 ) (22,402 ) Liability component - net carrying amount $ 267,307 $ 265,098 Equity component $ 31,306 $ 31,306 The debt discount is being amortized into interest expense over the remaining life of the Notes using the effective interest rate, which is 4.92% . Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest expense - stated coupon rate $ 2,156 $ 2,156 $ 4,312 $ 4,312 Interest expense - amortization of debt discount 1,109 1,056 2,209 2,104 Total interest expense - convertible senior notes $ 3,265 $ 3,212 $ 6,521 $ 6,416 Polish Revolving Credit and Bonds Payable With the acquisition of DTP S.A. ("DTP") in the second quarter of 2016, the Company assumed the outstanding debt of DTP which included revolving credit facilities and bonds. As of June 30, 2016, the outstanding balance on the revolving credit facilities was $4.9 million , with a weighted average interest rate of 4.4% . On July 29, 2016, the Company repaid the outstanding balance on the facilities and any fees and terminated the credit facilities. As of June 30, 2016, the outstanding balance of the bonds was $6.5 million , with a weighted average interest rate of 6.1% . Of the $6.5 million , $2.3 million matures on August 22, 2016 and $4.2 million matures on June 25, 2017. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property And Equipment, Net | Property and Equipment, net: Property and equipment, at cost, consisted of the following as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Software $ 66,222 $ 62,198 Computer equipment 22,495 21,109 Furniture and fixtures 15,177 11,888 Equipment 14,029 12,874 Leasehold improvements 15,028 15,112 Building and improvements 7,277 7,235 Land 1,296 1,296 Accumulated depreciation and amortization (94,672 ) (86,318 ) Property and equipment, net $ 46,852 $ 45,394 Depreciation and amortization expense relating to property and equipment for the three and six months ended June 30, 2016 was $4.3 million and $8.6 million , respectively. Depreciation and amortization expense relating to property and equipment for the three and six months ended June 30, 2015 was $3.9 million and $7.7 million , respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | Goodwill and Intangible Assets, net: In connection with the Company's business acquisitions, the Company acquired certain tangible and intangible assets. Intangible assets 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. At June 30, 2016 and 2015 , the carrying value of goodwill was $544.3 million and $503.0 million , respectively. The following table represents the changes in goodwill for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period: Goodwill $ 531,267 $ 503,050 $ 501,553 $ 533,842 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) 524,870 496,653 495,156 527,445 Changes: Acquisitions 22,776 — 27,518 — Foreign currency translation adjustment (3,309 ) 6,348 21,663 (24,444 ) Net change in goodwill 19,467 6,348 49,181 (24,444 ) Goodwill 550,734 509,398 550,734 509,398 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) Balance at end of period: $ 544,337 $ 503,001 $ 544,337 $ 503,001 The $22.8 million addition to goodwill during the three months ended June 30, 2016, was attributable to the acquisition of DTP. The goodwill recognized from the DTP acquisition is not expected to be deductible for U.S. income tax purposes. The $27.5 million addition to goodwill during the six months ended June 30, 2016, was attributable to the acquisition of DTP during the second quarter and the acquisition of Recovery Management Systems Corporation ("RMSC") in the first quarter. The goodwill recognized from the RMSC acquisition is expected to be deductible for U.S. income tax purposes. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation: The Company has an Omnibus Incentive Plan (the "Plan") to assist the Company in attracting and retaining selected individuals to serve as employees and directors, who are expected to contribute to the Company's success and to achieve long-term objectives that will benefit stockholders of the Company. The Plan enables the Company to award shares of the Company's common stock to select employees and directors, as described in the Plan, not to exceed 5.4 million shares, as authorized by the Plan. Total share-based compensation expense was $2.7 million and $6.1 million for the three and six months ended June 30, 2016 , respectively. Total share-based compensation expense was $3.6 million and $7.7 million for the three and six months ended June 30, 2015 , respectively. Tax benefits resulting from tax deductions in excess of cumulative compensation cost and related deferred tax asset recognized under the provisions of FASB ASC Topic 718 "Compensation-Stock Compensation" ("ASC 718"), or windfall tax benefits, are credited to additional paid-in capital in the Company's Consolidated Balance Sheets. Realized tax shortfalls, if any, are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. The total tax benefit realized from share-based compensation was approximately $0.1 million and $2.5 million for the three and six months ended June 30, 2016 and $0.3 million and $7.8 million for the three and six months ended June 30, 2015 , respectively. Nonvested Shares As of June 30, 2016 , total future compensation costs related to nonvested share awards (not including nonvested shares granted under the Long-Term Incentive ("LTI") Program) is estimated to be $9.3 million with a weighted average remaining life for all nonvested shares of 1.8 years (not including nonvested shares granted under the LTI program). With the exception of the awards made pursuant to the LTI program and a few employee and director grants, the nonvested shares vest ratably over three to five years and are expensed over the respective vesting period for the awards. The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2014 through June 30, 2016 (share amounts in thousands): Nonvested Shares Weighted-Average December 31, 2014 339 $ 47.34 Granted 100 53.29 Vested (151 ) 42.15 Canceled (4 ) 47.49 December 31, 2015 284 52.20 Granted 186 28.42 Vested (90 ) 46.30 Canceled (47 ) 53.05 June 30, 2016 333 $ 40.36 The total grant date fair value of shares vested during the three and six months ended June 30, 2016 was $0.8 million and $4.2 million , respectively. The total grant date fair value of shares vested during the three and six months ended June 30, 2015 was $0.7 million and $3.5 million , respectively. 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 summarizes all LTI program share transactions from December 31, 2014 through June 30, 2016 (share amounts in thousands): Nonvested LTI Shares Weighted-Average 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 Granted at target level 240 28.98 Adjustments for actual performance (67 ) 34.59 Vested (176 ) 34.59 Canceled (41 ) 44.80 June 30, 2016 439 $ 39.60 The total grant date fair value of shares vested during both the three and six months ended June 30, 2016 was $6.1 million . The total grant date fair value of shares vested during both the three and six months ended June 30, 2015 was $5.1 million . At June 30, 2016 , total future compensation expenses, assuming the current estimated performance levels are achieved, related to nonvested share awards granted under the LTI program are estimated to be approximately $8.5 million . The Company assumed a forfeiture rate for these grants between 7.5% - 10% and the remaining shares have a weighted average life of 1.2 years at June 30, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The Company follows the guidance of FASB ASC Topic 740 "Income Taxes" ("ASC 740") as it relates to the provision for income taxes and uncertainty in income taxes. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For tax purposes, the Company utilizes the cost recovery method of accounting. Under the cost recovery method, collections on finance receivables are applied first to principal to reduce the finance receivables to zero before taxable income is recognized. The Internal Revenue Service ("IRS") examined the Company's 2005 through 2012 tax returns and has asserted that tax revenue recognition using the cost recovery method does not clearly reflect taxable income. The Company believes it has sufficient support for the technical merits of its position, and believes cost recovery to be an acceptable tax revenue recognition method for 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. In response to the notices, the Company filed petitions in the U.S. Tax Court (the "Tax Court") challenging the deficiencies. 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 November 12, 2015 the Tax Court denied the IRS's Motions for Summary Judgment and set this matter for trial to begin on September 19, 2016. On July 5, 2016, the Tax Court granted the IRS’s Motion for Continuance filed on June 28, 2016. On July 14, 2016, the Tax Court set the trial to begin on May 15, 2017. 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 June 30, 2016 and December 31, 2015, deferred tax liabilities related to this matter were $252.4 million and $251.7 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 June 30, 2016 and December 31, 2015, the Company's estimate of the potential federal and state interest was $100.7 million and $91.0 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. At June 30, 2016 , the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2003, 2005 and subsequent years. The 2003 tax year remains open to examination because of a net operating loss that originated in that year but was not fully utilized until the 2005 tax year. The examination periods for the 2005 through 2012 tax years are suspended until a decision of the Tax Court becomes final. The Company intends for predominantly all foreign earnings to be permanently reinvested in its foreign operations. If foreign earnings were repatriated, the Company would need to accrue and pay taxes, although foreign tax credits may be available to partially reduce U.S. income taxes. The amount of cash on hand related to foreign operations with permanently reinvested earnings was $77.9 million and $51.5 million as of June 30, 2016 and December 31, 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: Basic earnings per share ("EPS") are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS with the denominator adjusted for the dilutive effect of the Notes and nonvested share awards, if dilutive. For the Notes, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company's common stock during any quarter exceeds $65.72 , which did not occur during the period from which the Notes were issued on August 13, 2013 through June 30, 2016 . Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive. 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 tax benefit that would be realized upon assumed exercise. The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the three and six months ended June 30, 2016 and 2015 (amounts in thousands, except per share amounts): For the Three Months Ended June 30, 2016 2015 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 36,456 46,333 $ 0.79 $ 51,425 48,325 $ 1.06 Dilutive effect of nonvested share awards 69 — 204 — Diluted EPS $ 36,456 46,402 $ 0.79 $ 51,425 48,529 $ 1.06 For the Six Months Ended June 30, 2016 2015 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 68,439 46,288 $ 1.48 $ 109,560 48,525 $ 2.26 Dilutive effect of nonvested share awards 99 — 265 (0.01 ) Diluted EPS $ 68,439 46,387 $ 1.48 $ 109,560 48,790 $ 2.25 There were no antidilutive options outstanding for the three and six months ended June 30, 2016 and 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies: Employment Agreements: The Company has entered into employment agreements, most of which expire on December 31, 2017 , with all of its U.S. executive officers and with several members of its U.S. senior management group. Such agreements provide for base salary payments as well as bonuses that are based on the attainment of specific management goals. At June 30, 2016 , estimated future compensation under these agreements is approximately $15.4 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 $15.4 million total above. Leases: The Company is party to various operating leases with respect to its facilities and equipment. The future minimum lease payments at June 30, 2016 total approximately $57.4 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 June 30, 2016 is approximately $329.9 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 June 30, 2016 , excluding the potential interest associated with the IRS matter described below, is from $0 to $81 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 typically 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 as of June 30, 2016. 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 ("the Settlement Agreement") under which the parties agreed to seek court approval of class certification and the proposed settlement. As required by the Settlement Agreement, which remains subject to final court approval, the parties sought preliminary Court approval of the Settlement Agreement, and the Company paid $18 million to resolve the MDL action during second quarter of 2016. The Company had fully accrued for the settlement amount as of December 31, 2015. 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 deficiencies. 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 November 12, 2015, the Tax Court denied the IRS's Motions for Summary Judgment and set this matter for trial to begin on September 19, 2016. On July 5, 2016, the Tax Court granted the IRS’s Motion for Continuance filed on June 28, 2016. On July 14, 2016, the Tax Court set the trial to begin on May 15, 2017. If the Company is unsuccessful in the Tax Court and any potential appeals, it may ultimately be required to pay the related deferred taxes, and possibly interest and penalties. Deferred tax liabilities related to this matter were $252.4 million at June 30, 2016 . 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 $100.7 million as of June 30, 2016 , which has not been accrued. 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. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements And Disclosures | Fair Value: As defined by FASB ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820"), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also requires the consideration of differing levels of inputs in the determination of fair values. Those levels of input are summarized as follows: • Level 1: Quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3: Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments for which the determination of fair value requires significant management judgment or estimation. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Financial Instruments Not Required To Be Carried at Fair Value In accordance with the disclosure requirements of FASB ASC Topic 825, "Financial Instruments" ("ASC 825"), the table below summarizes fair value estimates for the Company's financial instruments not required to be carried at fair value. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company. The carrying amounts of the financial instruments in the following table are recorded in the consolidated balance sheets at June 30, 2016 and December 31, 2015 (amounts in thousands): June 30, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 117,071 $ 117,071 $ 71,372 $ 71,372 Held-to-maturity investments 46,004 50,821 50,247 55,613 Other investments 15,646 14,763 15,498 16,803 Finance receivables, net 2,399,949 2,882,793 2,202,113 2,704,432 Financial liabilities: Interest-bearing deposits 58,041 58,041 46,991 46,991 Revolving lines of credit 1,314,895 1,314,895 1,118,232 1,118,232 Term loans 160,000 160,000 170,000 170,000 Notes and bonds payable 176,414 176,414 169,938 169,938 Convertible senior notes 267,307 224,057 265,098 241,126 Disclosure of the estimated fair values of financial instruments often requires the use of estimates. The carrying amount and estimates of the fair value of the Company's debt obligations outlined above do not include any related debt issuance costs associated with the debt obligations. The Company uses the following methods and assumptions to estimate the fair value of the financial instruments in the above table: Cash and cash equivalents: The carrying amount approximates fair value and quoted prices for identical assets can be found in active markets. Accordingly, the Company estimates the fair value of cash and cash equivalents using Level 1 inputs. Held-to-maturity investments: Fair value of the Company's investment in Series B certificates of a closed-end Polish investment fund is estimated using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company estimates the fair value of its held-to-maturity investments using Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Other investments: This class of investments consists of private equity funds that invest primarily in loans and securities including single-family residential debt; corporate debt products; and financially-oriented, real-estate-rich and other operating companies in the Americas, Western Europe, and Japan. These investments are subject to certain restrictions regarding transfers and withdrawals. The investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through the liquidation of the underlying assets of the fund. The fair value of the Company's interest is valued by the fund managers; accordingly, the Company estimates the fair value of these investments using Level 3 inputs. The investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over 1 to 4 years. Finance receivables, net: The Company records purchased receivables at cost, which represents a significant discount from the contractual receivable balances due. The Company computed the estimated fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company's fair value estimates use Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Interest-bearing deposits: The carrying amount approximates fair value due to the short-term nature of the deposits and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Revolving lines of credit: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Term loans: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Notes and bonds payable: The carrying amount approximates fair value due to the short-term nature of the loan terms and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Convertible notes: The Notes are carried at historical cost, adjusted for the debt discount. The fair value estimates for these Notes incorporates quoted market prices which were obtained from secondary market broker quotes which were derived from a variety of inputs including client orders, information from their pricing vendors, modeling software, and actual trading prices when they occur. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Financial Instruments Required To Be Carried At Fair Value The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at June 30, 2016 and December 31, 2015 (amounts in thousands): Fair Value Measurements as of June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 652 $ — $ 4,258 $ 4,910 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 4,640 — 4,640 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 Available-for-sale investments: Fair value of the Company's investment in Series C certificates of a closed-end Polish investment fund is estimated using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company estimates the fair value of its available-for-sale investments using Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, FASB issued Accounting Standards Update ("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 Company adopted ASU 2014-12 in the first quarter of 2016 which had no 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 Company adopted ASU 2015-02 in the first quarter of 2016 which had no 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 adopted ASU 2015-03 in the first quarter of 2016. Upon adoption, the Company reclassified its debt issuance costs from "Other assets" to "Borrowings" in its Consolidated Balance Sheets which did not 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 Company prospectively adopted ASU 2015-05 in the first quarter of 2016 which had no material impact on the Company's Consolidated Financial Statements. In February 2016, FASB issued ASU 2016-02, "Leases (Topic 842) Section A-Leases: Amendments to the FASB Account Standards Codification" ("ASU 2016-02"). The amendments under the new guidance increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous generally accepted accounting principles. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. It is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The amendments under the new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. In June 2016, FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13"). ASU 2016-13 requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and allows for early adoption as of the beginning of an interim or annual reporting period beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements. |
Organization and Business (Tabl
Organization and Business (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue And Long-Lived Assets Held By Geographical Location | The following table shows the amount of revenue generated for the three and six months ended June 30, 2016 and 2015 and long-lived assets held at June 30, 2016 and 2015 for the United States, the Company's country of domicile, and outside of the United States (amounts in thousands): As Of And For The As Of And For The Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 165,639 $ 35,542 $ 184,191 $ 35,931 Outside the United States 62,817 11,310 53,006 10,284 Total $ 228,456 $ 46,852 $ 237,197 $ 46,215 As Of And For The As Of And For The Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 336,146 $ 35,542 $ 368,862 $ 35,931 Outside the United States 117,192 11,310 113,541 10,284 Total $ 453,338 $ 46,852 $ 482,403 $ 46,215 |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Changes in Finance Receivables | Changes in finance receivables, net for the three and six months ended June 30, 2016 and 2015 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period $ 2,377,077 $ 1,954,772 $ 2,202,113 $ 2,001,790 Acquisitions of finance receivables (1) 245,477 204,030 581,856 387,858 Foreign currency translation adjustment (39,411 ) 23,310 (23,000 ) (36,192 ) Cash collections (387,202 ) (389,624 ) (771,535 ) (789,371 ) Income recognized on finance receivables, net 204,008 220,064 410,515 448,467 Cash collections applied to principal and net allowance charges (183,194 ) (169,560 ) (361,020 ) (340,904 ) Balance at end of period $ 2,399,949 $ 2,012,552 $ 2,399,949 $ 2,012,552 |
Schedule of Cash Collections Applied to Principal | Based upon current projections, cash collections applied to principal on finance receivables as of June 30, 2016 are estimated to be as follows for the twelve months in the periods ending June 30, (amounts in thousands): 2017 $ 651,557 2018 524,675 2019 402,713 2020 320,795 2021 216,193 2022 121,244 2023 59,031 2024 49,815 2025 29,281 2026 15,436 Thereafter 9,209 Total $ 2,399,949 |
Schedule of Changes in Accretable Yield | Changes in accretable yield for the three and six months ended June 30, 2016 and 2015 were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period $ 2,879,750 $ 2,504,156 $ 2,727,204 $ 2,513,185 Income recognized on finance receivables, net (204,008 ) (220,064 ) (410,515 ) (448,467 ) Additions 199,691 173,888 459,940 346,270 Reclassifications from nonaccretable difference 91,003 49,729 89,968 168,981 Foreign currency translation adjustment (35,010 ) 30,938 64,829 (41,322 ) Balance at end of period $ 2,931,426 $ 2,538,647 $ 2,931,426 $ 2,538,647 |
Schedule of Valuation Allowance Account | The following is a summary of activity within the Company's valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Beginning balance $ 124,588 $ 87,796 $ 114,861 $ 86,166 Allowance charges 13,422 4,910 23,440 7,595 Reversal of previously recorded allowance charges (502 ) (25 ) (622 ) (1,080 ) Net allowance charges 12,920 4,885 22,818 6,515 Foreign currency translation adjustment (756 ) — $ (927 ) $ — Ending balance $ 136,752 $ 92,681 $ 136,752 $ 92,681 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of the following at June 30, 2016 and December 31, 2015 (amounts in thousands): June 30, 2016 December 31, 2015 Available-for-sale Securitized assets $ 4,258 $ 4,649 Government bonds and fixed income funds 652 3,405 Held-to-maturity Securitized assets 46,004 50,247 Other investments Private equity funds 15,646 15,498 Total investments $ 66,560 $ 73,799 |
Available-for-sale Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2016 and December 31, 2015 were as follows (amounts in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,223 $ — $ 965 $ 4,258 Government bonds and fixed income funds 652 — — 652 Held-to-maturity Securitized assets 46,004 4,817 — 50,821 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 |
Held-to-maturity Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at June 30, 2016 and December 31, 2015 were as follows (amounts in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Securitized assets $ 5,223 $ — $ 965 $ 4,258 Government bonds and fixed income funds 652 — — 652 Held-to-maturity Securitized assets 46,004 4,817 — 50,821 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 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Domestic and Canadian revolving credit $ 593,703 $ 541,799 Term loan 160,000 170,000 Note payable 169,938 169,938 Multicurrency revolving credit 716,324 576,433 Polish revolving credit 4,868 — Convertible senior notes 287,500 287,500 Bonds payable 6,476 — Less: Debt discount and issuance costs (26,526 ) (28,541 ) Total $ 1,912,283 $ 1,717,129 |
Schedule of Liability and Equity Components | The balances of the liability and equity components of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Liability component - principal amount $ 287,500 $ 287,500 Unamortized debt discount (20,193 ) (22,402 ) Liability component - net carrying amount $ 267,307 $ 265,098 Equity component $ 31,306 $ 31,306 |
Schedule of Debt Interest Expense | Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest expense - stated coupon rate $ 2,156 $ 2,156 $ 4,312 $ 4,312 Interest expense - amortization of debt discount 1,109 1,056 2,209 2,104 Total interest expense - convertible senior notes $ 3,265 $ 3,212 $ 6,521 $ 6,416 |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings as of June 30, 2016 for the twelve month periods ending June 30, (amounts in thousands): 2017 $ 211,282 2018 179,614 2019 10,000 2020 10,000 2021 1,527,913 Total $ 1,938,809 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, at Cost | Property and equipment, at cost, consisted of the following as of the dates indicated (amounts in thousands): June 30, 2016 December 31, 2015 Software $ 66,222 $ 62,198 Computer equipment 22,495 21,109 Furniture and fixtures 15,177 11,888 Equipment 14,029 12,874 Leasehold improvements 15,028 15,112 Building and improvements 7,277 7,235 Land 1,296 1,296 Accumulated depreciation and amortization (94,672 ) (86,318 ) Property and equipment, net $ 46,852 $ 45,394 |
Goodwill And Intangible Asset25
Goodwill And Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the three and six months ended June 30, 2016 and 2015 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Balance at beginning of period: Goodwill $ 531,267 $ 503,050 $ 501,553 $ 533,842 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) 524,870 496,653 495,156 527,445 Changes: Acquisitions 22,776 — 27,518 — Foreign currency translation adjustment (3,309 ) 6,348 21,663 (24,444 ) Net change in goodwill 19,467 6,348 49,181 (24,444 ) Goodwill 550,734 509,398 550,734 509,398 Accumulated impairment loss (6,397 ) (6,397 ) (6,397 ) (6,397 ) Balance at end of period: $ 544,337 $ 503,001 $ 544,337 $ 503,001 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Share Transactions | The following summarizes all LTI program share transactions from December 31, 2014 through June 30, 2016 (share amounts in thousands): Nonvested LTI Shares Weighted-Average 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 Granted at target level 240 28.98 Adjustments for actual performance (67 ) 34.59 Vested (176 ) 34.59 Canceled (41 ) 44.80 June 30, 2016 439 $ 39.60 The following summarizes all nonvested share transactions, excluding those related to the LTI program, from December 31, 2014 through June 30, 2016 (share amounts in thousands): Nonvested Shares Weighted-Average December 31, 2014 339 $ 47.34 Granted 100 53.29 Vested (151 ) 42.15 Canceled (4 ) 47.49 December 31, 2015 284 52.20 Granted 186 28.42 Vested (90 ) 46.30 Canceled (47 ) 53.05 June 30, 2016 333 $ 40.36 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation Between the Computation of Basic and Diluted EPS | three and six months ended June 30, 2016 and 2015 (amounts in thousands, except per share amounts): For the Three Months Ended June 30, 2016 2015 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 36,456 46,333 $ 0.79 $ 51,425 48,325 $ 1.06 Dilutive effect of nonvested share awards 69 — 204 — Diluted EPS $ 36,456 46,402 $ 0.79 $ 51,425 48,529 $ 1.06 For the Six Months Ended June 30, 2016 2015 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 68,439 46,288 $ 1.48 $ 109,560 48,525 $ 2.26 Dilutive effect of nonvested share awards 99 — 265 (0.01 ) Diluted EPS $ 68,439 46,387 $ 1.48 $ 109,560 48,790 $ 2.25 |
Fair Value Measurements and D28
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | June 30, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 117,071 $ 117,071 $ 71,372 $ 71,372 Held-to-maturity investments 46,004 50,821 50,247 55,613 Other investments 15,646 14,763 15,498 16,803 Finance receivables, net 2,399,949 2,882,793 2,202,113 2,704,432 Financial liabilities: Interest-bearing deposits 58,041 58,041 46,991 46,991 Revolving lines of credit 1,314,895 1,314,895 1,118,232 1,118,232 Term loans 160,000 160,000 170,000 170,000 Notes and bonds payable 176,414 176,414 169,938 169,938 Convertible senior notes 267,307 224,057 265,098 241,126 |
Schedule of financial instruments required to be carried at fair value | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at June 30, 2016 and December 31, 2015 (amounts in thousands): Fair Value Measurements as of June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 652 $ — $ 4,258 $ 4,910 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 4,640 — 4,640 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 |
Organization and Business (Deta
Organization and Business (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Revenues | $ 228,456 | $ 237,197 | $ 453,338 | $ 482,403 | |
Property, Plant and Equipment, Net | 46,852 | 46,852 | $ 45,394 | ||
Long-Lived Assets | 46,852 | 46,215 | 46,852 | 46,215 | |
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 165,639 | 184,191 | 336,146 | 368,862 | |
Long-Lived Assets | 35,542 | 35,931 | 35,542 | 35,931 | |
Outside the United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 62,817 | 53,006 | 117,192 | 113,541 | |
Long-Lived Assets | $ 11,310 | $ 10,284 | $ 11,310 | $ 10,284 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized purchased principal (purchase price) under the cost recovery method | $ 113.3 | $ 21 |
Finance Receivables, net (Sched
Finance Receivables, net (Schedule of Changes In Finance Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ||||
Balance at beginning of year | $ 2,377,077 | $ 1,954,772 | $ 2,202,113 | $ 2,001,790 |
Acquisitions of finance receivables | 245,477 | 204,030 | 581,856 | 387,858 |
Foreign currency translation adjustment | (39,411) | 23,310 | (23,000) | (36,192) |
Cash collections | 387,202 | 389,624 | 771,535 | 789,371 |
Income recognized on finance receivables, net | 204,008 | 220,064 | 410,515 | 448,467 |
Cash collections applied to principal and net allowance charges/(reversals) | 183,194 | 169,560 | 361,020 | 340,904 |
Balance at end of year | $ 2,399,949 | $ 2,012,552 | $ 2,399,949 | $ 2,012,552 |
Finance Receivables, net (Sch32
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Receivables [Abstract] | |
2,017 | $ 651,557 |
2,018 | 524,675 |
2,019 | 402,713 |
2,020 | 320,795 |
2,021 | 216,193 |
2,022 | 121,244 |
2,023 | 59,031 |
2,024 | 49,815 |
2,025 | 29,281 |
2,026 | 15,436 |
Thereafter | 9,209 |
Total | $ 2,399,949 |
Finance Receivables, net (Sch33
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of year | $ 2,879,750 | $ 2,504,156 | $ 2,727,204 | $ 2,513,185 |
Income recognized on finance receivables, net | (204,008) | (220,064) | (410,515) | (448,467) |
Additions | 199,691 | 173,888 | 459,940 | 346,270 |
Reclassifications (to)/from nonaccretable difference | 91,003 | 49,729 | 89,968 | 168,981 |
Foreign currency translation adjustment | (35,010) | 30,938 | 64,829 | (41,322) |
Balance at end of year | $ 2,931,426 | $ 2,538,647 | $ 2,931,426 | $ 2,538,647 |
Finance Receivables, net (Sch34
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | ||||
Beginning balance | $ 124,588 | $ 87,796 | $ 114,861 | $ 86,166 |
Allowance charges | 13,422 | 4,910 | 23,440 | 7,595 |
Reversal of previous recorded allowance charges | (502) | (25) | (622) | (1,080) |
Net allowance charges | 12,920 | 4,885 | 22,818 | 6,515 |
Foreign currency translation adjustment | (756) | 0 | (927) | 0 |
Ending balance | $ 136,752 | $ 92,681 | $ 136,752 | $ 92,681 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale | ||
Securitized assets | $ 4,910 | $ 8,054 |
Held-to-maturity | ||
Securitized assets | 46,004 | 50,247 |
Other investments | ||
Private equity funds | 15,646 | 15,498 |
Investments | 66,560 | 73,799 |
Asset-backed Securities [Member] | ||
Available-for-sale | ||
Securitized assets | 4,258 | 4,649 |
Held-to-maturity | ||
Securitized assets | 46,004 | 50,247 |
Government Bonds and Fixed Income Funds [Member] | ||
Available-for-sale | ||
Securitized assets | $ 652 | $ 3,405 |
Investments Narrative (Details)
Investments Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)vote | Jun. 30, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment Income, Net | $ 1.6 | $ 1.9 | $ 3.2 | $ 3.1 | |
Cost-method investment, ownership percentage | 3.00% | ||||
Cost-method Investments, Realized Gains | $ 0.3 | $ 3.1 | $ 0.6 | $ 5.1 | |
Available-for-sale Securities [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of votes | vote | 1 | ||||
Available-for-sale Securities [Member] | Series B Certificates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in securitized assets, certificates, ownership percentage | 100.00% | ||||
Available-for-sale Securities [Member] | Series C Certificates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in securitized assets, certificates, ownership percentage | 20.00% |
Investments Amortized Costs (De
Investments Amortized Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale | ||
Aggregate Fair Value | $ 4,910 | $ 8,054 |
Held-to-maturity | ||
Amortized Cost | 46,004 | 50,247 |
Aggregate Fair Value | 50,821 | 55,613 |
Asset-backed Securities [Member] | ||
Available-for-sale | ||
Amortized Cost | 5,223 | 5,855 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 965 | 1,206 |
Aggregate Fair Value | 4,258 | 4,649 |
Held-to-maturity | ||
Amortized Cost | 46,004 | 50,247 |
Gross Unrealized Gains | 4,817 | 5,366 |
Gross Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 50,821 | 55,613 |
Government Bonds and Fixed Income Funds [Member] | ||
Available-for-sale | ||
Amortized Cost | 652 | 3,405 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Aggregate Fair Value | $ 652 | $ 3,405 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jul. 16, 2014 | Aug. 13, 2013 |
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | $ 1,314,895,000 | $ 1,118,232,000 | ||
Long-term debt | 160,000,000 | 170,000,000 | ||
Less: Debt discount and issuance costs | (26,526,000) | (28,541,000) | ||
Borrowings | 1,912,283,000 | 1,717,129,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | 541,799,000 | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 170,000,000 | |||
Long-term debt | 160,000,000 | 170,000,000 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount | 287,500,000 | 287,500,000 | $ 287,500,000 | |
Corporate Debt Securities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 6,476,000 | 0 | ||
Seller Note Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 169,938,000 | 169,938,000 | $ 169,900,000 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | 593,703,000 | 541,799,000 | ||
Revolving Credit Facility | Multicurrency Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 716,324,000 | 576,433,000 | ||
Revolving Credit Facility | Polish Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 4,868,000 | $ 0 |
Borrowings - Revolving Credit a
Borrowings - Revolving Credit and Term Loan Facility (Details) | Jul. 18, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 24, 2016USD ($) | Feb. 19, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 23, 2014USD ($) | Aug. 13, 2013 |
Debt Instrument [Line Items] | |||||||
Unused commitment fee | 0.375% | ||||||
Outstanding borrowings under credit facility | $ 1,314,895,000 | $ 1,118,232,000 | |||||
Long-term debt | 160,000,000 | 170,000,000 | |||||
Credit Agreement Loan Modification and Seventh Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 745,900,000 | ||||||
Line of Credit Facility, Increase (Decrease), Net | $ 23,000,000 | ||||||
Credit agreement consolidated leverage ratio | 2.25 | ||||||
Line of Credit, Additional Borrowing Capacity Available | $ 125,000,000 | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35.00% | ||||||
Percentage of maximum level of borrowings of eligible accounts receivable | 75.00% | ||||||
Credit agreement consolidated leverage ratio | 2.25 | ||||||
Maximum capital expenditures | $ 40,000,000 | ||||||
Maximum cash dividends | 20,000,000 | ||||||
Stock repurchases authorized amount | 100,000,000 | ||||||
Commitment Increase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 958,000,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings under credit facility | 541,799,000 | ||||||
Unsecured Debt [Member] | Senior Unsecured Debt other than Convertible Notes Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum allowable debt | $ 500,000,000 | ||||||
Convertible Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 267,307,000 | 265,098,000 | |||||
Stated percentage | 3.00% | 3.00% | 3.00% | ||||
Interest rate at period end | 4.92% | ||||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 160,000,000 | $ 170,000,000 | |||||
Interest rate at period end | 2.96% | 2.92% | |||||
Base Rate [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread variable rate | 1.50% | ||||||
Federal Funds Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread variable rate | 0.50% | ||||||
Eurodollar Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread variable rate | 1.00% | ||||||
Eurodollar Rate [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread variable rate | 2.50% | ||||||
Swingline Loan [Member] | Credit Agreement Loan Modification and Seventh Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, Additional Borrowing Capacity Available | $ 20,000,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings under credit facility | $ 593,703,000 | $ 541,799,000 | |||||
Interest rate at period end | 3.01% | 2.89% | |||||
Revolving Credit Facility | Domestic Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | $ 204,300,000 | ||||||
Current borrowing capacity | 178,900,000 | ||||||
Revolving Credit Facility | Canadian Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | 178,900,000 | ||||||
Revolving Credit Facility | Commitment Increase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 748,000,000 | ||||||
Revolving Credit Facility | Multicurrency Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | 223,700,000 | ||||||
Current borrowing capacity | $ 19,400,000 | ||||||
Revolving Credit Facility | Line of Credit | Multicurrency Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 900,000,000 | $ 750,000,000 | |||||
Unused commitment fee | 1.16% | ||||||
Interest rate at period end | 3.65% | 3.64% | |||||
Line of Credit | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 160,000,000 | ||||||
Multi-Currency Domestic Revolving Credit Facility [Member] | Commitment Increase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 50,000,000 | ||||||
Credit Facility Accordion Feature [Member] | Credit Agreement Loan Modification and Seventh Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, Additional Borrowing Capacity Available | 125,000,000 | ||||||
Letter of Credit [Member] | Credit Agreement Loan Modification and Seventh Amendment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, Additional Borrowing Capacity Available | 20,000,000 | ||||||
Acquisition Subsequent to 2014 [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum business combinations | $ 250,000,000 | ||||||
Seller Note Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at period end | 4.40% | ||||||
Subsequent Event | Seller Note Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payment of debt | $ 169,900,000 |
Borrowings - Seller Note Payabl
Borrowings - Seller Note Payable (Details) - Seller Note Payable [Member] - USD ($) $ in Thousands | Jul. 18, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jul. 16, 2014 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 169,938 | $ 169,938 | $ 169,900 | |
Interest rate at period end | 4.40% | |||
LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread variable rate | 3.75% | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Payment of debt | $ 169,900 |
Borrowings - Multicurrency Revo
Borrowings - Multicurrency Revolving Credit Facility (Details) | Jun. 30, 2016USD ($) | Mar. 24, 2016 | Feb. 19, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016 | Jun. 30, 2016SEK | Dec. 31, 2015USD ($) | Oct. 23, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee | 0.375% | |||||||
Overdraft Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 40,000,000 | |||||||
Facility line fee | 0.125% | |||||||
Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Remaining borrowing capacity | $ 223,700,000 | $ 223,700,000 | ||||||
Debt Instrument, covenant, interest bearing deposits, maximum | SEK | SEK 500,000,000 | |||||||
Debt Instrument, covenant, minimum cash collection exceeding IFRS forecast | 95.00% | |||||||
Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 900,000,000 | $ 750,000,000 | ||||||
Unused line fee as a percentage of margin | 35.00% | |||||||
Unused commitment fee | 1.16% | |||||||
Debt instrument, covenant, maximum GIBD | 325.00% | 375.00% | 300.00% | |||||
Long-term debt, gross | $ 716,324,000 | $ 716,324,000 | $ 576,433,000 | |||||
Interest rate at period end | 3.65% | 3.65% | 3.64% | |||||
Minimum | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 32.20% | |||||||
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread variable rate | 250.00% | |||||||
Maximum | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 38.70% | |||||||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | Multicurrency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread variable rate | 3.30% |
Borrowings - Convertible Senior
Borrowings - Convertible Senior Notes (Details) | Aug. 13, 2013USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 24, 2016 | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 65.72 | |||
Convertible debt, estimated fair value | $ 224,057,000 | $ 241,126,000 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 287,500,000 | $ 287,500,000 | 287,500,000 | |
Stated percentage | 3.00% | 3.00% | 3.00% | |
Redemption price | 100.00% | |||
Conversion ratio | 15.2172 | |||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 65.72 | $ 65.72 | ||
Convertible debt, estimated fair value | $ 255,300,000 | |||
Carrying amount of convertible debt | 32,200,000 | $ 31,306,000 | $ 31,306,000 | |
Debt Issuance Cost | 7,300,000 | |||
Equity and debt issuance costs | 8,200,000 | |||
Equity Issuance Costs | $ 900,000 | |||
Interest rate at period end | 4.92% |
Borrowings - Balances of Liabil
Borrowings - Balances of Liability and Equity Components (Details) - Convertible Senior Notes [Member] - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Aug. 13, 2013 |
Debt Instrument [Line Items] | |||
Liability component - principal amount | $ 287,500,000 | $ 287,500,000 | $ 287,500,000 |
Less: Debt discount and issuance costs | (20,193,000) | (22,402,000) | |
Total | 267,307,000 | 265,098,000 | |
Equity component | $ 31,306,000 | $ 31,306,000 | $ 32,200,000 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - Convertible Senior Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Interest expense - stated coupon rate | $ 2,156 | $ 2,156 | $ 4,312 | $ 4,312 |
Amortization of debt discount and issuance costs | 1,109 | 1,056 | 2,209 | 2,104 |
Total interest expense - convertible notes | $ 3,265 | $ 3,212 | $ 6,521 | $ 6,416 |
Borrowings - Long-Term Debt Mat
Borrowings - Long-Term Debt Maturities (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 211,282 |
2,018 | 179,614 |
2,019 | 10,000 |
2,020 | 10,000 |
2,021 | 1,527,913 |
Total | $ 1,938,809 |
Borrowings - Polish Revolving C
Borrowings - Polish Revolving Credit and Bonds Payable (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Interest rate at period end | 3.01% | 2.89% |
DTP S.A. | Polish Revolving Credit Facility | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 4.9 | |
Interest rate at period end | 4.40% | |
Corporate Debt Securities | DTP S.A. | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 6.5 | |
Long-term debt, weighted average interest rate (as a percent) | 6.10% | |
Corporate Debt Securities | DTP S.A. | Maturing on August 22, 2016 | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 2.3 | |
Corporate Debt Securities | DTP S.A. | Maturing on June 25, 2017 | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 4.2 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment, Net [Abstract] | ||||
Depreciation and amortization expense | $ 4.3 | $ 3.9 | $ 8.6 | $ 7.7 |
Property and Equipment, Net (Pr
Property and Equipment, Net (Property And Equipment, At Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment, Net [Abstract] | ||
Software | $ 66,222 | $ 62,198 |
Computer equipment | 22,495 | 21,109 |
Furniture and fixtures | 15,177 | 11,888 |
Equipment | 14,029 | 12,874 |
Leasehold improvements | 15,028 | 15,112 |
Building and improvements | 7,277 | 7,235 |
Land | 1,296 | 1,296 |
Accumulated depreciation and amortization | (94,672) | (86,318) |
Property and equipment, net | $ 46,852 | $ 45,394 |
Goodwill And Intangible Asset49
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 544,337 | $ 503,001 | $ 544,337 | $ 503,001 | $ 524,870 | $ 495,156 | $ 496,653 | $ 527,445 |
Addition to goodwill | 22,776 | $ 0 | 27,518 | $ 0 | ||||
Recovery Management Systems Corporation ('RMSC') [Member] | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Addition to goodwill | $ 22,800 | $ 27,500 |
Goodwill And Intangible Asset50
Goodwill And Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Roll Forward] | ||||
Goodwill, balance at beginning of year | $ 531,267 | $ 503,050 | $ 501,553 | $ 533,842 |
Accumulated impairment loss | (6,397) | (6,397) | (6,397) | (6,397) |
Goodwill | 524,870 | 496,653 | 495,156 | 527,445 |
Acquisitions (1) | 22,776 | 0 | 27,518 | 0 |
Foreign currency translation adjustment | (3,309) | 6,348 | 21,663 | (24,444) |
Net change in goodwill | 19,467 | 6,348 | 49,181 | (24,444) |
Goodwill, balance at end of year | 550,734 | 509,398 | 550,734 | 509,398 |
Accumulated impairment loss | (6,397) | (6,397) | (6,397) | (6,397) |
Goodwill | $ 544,337 | $ 503,001 | $ 544,337 | $ 503,001 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 5,400,000 | 5,400,000 | ||
Share-based compensation expense | $ 2.7 | $ 3.6 | $ 6.1 | $ 7.7 |
Tax benefit realized from share-based compensation | 0.1 | 0.3 | 2.5 | 7.8 |
Grant date fair value of shares vested | 0.8 | 0.7 | 4.2 | 3.5 |
Long-Term Incentive Programs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future compensation cost related to stock option | $ 8.5 | 8.5 | ||
Weighted average remaining life of nonvested shares (in years) | 14 months | |||
Grant date fair value of shares vested | $ 6.1 | $ 5.1 | $ 6.1 | $ 5.1 |
Minimum | Long-Term Incentive Programs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture rate for share awards granted under LTI Programs | 7.50% | 7.50% | ||
Maximum | Long-Term Incentive Programs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture rate for share awards granted under LTI Programs | 10.00% | 10.00% | ||
Nonvested Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future compensation cost related to stock option | $ 9.3 | $ 9.3 | ||
Weighted average remaining life of nonvested shares (in years) | 21 months | |||
Nonvested Awards [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Nonvested Awards [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years |
Share-Based Compensation (Nonve
Share-Based Compensation (Nonvested Share Transactions) (Details) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Nonvested Shares Outstanding | ||
Nonvested Shares Outstanding, Beginning Balance | 284 | 339 |
Nonvested Shares Outstanding, Granted | 186 | 100 |
Nonvested Shares Outstanding, Vested | (90) | (151) |
Nonvested Shares Outstanding, Cancelled | (47) | (4) |
Nonvested Shares Outstanding, Ending Balance | 333 | 284 |
Weighted-Average Price at Grant Date (in dollars per share) | ||
Weighted-Average Price at Grant Date, Beginning Balance | $ 52.20 | $ 47.34 |
Weighted-Average Price at Grant Date, Granted | 28.42 | 53.29 |
Weighted-Average Price at Grant Date, Vested | 46.30 | 42.15 |
Weighted-Average Price at Grant Date, Cancelled | 53.05 | 47.49 |
Weighted-Average Price at Grant Date, Ending Balance | $ 40.36 | $ 52.20 |
Document Period End Date | Jun. 30, 2016 | |
Long-Term Incentive Programs [Member] | ||
Nonvested Shares Outstanding | ||
Nonvested Shares Outstanding, Beginning Balance | 483 | 488 |
Nonvested Shares Outstanding, Granted | 240 | 132 |
Nonvested Shares Outstanding, Adjustments for actual performance | (67) | 122 |
Nonvested Shares Outstanding, Vested | (176) | (252) |
Nonvested Shares Outstanding, Cancelled | (41) | (7) |
Nonvested Shares Outstanding, Ending Balance | 439 | 483 |
Weighted-Average Price at Grant Date (in dollars per share) | ||
Weighted-Average Price at Grant Date, Beginning Balance | $ 42.8 | $ 30.52 |
Weighted-Average Price at Grant Date, Granted | 28.98 | 52.47 |
Weighted-Average Price at Grant Date, Adjustments for actual performance (in dollars per share) | 34.59 | 34.59 |
Weighted-Average Price at Grant Date, Vested | 34.59 | 20.21 |
Weighted-Average Price at Grant Date, Cancelled | 44.80 | 40.05 |
Weighted-Average Price at Grant Date, Ending Balance | $ 39.60 | $ 42.8 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||
Cash on hand related to foreign operations with permanently reinvested earnings | $ 77.9 | $ 51.5 |
Ongoing U.S. Tax Court Petition [Member] | ||
Income Tax Contingency [Line Items] | ||
Deferred tax liabilities | 252.4 | 251.7 |
Estimated potential federal and state interest | $ 100.7 | $ 91 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Document Fiscal Year Focus | 2,016 | |||
Minimum average share price triggering dilutive effect (usd per share) | $ 65.72 | |||
Net income | $ 36,456 | $ 51,425 | $ 68,439 | $ 109,560 |
Weighted Average Common Shares, Basic EPS | 46,333,000 | 48,325,000 | 46,288,000 | 48,525,000 |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 69,000 | 204,000 | 99,000 | 265,000 |
Weighted Average Common Shares, Diluted EPS | 46,402,000 | 48,529,000 | 46,387,000 | 48,790,000 |
EPS, Basic (in dollars per share) | $ 0.79 | $ 1.06 | $ 1.48 | $ 2.26 |
EPS, Dilutive effect of nonvested share awards (in dollars per share) | 0 | 0 | 0 | (0.01) |
EPS, Diluted (in dollars per share) | $ 0.79 | $ 1.06 | $ 1.48 | $ 2.25 |
Antidilutive options outstanding | 0 | 0 | 0 | 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | May 11, 2015 | Apr. 30, 2016 | Jun. 30, 2016 |
Loss Contingencies [Line Items] | |||
Future compensation under employment agreements | $ 15,400,000 | ||
Total future minimum lease payments | 57,400,000 | ||
Amount to be purchased under forward flow agreements | 329,900,000 | ||
Internal Revenue Service Audit [Member] | |||
Loss Contingencies [Line Items] | |||
Use of cost recovery for income tax purposes - U.S. | 252,400,000 | ||
Income tax examination, estimate of possible loss | 100,700,000 | ||
Consumer Financial Protection Bureau Investigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 18,000,000 | ||
Judicial Ruling - Compensatory Damages [Member] | Portfolio Recovery Associates, LLC v. Guadalupe Mejia [Member] | |||
Loss Contingencies [Line Items] | |||
Damages awarded | $ 251,000 | ||
Judicial Ruling - Punitive Damages [Member] | Portfolio Recovery Associates, LLC v. Guadalupe Mejia [Member] | |||
Loss Contingencies [Line Items] | |||
Damages awarded | $ 82,009,549 | ||
Minimum | Internal Revenue Service Audit [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 0 | ||
Maximum | Internal Revenue Service Audit [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 81,000,000 |
Fair Value Measurements And D56
Fair Value Measurements And Disclosures - Financial Instruments Not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||||
Cash and cash equivalents, carrying amount | $ 117,071 | $ 71,372 | $ 56,811 | $ 39,661 | ||
Cash and cash equivalents, estimated fair value | 117,071 | 71,372 | ||||
Securitized assets | 46,004 | 50,247 | ||||
Aggregate Fair Value | 50,821 | 55,613 | ||||
Finance receivables, net, carrying amount | 2,399,949 | $ 2,377,077 | 2,202,113 | $ 2,012,552 | $ 1,954,772 | $ 2,001,790 |
Finance receivables, net, estimated fair value | 2,882,793 | 2,704,432 | ||||
Financial liabilities: | ||||||
Interest-bearing deposits, carrying value | 58,041 | 46,991 | ||||
Interest-bearing deposits, fair value | 58,041 | 46,991 | ||||
Outstanding borrowings under credit facility | 1,314,895 | 1,118,232 | ||||
Revolving lines of credit, estimated fair value | 1,314,895 | 1,118,232 | ||||
Term loans, carrying amount | 160,000 | 170,000 | ||||
Term loans, estimated fair value | 160,000 | 170,000 | ||||
Notes and loans payable, carrying value | 176,414 | 169,938 | ||||
Notes and loans payable, fair value disclosure | 176,414 | 169,938 | ||||
Convertible debt | 267,307 | 265,098 | ||||
Convertible debt, estimated fair value | 224,057 | 241,126 | ||||
Reported Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments | 15,646 | 15,498 | ||||
Estimate of Fair Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments, Fair Value Disclosure | $ 14,763 | $ 16,803 |
Fair Value Measurements And D57
Fair Value Measurements And Disclosures Fair Value Measurements and Disclosures - Financial Instruments Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost method investments, expected liquidation period, minimum | 1 year | |
Cost method investments, expected liquidation period, Maximum | 4 years | |
Assets: | ||
Securitized assets | $ 4,910 | $ 8,054 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 4,640 | 1,601 |
Level 1 [Member] | ||
Assets: | ||
Securitized assets | 652 | 3,405 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Securitized assets | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 4,640 | 1,601 |
Level 3 [Member] | ||
Assets: | ||
Securitized assets | 4,258 | 4,649 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | $ 0 | $ 0 |