Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 45,169,039 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 113,754 | $ 94,287 |
Investments | 75,512 | 68,543 |
Finance receivables, net | 2,577,831 | 2,307,969 |
Other receivables, net | 10,919 | 11,650 |
Income taxes receivable | 3,877 | 9,427 |
Net deferred tax asset | 41,183 | 28,482 |
Property and equipment, net | 36,428 | 38,744 |
Goodwill | 538,337 | 499,911 |
Intangible assets, net | 25,527 | 27,935 |
Other assets | 37,409 | 33,808 |
Assets held for sale | 0 | 43,243 |
Total assets | 3,460,777 | 3,163,999 |
Liabilities: | ||
Accounts payable | 3,605 | 2,459 |
Accrued expenses | 82,445 | 82,699 |
Income taxes payable | 4,069 | 19,631 |
Net deferred tax liability | 237,044 | 258,344 |
Interest-bearing deposits | 96,395 | 76,113 |
Borrowings | 1,963,504 | 1,784,101 |
Other liabilities | 1,213 | 10,821 |
Liabilities held for sale | 0 | 4,220 |
Total liabilities | 2,388,275 | 2,238,388 |
Redeemable noncontrolling interest | 8,620 | 8,448 |
Equity: | ||
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized, 45,169 shares issued and outstanding at September 30, 2017; 100,000 shares authorized, 46,356 shares issued and outstanding at December 31, 2016 | 452 | 464 |
Additional paid-in capital | 52,049 | 66,414 |
Retained earnings | 1,124,762 | 1,049,367 |
Accumulated other comprehensive loss | (166,397) | (251,944) |
Total stockholders' equity - PRA Group, Inc. | 1,010,866 | 864,301 |
Noncontrolling interest | 53,016 | 52,862 |
Total equity | 1,063,882 | 917,163 |
Total liabilities and equity | $ 3,460,777 | $ 3,163,999 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 45,169,000 | 46,356,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Income recognized on finance receivables, net | $ 197,248 | $ 202,639 | $ 582,626 | $ 613,154 |
Fee income | 2,671 | 17,597 | 18,873 | 56,210 |
Other revenue | 1,091 | 1,748 | 6,401 | 5,958 |
Total revenues | 201,010 | 221,984 | 607,900 | 675,322 |
Operating expenses: | ||||
Compensation and employee services | 68,541 | 65,898 | 203,780 | 197,456 |
Legal collection expenses | 27,626 | 33,447 | 90,556 | 97,476 |
Agency fees | 7,599 | 12,034 | 27,653 | 34,227 |
Outside fees and services | 15,631 | 14,731 | 46,977 | 46,415 |
Communication | 8,713 | 7,814 | 25,104 | 26,119 |
Rent and occupancy | 3,668 | 3,875 | 10,838 | 11,709 |
Depreciation and amortization | 4,841 | 6,184 | 15,097 | 18,339 |
Other operating expenses | 10,140 | 10,513 | 32,071 | 32,443 |
Total operating expenses | 146,759 | 154,496 | 452,076 | 464,184 |
Income from operations | 54,251 | 67,488 | 155,824 | 211,138 |
Other income and (expense): | ||||
Gain on sale of subsidiaries | 307 | 0 | 48,474 | 0 |
Interest expense, net | (25,899) | (19,310) | (69,662) | (59,838) |
Foreign exchange (loss)/gain | (1,084) | 5,004 | (1,421) | 5,183 |
Income before income taxes | 27,575 | 53,182 | 133,215 | 156,483 |
Provision for income taxes | 10,682 | 16,664 | 52,857 | 50,244 |
Net income | 16,893 | 36,518 | 80,358 | 106,239 |
Adjustment for net income attributable to noncontrolling interest | 1,338 | 2,212 | 4,963 | 3,494 |
Net income attributable to PRA Group, Inc. | $ 15,555 | $ 34,306 | $ 75,395 | $ 102,745 |
Net income per common share attributable to PRA Group, Inc.: | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.74 | $ 1.64 | $ 2.22 |
Diluted (in dollars per share) | $ 0.34 | $ 0.74 | $ 1.64 | $ 2.21 |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 45,168 | 46,343 | 45,838 | 46,307 |
Diluted (shares) | 45,286 | 46,434 | 45,991 | 46,403 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 16,893 | $ 36,518 | $ 80,358 | $ 106,239 |
Change in foreign currency translation | 39,548 | 13,721 | 81,393 | 37,435 |
Total comprehensive income | 56,441 | 50,239 | 161,751 | 143,674 |
Adjustment for net income attributable to noncontrolling interest | 1,338 | 2,212 | 4,963 | 3,494 |
Change in foreign currency translation | 1,730 | (324) | (4,156) | 8,462 |
Comprehensive income attributable to noncontrolling interest | 3,068 | 1,888 | 807 | 11,956 |
Comprehensive income attributable to PRA Group, Inc. | $ 53,373 | $ 48,351 | $ 160,944 | $ 131,718 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity - 9 months ended Sep. 30, 2017 - 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, 2016 at Dec. 31, 2016 | $ 917,163 | $ 464 | $ 66,414 | $ 1,049,367 | $ (251,944) | $ 52,862 |
Beginning Balance, Shares at Dec. 31, 2016 | 46,356,000 | 46,356,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 80,358 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Excluding Redeemable Noncontrolling Interest | 81,357 | 75,395 | 5,962 | |||
Foreign currency translation adjustment | 81,168 | 85,547 | (4,379) | |||
Distributions paid to noncontrolling interest | (1,429) | (1,429) | ||||
Equity component of convertible debt | 44,910 | 44,910 | ||||
Deferred taxes on equity component of convertible debt | (18,213) | (18,213) | ||||
Vesting of nonvested shares, shares | 125,000 | |||||
Vesting of nonvested shares | 0 | $ 1 | (1) | |||
Repurchase and cancellation of common stock (in shares) | (1,312,000) | |||||
Repurchase and cancellation of common stock | 44,909 | $ 13 | 44,896 | |||
Amortization of share-based compensation | 6,263 | 6,263 | ||||
Employee stock relinquished for payment of taxes | (2,428) | (2,428) | ||||
Balance at September 30, 2017 at Sep. 30, 2017 | $ 1,063,882 | $ 452 | $ 52,049 | $ 1,124,762 | $ (166,397) | $ 53,016 |
Ending Balance, Shares at Sep. 30, 2017 | 45,169,000 | 45,169,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 80,358 | $ 106,239 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of share-based compensation | 6,263 | 9,468 |
Depreciation and amortization | 15,097 | 18,339 |
Gain on sale of subsidiaries | (48,474) | 0 |
Amortization of debt discount and issuance costs | 12,828 | 7,450 |
Deferred tax benefit | (49,974) | (724) |
Net foreign currency transaction loss/(gain) | 1,303 | (5,489) |
Other | (3,113) | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (274) | 3,531 |
Other receivables, net | 1,342 | 7,181 |
Accounts payable | 1,242 | (1,479) |
Income taxes payable, net | (10,692) | (13,832) |
Accrued expenses | (7,198) | (12,344) |
Other liabilities | (9,628) | 565 |
Net cash (used in)/provided by operating activities | (10,920) | 118,905 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,054) | (11,542) |
Acquisition of finance receivables, net of buybacks | (718,553) | (697,794) |
Collections applied to principal on finance receivables | 553,713 | 530,081 |
Business acquisitions, net of cash acquired | 0 | 66,961 |
Proceeds from sale of subsidiaries, net | 93,304 | 0 |
Purchase of investments | (3,569) | (380) |
Proceeds from sales and maturities of investments | 7,482 | 10,299 |
Net cash used in investing activities | (77,677) | (236,297) |
Cash flows from financing activities: | ||
Proceeds from lines of credit | 905,841 | 858,368 |
Principal payments on lines of credit | (1,392,176) | (895,161) |
Repurchases of common stock | 44,909 | 0 |
Tax withholdings related to share-based payments | (2,428) | (2,478) |
Distributions paid to noncontrolling interest | (1,429) | (934) |
Principal payments on long-term debt | (12,515) | (187,264) |
Proceeds from long-term debt | 310,000 | 297,893 |
Payments of debt issuance costs | (18,240) | (17,526) |
Net increase in interest-bearing deposits | 10,140 | 40,198 |
Proceeds from convertible debt | 345,000 | 0 |
Net cash provided by financing activities | 99,284 | 93,096 |
Effect of exchange rate on cash | 8,780 | 44,715 |
Net increase in cash and cash equivalents | 19,467 | 20,419 |
Cash and cash equivalents, beginning of period | 94,287 | 71,372 |
Cash and cash equivalents, end of period | 113,754 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 60,229 | 49,492 |
Cash paid for income taxes | $ 114,603 | $ 59,164 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business: As used herein, the terms "PRA Group," "the Company," or similar terms refer to PRA Group, Inc. and its subsidiaries. PRA Group, Inc., a Delaware corporation, and its subsidiaries, is a global financial and business services company with operations in the Americas and Europe. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also provides the following fee-based services: class action claims recovery services and purchases; servicing of consumer bankruptcy accounts in the United States ("U.S."); and, to a lesser extent, contingent collections of nonperforming loans in Europe and South America. 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 economic characteristics, the nature of the products and services, the nature of the production processes, the types or class of customer for their products and services, the methods used to distribute their products and services and the nature of the regulatory environment. The following table shows the amount of revenue generated for the three and nine months ended September 30, 2017 and 2016 , respectively, and long-lived assets held at September 30, 2017 and 2016 , respectively, both for the U.S., the Company's country of domicile, and outside of the U.S. (amounts in thousands): As Of And For The As Of And For The Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 137,323 $ 28,585 $ 153,114 $ 33,898 Outside the United States 63,687 7,843 68,870 10,456 Total $ 201,010 $ 36,428 $ 221,984 $ 44,354 As Of And For The As Of And For The Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 415,761 $ 28,585 $ 489,260 $ 33,898 Outside the United States 192,139 7,843 186,062 10,456 Total $ 607,900 $ 36,428 $ 675,322 $ 44,354 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 interim financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes to the consolidated financial statements necessary for a complete presentation of financial position, results of operations, comprehensive income and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the Company's consolidated balance sheet as of September 30, 2017 , its consolidated income statements and statements of comprehensive income/(loss) for the three and nine months ended September 30, 2017 and 2016 , its consolidated statement of changes in equity for the nine months ended September 30, 2017 , and its consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016 , have been included. The consolidated income statements of the Company for the three and nine months ended September 30, 2017 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 2016 Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 1, 2017. |
Finance Receivables, net
Finance Receivables, net | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Changes in finance receivables, net for the three and nine months ended September 30, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,520,883 $ 2,399,949 $ 2,307,969 $ 2,202,113 Acquisitions of finance receivables (1) 203,052 159,546 716,586 741,402 Foreign currency translation adjustment 38,482 1,974 106,989 (21,026 ) Cash collections applied to principal and net allowance charges (184,586 ) (169,061 ) (553,713 ) (530,081 ) Balance at end of period $ 2,577,831 $ 2,392,408 $ 2,577,831 $ 2,392,408 (1) Acquisitions of finance receivables are net of buybacks and include certain capitalized acquisition related costs. They also include the acquisition date finance receivables portfolios that are acquired in connection with certain business acquisitions. During the three months ended September 30, 2017 , the Company purchased finance receivables portfolios with a face value of $1.4 billion for $210.9 million . During the three months ended September 30, 2016 , the Company purchased finance receivables portfolios with a face value of $3.0 billion for $161.3 million . During the nine months ended September 30, 2017 , the Company purchased finance receivables portfolios with a face value of $5.1 billion for $734.4 million . During the nine months ended September 30, 2016 , the Company purchased finance receivables portfolios with a face value of $8.9 billion for $747.5 million . At September 30, 2017 , the estimated remaining collections ("ERC") on the receivables purchased during the three months ended September 30, 2017 and 2016 were $333.2 million and $208.5 million , respectively. At September 30, 2017 , the ERC on the receivables purchased during the nine months ended September 30, 2017 and 2016 were $1.1 billion and $975.4 million , respectively. At September 30, 2017 and 2016 , total ERC was $5.4 billion and $5.3 billion , respectively. At the time of acquisition, the life of each pool is estimated based on projected amounts and timing of cash collections. Based upon current projections, cash collections expected to be applied to principal on finance receivables as of September 30, 2017 are estimated to be as follows for the 12 months in the periods ending September 30, (amounts in thousands): 2018 $ 734,967 2019 585,527 2020 454,002 2021 366,386 2022 230,393 2023 110,818 2024 42,604 2025 24,762 2026 17,871 2027 10,501 Total ERC expected to be applied to principal $ 2,577,831 At September 30, 2017 , the Company had aggregate net finance receivables balances in pools accounted for under the cost recovery method of $109.3 million ; at December 31, 2016 , the amount was $105.5 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. Net reclassifications from nonaccretable difference to accretable yield primarily result from the increase in the Company's estimate of future cash flows. When applicable, net reclassifications to nonaccretable difference from accretable yield result from the decrease in the Company's estimates of future cash flows and allowance charges that together exceed the increase in the Company's estimate of future cash flows. Changes in accretable yield for the three and nine months ended September 30, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,803,590 $ 2,931,426 $ 2,740,006 $ 2,727,204 Income recognized on finance receivables, net (197,248 ) (202,639 ) (582,626 ) (613,154 ) Additions 127,829 121,643 477,018 581,583 Reclassifications from nonaccretable difference 68,715 5,936 93,343 95,904 Foreign currency translation adjustment 43,231 673 118,376 65,502 Balance at end of period $ 2,846,117 $ 2,857,039 $ 2,846,117 $ 2,857,039 The following is a summary of activity within the Company's valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Beginning balance $ 218,775 $ 136,752 $ 211,465 $ 114,861 Allowance charges 3,824 14,246 9,973 37,686 Reversal of previously recorded allowance charges (412 ) (1,100 ) (561 ) (1,722 ) Net allowance charges 3,412 13,146 9,412 35,964 Foreign currency translation adjustment 678 (328 ) 1,988 (1,255 ) Ending balance $ 222,865 $ 149,570 $ 222,865 $ 149,570 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consist of the following at September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Available-for-sale Government bonds and mutual funds $ 3,769 $ 2,138 Held-to-maturity Securitized assets 57,031 51,407 Other investments Private equity funds 14,712 14,998 Total investments $ 75,512 $ 68,543 Available-for-Sale Government bonds and mutual funds : The Company's investments in government bonds and mutual funds are classified as available-for-sale and are stated at fair value. Fair value is determined using quoted market prices. 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"). Prior to April 1, 2017, income was recognized using the effective yield method. Effective April 1, 2017, the Company determined that it could not reasonably forecast the timing of future cash flows and accordingly began using the cost recovery method to recognize income. 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 Other Revenue in the consolidated income statements. During the three and nine months ended September 30, 2017 , revenues recognized on these investments were $0 and $1.3 million , respectively. During the three and nine months ended September 30, 2016 , revenues recognized on these investments were $1.5 million and $4.7 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 in the consolidated income statements. Distributions received in excess of the Company's proportionate share of accumulated earnings are applied as a reduction of the cost of the investment. T he aggregate carrying amount of cost-method investments for which cost exceeded fair value but for which an impairment loss was not recognized was $14.7 million and $15.0 million at September 30, 2017 and December 31, 2016, respectively. We evaluate the investments based on our estimated allocable share of the expected remaining cash flows of the funds as reported by the investment manager. Distributions received from these investments were $1.2 million and $5.1 million during the three and nine months ended September 30, 2017 , respectively. Distributions received from these investments were $0.0 million and $0.6 million during the three and nine months ended September 30, 2016 , respectively. The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at September 30, 2017 and December 31, 2016 were as follows (amounts in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 3,783 $ 37 $ 51 $ 3,769 Held-to-maturity Securitized assets 57,031 — 14,471 42,560 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 2,161 $ — $ 23 $ 2,138 Held-to-maturity Securitized assets 51,407 4,147 — 55,554 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): September 30, 2017 December 31, 2016 North American revolving credit $ 275,432 $ 695,088 Term loans 762,902 430,764 European revolving credit 373,758 401,780 Convertible senior notes 632,500 287,500 Less: Debt discount and issuance costs (81,088 ) (31,031 ) Total $ 1,963,504 $ 1,784,101 The following principal payments are due on the Company's borrowings as of September 30, 2017 for the 12 month periods ending September 30, (amounts in thousands): 2018 $ 10,000 2019 10,000 2020 297,500 2021 699,160 2022 682,932 Thereafter 345,000 Total $ 2,044,592 The Company believes it was in compliance with the covenants of its material financing arrangements as of September 30, 2017 and December 31, 2016 . North American Revolving Credit and Term Loan On May 5, 2017, the Company amended and restated its existing credit agreement (as amended, and modified from time to time, the “North American Credit Agreement”) with Bank of America, N.A., as administrative agent, Bank of America, National Association, acting through its Canada branch, as the Canadian administrative agent, and a syndicate of lenders named therein. The total credit facility under the North American Credit Agreement includes an aggregate principal amount of $1.2 billion (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $447.5 million term loan, (ii) a $705.0 million domestic revolving credit facility, and (iii) a $50.0 million Canadian revolving credit facility. The facility includes an accordion feature for up to $45.0 million in additional commitments (at the option of the lender) and also provides for up to $25.0 million of letters of credit and a $25.0 million swingline loan sublimit that would reduce amounts available for borrowing. 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 North American 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 North American Credit Agreement) plus 0.50% , (b) Bank of America's prime rate, or (c) the one month Eurodollar rate plus 1.00% . Canadian Prime Rate Loans will bear interest at a rate per annum equal to the Canadian Prime Rate plus 1.50% . The loans under the North American Credit Agreement mature as of May 5, 2022. As of September 30, 2017 , the unused portion of the North American Credit Agreement was $479.6 million . Considering borrowing base restrictions, as of September 30, 2017 , the amount available to be drawn was $453.5 million . The North American Credit Agreement is secured by a first priority lien on substantially all of the Company's assets. The North American Credit Agreement contains restrictive covenants and events of default, which are defined in the North American Credit Agreement, including the following: • borrowings under each of the domestic revolving loan facility and the Canadian revolving loan facility are subject to separate borrowing base calculations and may not exceed 35% of the ERC of all domestic or Canadian, as applicable, core eligible asset pools, plus 55% of ERC of domestic or Canadian, as applicable, insolvency eligible asset pools, plus 75% of domestic or Canadian, as applicable, eligible accounts receivable; • the consolidated total leverage ratio cannot exceed 2.75 to 1.0 as of the end of any fiscal quarter; • the consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter; • subject to no default or event of default, cash dividends and distributions during any fiscal year cannot exceed $20.0 million ; • subject to no default or event of default, stock repurchases during any fiscal year cannot exceed $100.0 million plus 50% of the prior year's net income; • permitted acquisitions during any fiscal year cannot exceed $250.0 million (with a $50.0 million per year sublimit for permitted acquisitions by non-loan parties); • indebtedness in the form of senior, unsecured convertible notes or other unsecured financings cannot exceed $750.0 million in the aggregate (without respect to the 2020 Notes (as defined below)); • the Company must maintain positive consolidated income from operations 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. European Revolving Credit Facility and Term Loan On October 23, 2014, European subsidiaries of the Company ("PRA Europe") entered into a credit agreement with DNB Bank ASA for a Multicurrency Revolving Credit Facility (such agreement as later amended or modified, the "European Credit Agreement"). Under the terms of the European Credit Agreement, the credit facility includes an aggregate amount of approximately $1.2 billion (subject to the borrowing base), of which 267.0 million EURO (approximately $315.4 million ) is a term loan, accrues interest at the Interbank Offered Rate ("IBOR") plus 2.80% - 3.90% under the revolving facility and 4.25% - 4.50% under the term loan facility (as determined by the loan-to-value ratio ("LTV Ratio") as defined in the European Credit Agreement), bears an unused line fee, currently 1.26% per annum, of 35% of the margin, is payable monthly in arrears, and matures on February 19, 2021. The European Credit Agreement also includes an overdraft facility in the aggregate amount of $40.0 million (subject to the borrowing base), which accrues interest (per currency) at the daily rates as published by the facility agent, bears a facility line fee of 0.125% per quarter, payable quarterly in arrears, and also matures February 19, 2021. As of September 30, 2017 , the unused portion of the European Credit Agreement (including the overdraft facility) was $566.2 million . Considering borrowing base restrictions and other covenants, as of September 30, 2017 , the amount available to be drawn under the European Credit Agreement (including the overdraft facility) was $165.4 million . The European Credit Agreement is secured by the shares of most of the Company's European subsidiaries and all intercompany loan receivables in Europe. The European Credit Agreement also contains restrictive covenants and events of default, which are defined in the European Credit Agreement, including the following: • the LTV Ratio cannot exceed 75% ; • the gross interest-bearing debt ratio in Europe cannot exceed 3.25 to 1.0 as of the end of any fiscal quarter; • interest bearing deposits in AK Nordic AB cannot exceed SEK 1,500,000,000 ; and • PRA Europe's cash collections must exceed 95% of PRA Europe's ERC for the same set of portfolios, measured on a quarterly basis. Convertible Senior Notes due 2020 On August 13, 2013, the Company completed the private offering of $287.5 million in aggregate principal amount of its 3.00% Convertible Senior Notes due 2020 (the "2020 Notes"). The 2020 Notes were issued pursuant to an Indenture, dated August 13, 2013 (the "2013 Indenture"), between the Company and Wells Fargo Bank, National Association, as trustee. The 2013 Indenture contains customary terms and covenants, including certain events of default after which the 2020 Notes may be due and payable immediately. The 2020 Notes are senior unsecured obligations of the Company. Interest on the 2020 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year, beginning on February 1, 2014. Prior to February 1, 2020, the 2020 Notes will be convertible only upon the occurrence of specified events. On or after February 1, 2020, the 2020 Notes will be convertible at any time. The Company does not have the right to redeem the 2020 Notes prior to maturity. As of September 30, 2017 and December 31, 2016 , none of the conditions allowing holders of the 2020 Notes to convert their notes had occurred. The conversion rate for the 2020 Notes is initially 15.2172 shares per $1,000 principal amount of 2020 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 2013 Indenture. Upon conversion, holders of the 2020 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. The Company's current intent is to settle conversions through combination settlement (i.e ., the 2020 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, for the remainder). As a result and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company's common stock during any quarter exceeds $65.72 . The Company determined that the fair value of the 2020 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 2020 Notes issuance cost as debt issuance cost and the remaining $0.9 million as equity issuance cost. Convertible Senior Notes due 2023 On May 26, 2017, the Company completed the private offering of $345.0 million in aggregate principal amount of its 3.50% Convertible Senior Notes due 2023 (the "2023 Notes" and, together with the 2020 Notes, the "Notes"). The 2023 Notes were issued pursuant to an Indenture, dated May 26, 2017 (the "2017 Indenture"), between the Company and Regions Bank, as trustee. The 2017 Indenture contains customary terms and covenants, including certain events of default after which the 2023 Notes may be due and payable immediately. The 2023 Notes are senior unsecured obligations of the Company. Interest on the 2023 Notes is payable semi-annually, in arrears, on June 1 and December 1 of each year, beginning on December 1, 2017. Prior to March 1, 2023, the 2023 Notes will be convertible only upon the occurrence of specified events. On or after March 1, 2023, the 2023 Notes will be convertible at any time. The Company has the right, at its election, to redeem all or any part of the outstanding notes at any time on or after June 1, 2021 for cash, but only if the last reported sale price (as defined in the 2017 Indenture) exceeds 130% of the conversion price on each of at least 20 trading days during the 30 consecutive trading days ending on and including the trading day immediately before the date the Company sends the related redemption notice. As of September 30, 2017 , none of the conditions allowing holders of the 2023 Notes to convert their notes had occurred. The conversion rate for the 2023 Notes is initially 21.6275 shares per $1,000 principal amount of 2023 Notes, which is equivalent to an initial conversion price of approximately $46.24 per share of the Company's common stock, and is subject to adjustment in certain circumstances pursuant to the 2017 Indenture. Upon conversion, holders of the 2023 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. The Company's current intent is to settle conversions through combination settlement (i.e ., the 2023 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, for the remainder). As a result and in accordance with authoritative guidance related to derivatives and hedging and earnings per share, only the conversion spread is included in the diluted earnings per share calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the average share price of the Company's common stock during any quarter exceeds $46.24 . The Company determined that the fair value of the 2023 Notes at the date of issuance was approximately $298.8 million , and designated the residual value of approximately $46.2 million as the equity component. Additionally, the Company allocated approximately $8.3 million of the $9.6 million 2023 Notes issuance cost as debt issuance cost and the remaining $1.3 million as equity issuance cost. The balances of the liability and equity components of the Notes outstanding were as follows as of the dates indicated (amounts in thousands): September 30, 2017 December 31, 2016 Liability component - principal amount $ 632,500 $ 287,500 Unamortized debt discount (58,360 ) (17,930 ) Liability component - net carrying amount $ 574,140 $ 269,570 Equity component $ 76,216 $ 31,306 The debt discount is being amortized into interest expense over the remaining life of the 2020 Notes and the 2023 Notes using the effective interest rate, which is 4.92% and 6.20% , respectively. Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest expense - stated coupon rate $ 5,175 $ 2,156 $ 10,695 $ 6,468 Interest expense - amortization of debt discount 2,796 1,127 5,760 3,336 Total interest expense - convertible senior notes $ 7,971 $ 3,283 $ 16,455 $ 9,804 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 9 Months Ended |
Sep. 30, 2017 | |
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. The Company performs an annual review of goodwill as of October 1 of each year or more frequently if indicators of impairment exist. The following table represents the changes in goodwill for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period: Goodwill $ 516,165 $ 550,734 $ 506,308 $ 501,553 Accumulated impairment loss — (6,397 ) (6,397 ) (6,397 ) 516,165 544,337 499,911 495,156 Changes: Acquisitions — 1,193 — 28,711 Foreign currency translation adjustment 22,172 14,975 38,426 36,638 Net change in goodwill 22,172 16,168 38,426 65,349 Goodwill 538,337 566,902 538,337 566,902 Accumulated impairment loss — (6,397 ) — (6,397 ) Balance at end of period: $ 538,337 $ 560,505 $ 538,337 $ 560,505 The change in accumulated impairment loss during the nine months ended September 30, 2017, is related to the June 2017 sale of PRA Location Services, LLC ("PLS"), the goodwill of which was fully impaired during 2013. The $1.2 million addition to goodwill during the three months ended September 30, 2016, was attributable to an immaterial acquisition. The goodwill recognized from this acquisition is expected to be deductible for tax purposes. The $28.7 million addition to goodwill during the nine months ended September 30, 2016, was mainly attributable to the acquisition of DTP S.A. ("DTP") during the second quarter of 2016 and the acquisition of Recovery Management Systems Corporation ("RMSC") in the first quarter of 2016. The goodwill recognized from the DTP acquisition is not expected to be deductible for tax purposes while the goodwill recognized from the RMSC acquisition is expected to be deductible for tax purposes. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
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 utilized the cost recovery method of accounting through December 31, 2016. Under the cost recovery method, collections on finance receivables are applied first to principal to reduce the finance receivables balance to zero before taxable income is recognized. The Internal Revenue Service ("IRS") examined the Company's 2005 through 2012 tax returns and asserted that tax revenue recognition using the cost recovery method did not clearly reflect taxable income and therefore issued Notices of Deficiency to the Company for tax years ended December 31, 2005 through 2012 (the "Notices"). In response to the Notices, the Company filed petitions in the U.S. Tax Court (the “Tax Court”) challenging the deficiencies and the Tax Court set the trial to begin on May 15, 2017. On May 10, 2017, the Company reached a settlement with the IRS in regards to the Notices. Under the settlement, both parties agreed that no amounts were due for years 2005 through 2012 and the Tax Court entered decisions to that effect on June 22, 2017. Also, under the settlement, the Company will utilize a new tax accounting method to recognize net finance receivables revenue effective with tax year 2017. Under the new method, a portion of the annual collections amortize principal and the remaining portion is taxable income. The Company will not be required to pay any interest or penalties related to the prior periods. The deferred tax liability related to the difference in timing between the new method and the cost recovery method will be incorporated evenly into the Company’s tax filings over four years with no associated interest. At September 30, 2017 , the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2013 and subsequent years. The Company intends for predominantly all foreign earnings to be indefinitely 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 indefinitely reinvested earnings was $95.3 million and $73.6 million as of September 30, 2017 and December 31, 2016 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
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 EPS 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 for the 2020 Notes or $46.24 for the 2023 Notes, neither of which occurred during the respective periods from which the Notes were issued through September 30, 2017 . 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 nine months ended September 30, 2017 and 2016 (amounts in thousands, except per share amounts): For the Three Months Ended September 30, 2017 2016 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 15,555 45,168 $ 0.34 $ 34,306 46,343 $ 0.74 Dilutive effect of nonvested share awards 118 — 91 — Diluted EPS $ 15,555 45,286 $ 0.34 $ 34,306 46,434 $ 0.74 For the Nine Months Ended September 30, 2017 2016 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 75,395 45,838 $ 1.64 $ 102,745 46,307 $ 2.22 Dilutive effect of nonvested share awards 153 — 96 (0.01 ) Diluted EPS $ 75,395 45,991 $ 1.64 $ 102,745 46,403 $ 2.21 There were no antidilutive options outstanding for the three and nine months ended September 30, 2017 and 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies: Employment Agreements: The Company has entered into employment agreements 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 potential discretionary bonuses that are based on the attainment of a combination of financial and management goals. At September 30, 2017 , estimated future compensation under these agreements was approximately $11.8 million . The agreements also contain confidentiality and non-compete provisions. Outside the U.S., employment agreements are in place with employees pursuant to local country regulations. Generally, these agreements do not have expiration dates and therefore it is impractical to estimate the amount of future compensation under these agreements. Accordingly, the future compensation under these agreements is not included in the $11.8 million total above. Leases: The Company is party to various operating leases with respect to its facilities and equipment. The future minimum lease payments at September 30, 2017 totaled approximately $43.8 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 September 30, 2017 was approximately $413.6 million . Finance Receivables: Certain agreements for the purchase of finance receivables portfolios contain provisions that may, in limited circumstances, require the Company to refund a portion or all of the collections subsequently received by the Company on particular accounts. 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 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 September 30, 2017 was not material. 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 had not recorded any potential recoveries under the Company's insurance policies or third-party indemnities as of September 30, 2017. The matters described below fall outside of the normal parameters of the Company's routine legal proceedings. Multi-State Investigation The Company previously received Civil Investigative Demands from multiple state Attorneys General offices broadly relating to its debt collection practices in the U.S. The Company, which has fully cooperated with the investigation, has discussed potential resolution of the investigation with this coalition of Attorneys General, which could include penalties, restitution and/or the adoption of new practices and controls in the conduct of the Company's business. In these discussions, the state Attorneys General offices have taken positions with which the Company disagrees. If the Company is unable to resolve its differences with this multi-state coalition, it is possible that individual state Attorneys General offices may file claims against the Company. Internal Revenue Service Audit The IRS examined the Company's 2005 through 2012 tax returns and asserted that tax revenue recognition using the cost recovery method did not clearly reflect taxable income and therefore issued Notices of Deficiency to the Company for tax years ended December 31, 2005 through 2012 (the "Notices"). In response to the Notices, the Company filed petitions in the Tax Court challenging the deficiencies and the Tax Court set the trial to begin on May 15, 2017. On May 10, 2017, the Company reached a settlement with the IRS in regards to the Notices. Under the settlement, both parties agreed that no amounts were due for years 2005 through 2012 and the Tax Court entered decisions to that effect on June 22, 2017. Also, under the settlement, the Company agreed to utilize a new tax accounting method to recognize net finance receivables revenue effective with tax year 2017. Under the new method, a portion of the annual collections will amortize principal and the remaining portion will be considered taxable income. The Company will not be required to pay any interest or penalties related to the prior periods. The deferred tax liability related to the difference in timing between the new method and the prior method will be incorporated evenly into the Company’s tax filings over four years with no associated interest. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 113,754 $ 113,754 $ 94,287 $ 94,287 Held-to-maturity investments 57,031 42,559 51,407 55,554 Other investments 14,712 9,709 14,998 12,573 Finance receivables, net 2,577,831 2,884,171 2,307,969 2,708,582 Financial liabilities: Interest-bearing deposits 96,395 96,395 76,113 76,113 Revolving lines of credit 649,190 649,190 1,096,868 1,096,868 Term loans 762,902 762,902 430,764 430,764 Convertible senior notes 574,140 579,764 269,570 270,825 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 the certificates of a closed-end Polish investment fund is estimated using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company estimates the fair value of its held-to-maturity investments using Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Other investments: This class of investments consists of private equity funds that invest primarily in loans and securities including single-family residential debt; corporate debt products; and financially-oriented, real-estate-rich and other operating companies in the Americas, Western Europe, and Japan. These investments are subject to certain restrictions regarding transfers and withdrawals. The investments can never be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through the liquidation of the underlying assets of the fund. The fair value of the Company's interest is valued by the fund managers; accordingly, the Company estimates the fair value of these investments using Level 3 inputs. The investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over 1 to 4 years. Finance receivables, net: The Company computed the estimated fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio purchase decisions. Accordingly, the Company's fair value estimates use Level 3 inputs as there is limited 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. Convertible notes: The Notes are carried at historical cost, adjusted for the debt discount. The fair value estimates for the Notes incorporate 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. Furthermore, in the table above, carrying amount represents the portion of the Notes classified as debt, while estimated fair value pertains to the face amount of the Notes. Financial Instruments Required To Be Carried At Fair Value The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at September 30, 2017 and December 31, 2016 (amounts in thousands): Fair Value Measurements as of September 30, 2017 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 3,769 $ — $ — $ 3,769 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 701 — 701 Fair Value Measurements as of December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 2,138 $ — $ — $ 2,138 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 2,825 — 2,825 Available-for-sale investments: Fair value of the Company's investment in government bonds and mutual 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 | 9 Months Ended |
Sep. 30, 2017 | |
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. The guidance specifically excludes revenue received for servicing finance receivables. 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 believes that the revenue generated by its subsidiary Claims Compensation Bureau, LLC ("CCB") is within the scope of this standard. Based on the Company's evaluation, the Company believes the new standard will not impact the accounting for revenue generated by CCB. In January 2016, FASB issued ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"), which provides new guidance on the recognition, measurement, presentation, and disclosure of financial assets and liabilities. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted only for certain provisions. Under this standard, changes in fair value of the Company's investments currently classified as available-for-sale will be reported in earnings rather than as an adjustment to Other Comprehensive Income/(Loss). The Company is currently in the process of evaluating the impact of adoption of 2016-01 on its Other Investments. In February 2016, FASB issued ASU 2016-02, "Leases (Topic 842) Section A - Leases: Amendments to the FASB Account Standards Codification" ("ASU 2016-02"). ASU 2016-02 requires that a lessee should recognize a liability to make lease payments 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 ASU 2016-02 on its consolidated financial statements. The Company has approximately $43.8 million in operating lease obligations as disclosed in its contractual obligations table in Part I, Item 2 of this Quarterly Report on Form 10-Q and is in the process of evaluating those contracts as well as other existing arrangements to determine if they qualify for lease accounting under the new standard. The Company does not plan to adopt the standard early. In March 2016, FASB issued ASU 2016-06, "Derivatives and Hedging (Topic 815) , Contingent Put and Call Options in Debt Instruments" ("ASU 2016-06"). Topic 815 requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the "clearly and closely related" criterion. ASU 2016-06 clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The amendments in ASU 2016-06 apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public entities, this update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-06 in the first quarter of 2017 which had no material impact 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 guidance eliminates additional paid in capital ("APIC") pools and requires companies to recognize all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. It also addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. 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 prospectively adopted ASU 2016-09 in the first quarter of 2017, which increased its provision for income taxes by $0.9 million during the nine months ended September 30, 2017, as a result of the recognition of all excess tax benefits and tax deficiencies in its income statement. ASU 2016-09 requires that excess tax benefits be presented as an operating activity in the statement of cash flows, so with its prospective adoption, prior periods have not been restated. The Company also elected to use an estimated forfeiture rate, based on historical data, to record its share-based compensation expense, which is consistent with its previous accounting treatment with respect to forfeitures. None of the other provisions of ASU 2016-09 had a material impact 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 ASU 2016-13 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. ASU 2016-13 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. ASU 2016-13 supersedes ASC Topic 310-30, which the Company currently follows to account for revenue on its finance receivables. ASU 2016-13 could have a significant impact on how the Company measures and records net revenue on its finance receivables. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-13 on its consolidated financial statements. In August 2016, FASB issued ASU 2016-15, "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230)" ("ASU 2016-15"). ASU 2016-15 reduces diversity in practice of how certain transactions are classified in the statement of cash flows. The new guidance clarifies the classification of cash activity related to debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate and bank-owned life insurance policies, distributions received from equity-method investments, and beneficial interests in securitization transactions. The guidance also describes a predominance principle in which cash flows with aspects of more than one class that cannot be separated should be classified based on the activity that is likely to be the predominant source or use of cash flow. ASU 2016-15 is effective for the Company for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period, but requires all elements of the amendments to be adopted at once rather than individually. The new standard must be adopted using a retrospective transition method. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-15 on its consolidated financial statements. In October 2016, FASB issued ASU 2016-16, "Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year. The new standard must be adopted using a modified retrospective transition method which is a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company has determined the adoption of this standard will not have a significant impact on its consolidated financial statements. In January 2017, FASB issued ASU-2017-01, "Business Combinations - Clarifying the Definition of a Business (Topic 805)" ("ASU 2017-01"). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new guidance is expected to reduce the number of transactions that need to be further evaluated as businesses. The guidance applies to transactions that occur on or after an entity’s adoption date, the earliest of which is January 1, 2017. The Company has not completed a business combination in 2017. In January 2017, FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 eliminates Step 2 of the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is currently in the process of evaluating the impact of adoption of ASU 2017-04 on its consolidated financial statements. In May 2017, FASB issued ASU No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting” (ASU 2017-09"). ASU 2017-09 clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. This new guidance is not expected to have an impact on the Company's consolidated financial statements. In August 2017, FASB issued ASU No. 2017-12, "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"). ASU 2017-12 modifies the presentation and disclosure of hedging results. Further, it provides partial relief on the timing of certain aspects of hedge documentation and eliminates the requirement to recognize hedge ineffectiveness separately in income. The amendments in ASU 2017-12 are effective for fiscal years beginning after December 15, 2018 and for interim periods therein. The Company is currently in the process of evaluating the impact of adoption of ASU 2017-12 on its consolidated financial statements. The Company does not expect that any other recently issued accounting pronouncements will have a material effect on its consolidated financial statements. |
Sale of Subsidiaries (Notes)
Sale of Subsidiaries (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Sale of Subsidiaries: As part of the Company’s strategy to focus on its primary business, the purchase, collection and management of portfolios of nonperforming loans, the Company decided in the fourth quarter of 2016 to sell its government services businesses: PRA Government Services, LLC; MuniServices, LLC; and PRA Professional Services, LLC. On January 24, 2017, the Company completed the sale of its government services businesses for $91.5 million in cash plus additional consideration for certain balance sheet items. The impact of the transaction was reported in the first quarter of 2017. The gain on sale was approximately $46.8 million . During the second quarter of 2017, the Company sold its vehicle location, skip tracing and collateral recovery business, PLS, for $4.5 million which resulted in a gain on sale of approximately $1.6 million . The assets and liabilities of the businesses that were sold during 2017 consisted of the following (amounts in thousands): Nine Months Ended September 30, 2017 Other receivables, net $ 8,277 Property and equipment, net 4,559 Goodwill 29,683 Intangible assets, net 1,711 Other assets 772 Total assets $ 45,002 Accrued expenses $ 3,123 Total liabilities $ 3,123 |
Organization and Business (Tabl
Organization and Business (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue And Long-Lived Assets Held By Geographical Location | The following table shows the amount of revenue generated for the three and nine months ended September 30, 2017 and 2016 , respectively, and long-lived assets held at September 30, 2017 and 2016 , respectively, both for the U.S., the Company's country of domicile, and outside of the U.S. (amounts in thousands): As Of And For The As Of And For The Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 137,323 $ 28,585 $ 153,114 $ 33,898 Outside the United States 63,687 7,843 68,870 10,456 Total $ 201,010 $ 36,428 $ 221,984 $ 44,354 As Of And For The As Of And For The Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Revenues Long-Lived Assets Revenues Long-Lived Assets United States $ 415,761 $ 28,585 $ 489,260 $ 33,898 Outside the United States 192,139 7,843 186,062 10,456 Total $ 607,900 $ 36,428 $ 675,322 $ 44,354 |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Changes in Finance Receivables | Changes in finance receivables, net for the three and nine months ended September 30, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,520,883 $ 2,399,949 $ 2,307,969 $ 2,202,113 Acquisitions of finance receivables (1) 203,052 159,546 716,586 741,402 Foreign currency translation adjustment 38,482 1,974 106,989 (21,026 ) Cash collections applied to principal and net allowance charges (184,586 ) (169,061 ) (553,713 ) (530,081 ) Balance at end of period $ 2,577,831 $ 2,392,408 $ 2,577,831 $ 2,392,408 |
Schedule of Cash Collections Applied to Principal | Based upon current projections, cash collections expected to be applied to principal on finance receivables as of September 30, 2017 are estimated to be as follows for the 12 months in the periods ending September 30, (amounts in thousands): 2018 $ 734,967 2019 585,527 2020 454,002 2021 366,386 2022 230,393 2023 110,818 2024 42,604 2025 24,762 2026 17,871 2027 10,501 Total ERC expected to be applied to principal $ 2,577,831 |
Schedule of Changes in Accretable Yield | Changes in accretable yield for the three and nine months ended September 30, 2017 and 2016 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 2,803,590 $ 2,931,426 $ 2,740,006 $ 2,727,204 Income recognized on finance receivables, net (197,248 ) (202,639 ) (582,626 ) (613,154 ) Additions 127,829 121,643 477,018 581,583 Reclassifications from nonaccretable difference 68,715 5,936 93,343 95,904 Foreign currency translation adjustment 43,231 673 118,376 65,502 Balance at end of period $ 2,846,117 $ 2,857,039 $ 2,846,117 $ 2,857,039 |
Schedule of Valuation Allowance Account | The following is a summary of activity within the Company's valuation allowance account, all of which relates to loans acquired with deteriorated credit quality, for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Beginning balance $ 218,775 $ 136,752 $ 211,465 $ 114,861 Allowance charges 3,824 14,246 9,973 37,686 Reversal of previously recorded allowance charges (412 ) (1,100 ) (561 ) (1,722 ) Net allowance charges 3,412 13,146 9,412 35,964 Foreign currency translation adjustment 678 (328 ) 1,988 (1,255 ) Ending balance $ 222,865 $ 149,570 $ 222,865 $ 149,570 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consist of the following at September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Available-for-sale Government bonds and mutual funds $ 3,769 $ 2,138 Held-to-maturity Securitized assets 57,031 51,407 Other investments Private equity funds 14,712 14,998 Total investments $ 75,512 $ 68,543 |
Available-for-sale Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at September 30, 2017 and December 31, 2016 were as follows (amounts in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 3,783 $ 37 $ 51 $ 3,769 Held-to-maturity Securitized assets 57,031 — 14,471 42,560 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 2,161 $ — $ 23 $ 2,138 Held-to-maturity Securitized assets 51,407 4,147 — 55,554 |
Held-to-maturity Securities | The amortized cost and estimated fair value of available-for sale and held-to-maturity investments at September 30, 2017 and December 31, 2016 were as follows (amounts in thousands): September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 3,783 $ 37 $ 51 $ 3,769 Held-to-maturity Securitized assets 57,031 — 14,471 42,560 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Government bonds and mutual funds $ 2,161 $ — $ 23 $ 2,138 Held-to-maturity Securitized assets 51,407 4,147 — 55,554 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): September 30, 2017 December 31, 2016 North American revolving credit $ 275,432 $ 695,088 Term loans 762,902 430,764 European revolving credit 373,758 401,780 Convertible senior notes 632,500 287,500 Less: Debt discount and issuance costs (81,088 ) (31,031 ) Total $ 1,963,504 $ 1,784,101 |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings as of September 30, 2017 for the 12 month periods ending September 30, (amounts in thousands): 2018 $ 10,000 2019 10,000 2020 297,500 2021 699,160 2022 682,932 Thereafter 345,000 Total $ 2,044,592 |
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): September 30, 2017 December 31, 2016 Liability component - principal amount $ 632,500 $ 287,500 Unamortized debt discount (58,360 ) (17,930 ) Liability component - net carrying amount $ 574,140 $ 269,570 Equity component $ 76,216 $ 31,306 |
Schedule of Debt Interest Expense | Interest expense related to the Notes was as follows for the periods indicated (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest expense - stated coupon rate $ 5,175 $ 2,156 $ 10,695 $ 6,468 Interest expense - amortization of debt discount 2,796 1,127 5,760 3,336 Total interest expense - convertible senior notes $ 7,971 $ 3,283 $ 16,455 $ 9,804 |
Goodwill And Intangible Asset23
Goodwill And Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period: Goodwill $ 516,165 $ 550,734 $ 506,308 $ 501,553 Accumulated impairment loss — (6,397 ) (6,397 ) (6,397 ) 516,165 544,337 499,911 495,156 Changes: Acquisitions — 1,193 — 28,711 Foreign currency translation adjustment 22,172 14,975 38,426 36,638 Net change in goodwill 22,172 16,168 38,426 65,349 Goodwill 538,337 566,902 538,337 566,902 Accumulated impairment loss — (6,397 ) — (6,397 ) Balance at end of period: $ 538,337 $ 560,505 $ 538,337 $ 560,505 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Between the Computation of Basic and Diluted EPS | The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands, except per share amounts): For the Three Months Ended September 30, 2017 2016 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 15,555 45,168 $ 0.34 $ 34,306 46,343 $ 0.74 Dilutive effect of nonvested share awards 118 — 91 — Diluted EPS $ 15,555 45,286 $ 0.34 $ 34,306 46,434 $ 0.74 For the Nine Months Ended September 30, 2017 2016 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 75,395 45,838 $ 1.64 $ 102,745 46,307 $ 2.22 Dilutive effect of nonvested share awards 153 — 96 (0.01 ) Diluted EPS $ 75,395 45,991 $ 1.64 $ 102,745 46,403 $ 2.21 |
Fair Value Measurements and D25
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | The carrying amounts of the financial instruments in the following table are recorded in the consolidated balance sheets at September 30, 2017 and December 31, 2016 (amounts in thousands): September 30, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 113,754 $ 113,754 $ 94,287 $ 94,287 Held-to-maturity investments 57,031 42,559 51,407 55,554 Other investments 14,712 9,709 14,998 12,573 Finance receivables, net 2,577,831 2,884,171 2,307,969 2,708,582 Financial liabilities: Interest-bearing deposits 96,395 96,395 76,113 76,113 Revolving lines of credit 649,190 649,190 1,096,868 1,096,868 Term loans 762,902 762,902 430,764 430,764 Convertible senior notes 574,140 579,764 269,570 270,825 |
Schedule of financial instruments required to be carried at fair value | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying consolidated balance sheets at September 30, 2017 and December 31, 2016 (amounts in thousands): Fair Value Measurements as of September 30, 2017 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 3,769 $ — $ — $ 3,769 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 701 — 701 Fair Value Measurements as of December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments $ 2,138 $ — $ — $ 2,138 Liabilities: Interest rate swap contracts (recorded in accrued expenses) — 2,825 — 2,825 |
Sale of Subsidiaries (Tables)
Sale of Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The assets and liabilities of the businesses that were sold during 2017 consisted of the following (amounts in thousands): Nine Months Ended September 30, 2017 Other receivables, net $ 8,277 Property and equipment, net 4,559 Goodwill 29,683 Intangible assets, net 1,711 Other assets 772 Total assets $ 45,002 Accrued expenses $ 3,123 Total liabilities $ 3,123 |
Organization and Business (Deta
Organization and Business (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Revenues | $ 201,010 | $ 221,984 | $ 607,900 | $ 675,322 |
Long-Lived Assets | 36,428 | 44,354 | 36,428 | 44,354 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 137,323 | 153,114 | 415,761 | 489,260 |
Long-Lived Assets | 28,585 | 33,898 | 28,585 | 33,898 |
Outside the United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 63,687 | 68,870 | 192,139 | 186,062 |
Long-Lived Assets | $ 7,843 | $ 10,456 | $ 7,843 | $ 10,456 |
Finance Receivables, net (Sched
Finance Receivables, net (Schedule of Changes In Finance Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ||||
Balance at beginning of period | $ 2,520,883 | $ 2,399,949 | $ 2,307,969 | $ 2,202,113 |
Acquisitions of finance receivables | 203,052 | 159,546 | 716,586 | 741,402 |
Foreign currency translation adjustment | 38,482 | 1,974 | 106,989 | (21,026) |
Cash collections applied to principal and net allowance charges | (184,586) | (169,061) | 553,713 | 530,081 |
Balance at end of period | $ 2,577,831 | $ 2,392,408 | $ 2,577,831 | $ 2,392,408 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Face value of receivable portfolios | $ 1,400 | $ 3,000 | $ 5,100 | $ 8,900 | |
Payments to acquire finance receivables | 210.9 | 161.3 | 734.4 | 747.5 | |
Cash flows expected to be collected at acquisition | 333.2 | 208.5 | 1,113.8 | 975.4 | |
Estimated remaining cash collections | 5,420 | $ 5,250 | 5,420 | $ 5,250 | |
Unamortized purchased principal (purchase price) under the cost recovery method | $ 109.3 | $ 109.3 | $ 105.5 |
Finance Receivables, net (Sch30
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Receivables [Abstract] | |
2,018 | $ 734,967 |
2,019 | 585,527 |
2,020 | 454,002 |
2,021 | 366,386 |
2,022 | 230,393 |
2,023 | 110,818 |
2,024 | 42,604 |
2,025 | 24,762 |
2,026 | 17,871 |
2,027 | 10,501 |
Total ERC expected to be applied to principal | $ 2,577,831 |
Finance Receivables, net (Sch31
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 2,803,590 | $ 2,931,426 | $ 2,740,006 | $ 2,727,204 |
Income recognized on finance receivables, net | (197,248) | (202,639) | (582,626) | (613,154) |
Additions | 127,829 | 121,643 | 477,018 | 581,583 |
Reclassifications from nonaccretable difference | 68,715 | 5,936 | 93,343 | 95,904 |
Foreign currency translation adjustment | 43,231 | 673 | 118,376 | 65,502 |
Balance at end of period | $ 2,846,117 | $ 2,857,039 | $ 2,846,117 | $ 2,857,039 |
Finance Receivables, net (Sch32
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | ||||
Beginning balance | $ 218,775 | $ 136,752 | $ 211,465 | $ 114,861 |
Allowance charges | 3,824 | 14,246 | 9,973 | 37,686 |
Reversal of previously recorded allowance charges | (412) | (1,100) | (561) | (1,722) |
Net allowance charges | 3,412 | 13,146 | 9,412 | 35,964 |
Foreign currency translation adjustment | 678 | (328) | 1,988 | (1,255) |
Ending balance | $ 222,865 | $ 149,570 | $ 222,865 | $ 149,570 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Available-for-sale investments | $ 3,769 | $ 2,138 |
Held-to-maturity | ||
Held-to-maturity securities | 57,031 | 51,407 |
Other investments | ||
Private equity funds | 14,712 | 14,998 |
Investments | 75,512 | 68,543 |
Securitized assets | ||
Held-to-maturity | ||
Held-to-maturity securities | 57,031 | 51,407 |
Government bonds and mutual funds | ||
Available-for-sale | ||
Available-for-sale investments | $ 3,769 | $ 2,138 |
Investments Narrative (Details)
Investments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment income, net | $ 0 | $ 1.5 | $ 1.3 | $ 4.7 | |
Cost-method investment, ownership percentage | 3.00% | ||||
Cost method investment with no loss recognized | 14.7 | $ 14.7 | $ 15 | ||
Cost-method investments, realized gains | $ 1.2 | $ 0 | $ 5.1 | $ 0.6 |
Investments Amortized Costs (De
Investments Amortized Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Estimated Fair Value | $ 3,769 | $ 2,138 |
Held-to-maturity | ||
Amortized Cost | 57,031 | 51,407 |
Estimated Fair Value | 42,559 | 55,554 |
Securitized assets | ||
Held-to-maturity | ||
Amortized Cost | 57,031 | 51,407 |
Gross Unrealized Gains | 0 | 4,147 |
Gross Unrealized Losses | 14,471 | 0 |
Estimated Fair Value | 42,560 | 55,554 |
Government bonds and mutual funds | ||
Available-for-sale | ||
Amortized Cost | 3,783 | 2,161 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 37 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 51 | 23 |
Estimated Fair Value | $ 3,769 | $ 2,138 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Term loans | $ 762,902 | $ 430,764 |
Less: Debt discount and issuance costs | (81,088) | (31,031) |
Total | 1,963,504 | 1,784,101 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Term loans | 762,902 | 430,764 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 632,500 | 287,500 |
Revolving Credit Facility | North American Revolving Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolving credit | 275,432 | 695,088 |
Revolving Credit Facility | European Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolving credit | $ 373,758 | $ 401,780 |
Borrowings - Long-Term Debt Mat
Borrowings - Long-Term Debt Maturities (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 10,000 |
2,019 | 10,000 |
2,020 | 297,500 |
2,021 | 699,160 |
2,022 | 682,932 |
Thereafter | 345,000 |
Total | $ 2,044,592 |
Borrowings - North American Rev
Borrowings - North American Revolving Credit and Term Loan (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Credit Agreement | |
Debt Instrument [Line Items] | |
Credit agreement consolidated leverage ratio | 2.75 |
Maximum cash dividends | $ 20,000,000 |
Stock repurchases authorized amount | $ 100,000,000 |
Unused commitment fee | 0.375% |
North American Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 1,205,000,000 |
Current borrowing capacity | $ 479,600,000 |
Consolidated Senior Secured Leverage | Credit Agreement | |
Debt Instrument [Line Items] | |
Credit agreement consolidated leverage ratio | 2.25 |
Unsecured Debt | Senior Unsecured Debt other than Convertible Notes Due 2020 | |
Debt Instrument [Line Items] | |
Maximum allowable debt | $ 750,000,000 |
Eurodollar Rate | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 1.00% |
Eurodollar Rate | Credit Agreement | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 2.50% |
Base Rate | Credit Agreement | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 1.50% |
Federal Funds Rate | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 0.50% |
Canadian Prime Rate | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 1.50% |
Line of Credit | Line of Credit | |
Debt Instrument [Line Items] | |
Long-term debt | $ 447,500,000 |
Revolving Credit Facility | North American Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 705,000,000 |
Line of credit facility, optional increase in borrowing capacity | 45,000,000 |
Line of credit facility, option for letters of credit | 25,000,000 |
Line of credit facility, option to reduce borrowing capacity | 25,000,000 |
Current borrowing capacity | 453,500,000 |
Canadian Revolving Credit Facility [Member] | North American Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 50,000,000 |
Acquisition Subsequent to 2014 | Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum business combinations | 250,000,000 |
Maximum business combinations, non-loan | $ 50,000,000 |
Eligible Core Asset Pool | Credit Agreement | |
Debt Instrument [Line Items] | |
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35.00% |
Eligible Insolvent Asset Pool | Credit Agreement | |
Debt Instrument [Line Items] | |
Percentage of maximum level of borrowings of ERC of insolvent asset pools | 55.00% |
Eligible Accounts Receivable | Credit Agreement | |
Debt Instrument [Line Items] | |
Percentage of maximum level of borrowings of eligible accounts receivable | 75.00% |
Borrowings - European Revolving
Borrowings - European Revolving Credit Facility and Term Loan(Details) - 9 months ended Sep. 30, 2017 - European Revolving Credit Facility € in Millions, $ in Millions | SEK | USD ($) | EUR (€) |
Line of Credit Facility [Line Items] | |||
Loan-to-value covenant | 75.00% | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | $ 566.2 | ||
Debt Instrument, covenant, interest bearing deposits, maximum | SEK | SEK 1,500,000,000 | ||
Debt Instrument, covenant, minimum cash collection exceeding IFRS forecast | 95.00% | ||
Overdraft Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 40 | ||
Facility line fee | 0.125% | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,200 | ||
Long-term Debt | 315 | € 267 | |
Unused commitment fee | 1.26% | ||
Unused line fee as a percentage of margin | 35.00% | ||
Current borrowing capacity | $ 165.4 | ||
Debt instrument, covenant, maximum GIBD | 3.25 | ||
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 2.80% | ||
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 4.25% | ||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 3.90% | ||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 4.50% |
Borrowings - Convertible Senior
Borrowings - Convertible Senior Notes (Details) | May 26, 2017USD ($)day$ / shares | Aug. 13, 2013USD ($)$ / shares | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Convertible debt, estimated fair value | $ 579,764,000 | $ 270,825,000 | ||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | 632,500,000 | 287,500,000 | ||
Carrying amount of convertible debt | $ 76,216,000 | $ 31,306,000 | ||
Note Due 2020 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 287,500,000 | |||
Stated percentage | 3.00% | |||
Conversion ratio | 15.2172 | |||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 65.72 | |||
Convertible debt, estimated fair value | $ 255,300,000 | |||
Carrying amount of convertible debt | 32,200,000 | |||
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% | |||
Note Due 2023 | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 345,000,000 | |||
Stated percentage | 3.50% | |||
Minimum sales price for conversion | 130.00% | |||
Trading days threshold | day | 20 | |||
Consecutive treading days threshold | 30 | |||
Conversion ratio | 21.6275 | |||
Minimum average share price triggering dilutive effect (usd per share) | $ / shares | $ 46.24 | |||
Convertible debt, estimated fair value | $ 298,800,000 | |||
Carrying amount of convertible debt | 46,200,000 | |||
Debt Issuance Cost | 8,300,000 | |||
Equity and debt issuance costs | 9,600,000 | |||
Equity Issuance Costs | $ 1,300,000 | |||
Interest rate at period end | 6.20% |
Borrowings - Balances of Liabil
Borrowings - Balances of Liability and Equity Components (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Borrowings | $ 1,963,504 | $ 1,784,101 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | 632,500 | 287,500 |
Less: Debt discount and issuance costs | (58,360) | (17,930) |
Total | 574,140 | 269,570 |
Equity component | $ 76,216 | $ 31,306 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Interest expense - stated coupon rate | $ 5,175 | $ 2,156 | $ 10,695 | $ 6,468 |
Amortization of debt discount | 2,796 | 1,127 | 5,760 | 3,336 |
Total interest expense - convertible notes | $ 7,971 | $ 3,283 | $ 16,455 | $ 9,804 |
Goodwill And Intangible Asset43
Goodwill And Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||||
Goodwill, balance at beginning of year | $ 516,165 | $ 550,734 | $ 506,308 | $ 501,553 |
Accumulated impairment loss | 0 | (6,397) | (6,397) | (6,397) |
Goodwill | 516,165 | 544,337 | 499,911 | 495,156 |
Acquisitions | 0 | 1,193 | 0 | 28,711 |
Foreign currency translation adjustment | 22,172 | 14,975 | 38,426 | 36,638 |
Net change in goodwill | 22,172 | 16,168 | 38,426 | 65,349 |
Goodwill, balance at end of year | 538,337 | 566,902 | 538,337 | 566,902 |
Accumulated impairment loss | 0 | (6,397) | 0 | (6,397) |
Goodwill | $ 538,337 | $ 560,505 | $ 538,337 | $ 560,505 |
Goodwill And Intangible Asset44
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | ||||
Addition to goodwill | $ 0 | $ 1,193 | $ 0 | $ 28,711 |
DTP S.A. [Member] | ||||
Goodwill [Line Items] | ||||
Addition to goodwill | $ 1,200 | |||
Recovery Management Systems Corporation ('RMSC') [Member] | ||||
Goodwill [Line Items] | ||||
Addition to goodwill | $ 28,700 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Income Tax Contingency [Line Items] | ||
Cash on hand related to foreign operations with permanently reinvested earnings | $ 95.3 | $ 73.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | May 26, 2017 | Aug. 13, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||||
Net income | $ 15,555 | $ 34,306 | $ 75,395 | $ 102,745 | ||
Weighted Average Common Shares, Basic EPS | 45,168,000 | 46,343,000 | 45,838,000 | 46,307,000 | ||
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 118,000 | 91,000 | 153,000 | 96,000 | ||
Weighted Average Common Shares, Diluted EPS | 45,286,000 | 46,434,000 | 45,991,000 | 46,403,000 | ||
EPS, Basic (in dollars per share) | $ 0.34 | $ 0.74 | $ 1.64 | $ 2.22 | ||
EPS, Dilutive effect of nonvested share awards (in dollars per share) | 0 | 0 | 0 | (0.01) | ||
EPS, Diluted (in dollars per share) | $ 0.34 | $ 0.74 | $ 1.64 | $ 2.21 | ||
Antidilutive options outstanding | 0 | 0 | 0 | 0 | ||
Note Due 2020 | Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Minimum average share price triggering dilutive effect (usd per share) | $ 65.72 | |||||
Note Due 2023 | Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Minimum average share price triggering dilutive effect (usd per share) | $ 46.24 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |
Future compensation under employment agreements | $ 11.8 |
Total future minimum lease payments | 43.8 |
Amount to be purchased under forward flow agreements | $ 413.6 |
Fair Value Measurements And D48
Fair Value Measurements And Disclosures - Financial Instruments Not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||||||
Cash and cash equivalents, carrying amount | $ 113,754 | $ 94,287 | $ 91,791 | $ 71,372 | ||
Cash and cash equivalents, estimated fair value | 113,754 | 94,287 | ||||
Held-to-maturity securities | 57,031 | 51,407 | ||||
Estimated Fair Value | 42,559 | 55,554 | ||||
Finance receivables, net, carrying amount | 2,577,831 | $ 2,520,883 | 2,307,969 | $ 2,392,408 | $ 2,399,949 | $ 2,202,113 |
Finance receivables, net, estimated fair value | 2,884,171 | 2,708,582 | ||||
Financial liabilities: | ||||||
Interest-bearing deposits, carrying value | 96,395 | 76,113 | ||||
Interest-bearing deposits, fair value | 96,395 | 76,113 | ||||
Outstanding borrowings under credit facility | 649,190 | 1,096,868 | ||||
Revolving lines of credit, estimated fair value | 649,190 | 1,096,868 | ||||
Term loans, carrying amount | 762,902 | 430,764 | ||||
Term loans, estimated fair value | 762,902 | 430,764 | ||||
Convertible debt | 574,140 | 269,570 | ||||
Convertible debt, estimated fair value | 579,764 | 270,825 | ||||
Reported Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments | 14,712 | 14,998 | ||||
Estimate of Fair Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cost Method Investments, Fair Value Disclosure | $ 9,709 | $ 12,573 |
Fair Value Measurements And D49
Fair Value Measurements And Disclosures Fair Value Measurements and Disclosures - Financial Instruments Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
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: | ||
Available-for-sale investments | $ 3,769 | $ 2,138 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 701 | 2,825 |
Level 1 [Member] | ||
Assets: | ||
Available-for-sale investments | 3,769 | 2,138 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Available-for-sale investments | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | 701 | 2,825 |
Level 3 [Member] | ||
Assets: | ||
Available-for-sale investments | 0 | 0 |
Liabilities: | ||
Interest rate swap contracts (recorded in accrued expenses) | $ 0 | $ 0 |
Recent Accounting Pronounceme50
Recent Accounting Pronouncements Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Total future minimum lease payments | $ 43.8 |
Increase of provision for income taxes | $ 0.9 |
Sale of Subsidiaries (Details)
Sale of Subsidiaries (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 24, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on sale of subsidiaries | $ 307 | $ 46,845 | $ 0 | $ 48,474 | $ 0 | ||
Total liabilities | 0 | 0 | $ 4,220 | ||||
Government Services Businesses [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture of businesses | $ 91,500 | ||||||
Government Services Businesses [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other receivables, net | 8,277 | 8,277 | |||||
Property and equipment, net | 4,559 | 4,559 | |||||
Goodwill | 29,683 | 29,683 | |||||
Intangible assets, net | 1,711 | 1,711 | |||||
Other assets | 772 | 772 | |||||
Total assets | 45,002 | 45,002 | |||||
Accrued expenses | 3,123 | 3,123 | |||||
Total liabilities | 3,123 | 3,123 | |||||
PLS Business [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture of businesses | $ 4,500 | 4,500 | |||||
Gain on sale of subsidiaries | $ 1,600 |