Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-50058 | |
Entity Registrant Name | PRA Group, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-3078675 | |
Entity Address, Address Line One | 120 Corporate Boulevard | |
Entity Address, City or Town | Norfolk | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23502 | |
City Area Code | 888 | |
Local Phone Number | 772-7326 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | PRAA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,410,939 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001185348 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 90,000 | $ 98,695 |
Investments | 55,204 | 45,173 |
Finance receivables, net | 3,238,813 | 3,084,777 |
Other receivables, net | 15,808 | 46,157 |
Income taxes receivable | 23,479 | 16,809 |
Deferred tax asset, net | 60,697 | 61,453 |
Property and equipment, net | 56,847 | 54,136 |
Right-of-use assets | 70,723 | |
Goodwill | 465,572 | 464,116 |
Intangible assets, net | 4,757 | 5,522 |
Other assets | 36,380 | 32,721 |
Total assets | 4,118,280 | 3,909,559 |
Liabilities: | ||
Accounts payable | 3,469 | 6,110 |
Accrued expenses | 84,753 | 79,396 |
Income taxes payable | 624 | 15,080 |
Deferred tax liability, net | 95,441 | 114,979 |
Interest-bearing deposits | 112,024 | 82,666 |
Borrowings | 2,567,086 | 2,473,656 |
Lease liabilities | 74,428 | |
Other liabilities | 29,607 | 7,370 |
Total liabilities | 2,967,432 | 2,779,257 |
Redeemable noncontrolling interest | 4,535 | 6,333 |
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, 45,411 shares issued and outstanding at September 30, 2019; 100,000 shares authorized, 45,304 shares issued and outstanding at December 31, 2018 | 454 | 453 |
Additional paid-in capital | 64,631 | 60,303 |
Retained earnings | 1,335,290 | 1,276,473 |
Accumulated other comprehensive loss | (305,956) | (242,109) |
Total stockholders' equity - PRA Group, Inc. | 1,094,419 | 1,095,120 |
Noncontrolling interest | 51,894 | 28,849 |
Total equity | 1,146,313 | 1,123,969 |
Total liabilities and equity | $ 4,118,280 | $ 3,909,559 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 45,411,000 | 45,304,000 |
Common stock, shares outstanding | 45,411,000 | 45,304,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Income recognized on finance receivables | $ 247,471 | $ 223,228 | $ 735,526 | $ 660,870 |
Fee income | 2,391 | 2,561 | 11,472 | 10,230 |
Other revenue | 152 | 99 | 950 | 414 |
Total revenues | 250,014 | 225,888 | 747,948 | 671,514 |
Net allowance charges | (4,136) | (8,285) | (11,427) | (12,044) |
Operating expenses: | ||||
Compensation and employee services | 75,317 | 78,350 | 234,770 | 240,277 |
Legal collection fees | 14,083 | 10,428 | 41,439 | 31,440 |
Legal collection costs | 31,395 | 30,769 | 99,745 | 71,707 |
Agency fees | 12,788 | 8,350 | 39,833 | 24,766 |
Outside fees and services | 16,733 | 15,701 | 48,274 | 44,424 |
Communication | 10,310 | 10,240 | 34,335 | 32,579 |
Rent and occupancy | 4,414 | 4,270 | 13,268 | 12,587 |
Depreciation and amortization | 4,046 | 4,776 | 13,341 | 14,230 |
Other operating expenses | 12,102 | 10,602 | 34,613 | 34,414 |
Total operating expenses | 181,188 | 173,486 | 559,618 | 506,424 |
Income from operations | 64,690 | 44,117 | 176,903 | 153,046 |
Other income and (expense): | ||||
Interest expense, net | (35,864) | (30,624) | (105,872) | (87,529) |
Foreign exchange | 5,406 | 626 | 11,359 | 3,609 |
Other | (19) | 222 | (123) | 65 |
Income before income taxes | 34,213 | 14,341 | 82,267 | 69,191 |
Income tax expense | 6,665 | 1,789 | 15,607 | 11,783 |
Net income | 27,548 | 12,552 | 66,660 | 57,408 |
Adjustment for net income attributable to noncontrolling interests | 2,577 | 2,625 | 7,843 | 6,787 |
Net income attributable to PRA Group, Inc. | $ 24,971 | $ 9,927 | $ 58,817 | $ 50,621 |
Net income per common share attributable to PRA Group, Inc.: | ||||
Basic (in dollars per share) | $ 0.55 | $ 0.22 | $ 1.30 | $ 1.12 |
Diluted (in dollars per share) | $ 0.55 | $ 0.22 | $ 1.29 | $ 1.11 |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 45,410 | 45,302 | 45,378 | 45,272 |
Diluted (shares) | 45,645 | 45,440 | 45,520 | 45,420 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,548 | $ 12,552 | $ 66,660 | $ 57,408 |
Net income attributable to redeemable noncontrolling interest | 2,577 | 2,625 | 7,843 | 6,787 |
Net income attributable to PRA Group, Inc. | 24,971 | 9,927 | 58,817 | 50,621 |
Currency translation adjustments | (50,542) | (5,851) | (46,975) | (36,607) |
Cash flow hedges | (5,832) | 0 | (19,549) | 0 |
Debt securities available-for-sale | (1) | 0 | 81 | 0 |
Other comprehensive loss | (56,375) | (5,851) | (66,443) | (36,607) |
Less other comprehensive loss attributable to noncontrolling interests | (2,543) | (1,940) | (2,596) | (2,136) |
Other comprehensive loss attributable to PRA Group, Inc. | (53,832) | (3,911) | (63,847) | (34,471) |
Comprehensive income/(loss) attributable to PRA Group, Inc. | $ (28,861) | $ 6,016 | $ (5,030) | $ 16,150 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Noncontrolling Interest | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle - equity securities | [1] | $ (3,930) | $ (3,930) | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 45,189,000 | ||||||
Beginning balance at Dec. 31, 2017 | 1,140,717 | $ 452 | $ 53,870 | 1,214,840 | $ (178,607) | $ 50,162 | |
Balance at beginning of period, adjusted at Dec. 31, 2017 | 1,136,787 | $ 452 | 53,870 | 1,210,910 | (178,607) | 50,162 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 23,232 | 21,106 | 2,126 | ||||
Currency translation adjustments | 29,941 | 22,920 | 7,021 | ||||
Distributions to noncontrolling interest | (11,807) | (11,807) | |||||
Vesting of nonvested shares, shares | 86,000 | ||||||
Vesting of restricted stock | 0 | $ 1 | (1) | ||||
Share-based compensation expense | 2,415 | 2,415 | |||||
Employee stock relinquished for payment of taxes | (2,013) | (2,013) | |||||
Ending balance (in shares) at Mar. 31, 2018 | 45,275,000 | ||||||
Ending balance at Mar. 31, 2018 | 1,178,555 | $ 453 | 54,271 | 1,232,016 | (155,687) | 47,502 | |
Beginning balance (in shares) at Dec. 31, 2017 | 45,189,000 | ||||||
Beginning balance at Dec. 31, 2017 | 1,140,717 | $ 452 | 53,870 | 1,214,840 | (178,607) | 50,162 | |
Balance at beginning of period, adjusted at Dec. 31, 2017 | 1,136,787 | $ 452 | 53,870 | 1,210,910 | (178,607) | 50,162 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash flow hedges | 0 | ||||||
Debt securities available-for-sale | 0 | ||||||
Ending balance (in shares) at Sep. 30, 2018 | 45,303,000 | ||||||
Ending balance at Sep. 30, 2018 | 1,150,957 | $ 453 | 58,713 | 1,261,531 | (213,078) | 43,338 | |
Beginning balance (in shares) at Mar. 31, 2018 | 45,275,000 | ||||||
Beginning balance at Mar. 31, 2018 | 1,178,555 | $ 453 | 54,271 | 1,232,016 | (155,687) | 47,502 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 21,624 | 19,588 | 2,036 | ||||
Currency translation adjustments | (60,697) | (53,480) | (7,217) | ||||
Distributions to noncontrolling interest | (928) | (928) | |||||
Vesting of nonvested shares, shares | 25,000 | ||||||
Vesting of restricted stock | 0 | ||||||
Share-based compensation expense | 2,146 | 2,146 | |||||
Employee stock relinquished for payment of taxes | (7) | (7) | |||||
Ending balance (in shares) at Jun. 30, 2018 | 45,300,000 | ||||||
Ending balance at Jun. 30, 2018 | 1,140,693 | $ 453 | 56,410 | 1,251,604 | (209,167) | 41,393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 12,552 | 9,927 | 2,625 | ||||
Currency translation adjustments | (5,851) | (3,911) | (1,940) | ||||
Cash flow hedges | 0 | ||||||
Debt securities available-for-sale | 0 | ||||||
Distributions to noncontrolling interest | (569) | (569) | |||||
Purchase of noncontrolling interest | 1,829 | 1,829 | |||||
Vesting of nonvested shares, shares | 3,000 | ||||||
Vesting of restricted stock | 0 | ||||||
Share-based compensation expense | 2,361 | 2,361 | |||||
Employee stock relinquished for payment of taxes | (58) | (58) | |||||
Ending balance (in shares) at Sep. 30, 2018 | 45,303,000 | ||||||
Ending balance at Sep. 30, 2018 | $ 1,150,957 | $ 453 | 58,713 | 1,261,531 | (213,078) | 43,338 | |
Beginning balance (in shares) at Dec. 31, 2018 | 45,304,000 | 45,304,000 | |||||
Beginning balance at Dec. 31, 2018 | $ 1,123,969 | $ 453 | 60,303 | 1,276,473 | (242,109) | 28,849 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 16,912 | 15,227 | 1,685 | ||||
Currency translation adjustments | (1,173) | (742) | (431) | ||||
Cash flow hedges | (5,715) | (5,715) | |||||
Debt securities available-for-sale | 45 | 45 | |||||
Distributions to noncontrolling interest | (6,877) | (6,877) | |||||
Contributions from noncontrolling interest | 89 | 89 | |||||
Vesting of nonvested shares, shares | 80,000 | ||||||
Vesting of restricted stock | 0 | $ 1 | (1) | ||||
Share-based compensation expense | 2,314 | 2,314 | |||||
Employee stock relinquished for payment of taxes | (1,437) | (1,437) | |||||
Other | (2,088) | (2,088) | |||||
Ending balance (in shares) at Mar. 31, 2019 | 45,384,000 | ||||||
Ending balance at Mar. 31, 2019 | $ 1,126,039 | $ 454 | 59,091 | 1,291,700 | (248,521) | 23,315 | |
Beginning balance (in shares) at Dec. 31, 2018 | 45,304,000 | 45,304,000 | |||||
Beginning balance at Dec. 31, 2018 | $ 1,123,969 | $ 453 | 60,303 | 1,276,473 | (242,109) | 28,849 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash flow hedges | (19,549) | ||||||
Debt securities available-for-sale | $ 81 | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 45,411,000 | 45,411,000 | |||||
Ending balance at Sep. 30, 2019 | $ 1,146,313 | $ 454 | 64,631 | 1,335,290 | (305,956) | 51,894 | |
Beginning balance (in shares) at Mar. 31, 2019 | 45,384,000 | ||||||
Beginning balance at Mar. 31, 2019 | 1,126,039 | $ 454 | 59,091 | 1,291,700 | (248,521) | 23,315 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 22,200 | 18,619 | 3,581 | ||||
Currency translation adjustments | 4,740 | 4,362 | 378 | ||||
Cash flow hedges | (8,002) | (8,002) | |||||
Debt securities available-for-sale | 37 | 37 | |||||
Contributions from noncontrolling interest | 3,229 | 3,229 | |||||
Vesting of nonvested shares, shares | 25,000 | ||||||
Vesting of restricted stock | 0 | $ 0 | 0 | ||||
Share-based compensation expense | 2,620 | 2,620 | |||||
Employee stock relinquished for payment of taxes | (6) | 6 | |||||
Ending balance (in shares) at Jun. 30, 2019 | 45,409,000 | ||||||
Ending balance at Jun. 30, 2019 | 1,150,857 | $ 454 | 61,705 | 1,310,319 | (252,124) | 30,503 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 27,548 | 24,971 | 2,577 | ||||
Currency translation adjustments | (50,542) | (47,999) | (2,543) | ||||
Cash flow hedges | (5,832) | (5,832) | |||||
Debt securities available-for-sale | (1) | (1) | |||||
Contributions from noncontrolling interest | 21,357 | 21,357 | |||||
Vesting of nonvested shares, shares | 2,000 | ||||||
Vesting of restricted stock | 0 | $ 0 | 0 | ||||
Share-based compensation expense | 2,974 | 2,974 | |||||
Employee stock relinquished for payment of taxes | $ (48) | 48 | |||||
Ending balance (in shares) at Sep. 30, 2019 | 45,411,000 | 45,411,000 | |||||
Ending balance at Sep. 30, 2019 | $ 1,146,313 | $ 454 | $ 64,631 | $ 1,335,290 | $ (305,956) | $ 51,894 | |
[1] | Relates to the adoption of FASB ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). Refer to Note 3 for further detail. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 66,660 | $ 57,408 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 7,908 | 6,922 |
Depreciation and amortization | 13,341 | 14,230 |
Amortization of debt discount and issuance costs | 17,180 | 16,348 |
Deferred income taxes | (24,900) | (56,988) |
Net unrealized foreign currency transactions | (3,622) | (162) |
Fair value in earnings for equity securities | (6,921) | (3,523) |
Net allowance charges | 11,427 | 12,044 |
Changes in operating assets and liabilities: | ||
Other assets | 2,651 | 3,461 |
Other receivables, net | 1,019 | 2,690 |
Accounts payable | (2,888) | (1,152) |
Income taxes payable, net | (21,823) | 17,603 |
Accrued expenses | 13,888 | (959) |
Other liabilities | (3,484) | 153 |
Other, net | 257 | 0 |
Net cash provided by operating activities | 70,693 | 68,075 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (14,890) | (16,755) |
Acquisition of finance receivables | (832,995) | (621,501) |
Collections applied to principal on finance receivables | 649,136 | 561,626 |
Business acquisition, net of cash acquired | (57,610) | 0 |
Cash received upon consolidation of Polish investment fund | 0 | 17,531 |
Proceeds from sale of subsidiaries, net | 31,177 | 0 |
Purchase of investments | (82,670) | (24,392) |
Proceeds from sales and maturities of investments | 74,771 | 20,855 |
Net cash used in investing activities | (233,081) | (62,636) |
Cash flows from financing activities: | ||
Proceeds from lines of credit | 885,318 | 375,794 |
Principal payments on lines of credit | (458,566) | (334,307) |
Principal payments on notes payable and long-term debt | (310,665) | (7,500) |
Tax withholdings related to share-based payments | (1,492) | (2,078) |
Distributions paid to noncontrolling interest | (6,877) | (13,960) |
Contributions from noncontrolling interest | 24,675 | 0 |
Purchase of noncontrolling interest | (1,255) | (1,664) |
Payments of origination costs and fees | 0 | (404) |
Net increase/(decrease) in interest-bearing deposits | 38,581 | (12,244) |
Other | (2,088) | 0 |
Net cash provided by financing activities | 167,631 | 3,637 |
Effect of exchange rate on cash | (7,043) | (15,416) |
Net decrease in cash and cash equivalents | (1,800) | (6,340) |
Cash and cash equivalents, beginning of period | 98,695 | 120,516 |
Cash and cash equivalents, end of period | 96,895 | 114,176 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 89,100 | 70,701 |
Cash paid for income taxes | 61,942 | 56,109 |
Cash, cash equivalents and restricted cash reconciliation: | ||
Total cash, cash equivalents and restricted cash | $ 98,695 | $ 120,516 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2019 | |
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, 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 fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts in the United States ("U.S."). 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. This conclusion is 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, 2019 and 2018 , respectively, and long-lived assets held at September 30, 2019 and 2018 , 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, 2019 Three Months Ended September 30, 2018 Revenues Long-Lived Assets (2) Revenues Long-Lived Assets United States $ 166,284 $ 114,595 $ 154,594 $ 48,664 United Kingdom 28,446 3,586 24,472 1,768 Other (1) 55,284 9,389 46,822 4,578 Total $ 250,014 $ 127,570 $ 225,888 $ 55,010 As of and for the As of and for the Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Revenues Long-Lived Assets (2) Revenues Long-Lived Assets United States $ 501,783 $ 114,595 $ 458,933 $ 48,664 United Kingdom 86,494 3,586 74,027 1,768 Other (1) 159,671 9,389 138,554 4,578 Total $ 747,948 $ 127,570 $ 671,514 $ 55,010 (1) None of the countries included in "Other" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Includes right-of-use assets from the adoption of ASU 2016-02 on January 1, 2019. Refer to Note 5. Revenues are attributed to countries based on the location of the related operations. Long-lived assets consist of net property and equipment and right-of-use assets. The Company reports revenues earned from nonperforming loan purchasing and collection activities, fee-based services and investments. For additional information on the Company's investments, see Note 3. 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 Quarterly Reports on 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/(loss) 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, 2019 , its consolidated income statements, and statements of comprehensive income/(loss) for the three and nine months ended September 30, 2019 and 2018 , and its statements of changes in equity and consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018, have been included. The consolidated income statements of the Company for the three and nine months ended September 30, 2019 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 Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). |
Finance Receivables, net
Finance Receivables, net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Changes in finance receivables, net for the three and nine months ended September 30, 2019 and 2018 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,230,949 $ 2,734,673 $ 3,084,777 $ 2,776,199 Acquisitions of finance receivables (1) 276,918 271,657 874,812 656,308 Foreign currency translation adjustment (59,172 ) (8,368 ) (60,213 ) (35,214 ) Cash collections (453,217 ) (389,282 ) (1,384,662 ) (1,222,496 ) Income recognized on finance receivables 247,471 223,228 735,526 660,870 Net allowance charges (4,136 ) (8,285 ) (11,427 ) (12,044 ) Balance at end of period $ 3,238,813 $ 2,823,623 $ 3,238,813 $ 2,823,623 (1) Includes portfolio purchases adjusted for buybacks and acquisition related costs, portfolios from the acquisition of a business in Canada made during the first quarter of 2019 and a $34.9 million addition in the third quarter of 2018 relating to the consolidation of a Polish investment fund. During the three months ended September 30, 2019 , the Company acquired finance receivables portfolios with a face value of $2.4 billion for $279.0 million as compared to the same period last year with a face value of $2.2 billion for $273.1 million . During the nine months ended September 30, 2019 , the Company acquired finance receivables portfolios with a face value of $8.9 billion for $887.0 million as compared to the same period last year with a face value of $6.0 billion for $662.8 million . At September 30, 2019 , the estimated remaining collections ("ERC") on the receivables acquired during the three months ended September 30, 2019 and 2018 were $494.8 million and $365.3 million , respectively. At September 30, 2019 , the ERC on the receivables acquired during the nine months ended September 30, 2019 and 2018 were $1.4 billion and $0.8 billion , respectively. At the time of acquisition and each quarter thereafter, the life of each quarterly accounting pool is estimated based on projected amounts and timing of future cash collections using the proprietary models of the Company. Based upon current projections, cash collections expected to be applied to principal are estimated to be as follows for the twelve-month periods ending September 30, (amounts in thousands): 2020 $ 864,692 2021 692,946 2022 507,491 2023 378,679 2024 259,808 2025 171,873 2026 110,078 2027 84,212 2028 61,656 2029 47,347 Thereafter 60,031 Total ERC expected to be applied to principal $ 3,238,813 At September 30, 2019 , the Company had aggregate net finance receivables balances in pools accounted for under the cost recovery method of $36.2 million ; at December 31, 2018 , the amount was $48.0 million . Accretable yield represents the amount of income on finance receivables the Company can expect to recognize 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. 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, 2019 and 2018 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,173,013 $ 2,994,321 $ 3,058,445 $ 2,927,866 Income recognized on finance receivables (247,471 ) (223,228 ) (735,526 ) (660,870 ) Net allowance charges 4,136 8,285 11,427 12,044 Additions from portfolio purchases (1) 228,443 217,108 693,053 561,393 Reclassifications from nonaccretable difference 59,694 2,678 191,756 204,752 Foreign currency translation adjustment (60,944 ) (11,132 ) (62,284 ) (57,153 ) Balance at end of period $ 3,156,871 $ 2,988,032 $ 3,156,871 $ 2,988,032 (1) Also includes accretable yield additions resulting from certain business acquisitions. The following is a summary of activity within the Company's valuation allowance account, all of which relates to acquired finance receivables, for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 264,591 $ 228,283 $ 257,148 $ 225,555 Allowance charges 8,087 10,149 21,596 24,377 Reversal of previously recorded allowance charges (3,951 ) (1,864 ) (10,169 ) (12,333 ) Net allowance charges 4,136 8,285 11,427 12,044 Foreign currency translation adjustment (1,192 ) (117 ) (1,040 ) (1,148 ) Ending balance $ 267,535 $ 236,451 $ 267,535 $ 236,451 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consisted of the following at September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Debt securities Available-for-sale $ 4,908 $ 5,077 Equity securities Private equity funds 7,489 7,973 Mutual funds 33,013 21,753 Equity method investments 9,794 10,370 Total investments $ 55,204 $ 45,173 Debt Securities Available-for-sale Government bonds: The Company's investments in government bonds 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. The amortized cost and estimated fair value of investments in debt securities at September 30, 2019 and December 31, 2018 were as follows (amounts in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government bonds $ 4,910 $ — $ 2 $ 4,908 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government bonds $ 5,160 $ — $ 83 $ 5,077 Equity Securities Investments in private equity funds: Investments in private equity funds represent limited partnerships in which the Company has less than a 3% interest. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"), which requires that investments in equity securities be measured at fair value with changes in unrealized gains and losses reported in earnings. Upon adoption of ASU 2016-01, the investments are carried at the fair value reported by the Fund manager. The Company recorded a cumulative effect adjustment of $3.9 million , net of tax, to beginning retained earnings for the unrealized loss on the investments. Prior to 2018, the investments were carried at cost with income recognized in Other Revenue in the consolidated income statements when distributions, up to reported income, were received from the partnerships. Mutual funds: The Company invests certain excess funds held in Brazil in a Brazilian real denominated mutual fund benchmarked to the U.S. dollar that invests principally in Brazilian fixed income securities. The investments are carried at fair value based on quoted market prices. Gains and losses from this investment are included as a foreign exchange component of other income and (expense) in the Company's consolidated income statements. Unrealized gains and losses: Net unrealized gains were $5.5 million and $6.9 million for the three and nine months ended September 30, 2019 , respectively, on the Company's equity securities. Net unrealized gains were $0.6 million and $3.4 million for the three and nine months ended September 30, 2018 , respectively, on the Company's equity securities. Equity Method Investments Effective December 20, 2018, the Company has an 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing platform for nonperforming loans in Brazil. This investment is accounted for on the equity method because the Company exercises significant influence over RCB’s operating and financial activities. Accordingly, the Company’s investment in RCB is adjusted for the Company’s proportionate share of RCB’s earnings or losses. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 9 Months Ended |
Sep. 30, 2019 | |
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 a 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, 2019 and 2018 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period: Goodwill $ 489,293 $ 519,811 $ 464,116 $ 526,513 Accumulated impairment loss — — — — 489,293 519,811 464,116 526,513 Changes: Acquisition (1) 467 — 18,831 — Foreign currency translation adjustment (24,188 ) (766 ) (17,375 ) (7,468 ) Net change in goodwill (23,721 ) (766 ) 1,456 (7,468 ) Goodwill 465,572 519,045 465,572 519,045 Accumulated impairment loss — — — — Balance at end of period $ 465,572 $ 519,045 $ 465,572 $ 519,045 (1) For the three and nine months ended September 30, 2019, additions to goodwill are related to the acquisition of a business in Canada during the first quarter. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases: 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. The Company adopted ASU 2016-02 on January 1, 2019 using the alternative method which resulted in the recording of operating lease right-of-use ("ROU") assets and lease liabilities of $72.1 million and $75.8 million , respectively. The Company's balance sheets for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior periods amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company elected to apply the package of practical expedients permitted within the new standard, which among other things, allows it to carryforward the historical lease classification. In addition, the Company elected the practical expedient to exclude short-term leases (lease terms of less than one year) from its ROU assets and lease liabilities. The Company's operating lease portfolio primarily includes corporate offices and call centers. The majority of its leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years, and others include options to terminate the leases within 1 year. Exercises of lease renewal options are typically at the Company's sole discretion and are included in its ROU assets and lease liabilities based upon whether the Company is reasonably certain of exercising the renewal options. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company used its incremental borrowing rate as of January 1, 2019 to calculate the present value of the lease payments of its existing leases at adoption. The components of lease expense for the three and nine months ended September 30, 2019 were as follows (amounts in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 3,018 $ 8,948 Short-term lease cost 657 2,219 Total lease cost $ 3,675 $ 11,167 Supplemental cash flow information and non-cash activity related to leases for the nine months ended September 30, 2019 were as follows (amounts in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 8,597 Right-of-use assets obtained in exchange for operating lease obligations 80,581 Lease term and discount rate information related to operating leases were as follows as of the dates indicated: September 30, 2019 Weighted-average remaining lease term (years) 11 Weighted-average discount rate 4.97 % Maturities of lease liabilities as of September 30, 2019 were as follows for the following periods (amounts in thousands): Operating Leases For the three months ending December 31, 2019 $ 2,914 For the year ending December 31, 2020 11,659 For the year ending December 31, 2021 11,211 For the year ending December 31, 2022 9,215 For the year ending December 31, 2023 7,070 Thereafter 55,411 Total lease payments 97,480 Less imputed interest (23,052 ) Total $ 74,428 As previously disclosed in the 2018 Form 10-K and under the previous lease accounting standard (which excludes the impact of the Company's intent to exercise renewal options as required by ASU 2016-02), future minimum lease payments for operating leases at December 31, 2018, were as follows for the years ending December 31, (amounts in thousands): 2019 $ 11,470 2020 11,451 2021 10,809 2022 7,287 2023 6,189 Thereafter 7,866 Total future minimum lease payments $ 55,072 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): September 30, 2019 December 31, 2018 Americas revolving credit $ 650,315 $ 598,279 Europe revolving credit 899,308 561,882 Term loans 427,500 740,551 Convertible senior notes 632,500 632,500 2,609,623 2,533,212 Less: Debt discount and issuance costs (42,537 ) (59,556 ) Total $ 2,567,086 $ 2,473,656 The following principal payments are due on the Company's borrowings as of September 30, 2019 for the 12-month periods ending September 30, (amounts in thousands): 2020 $ 297,783 2021 909,591 2022 1,057,249 2023 345,000 2024 and thereafter — Total $ 2,609,623 The Company believes it was in compliance with the covenants of its financing arrangements as of September 30, 2019 . 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 $1.6 billion (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $427.5 million term loan, (ii) a $1,068.0 million domestic revolving credit facility, and (iii) a $50.0 million Canadian revolving credit facility. The facility includes an accordion feature for up to $500.0 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 revolving credit facilities also bear an unused line fee of 0.375% per annum, payable quarterly in arrears. The loans under the North American Credit Agreement mature May 5, 2022. As of September 30, 2019 , the outstanding balance under the North American Credit Agreement was $1,077.0 million and the unused portion was $468.5 million . Considering borrowing base restrictions, as of September 30, 2019 , the amount available to be drawn was $275.0 million . The North American Credit Agreement is secured by a first priority lien on substantially all of the Company's North American assets. The North American Credit Agreement contains restrictive covenants and events of default 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. 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"). In the first quarter of 2019, the Company entered into the Fifth Amendment and Restatement Agreement to its European Credit Agreement which, among other things, merged the term loan facility with the revolving credit facility and increased all applicable margins for the interest payable under the multicurrency revolving credit facility by 5 basis points. Under the terms of the European Credit Agreement, the credit facility includes an aggregate amount of approximately $1.1 billion (subject to the borrowing base), accrues interest at the Interbank Offered Rate ("IBOR") plus 2.70% - 3.80% (as determined by the loan-to-value ratio ("LTV Ratio") as defined in the European Credit Agreement), bears an unused line fee, currently 1.23% per annum, of 35% of the margin, is payable monthly in arrears, and matures 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 matures February 19, 2021. As of September 30, 2019 , the outstanding balance under the European Credit Agreement was $899.3 million and the unused portion (including the overdraft facility) was $240.7 million . Considering borrowing base restrictions and other covenants, as of September 30, 2019 , the amount available to be drawn under the European Credit Agreement (including the overdraft facility) was $145.0 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 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 1.2 billion ; and • PRA Europe's cash collections must meet certain thresholds, measured on a quarterly basis. Colombian Revolving Credit Facility On September 17, 2019, PRA Group Colombia Holding SAS ("PRA Colombia") entered into a credit agreement with Bancolombia in an aggregate amount of approximately $5.7 million . As of September 30, 2019, the outstanding balance under the credit agreement was approximately $0.8 million , which accrues interest at the Indicador Bancario de Referencia rate ("IBR") plus 2.80% , is payable quarterly in arrears, amortizes quarterly, and matures on September 17, 2022. This credit facility is fully collateralized using time deposits with Bancolombia which are subject to certain limitations regarding withdrawal and usage and are included within other assets on the consolidated balance sheet. 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 Regions Bank, as successor 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, 2019 , the Company does not believe that any of the conditions allowing holders of the 2020 Notes to convert their notes have 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 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 2023 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, 2019 , the Company does not believe that any of the conditions allowing holders of the 2023 Notes to convert their notes have 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 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, 2019 December 31, 2018 Liability component - principal amount $ 632,500 $ 632,500 Unamortized debt discount (34,572 ) (43,812 ) Liability component - net carrying amount $ 597,928 $ 588,688 Equity component $ 76,216 $ 76,216 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, 2019 2018 2019 2018 Interest expense - stated coupon rate $ 5,175 $ 5,175 $ 15,525 $ 15,525 Interest expense - amortization of debt discount 3,128 2,958 9,241 8,739 Total interest expense - convertible senior notes $ 8,303 $ 8,133 $ 24,766 $ 24,264 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives: The Company periodically enters into derivative financial instruments, typically interest rate swap agreements, interest rate caps, and foreign currency contracts to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. The Company does not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed nor does it enter into or hold derivatives for trading or speculative purposes. The Company periodically reviews the creditworthiness of the swap counterparty to assess the counterparty’s ability to honor its obligation. Counterparty default would expose the Company to fluctuations in interest and currency rates. Derivative financial instruments are recognized at fair value in the consolidated balance sheets, in accordance with the guidance of ASC Topic 815 “Derivatives and Hedging” (“ASC 815”). The following table summarizes the fair value of derivative instruments in the consolidated balance sheets (amounts in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 20 Other assets $ 44 Interest rate contracts Other liabilities 25,766 Other liabilities — Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 356 Other assets 2,555 Foreign currency contracts Other liabilities 1,749 Other liabilities — Interest rate contracts Other assets — Other assets 735 Derivatives designated as hedging instruments: Changes in fair value of derivative contracts designated as cash flow hedging instruments are recognized in other comprehensive income ("OCI"). As of September 30, 2019 and December 31, 2018 , the notional amount of interest rate contracts designated as cash flow hedging instruments was $866.9 million and $260.8 million , respectively. Derivatives designated as cash flow hedging instruments were evaluated and remain highly effective at September 30, 2019 . The Company estimates that approximately $3.9 million of net derivative gain (loss) included in OCI will be reclassified into earnings within the next 12 months. The following table summarizes the effects of derivatives designated as cash flow hedging instruments on the consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Gain or (loss) recognized in OCI, net of tax Three Months Ended September 30, Nine Months Ended September 30, Derivatives designated as cash flow hedging instruments 2019 2018 2019 2018 Interest rate contracts $ (6,245 ) $ — $ (20,160 ) $ — Gain or (loss) reclassified from OCI into income Three Months Ended September 30, Nine Months Ended September 30, Location of gain or (loss) reclassified from OCI into income 2019 2018 2019 2018 Interest expense, net $ (413 ) $ — $ (611 ) $ — Derivatives not designated as hedging instruments: Changes in fair value of derivative contracts not designated as hedging instruments are recognized in earnings. As of September 30, 2019, the Company no longer had interest rate swap contracts not designated as hedging instruments. As of December 31, 2018 , the notional amount of interest rate contracts not designated as hedging instruments was $169.7 million . The Company also enters into foreign currency contracts to economically hedge the foreign currency re-measurement exposure related to certain balances that are denominated in currencies other than the functional currency of the entity. As of September 30, 2019 and December 31, 2018 , the notional amount of foreign currency contracts that are not designated as hedging instruments was $173.0 million and $144.7 million , respectively. The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s consolidated income statements for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Amount of gain or (loss) recognized in income Three Months Ended September 30, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2019 2018 Foreign currency contracts Foreign exchange gain/(loss) $ 4,270 $ — Foreign currency contracts Interest expense, net (1,141 ) — Interest rate contracts Interest expense, net 15 (504 ) Amount of gain or (loss) recognized in income Nine Months Ended September 30, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2019 2018 Foreign currency contracts Foreign exchange gain/(loss) $ (3,401 ) $ — Foreign currency contracts Interest expense, net (2,628 ) — Interest rate contracts Interest expense, net (492 ) (3,205 ) |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: As defined by ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820"), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the consideration of differing levels of inputs in the determination of fair values. Those levels of input are summarized as follows: • Level 1: Quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3: Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments for which the determination of fair value requires significant management judgment or estimation. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Financial Instruments Not Required to be Carried at Fair Value In accordance with the disclosure requirements of ASC Topic 825, "Financial Instruments" ("ASC 825"), the table below summarizes fair value estimates for the Company's financial instruments that are not required to be carried at fair value. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company. The carrying amounts of the financial instruments in the following table are recorded in the consolidated balance sheets at September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 90,000 $ 90,000 $ 98,695 $ 98,695 Finance receivables, net 3,238,813 3,432,727 3,084,777 3,410,475 Financial liabilities: Interest-bearing deposits 112,024 112,024 82,666 82,666 Revolving lines of credit 1,549,623 1,549,623 1,160,161 1,160,161 Term loans 427,500 427,500 740,551 740,551 Convertible senior notes 597,928 633,405 588,688 557,122 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 financial instruments: Cash and cash equivalents: The carrying amount approximates fair value and quoted prices for identical assets can be found in active markets. Accordingly, the Company estimates the fair value of cash and cash equivalents using Level 1 inputs. Finance receivables, net: The Company 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 senior notes: The fair value estimates for the Notes incorporate quoted market prices which were obtained from secondary market broker quotes and 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, 2019 and December 31, 2018 (amounts in thousands): Fair Value Measurements as of September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments Government bonds $ 4,908 $ — $ — $ 4,908 Fair value through net income Mutual funds 33,013 — — 33,013 Derivative contracts (recorded in other assets) — 376 — 376 Liabilities: Derivative contracts (recorded in other liabilities) — 27,515 — 27,515 Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments Government bonds $ 5,077 $ — $ — $ 5,077 Fair value through net income Mutual funds 21,753 — — 21,753 Derivative contracts (recorded in other assets) — 3,334 — 3,334 Available-for-sale Government bonds: Fair value of the Company's investment in government bonds is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Fair value through net income Mutual funds: Fair value of the Company's investment in mutual funds is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Derivative contracts: The estimated fair value of the derivative contracts is determined 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. Effective in the second quarter of 2018, the Company began to apply hedge accounting to certain of its derivative contracts. By applying hedge accounting, changes in market value are reflected as adjustments in Other Comprehensive Income. The hedges were evaluated and remain highly effective at September 30, 2019 and have initial terms of two to seven years . Investments measured using net asset value Private equity funds: 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 cannot 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 investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over one to six years . The fair value of these private equity funds following the Net Asset Value ("NAV") practical expedient was $7.5 million and $8.0 million as of September 30, 2019 and December 31, 2018 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: The following table represents the changes in accumulated other comprehensive loss by component, net of tax, for the three and nine months ended September 30, 2019 (amounts in thousands): Three Months Ended September 30, 2019 Debt Securities Currency Translation Accumulated Other Available-for-sale Cash Flow Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (1 ) $ (13,673 ) $ (238,450 ) $ (252,124 ) Other comprehensive loss before reclassifications, net (1) (1 ) (6,245 ) (47,999 ) (54,245 ) Reclassifications — 413 — 413 Net current period other comprehensive loss (1 ) (5,832 ) (47,999 ) (53,832 ) Balance at end of period $ (2 ) $ (19,505 ) $ (286,449 ) $ (305,956 ) Nine Months Ended September 30, 2019 Debt Securities Currency Translation Accumulated Other Available-for-sale Cash Flow Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (83 ) $ 44 $ (242,070 ) $ (242,109 ) Other comprehensive income/(loss) before reclassifications, net (1) 81 (20,160 ) (44,379 ) (64,458 ) Reclassifications — 611 — 611 Net current period other comprehensive income/(loss) 81 (19,549 ) (44,379 ) (63,847 ) Balance at end of period $ (2 ) $ (19,505 ) $ (286,449 ) $ (305,956 ) (1) Net of deferred taxes for unrealized losses from cash flow hedges of $2.0 million and $6.4 million for the three and nine months ended September 30, 2019, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 . 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 following table provides a reconciliation between the computation of basic EPS and diluted EPS for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands, except per share amounts): For the Three Months Ended September 30, 2019 2018 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 24,971 45,410 $ 0.55 $ 9,927 45,302 $ 0.22 Dilutive effect of nonvested share awards 235 — 138 — Diluted EPS $ 24,971 45,645 $ 0.55 $ 9,927 45,440 $ 0.22 For the Nine Months Ended September 30, 2019 2018 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 58,817 45,378 $ 1.30 $ 50,621 45,272 $ 1.12 Dilutive effect of nonvested share awards 142 (0.01 ) 148 (0.01 ) Diluted EPS $ 58,817 45,520 $ 1.29 $ 50,621 45,420 $ 1.11 There were no antidilutive options outstanding for the three and nine months ended September 30, 2019 and 2018 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
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. On May 10, 2017, the Company reached a settlement with the Internal Revenue Service in regards to its assertion that tax revenue recognition using the cost recovery method did not clearly reflect taxable income. In accordance with the settlement, the Company changed its tax accounting method to recognize finance receivables revenue effective with tax year 2017. Under the new method, a portion of the annual collections amortizes principal and the remaining portion is taxable income. The deferred tax liability related to the difference in timing between the new method and the cost recovery method has been incorporated evenly into the Company’s tax filings over four years beginning with tax year 2017. The Company was not required to pay any interest or penalties in connection with the settlement. At September 30, 2019 , the 2014 and subsequent tax years remain subject to examination by the major federal, state and international taxing jurisdictions. The Company intends for predominantly all foreign earnings to be indefinitely reinvested in its foreign operations. If foreign earnings were repatriated, the Company may 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 $73.0 million and $78.6 million as of September 30, 2019 and December 31, 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies: Employment agreements: The Company has entered into employment agreements, most of which expire on December 31, 2020, 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 take into consideration the Company’s overall performance against its short and long-term financial and strategic objectives. At September 30, 2019 , estimated future compensation under these agreements was approximately $9.9 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 $9.9 million total above. Forward flow agreements: The Company is party to 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, 2019 , was approximately $725.1 million . Finance receivables: Certain agreements for the purchase of finance receivables portfolios contain provisions that may, in limited circumstances, require the Company to refund a portion or all of the collections subsequently received by the Company on particular accounts. The potential refunds as of the balance sheet date are not considered to be significant. Litigation and regulatory matters: The Company is from time to time subject to routine legal claims, proceedings and regulatory matters, most of which are incidental to the ordinary course of its business. The Company initiates lawsuits against customers and is occasionally countersued by them in such actions. Also, customers, either individually, as members of a class action, or through a governmental entity on behalf of customers, may initiate litigation against the Company in which they allege that the Company has violated a state or federal law in the process of collecting on an account. From time to time, other types of lawsuits are brought against the Company. Additionally, the Company receives subpoenas and other requests or demands for information from regulators or governmental authorities who are investigating the Company's debt collection activities. The Company 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, 2019 , where the range of loss can be estimated, 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 matters described below fall outside of the normal parameters of the Company's routine legal proceedings. Multi-State Investigation On November 17, 2015, the Company received civil investigative demands from multiple state Attorney General offices ("AGOs") broadly relating to its U.S. debt collection practices. The Company believes that it has fully cooperated with the investigations and discussed potential resolution of the investigations with the AGOs. In these discussions, the AGOs have taken positions with which the Company disagrees, including positions related to penalties, restitution and/or the adoption of new practices and controls in the conduct of the Company's business. If the Company is unable to resolve its differences with the AGOs, it is possible that one or more individual state AGOs may file claims against the Company. On November 6, 2019, the Company reached a settlement with the Massachusetts Office of the Attorney General resolving certain claims that Massachusetts asserted it would have otherwise pursued separate and apart from the AGOs’ investigations. While the Company denies that it violated Massachusetts or federal law, it has agreed to the settlement in order to resolve the matter, avoiding both further cost and delay associated with legal action. The settlement, for which the Company had fully accrued as of September 30, 2019, did not have a material adverse effect on the Company’s business, results of operations or financial condition. The range of loss with respect to the remaining investigations, if any, cannot be estimated at this time. Iris Pounds v. Portfolio Recovery Associates, LLC On November 21, 2016, Iris Pounds filed suit against the Company in Durham County, North Carolina alleging violations of the North Carolina Prohibited Practices by Collection Agencies Act. The purported class consists of all individuals against whom the Company had obtained a judgment by default in North Carolina on or after October 1, 2009. On December 9, 2016, the Company removed the matter to the United States District Court for the Middle District of North Carolina (the "District Court"). On March 28, 2018, the District Court entered an order remanding the matter to the North Carolina state court which the Fourth Circuit Court of Appeals affirmed on May 17, 2018. On January 11, 2019, the Company filed a motion to compel arbitration with the North Carolina state court. The North Carolina state court denied the Company's motion to compel arbitration and the Company is seeking review of that decision. The range of loss, if any, cannot be estimated at this time due to the uncertainty surrounding liability, class certification and the interpretation of statutory damages. Telephone Consumer Protection Act Litigation On January 25, 2017, the Company resolved the matter of In Re Portfolio Recovery Associates, LLC Telephone Consumer Protection Act Litigation , which consisted of a number of class actions and single plaintiff claims consolidated by order of the Panel for Multi-District Litigation (“MDL”). While the settlement disposed of a large number of claims, several hundred class members opted out ("Opt-Out Plaintiffs") of that settlement. Many of these Opt-Out Plaintiffs have been consolidated before the MDL appointed court, the United States District Court for the Southern District of California, and are pending a determination on cross-motions for summary judgment. The range of loss, if any, cannot be estimated at this time due to the uncertainty surrounding liability. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: Recently issued accounting standards adopted: In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, "Leases (Topic 842) Section A - Leases: Amendments to the FASB Accounting 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. In July 2018, FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases" and ASU 2018-11, "Leases (Topic 842) Targeted Improvements" which among other things, allowed for an alternative transition method which eliminated the requirement to restate the earliest prior period presented in an entity's financial statements. Entities that elected this transition option, including the Company, were required to adopt the new lease standard using the modified retrospective transition method required by the standard, but recognized a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company adopted the new leasing standard on January 1, 2019 and as a result recorded operating lease ROU assets and lease liabilities of $72.1 million and $75.8 million , respectively. The adoption of the standard did not have any other material impact on the Company's 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. The new standard must be adopted using a retrospective transition method. The Company adopted ASU 2016-15 in the first quarter of 2019 which had no material impact on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded income tax effects resulting from the 2017 Tax Cuts and Jobs Act. The amendments in this ASU also require certain disclosures about stranded income tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company’s provisional adjustments recorded during the year ended December 31, 2017 to account for the impact of the Tax Act did not result in stranded tax effects. The Company adopted ASU 2018-02 in the first quarter of 2019 which had no material impact on its consolidated financial statements. Recently issued accounting standards not yet adopted: In June 2016, FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13"), which introduces a new methodology requiring the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This methodology replaces the multiple impairment methods under existing U.S. GAAP, including accounting for purchased credit impaired ("PCI") assets, and introduces the concept of purchased credit deteriorated (“PCD”) financial assets. The Company's PCI assets currently accounted for under existing U.S. GAAP will be accounted for as PCD financial assets upon adoption of ASU 2016-13. For PCD financial assets, the new methodology requires an entity to present on the balance sheet the net amount expected to be collected. The Company will estimate that amount under the new methodology by reflecting on the balance sheet the present value of expected recoveries using a discounted approach and will recognize income over the life of the portfolio at an effective interest rate. Subsequent changes (favorable and unfavorable) in expected cash flows are recognized in earnings by adjusting the present value of the expected recoveries. ASU 2016-13, including the effect of ongoing developments and amendments to the guidance, represents a significant change from existing U.S. GAAP and is expected to result in material changes to the Company’s accounting for its finance receivables. The guidance in ASU 2016-13 will be effective prospectively for the Company as of January 1, 2020. Implementation efforts are underway, including model development, fulfillment of additional data needs for new disclosures and reporting requirements, and drafting of accounting policies. In January 2017, FASB issued ASU 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. Based on the Company's most recent goodwill impairment assessment, there were no reporting units for which it was more-likely-than-not that the carrying amount of a reporting unit exceeded its respective fair value; therefore, the Company believes that ASU 2017-04 would not have an impact on its consolidated financial statements or related disclosures. If subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” ("ASU 2018-13"). ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of ASU 2018-13 will result in additional and modified disclosures in 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. |
Organization and Business (Tabl
Organization and Business (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 , respectively, and long-lived assets held at September 30, 2019 and 2018 , 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, 2019 Three Months Ended September 30, 2018 Revenues Long-Lived Assets (2) Revenues Long-Lived Assets United States $ 166,284 $ 114,595 $ 154,594 $ 48,664 United Kingdom 28,446 3,586 24,472 1,768 Other (1) 55,284 9,389 46,822 4,578 Total $ 250,014 $ 127,570 $ 225,888 $ 55,010 As of and for the As of and for the Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Revenues Long-Lived Assets (2) Revenues Long-Lived Assets United States $ 501,783 $ 114,595 $ 458,933 $ 48,664 United Kingdom 86,494 3,586 74,027 1,768 Other (1) 159,671 9,389 138,554 4,578 Total $ 747,948 $ 127,570 $ 671,514 $ 55,010 (1) None of the countries included in "Other" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Includes right-of-use assets from the adoption of ASU 2016-02 on January 1, 2019. Refer to Note 5. |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Changes in Finance Receivables | Changes in finance receivables, net for the three and nine months ended September 30, 2019 and 2018 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,230,949 $ 2,734,673 $ 3,084,777 $ 2,776,199 Acquisitions of finance receivables (1) 276,918 271,657 874,812 656,308 Foreign currency translation adjustment (59,172 ) (8,368 ) (60,213 ) (35,214 ) Cash collections (453,217 ) (389,282 ) (1,384,662 ) (1,222,496 ) Income recognized on finance receivables 247,471 223,228 735,526 660,870 Net allowance charges (4,136 ) (8,285 ) (11,427 ) (12,044 ) Balance at end of period $ 3,238,813 $ 2,823,623 $ 3,238,813 $ 2,823,623 (1) Includes portfolio purchases adjusted for buybacks and acquisition related costs, portfolios from the acquisition of a business in Canada made during the first quarter of 2019 and a $34.9 million addition in the third quarter of 2018 relating to the consolidation of a Polish investment fund. |
Schedule of Cash Collections Applied to Principal | At the time of acquisition and each quarter thereafter, the life of each quarterly accounting pool is estimated based on projected amounts and timing of future cash collections using the proprietary models of the Company. Based upon current projections, cash collections expected to be applied to principal are estimated to be as follows for the twelve-month periods ending September 30, (amounts in thousands): 2020 $ 864,692 2021 692,946 2022 507,491 2023 378,679 2024 259,808 2025 171,873 2026 110,078 2027 84,212 2028 61,656 2029 47,347 Thereafter 60,031 Total ERC expected to be applied to principal $ 3,238,813 |
Schedule of Changes in Accretable Yield | Changes in accretable yield for the three and nine months ended September 30, 2019 and 2018 were as follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,173,013 $ 2,994,321 $ 3,058,445 $ 2,927,866 Income recognized on finance receivables (247,471 ) (223,228 ) (735,526 ) (660,870 ) Net allowance charges 4,136 8,285 11,427 12,044 Additions from portfolio purchases (1) 228,443 217,108 693,053 561,393 Reclassifications from nonaccretable difference 59,694 2,678 191,756 204,752 Foreign currency translation adjustment (60,944 ) (11,132 ) (62,284 ) (57,153 ) Balance at end of period $ 3,156,871 $ 2,988,032 $ 3,156,871 $ 2,988,032 (1) Also includes accretable yield additions resulting from certain business acquisitions. |
Schedule of Valuation Allowance Account | The following is a summary of activity within the Company's valuation allowance account, all of which relates to acquired finance receivables, for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 264,591 $ 228,283 $ 257,148 $ 225,555 Allowance charges 8,087 10,149 21,596 24,377 Reversal of previously recorded allowance charges (3,951 ) (1,864 ) (10,169 ) (12,333 ) Net allowance charges 4,136 8,285 11,427 12,044 Foreign currency translation adjustment (1,192 ) (117 ) (1,040 ) (1,148 ) Ending balance $ 267,535 $ 236,451 $ 267,535 $ 236,451 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consisted of the following at September 30, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Debt securities Available-for-sale $ 4,908 $ 5,077 Equity securities Private equity funds 7,489 7,973 Mutual funds 33,013 21,753 Equity method investments 9,794 10,370 Total investments $ 55,204 $ 45,173 |
Schedule of Amortized Cost and Estimated Fair Value in Debt Securities | The amortized cost and estimated fair value of investments in debt securities at September 30, 2019 and December 31, 2018 were as follows (amounts in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government bonds $ 4,910 $ — $ 2 $ 4,908 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government bonds $ 5,160 $ — $ 83 $ 5,077 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (amounts in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period: Goodwill $ 489,293 $ 519,811 $ 464,116 $ 526,513 Accumulated impairment loss — — — — 489,293 519,811 464,116 526,513 Changes: Acquisition (1) 467 — 18,831 — Foreign currency translation adjustment (24,188 ) (766 ) (17,375 ) (7,468 ) Net change in goodwill (23,721 ) (766 ) 1,456 (7,468 ) Goodwill 465,572 519,045 465,572 519,045 Accumulated impairment loss — — — — Balance at end of period $ 465,572 $ 519,045 $ 465,572 $ 519,045 (1) For the three and nine months ended September 30, 2019, additions to goodwill are related to the acquisition of a business in Canada during the first quarter. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three and nine months ended September 30, 2019 were as follows (amounts in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 3,018 $ 8,948 Short-term lease cost 657 2,219 Total lease cost $ 3,675 $ 11,167 Supplemental cash flow information and non-cash activity related to leases for the nine months ended September 30, 2019 were as follows (amounts in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 8,597 Right-of-use assets obtained in exchange for operating lease obligations 80,581 Lease term and discount rate information related to operating leases were as follows as of the dates indicated: September 30, 2019 Weighted-average remaining lease term (years) 11 Weighted-average discount rate 4.97 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 were as follows for the following periods (amounts in thousands): Operating Leases For the three months ending December 31, 2019 $ 2,914 For the year ending December 31, 2020 11,659 For the year ending December 31, 2021 11,211 For the year ending December 31, 2022 9,215 For the year ending December 31, 2023 7,070 Thereafter 55,411 Total lease payments 97,480 Less imputed interest (23,052 ) Total $ 74,428 |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in the 2018 Form 10-K and under the previous lease accounting standard (which excludes the impact of the Company's intent to exercise renewal options as required by ASU 2016-02), future minimum lease payments for operating leases at December 31, 2018, were as follows for the years ending December 31, (amounts in thousands): 2019 $ 11,470 2020 11,451 2021 10,809 2022 7,287 2023 6,189 Thereafter 7,866 Total future minimum lease payments $ 55,072 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of the dates indicated (amounts in thousands): September 30, 2019 December 31, 2018 Americas revolving credit $ 650,315 $ 598,279 Europe revolving credit 899,308 561,882 Term loans 427,500 740,551 Convertible senior notes 632,500 632,500 2,609,623 2,533,212 Less: Debt discount and issuance costs (42,537 ) (59,556 ) Total $ 2,567,086 $ 2,473,656 |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings as of September 30, 2019 for the 12-month periods ending September 30, (amounts in thousands): 2020 $ 297,783 2021 909,591 2022 1,057,249 2023 345,000 2024 and thereafter — Total $ 2,609,623 |
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, 2019 December 31, 2018 Liability component - principal amount $ 632,500 $ 632,500 Unamortized debt discount (34,572 ) (43,812 ) Liability component - net carrying amount $ 597,928 $ 588,688 Equity component $ 76,216 $ 76,216 |
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, 2019 2018 2019 2018 Interest expense - stated coupon rate $ 5,175 $ 5,175 $ 15,525 $ 15,525 Interest expense - amortization of debt discount 3,128 2,958 9,241 8,739 Total interest expense - convertible senior notes $ 8,303 $ 8,133 $ 24,766 $ 24,264 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the fair value of derivative instruments in the consolidated balance sheets (amounts in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 20 Other assets $ 44 Interest rate contracts Other liabilities 25,766 Other liabilities — Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 356 Other assets 2,555 Foreign currency contracts Other liabilities 1,749 Other liabilities — Interest rate contracts Other assets — Other assets 735 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the effects of derivatives designated as cash flow hedging instruments on the consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Gain or (loss) recognized in OCI, net of tax Three Months Ended September 30, Nine Months Ended September 30, Derivatives designated as cash flow hedging instruments 2019 2018 2019 2018 Interest rate contracts $ (6,245 ) $ — $ (20,160 ) $ — Gain or (loss) reclassified from OCI into income Three Months Ended September 30, Nine Months Ended September 30, Location of gain or (loss) reclassified from OCI into income 2019 2018 2019 2018 Interest expense, net $ (413 ) $ — $ (611 ) $ — |
Schedule of derivative instruments not designated as hedging instruments | The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s consolidated income statements for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands): Amount of gain or (loss) recognized in income Three Months Ended September 30, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2019 2018 Foreign currency contracts Foreign exchange gain/(loss) $ 4,270 $ — Foreign currency contracts Interest expense, net (1,141 ) — Interest rate contracts Interest expense, net 15 (504 ) Amount of gain or (loss) recognized in income Nine Months Ended September 30, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2019 2018 Foreign currency contracts Foreign exchange gain/(loss) $ (3,401 ) $ — Foreign currency contracts Interest expense, net (2,628 ) — Interest rate contracts Interest expense, net (492 ) (3,205 ) |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and December 31, 2018 (amounts in thousands): September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 90,000 $ 90,000 $ 98,695 $ 98,695 Finance receivables, net 3,238,813 3,432,727 3,084,777 3,410,475 Financial liabilities: Interest-bearing deposits 112,024 112,024 82,666 82,666 Revolving lines of credit 1,549,623 1,549,623 1,160,161 1,160,161 Term loans 427,500 427,500 740,551 740,551 Convertible senior notes 597,928 633,405 588,688 557,122 |
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, 2019 and December 31, 2018 (amounts in thousands): Fair Value Measurements as of September 30, 2019 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments Government bonds $ 4,908 $ — $ — $ 4,908 Fair value through net income Mutual funds 33,013 — — 33,013 Derivative contracts (recorded in other assets) — 376 — 376 Liabilities: Derivative contracts (recorded in other liabilities) — 27,515 — 27,515 Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Available-for-sale investments Government bonds $ 5,077 $ — $ — $ 5,077 Fair value through net income Mutual funds 21,753 — — 21,753 Derivative contracts (recorded in other assets) — 3,334 — 3,334 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents the changes in accumulated other comprehensive loss by component, net of tax, for the three and nine months ended September 30, 2019 (amounts in thousands): Three Months Ended September 30, 2019 Debt Securities Currency Translation Accumulated Other Available-for-sale Cash Flow Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (1 ) $ (13,673 ) $ (238,450 ) $ (252,124 ) Other comprehensive loss before reclassifications, net (1) (1 ) (6,245 ) (47,999 ) (54,245 ) Reclassifications — 413 — 413 Net current period other comprehensive loss (1 ) (5,832 ) (47,999 ) (53,832 ) Balance at end of period $ (2 ) $ (19,505 ) $ (286,449 ) $ (305,956 ) Nine Months Ended September 30, 2019 Debt Securities Currency Translation Accumulated Other Available-for-sale Cash Flow Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (83 ) $ 44 $ (242,070 ) $ (242,109 ) Other comprehensive income/(loss) before reclassifications, net (1) 81 (20,160 ) (44,379 ) (64,458 ) Reclassifications — 611 — 611 Net current period other comprehensive income/(loss) 81 (19,549 ) (44,379 ) (63,847 ) Balance at end of period $ (2 ) $ (19,505 ) $ (286,449 ) $ (305,956 ) (1) Net of deferred taxes for unrealized losses from cash flow hedges of $2.0 million and $6.4 million for the three and nine months ended September 30, 2019, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (amounts in thousands, except per share amounts): For the Three Months Ended September 30, 2019 2018 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 24,971 45,410 $ 0.55 $ 9,927 45,302 $ 0.22 Dilutive effect of nonvested share awards 235 — 138 — Diluted EPS $ 24,971 45,645 $ 0.55 $ 9,927 45,440 $ 0.22 For the Nine Months Ended September 30, 2019 2018 Net income attributable to PRA Group, Inc. Weighted EPS Net income attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 58,817 45,378 $ 1.30 $ 50,621 45,272 $ 1.12 Dilutive effect of nonvested share awards 142 (0.01 ) 148 (0.01 ) Diluted EPS $ 58,817 45,520 $ 1.29 $ 50,621 45,420 $ 1.11 |
Organization and Business (Deta
Organization and Business (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Revenues | $ 250,014 | $ 225,888 | $ 747,948 | $ 671,514 |
Long-Lived Assets (2) | 127,570 | 55,010 | 127,570 | 55,010 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 166,284 | 154,594 | 501,783 | 458,933 |
Long-Lived Assets (2) | 114,595 | 48,664 | 114,595 | 48,664 |
UNITED KINGDOM | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 28,446 | 24,472 | 86,494 | 74,027 |
Long-Lived Assets (2) | 3,586 | 1,768 | 3,586 | 1,768 |
Outside the United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 55,284 | 46,822 | 159,671 | 138,554 |
Long-Lived Assets (2) | $ 9,389 | $ 4,578 | $ 9,389 | $ 4,578 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount [Roll Forward] | ||||
Balance at beginning of period | $ 3,230,949 | $ 2,734,673 | $ 3,084,777 | $ 2,776,199 |
Acquisitions of finance receivables | 276,918 | 271,657 | 874,812 | 656,308 |
Foreign currency translation adjustment | (59,172) | (8,368) | (60,213) | (35,214) |
Cash collections | (453,217) | (389,282) | (1,384,662) | (1,222,496) |
Income recognized on finance receivables | 247,471 | 223,228 | 735,526 | 660,870 |
Net allowance charges | (4,136) | (8,285) | (11,427) | (12,044) |
Balance at end of period | $ 3,238,813 | 2,823,623 | $ 3,238,813 | $ 2,823,623 |
Addition relating to consolidation of Polish investment fund | $ 34,900 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Face value of receivable portfolios | $ 2,400 | $ 2,200 | $ 8,900 | $ 6,000 | |
Payments to acquire finance receivables | 279 | 273.1 | 887 | 662.8 | |
Estimated remaining collections on purchased receivables | 494.8 | $ 365.3 | 1,400 | $ 800 | |
Unamortized purchased principal (purchase price) under the cost recovery method | $ 36.2 | $ 36.2 | $ 48 |
Finance Receivables, net (Sch_2
Finance Receivables, net (Schedule of Cash Collections Applied to Principal) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Receivables [Abstract] | |
2020 | $ 864,692 |
2021 | 692,946 |
2022 | 507,491 |
2023 | 378,679 |
2024 | 259,808 |
2025 | 171,873 |
2026 | 110,078 |
2027 | 84,212 |
2028 | 61,656 |
2029 | 47,347 |
Thereafter | 60,031 |
Total ERC expected to be applied to principal | $ 3,238,813 |
Finance Receivables, net (Sch_3
Finance Receivables, net (Schedule of Changes in Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 3,173,013 | $ 2,994,321 | $ 3,058,445 | $ 2,927,866 |
Income recognized on finance receivables | (247,471) | (223,228) | (735,526) | (660,870) |
Net allowance charges | 4,136 | 8,285 | 11,427 | 12,044 |
Additions from portfolio purchases (1) | 228,443 | 217,108 | 693,053 | 561,393 |
Reclassifications from nonaccretable difference | 59,694 | 2,678 | 191,756 | 204,752 |
Foreign currency translation adjustment | (60,944) | (11,132) | (62,284) | (57,153) |
Balance at end of period | $ 3,156,871 | $ 2,988,032 | $ 3,156,871 | $ 2,988,032 |
Finance Receivables, net (Sch_4
Finance Receivables, net (Schedule of Valuation Allowance Account) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance For Loan Losses [Roll Forward] | ||||
Beginning balance | $ 264,591 | $ 228,283 | $ 257,148 | $ 225,555 |
Allowance charges | 8,087 | 10,149 | 21,596 | 24,377 |
Reversal of previously recorded allowance charges | (3,951) | (1,864) | (10,169) | (12,333) |
Net allowance charges | 4,136 | 8,285 | 11,427 | 12,044 |
Foreign currency translation adjustment | (1,192) | (117) | (1,040) | (1,148) |
Ending balance | $ 267,535 | $ 236,451 | $ 267,535 | $ 236,451 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt securities | ||
Available-for-sale | $ 4,908 | $ 5,077 |
Equity securities | ||
Equity method investments | 9,794 | 10,370 |
Investments | 55,204 | 45,173 |
Private equity funds | ||
Equity securities | ||
Equity securities | 7,489 | 7,973 |
Mutual funds | ||
Equity securities | ||
Equity securities | $ 33,013 | $ 21,753 |
Investments - Amortized Costs (
Investments - Amortized Costs (Details) - Available-for-sale - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale | ||
Amortized Cost | $ 4,910 | $ 5,160 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 83 |
Aggregate Fair Value | $ 4,908 | $ 5,077 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Investment [Line Items] | ||||||
Cost-method investment, ownership percentage | 3.00% | |||||
Change in accounting principle | [1] | $ (3,930) | ||||
Unrealized gain on equity securities | $ 5,500 | $ 600 | $ 6,900 | $ 3,400 | ||
Accounting Standards Update 2016-01 | ||||||
Investment [Line Items] | ||||||
Change in accounting principle | $ (3,900) | |||||
RCB Investimentos S.A. | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 11.70% | 11.70% | ||||
[1] | Relates to the adoption of FASB ASU 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). Refer to Note 3 for further detail. |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Roll Forward] | ||||
Goodwill, balance at beginning of year | $ 489,293 | $ 519,811 | $ 464,116 | $ 526,513 |
Accumulated impairment loss | 0 | 0 | 0 | 0 |
Goodwill | 489,293 | 519,811 | 464,116 | 526,513 |
Acquisition | 467 | 0 | 18,831 | 0 |
Foreign currency translation adjustment | (24,188) | (766) | (17,375) | (7,468) |
Net change in goodwill | (23,721) | (766) | 1,456 | (7,468) |
Goodwill, balance at end of year | 465,572 | 519,045 | 465,572 | 519,045 |
Accumulated impairment loss | 0 | 0 | 0 | 0 |
Goodwill | $ 465,572 | $ 519,045 | $ 465,572 | $ 519,045 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 70,723 | |
Lease liabilities | $ 74,428 | |
Renewal term | 5 years | |
Termination period | 1 year | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 72,100 | |
Lease liabilities | $ 75,800 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 20 years |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 3,018 | $ 8,948 |
Short-term lease cost | 657 | 2,219 |
Total lease cost | $ 3,675 | 11,167 |
Cash paid for amounts included in the measurement of operating lease liabilities | 8,597 | |
Right-of-use assets obtained in exchange for operating lease obligations | $ 80,581 | |
Weighted-average remaining lease term (years) | 11 years | 11 years |
Weighted-average discount rate | 4.97% | 4.97% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
For the three months ending December 31, 2019 | $ 2,914 |
For the year ending December 31, 2020 | 11,659 |
For the year ending December 31, 2021 | 11,211 |
For the year ending December 31, 2022 | 9,215 |
For the year ending December 31, 2023 | 7,070 |
Thereafter | 55,411 |
Total lease payments | 97,480 |
Less imputed interest | (23,052) |
Total | $ 74,428 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 11,470 |
2020 | 11,451 |
2021 | 10,809 |
2022 | 7,287 |
2023 | 6,189 |
Thereafter | 7,866 |
Total future minimum lease payments | $ 55,072 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,609,623 | $ 2,533,212 |
Less: Debt discount and issuance costs | (42,537) | (59,556) |
Total | 2,567,086 | 2,473,656 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 427,500 | 740,551 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 632,500 | 632,500 |
Americas revolving credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 650,315 | 598,279 |
Europe revolving credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 899,308 | $ 561,882 |
Borrowings - Long-Term Debt Mat
Borrowings - Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 297,783 | |
2021 | 909,591 | |
2022 | 1,057,249 | |
2023 | 345,000 | |
2024 and thereafter | 0 | |
Total | $ 2,609,623 | $ 2,533,212 |
Borrowings - North American Rev
Borrowings - North American Revolving Credit and Term Loan (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Credit Agreement | |
Debt Instrument [Line Items] | |
Unused commitment fee | 0.375% |
Credit agreement consolidated leverage ratio | 2.75 |
Maximum cash dividends | $ 20,000,000 |
Stock repurchases authorized amount | 100,000,000 |
North American Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 1,600,000,000 |
Outstanding borrowings under credit facility | 1,077,000,000 |
Unused portion | 468,500,000 |
Current borrowing capacity | $ 275,000,000 |
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 | $ 427,500,000 |
Revolving Credit Facility | North American Credit Agreement | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 1,068,000,000 |
Line of credit facility, optional increase in borrowing capacity | 500,000,000 |
Line of credit facility, option for letters of credit | 25,000,000 |
Line of credit facility, option to reduce borrowing capacity | 25,000,000 |
Canadian Revolving Credit Facility | 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) - European Revolving Credit Facility $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2019SEK (kr) | Sep. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||
Loan-to-value covenant | 75.00% | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings under credit facility | $ 899.3 | ||
Current borrowing capacity | 240.7 | ||
Debt Instrument, covenant, interest bearing deposits, maximum | kr | kr 1,200,000,000 | ||
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 | 1,100 | ||
Unused commitment fee | 1.23% | ||
Unused line fee as a percentage of margin | 35.00% | ||
Current borrowing capacity | $ 145 | ||
Debt instrument, covenant, maximum GIBD | 3.25 | ||
Line of Credit | Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Increase in rate | 0.05% | ||
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 2.70% | ||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 3.80% |
Borrowings - Colombian Revolvin
Borrowings - Colombian Revolving Credit Facility (Details) - Revolving Credit Facility - Colombian Revolving Credit Facility $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 5.7 |
Outstanding borrowings under credit facility | $ 0.8 |
Indicador Bancario De Referencia Rate (IBR) | |
Debt Instrument [Line Items] | |
Basis spread variable rate | 2.80% |
Borrowings - Convertible Senior
Borrowings - Convertible Senior Notes (Details) - Convertible Senior Notes | May 26, 2017USD ($)day$ / shares | Aug. 13, 2013USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Carrying amount of convertible debt | $ 76,216,000 | $ 76,216,000 | ||
Note Due 2020 | ||||
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 | ||||
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, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,609,623 | $ 2,533,212 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 632,500 | 632,500 |
Less: Debt discount and issuance costs | (34,572) | (43,812) |
Total | 597,928 | 588,688 |
Equity component | $ 76,216 | $ 76,216 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Interest expense - stated coupon rate | $ 5,175 | $ 5,175 | $ 15,525 | $ 15,525 |
Amortization of debt discount | 3,128 | 2,958 | 9,241 | 8,739 |
Total interest expense - convertible notes | $ 8,303 | $ 8,133 | $ 24,766 | $ 24,264 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other liabilities) | $ 27,515 | |
Derivative contracts (recorded in other assets) | 376 | $ 3,334 |
Interest rate contracts | Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other liabilities) | 25,766 | 0 |
Interest rate contracts | Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other assets) | 20 | 44 |
Interest rate contracts | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other assets) | 0 | 735 |
Foreign currency contracts | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other liabilities) | 1,749 | 0 |
Foreign currency contracts | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in other assets) | $ 356 | $ 2,555 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 866.9 | $ 260.8 |
Net derivative gain (loss) included in OCI to be reclassified next 12 months | 3.9 | |
Not Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | 169.7 | |
Not Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 173 | $ 144.7 |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effects of Derivatives Designated as Cash Flow Hedging Instruments (Details) - Interest rate contracts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (loss) recognized in OCI, net of tax | $ (6,245) | $ 0 | $ (20,160) | $ 0 |
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (loss) reclassified from OCI into income | $ (413) | $ 0 | $ (611) | $ 0 |
Derivatives - Schedule of Eff_2
Derivatives - Schedule of Effects of Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Foreign currency contracts | Foreign exchange gain/(loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | $ 4,270 | $ 0 | $ (3,401) | $ 0 |
Foreign currency contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | (1,141) | 0 | (2,628) | 0 |
Interest rate contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income | $ 15 | $ (504) | $ (492) | $ (3,205) |
Fair Value Measurements And D_3
Fair Value Measurements And Disclosures - Financial Instruments Not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||||||
Cash and cash equivalents, carrying amount | $ 90,000 | $ 98,695 | $ 114,176 | |||
Finance receivables, net, carrying amount | 3,238,813 | $ 3,230,949 | 3,084,777 | $ 2,823,623 | $ 2,734,673 | $ 2,776,199 |
Financial liabilities: | ||||||
Interest-bearing deposits, carrying value | 112,024 | 82,666 | ||||
Reported Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents, carrying amount | 90,000 | 98,695 | ||||
Finance receivables, net, carrying amount | 3,238,813 | 3,084,777 | ||||
Financial liabilities: | ||||||
Interest-bearing deposits, carrying value | 112,024 | 82,666 | ||||
Outstanding borrowings under credit facility | 1,549,623 | 1,160,161 | ||||
Term loans, carrying amount | 427,500 | 740,551 | ||||
Convertible debt | 597,928 | 588,688 | ||||
Estimate of Fair Value Measurement [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents, estimated fair value | 90,000 | 98,695 | ||||
Finance receivables, net, estimated fair value | 3,432,727 | 3,410,475 | ||||
Financial liabilities: | ||||||
Interest-bearing deposits, fair value | 112,024 | 82,666 | ||||
Revolving lines of credit, estimated fair value | 1,549,623 | 1,160,161 | ||||
Term loans, estimated fair value | 427,500 | 740,551 | ||||
Convertible debt, estimated fair value | $ 633,405 | $ 557,122 |
Fair Value Fair Value Measureme
Fair Value Fair Value Measurements and Disclosures - Financial Instruments Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Government bonds | $ 4,908 | $ 5,077 |
Derivative contracts (recorded in other assets) | 376 | 3,334 |
Liabilities: | ||
Derivative contracts (recorded in other liabilities) | 27,515 | |
Level 1 | ||
Assets: | ||
Derivative contracts (recorded in other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in other liabilities) | 0 | |
Level 2 | ||
Assets: | ||
Derivative contracts (recorded in other assets) | 376 | 3,334 |
Liabilities: | ||
Derivative contracts (recorded in other liabilities) | 27,515 | |
Level 3 | ||
Assets: | ||
Derivative contracts (recorded in other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in other liabilities) | 0 | |
Government bonds | ||
Assets: | ||
Government bonds | 4,908 | 5,077 |
Government bonds | Level 1 | ||
Assets: | ||
Government bonds | 4,908 | 5,077 |
Government bonds | Level 2 | ||
Assets: | ||
Government bonds | 0 | 0 |
Government bonds | Level 3 | ||
Assets: | ||
Government bonds | 0 | 0 |
Mutual funds | ||
Assets: | ||
Mutual funds | 33,013 | 21,753 |
Mutual funds | Level 1 | ||
Assets: | ||
Mutual funds | 33,013 | 21,753 |
Mutual funds | Level 2 | ||
Assets: | ||
Mutual funds | 0 | 0 |
Mutual funds | Level 3 | ||
Assets: | ||
Mutual funds | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Initial derivative terms | 2 years | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Initial derivative terms | 7 years | |
Private equity funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds | $ 7.5 | $ 8 |
Private equity funds | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 1 year | |
Private equity funds | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 6 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,150,857 | $ 1,140,693 | $ 1,123,969 | $ 1,140,717 |
Other comprehensive (loss)/income before reclassifications, net | (54,245) | (64,458) | ||
Reclassifications | 413 | 611 | ||
Other comprehensive loss attributable to PRA Group, Inc. | (53,832) | (3,911) | (63,847) | (34,471) |
Ending balance | 1,146,313 | 1,150,957 | 1,146,313 | 1,150,957 |
Debt Securities Available-for-sale | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1) | (83) | ||
Other comprehensive (loss)/income before reclassifications, net | (1) | 81 | ||
Reclassifications | 0 | 0 | ||
Other comprehensive loss attributable to PRA Group, Inc. | (1) | 81 | ||
Ending balance | (2) | (2) | ||
Deferred taxes | 2,000 | 6,400 | ||
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (13,673) | 44 | ||
Other comprehensive (loss)/income before reclassifications, net | (6,245) | (20,160) | ||
Reclassifications | 413 | 611 | ||
Other comprehensive loss attributable to PRA Group, Inc. | (5,832) | (19,549) | ||
Ending balance | (19,505) | (19,505) | ||
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (238,450) | (242,070) | ||
Other comprehensive (loss)/income before reclassifications, net | (47,999) | (44,379) | ||
Reclassifications | 0 | 0 | ||
Other comprehensive loss attributable to PRA Group, Inc. | (47,999) | (44,379) | ||
Ending balance | (286,449) | (286,449) | ||
Accumulated Other Comprehensive (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (252,124) | (209,167) | (242,109) | (178,607) |
Ending balance | $ (305,956) | $ (213,078) | $ (305,956) | $ (213,078) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | May 26, 2017 | Aug. 13, 2013 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||||
Net income | $ 24,971 | $ 9,927 | $ 58,817 | $ 50,621 | ||
Weighted Average Common Shares, Basic EPS | 45,410,000 | 45,302,000 | 45,378,000 | 45,272,000 | ||
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 235,000 | 138,000 | 142,000 | 148,000 | ||
Weighted Average Common Shares, Diluted EPS | 45,645,000 | 45,440,000 | 45,520,000 | 45,420,000 | ||
EPS, Basic (in dollars per share) | $ 0.55 | $ 0.22 | $ 1.30 | $ 1.12 | ||
EPS, Dilutive effect of nonvested share awards (in dollars per share) | 0 | 0 | (0.01) | (0.01) | ||
EPS, Diluted (in dollars per share) | $ 0.55 | $ 0.22 | $ 1.29 | $ 1.11 | ||
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 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Cash on hand related to foreign operations with permanently reinvested earnings | $ 73 | $ 78.6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future compensation under employment agreements | $ 9.9 |
Amount to be purchased under forward flow agreements | $ 725.1 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 70,723 | |
Lease liabilities | $ 74,428 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 72,100 | |
Lease liabilities | $ 75,800 |
Uncategorized Items - praa-2019
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 6,895,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 0 |