Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | PRAA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,169,763 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001185348 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: Recently issued accounting standards not yet adopted: The Company does not expect that any recently issued accounting pronouncements will have a material effect on its Consolidated Financial Statements. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 116,471 | $ 83,376 |
Restricted cash and cash equivalents | 359,208 | 1,382 |
Investments | 77,877 | 79,948 |
Finance receivables, net | 3,286,497 | 3,295,008 |
Income taxes receivable | 41,398 | 31,774 |
Deferred tax assets, net | 57,551 | 56,908 |
Right-of-use assets | 53,187 | 54,506 |
Property and equipment, net | 48,500 | 51,645 |
Goodwill | 420,647 | 435,921 |
Other assets | 82,293 | 85,206 |
Total assets | 4,543,629 | 4,175,674 |
Liabilities: | ||
Accounts payable | 4,837 | 7,329 |
Accrued expenses | 120,640 | 111,395 |
Income taxes payable | 19,809 | 25,693 |
Deferred tax liabilities, net | 29,324 | 42,918 |
Interest-bearing deposits | 108,779 | 112,992 |
Borrowings | 2,937,895 | 2,494,858 |
Lease liabilities | 57,939 | 59,384 |
Other liabilities | 39,697 | 34,355 |
Total liabilities | 3,318,920 | 2,888,924 |
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, 39,170 shares issued and outstanding at March 31, 2023; 100,000 shares authorized, 38,980 shares issued and outstanding at December 31, 2022 | 392 | 390 |
Additional paid-in capital | 285 | 2,172 |
Retained earnings | 1,514,396 | 1,573,025 |
Accumulated other comprehensive loss | (356,730) | (347,926) |
Total stockholders' equity - PRA Group, Inc. | 1,158,343 | 1,227,661 |
Noncontrolling interest | 66,366 | 59,089 |
Total equity | 1,224,709 | 1,286,750 |
Total liabilities and equity | $ 4,543,629 | $ 4,175,674 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 39,170,000 | 38,980,000 |
Common stock, shares outstanding | 39,170,000 | 38,980,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Portfolio income | $ 188,242 | $ 207,532 |
Changes in expected recoveries | (36,912) | 29,914 |
Total portfolio revenue | 151,330 | 237,446 |
Other revenue | 4,140 | 3,159 |
Total revenues | 155,470 | 240,605 |
Operating expenses: | ||
Compensation and employee services | 82,403 | 71,096 |
Legal collection fees | 8,838 | 10,873 |
Legal collection costs | 23,945 | 16,557 |
Agency fees | 17,378 | 17,388 |
Outside fees and services | 24,944 | 19,378 |
Communication | 10,527 | 12,583 |
Rent and occupancy | 4,448 | 4,987 |
Depreciation and amortization | 3,589 | 3,778 |
Other operating expenses | 13,042 | 11,998 |
Total operating expenses | 189,114 | 168,638 |
(Loss)/income from operations | (33,644) | 71,967 |
Other income and (expense): | ||
Interest expense, net | (38,283) | (31,748) |
Foreign exchange loss, net | (9) | (532) |
Other | (650) | (490) |
(Loss)/income before income taxes | (72,586) | 39,197 |
Income tax (benefit)/expense | (18,683) | 4,579 |
Net (loss)/income | (53,903) | 34,618 |
Adjustment for net income/(loss) attributable to noncontrolling interests | 4,726 | (5,354) |
Net (loss)/income attributable to PRA Group, Inc. | $ (58,629) | $ 39,972 |
Net (loss)/income per common share attributable to PRA Group, Inc.: | ||
Basic (in dollars per share) | $ (1.50) | $ 0.98 |
Diluted (in dollars per share) | $ (1.50) | $ 0.97 |
Weighted average number of shares outstanding: | ||
Basic (shares) | 39,033 | 40,777 |
Diluted (shares) | 39,033 | 41,304 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ (53,903) | $ 34,618 |
Currency translation adjustments | (1,550) | 12,270 |
Cash flow hedges | (4,831) | 18,580 |
Debt securities available-for-sale | 128 | (160) |
Other comprehensive (loss)/income | (6,253) | 30,690 |
Total comprehensive (loss)/income | (60,156) | 65,308 |
Less comprehensive income attributable to noncontrolling interests | 7,276 | 2,136 |
Comprehensive (loss)/income attributable to PRA Group, Inc. | $ (67,432) | $ 63,172 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interest | Noncontrolling Interest Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2021 | 41,008,000 | |||||||||||
Beginning balance at Dec. 31, 2021 | $ 1,324,837 | $ 410 | $ 0 | $ 1,552,845 | $ (266,909) | $ (266,909) | $ 38,491 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 34,618 | $ 39,972 | $ (5,354) | |||||||||
Currency translation adjustments | 12,270 | 4,780 | 7,490 | |||||||||
Cash flow hedges | 18,580 | 18,580 | ||||||||||
Debt securities available-for-sale | (160) | (160) | ||||||||||
Repurchase and cancellation of common stock (shares) | 860,000 | |||||||||||
Repurchase and cancellation of common stock | (39,454) | $ (9) | $ 4,527 | (43,972) | ||||||||
Vesting of restricted stock (in shares) | 262,000 | |||||||||||
Vesting of restricted stock | 0 | $ 3 | (3) | |||||||||
Share-based compensation expense | 3,891 | 3,891 | ||||||||||
Employee stock relinquished for payment of taxes | (8,415) | (8,415) | ||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 40,410,000 | |||||||||||
Ending balance at Mar. 31, 2022 | 1,346,167 | $ 404 | 0 | 1,548,845 | (243,709) | 40,627 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Changes in estimated recoveries | $ 29,914 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 38,980,000 | 38,980,000 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 1,286,750 | 1,286,750 | $ 390 | 2,172 | 1,573,025 | (347,926) | (347,926) | 59,089 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | (53,903) | $ (58,629) | 4,726 | |||||||||
Currency translation adjustments | (1,550) | (4,101) | $ 2,551 | |||||||||
Cash flow hedges | (4,831) | (4,831) | ||||||||||
Debt securities available-for-sale | 128 | 128 | ||||||||||
Vesting of restricted stock (in shares) | 190,000 | |||||||||||
Vesting of restricted stock | 0 | $ 2 | (2) | |||||||||
Share-based compensation expense | 3,799 | 3,799 | ||||||||||
Employee stock relinquished for payment of taxes | $ (5,684) | $ (5,684) | ||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 39,170,000 | 39,170,000 | ||||||||||
Ending balance at Mar. 31, 2023 | $ 1,224,709 | $ 1,224,709 | $ 392 | $ 285 | $ 1,514,396 | $ (356,730) | $ (356,730) | $ 66,366 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Changes in estimated recoveries | $ (36,912) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ (53,903) | $ 34,618 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 3,799 | 3,891 |
Depreciation and amortization | 3,589 | 3,778 |
Amortization of debt discount and issuance costs | 2,441 | 2,627 |
Changes in expected recoveries | 36,912 | (29,914) |
Deferred income taxes | (12,400) | 7,203 |
Net unrealized foreign currency transactions | (15,020) | (7,126) |
Fair value in earnings for equity securities | (3) | (60) |
Other | (59) | (253) |
Changes in operating assets and liabilities: | ||
Other assets | (5,197) | 738 |
Accounts payable | (2,495) | 1,765 |
Income taxes payable, net | (16,717) | (13,290) |
Accrued expenses | 8,695 | (26,775) |
Other liabilities | 2,976 | (87) |
Right of use asset/lease liability | (139) | 141 |
Net cash used in operating activities | (47,521) | (22,744) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net | (405) | (3,744) |
Purchases of finance receivables | (219,030) | (147,452) |
Recoveries applied to negative allowance | 225,709 | 278,271 |
Purchases of investments | (60,057) | (1,521) |
Proceeds from sales and maturities of investments | 62,762 | 775 |
Net cash provided by investing activities | 8,979 | 126,329 |
Cash flows from financing activities: | ||
Proceeds from lines of credit | 243,431 | 106,371 |
Principal payments on lines of credit | (199,377) | (154,810) |
Proceeds from issuance of Senior Notes due 2028 | 400,000 | 0 |
Principal payments on long-term debt | (2,500) | (2,500) |
Repurchases of common stock | 0 | (48,702) |
Payments of origination cost and fees | (5,114) | (614) |
Tax withholdings related to share-based payments | (5,683) | (8,415) |
Net decrease in interest-bearing deposits | (4,951) | (3,977) |
Net cash provided by/(used in) financing activities | 425,806 | (112,647) |
Effect of exchange rate on cash | 3,656 | 910 |
Net increase/(decrease) in cash and cash equivalents | 390,920 | (8,152) |
Cash and cash equivalents, beginning of period | 84,759 | 89,072 |
Cash and cash equivalents, end of period | 475,679 | 80,920 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 25,081 | 27,196 |
Cash paid for income taxes | 10,555 | 10,610 |
Cash and cash equivalents per Consolidated Balance Sheets | 116,471 | 79,089 |
Restricted cash and cash equivalents per Consolidated Balance Sheets | 359,208 | 1,831 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 475,679 | $ 80,920 |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business: Nature of operations : 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, Europe and Australia. 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."). Basis of presentation : The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). 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 Sheets as of March 31, 2023, its Consolidated Income Statements, Statements of Comprehensive Income, Consolidated Statements of Changes in Equity and Statements of Cash Flows for the three months ended March 31, 2023 and 2022 have been included. The Company's Consolidated Income Statements for the three months ended March 31, 2023 may not be indicative of future results. 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, 2022 (the "2022 Form 10-K"). Reclassification of prior year presentation : Certain prior year amounts have been reclassified for consistency with the current year presentation. Restricted cash and cash equivalents has been broken out of Other assets on the Consolidated Balance Sheets. Fee income is now included within Other revenue on the Consolidated Income Statements. Consolidation : The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Company control, consist of entities which purchase and collect on portfolios of nonperforming loans. Investments in companies in which the Company has significant influence over operating and financing decisions, but does not own a majority of the voting equity interests, are accounted for in accordance with the equity method of accounting, which requires the Company to recognize its proportionate share of the entity’s net earnings. Income or loss from these investments is included in Other revenue. The Company performs on-going reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with an entity cause the Company’s consolidation conclusion to change. Restricted cash and cash equivalents : Cash and cash equivalents that are subject to legal restrictions or are unavailable for general operating purposes are classified as restricted cash and cash equivalents on the Company's Consolidated Balance Sheets. The Company will use these funds to retire all or a portion of its $345.0 million aggregate principal amount of Convertible Senior Notes due June 1, 2023 or to satisfy any other obligations with respect to such notes, and to pay redress to customers as required by the Company's settlement with the Consumer Financial Protection Bureau ("CFPB"). See Note 12 for information on the CFPB settlement. Segments : The Company has determined that it has two operating segments that meet the aggregation criteria of Accounting Standards Codification ("ASC") 280, Segment Reporting ("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. Revenues and long-lived assets by geographical location: Revenue for the three months ended March 31, 2023 and 2022, and long-lived assets held at March 31, 2023 and 2022, 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 March 31, 2023 Three Months Ended March 31, 2022 Revenues (2) Long-Lived Assets Revenues (2) Long-Lived Assets United States $ 59,147 $ 75,784 $ 151,425 $ 85,809 United Kingdom 33,309 11,988 43,954 6,851 Brazil 19,266 3 (4,478) — Other (1) 43,748 13,912 49,704 16,834 Total $ 155,470 $ 101,687 $ 240,605 $ 109,494 (1) None of the countries included in "Other" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers by product or service. 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 collection activities on nonperforming loans, fee-based services and investments. For additional information on the Company's investments, see Note 3 . |
Finance Receivables, net
Finance Receivables, net | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Finance receivables, net consisted of the following at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Amortized cost $ — $ — Negative allowance for expected recoveries 3,286,497 3,295,008 Balance at end of period $ 3,286,497 $ 3,295,008 Changes in the negative allowance for expected recoveries by portfolio segment for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Balance at beginning of period $ 2,936,207 $ 358,801 $ 3,295,008 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 207,322 22,903 230,225 Foreign currency translation adjustment 19,835 4,050 23,885 Recoveries applied to negative allowance (2) (186,386) (39,323) (225,709) Changes in expected recoveries (3) (41,128) 4,216 (36,912) Balance at end of period $ 2,935,850 $ 350,647 $ 3,286,497 Three Months Ended March 31, 2022 Core Insolvency Total Balance at beginning of period $ 2,989,932 $ 438,353 $ 3,428,285 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 129,404 18,048 147,452 Foreign currency translation adjustment (11,009) (5,624) (16,633) Recoveries applied to negative allowance (2) (231,153) (47,118) (278,271) Changes in expected recoveries (3) 25,147 4,767 29,914 Balance at end of period $ 2,902,321 $ 408,426 $ 3,310,747 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Face value $ 1,507,965 $ 104,809 $ 1,612,774 Noncredit discount (150,511) (8,042) (158,553) Allowance for credit losses at acquisition (1,150,132) (73,864) (1,223,996) Purchase price $ 207,322 $ 22,903 $ 230,225 Three Months Ended March 31, 2022 Core Insolvency Total Face value $ 948,057 $ 97,083 $ 1,045,140 Noncredit discount (91,600) (5,852) (97,452) Allowance for credit losses at acquisition (727,053) (73,183) (800,236) Purchase price $ 129,404 $ 18,048 $ 147,452 The initial negative allowance recorded on portfolio acquisitions for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Allowance for credit losses at acquisition $ (1,150,132) $ (73,864) $ (1,223,996) Writeoffs, net 1,150,132 73,864 1,223,996 Expected recoveries 207,322 22,903 230,225 Initial negative allowance for expected recoveries $ 207,322 $ 22,903 $ 230,225 Three Months Ended March 31, 2022 Core Insolvency Total Allowance for credit losses at acquisition $ (727,053) $ (73,183) $ (800,236) Writeoffs, net 727,053 73,183 800,236 Expected recoveries 129,404 18,048 147,452 Initial negative allowance for expected recoveries $ 129,404 $ 18,048 $ 147,452 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Recoveries (a) $ 364,236 $ 49,715 $ 413,951 Less - amounts reclassified to portfolio income 177,850 10,392 188,242 Recoveries applied to negative allowance $ 186,386 $ 39,323 $ 225,709 Three Months Ended March 31, 2022 Core Insolvency Total Recoveries (a) $ 425,508 $ 60,295 $ 485,803 Less - amounts reclassified to portfolio income 194,355 13,177 207,532 Recoveries applied to negative allowance $ 231,153 $ 47,118 $ 278,271 (a) Recoveries includes cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Changes in expected future recoveries $ (41,414) $ 664 $ (40,750) Recoveries received in excess of forecast 286 3,552 3,838 Changes in expected recoveries $ (41,128) $ 4,216 $ (36,912) Three Months Ended March 31, 2022 Core Insolvency Total Changes in expected future recoveries $ 9,771 $ (3,525) $ 6,246 Recoveries received in excess of forecast 15,376 8,292 23,668 Changes in expected recoveries $ 25,147 $ 4,767 $ 29,914 In order to estimate future cash collections, the Company considered historical performance, current economic forecasts, short-term and long-term growth and consumer habits in the various geographies in which the Company operates. The Company considered recent collection activity in its determination to adjust assumptions related to estimated remaining collections ("ERC") for certain pools. Based on these considerations, the Company’s estimates incorporate changes in both amounts and in the timing of expected cash collections over the forecast period. Changes in expected recoveries for the three months ended March 31, 2023 were a net negative $36.9 million. This includes $3.8 million in recoveries received in excess of forecast (cash collections overperformance) and a $40.8 million negative adjustment to changes in expected future recoveries. Overperformance decreased by $19.8 million as a result of reduced cash collections primarily in the U.S. due to a slower tax season. The changes in expected future recoveries reflect the Company's assessment of certain pools resulting in a reduction of expected cash flows as a result of slowing collection performance in the U.S. call centers resulting from weak economic conditions. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consisted of the following at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Debt securities Available-for-sale $ 65,004 $ 66,813 Equity securities Private equity funds 4,003 4,373 Equity method investments 8,870 8,762 Total investments $ 77,877 $ 79,948 Debt Securities Available-for-sale Government securities: The Company's investments in government instruments, including bonds and treasury securities, are classified as available-for-sale and are stated at fair value. As of March 31, 2023, maturities for these securities ar e $61.0 million due within one year and $4.0 million due within one to five years. The amortized cost and estimated fair value of investments in debt securities at March 31, 2023 and December 31, 2022 were as follows (amounts in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 65,113 $ 111 $ 220 $ 65,004 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 67,049 $ 1 $ 237 $ 66,813 Equity Securities Private equity funds: Investments in private equity funds represent limited partnerships in which the Company has less than a 1% interest. Equity Method Investments 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, capital contributions made and distributions received. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill: The Company performs an annual review of goodwill as of October 1 of each year or more frequently if indicators of impairment exist. The Company performed its most recent annual review as of October 1, 2022 and concluded that no goodwill impairment was necessary. The Company performed its quarterly assessment by evaluating whether any triggering events had occurred as of March 31, 2023, which included considering current market conditions and concluded that no such event had occurred as of March 31, 2023. The changes in goodwill for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 435,921 $ 480,263 Change in foreign currency translation adjustment (15,274) 3,117 Balance at end of period $ 420,647 $ 483,380 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases: The Company's operating lease portfolio primarily includes corporate offices and call centers. The majority of its leases have remaining lease terms of one year to 14 years, some of which include options to extend the leases for up to five years, and others include options to terminate the leases within one year. Exercises of lease renewal options are typically at the Company's sole discretion and are included in its right-of-use ("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 components of lease expense for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Operating lease expense $ 2,911 $ 3,232 Short-term lease expense 461 904 Sublease income (138) (115) Total lease expense $ 3,234 $ 4,021 Supplemental cash flow information and non-cash activity related to leases for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,146 $ 3,098 ROU assets obtained in exchange for operating lease obligations 1,078 1,106 Lease term and discount rate information related to operating leases were as follows: Three Months Ended March 31, 2023 2022 Weighted-average remaining lease term (years) 7.8 8.4 Weighted-average discount rate 4.53 % 4.48 % Maturities of lease liabilities at March 31, 2023 are as follows for the following periods (amounts in thousands): Operating Leases For the nine months ending December 31, 2023 $ 7,977 For the year ending December 31, 2024 10,282 For the year ending December 31, 2025 10,040 For the year ending December 31, 2026 8,934 For the year ending December 31, 2027 6,131 Thereafter 25,875 Total lease payments 69,239 Less: imputed interest 11,300 Total present value of lease liabilities $ 57,939 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Americas revolving credit (1) $ 234,866 $ 186,867 UK revolving credit 473,712 453,528 Europe revolving credit 401,438 419,856 Term loan 447,500 450,000 Senior Notes 1,050,000 650,000 Convertible Notes 345,000 345,000 2,952,516 2,505,251 Less: Debt discount and issuance costs (14,621) (10,393) Total $ 2,937,895 $ 2,494,858 (1) Includes the North American revolving credit facility and an unsecured credit agreement with Banco de Occidente (the "Colombian revolving credit facility"). As of March 31, 2023 and December 31, 2022, the outstanding balance under the Colombian revolving credit facility was approximately $0.5 million and $0.5 million, respectively. The following principal payments are due on the Company's borrowings as of March 31, 2023 for the 12-month periods ending March 31, (amounts in thousands): 2024 $ 355,262 2025 10,196 2026 310,000 2027 1,125,620 2028 801,438 Thereafter 350,000 Total $ 2,952,516 The Company incurred a net loss from operations of $33.6 million for the three months ended March 31, 2023. The Company requested and was granted a one-time prospective waiver by lenders under each of its credit facilities prior to the date the Company was required to report and certify compliance with the covenant requiring the Company to maintain positive consolidated income from operations. The effect of granting the waiver prior to certification date for such compliance resulted in the Company maintaining compliance with the applicable financial covenants of its credit facilities as of March 31, 2023. North American Revolving Credit and Term Loan The Company has a 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 "North American Credit Agreement"). The total credit facility under the North American Credit Agreement includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $447.5 million term loan, (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 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 lenders) and also provides for up to $25.0 million of letters of credit and a $25.0 million swingline loan sub-limit 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, Canadian dollar offered rate, or the Eurodollar rate, for the applicable term plus 2.25% per annum, or 2.00% if the consolidated senior secured leverage ratio is less than or equal to 1.60 to 1.0. The revolving loans within the credit facility are subject to a 0% floor. The revolving credit facilities also bear an unused line fee of 0.35% per annum, or 0.30% if the consolidated senior secured leverage ratio is less than or equal to 1.60 to 1.0, payable quarterly in arrears and matures July 30, 2026. As of March 31, 2023, the unused portion of the North American Credit Agreement was $840.6 million. Considering borrowing base restrictions, as of March 31, 2023, the amount available to be drawn was $118.7 million. Borrowings under the North American Credit Agreement are guaranteed by the Company's U.S. and Canadian subsidiaries (provided that the Canadian subsidiaries only guarantee borrowings under the Canadian revolving credit facility) and are secured by a first priority lien on substantially all of the Company's North American assets. The North American Credit Agreement contains events of default and restrictive covenants, including the following: • the ERC borrowing base is 35% for all eligible core asset pools and 55% for all insolvency eligible asset pools; • the Company's consolidated total leverage ratio cannot exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's 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; and • the Company must maintain positive consolidated income from operations during any fiscal quarter (other than for the quarter ended March 31, 2023). United Kingdom ("UK") Revolving Credit Facility PRA Group Europe Holding I S.a.r.l ("PRA Group Europe"), a wholly owned subsidiary of the Company, along with PRA Group UK Limited ("PRA UK") and the Company, as guarantors, are parties to a credit agreement (the "UK Credit Agreement") with the lenders party thereto and MUFG Bank, Ltd., London Branch, as the administrative agent (the "Administrative Agent"). The UK Credit Agreement consists of an $800.0 million revolving credit facility (subject to a borrowing base), and an accordion feature for up to $200.0 million in additional commitments, subject to certain conditions. Borrowings, which are available in U.S. dollars, euro and pounds sterling, accrue interest for the applicable term at the risk-free rate applicable to U.S. dollars (Secured Overnight Financing Rate) or Sterling Overnight Index Average ("SONIA") or, in the case of euro borrowings, Euribor plus an applicable margin of 2.50% per annum plus a credit adjustment spread of 0.10%. If the consolidated senior secured leverage ratio is greater than 1.60 to 1.0, the applicable margin will increase to 2.75%. The UK Credit Agreement also has a commitment fee of 0.30% per annum, payable quarterly in arrears. If the consolidated senior secured leverage ratio is greater than 1.60 to 1.0, the commitment fee increases to 0.35% per annum. The UK Credit Agreement matures on July 30, 2026. As of March 31, 2023, the unused portion of the UK Credit Agreement was $326.3 million. Considering borrowing base restrictions, as of March 31, 2023, the amount available to be drawn under the UK Credit Agreement was $116.2 million. The UK Credit Agreement is secured by substantially all of the assets of PRA UK, all of the equity interests in PRA UK and PRA Group Europe, certain bank accounts of PRA Group Europe and certain intercompany loans extended by PRA Group Europe to PRA UK. The UK Credit Agreement contains events of default and restrictive covenants, including the following: • the borrowing base equals the sum of up to: (i) 35% of the ERC of PRA UK’s eligible asset pools; plus (ii) 55% of PRA UK’s insolvency eligible asset pools; minus (iii) certain reserves to be established by the Administrative Agent; • the Company's consolidated leverage ratio cannot exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter; and • the Company must maintain positive consolidated income from operations during any fiscal quarter (other than for the quarter ended March 31, 2023). European Revolving Credit Facility The Company's wholly-owned subsidiary, PRA Group Europe Holding S.a.r.l. ("PRA Group Europe Holding"), and its Swiss Branch, PRA Group Europe Holding S.a.r.l. ("PRA Group Holding"), Luxembourg, Zug Branch (together, the "Borrowers"), along with certain of its affiliates and the Company, as guarantors, are parties to a credit agreement (the "European Credit Agreement") with the lenders party thereto and DNB Bank ASA as facility agent and security agent (the "Agent"). The European Credit Agreement provides borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base) and an uncommitted accordion feature for up to €500.0 million, subject to certain conditions. Borrowings, which are available in euro, Norwegian krone, Danish krone, Swedish krona, and Polish zloty, accrue interest at the Interbank Offered Rate plus 2.80% - 3.80% (as determined by the estimated remaining collections ratio ("ERC Ratio") as defined in the European Credit Agreement), bear an unused line fee, currently 1.085% per annum, or 35% of the margin, are subject to a 0% floor, are payable monthly in arrears and mature November 23, 2027. Additionally, the Company has a separate agreement with the Agent for 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 Agent, bears a facility line fee of 0.125% per quarter, payable quarterly in arrears and matures November 23, 2027. As of March 31, 2023, the unused portion of the European Credit Agreement (including the overdraft facility) was $432.6 million. Considering borrowing base restrictions and other covenants as of March 31, 2023, the amount available to be drawn under the European Credit Agreement (including the overdraft facility) was $201.9 million. The European Credit Agreement is secured by a first perfected security interest in all of the equity interests in certain operating subsidiaries of the Borrowers, certain intercompany loans and certain shareholder loans extended by the Company to the Borrowers. Further, the Company guarantees all obligations and liabilities under the European Credit Agreement. The European Credit Agreement contains event of default and restrictive covenants including the following: • the ERC Ratio cannot exceed 45%; • the Company's consolidated total leverage ratio cannot exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter; • the Company must maintain positive consolidated income from operations at the end of any fiscal quarter (other than for the quarter ended March 31, 2023); • 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. Senior Notes due 2029 On September 22, 2021, the Company completed the private offering of $350.0 million in aggregate principal amount of its 5.00% Senior Notes due October 1, 2029 (the "2029 Notes"). The 2029 Notes were issued pursuant to an Indenture dated September 22, 2021 (the "2021 Indenture"), between the Company and Regions Bank, as trustee. The 2021 Indenture contains customary terms and covenants, including certain events of default after which the 2029 Notes may be due and payable immediately. The 2029 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2029 Notes is payable semi-annually, in arrears, on October 1 and April 1 of each year. On or after October 1, 2024, the 2029 Notes may be redeemed, at the Company's option, in whole or in part at a price equal to 102.50% of the aggregate principal amount of the 2029 Notes being redeemed. The applicable redemption price changes if redeemed during the 12 months beginning October 1 of each year to 101.25% for 2025 and then 100% for 2026 and thereafter. In addition, on or before October 1, 2024, the Company may redeem up to 40% of the aggregate principal amount of the 2029 Notes at a redemption price of 105.00% plus accrued and unpaid interest with the net cash proceeds of a public offering of common stock of the Company provided, that at least 60% in aggregate principal amount of the 2029 Notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering. In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2029 Notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2029 Notes at 100% of their principal amount plus accrued and unpaid interest. Senior Notes due 2028 On February 6, 2023, the Company completed the private offering of $400.0 million aggregate principal amount of its 8.375% Senior Notes due 2028 ("2028 Notes"). The 2028 Notes were issued pursuant to an Indenture dated February 6, 2023 (the "2023 Indenture"), between the Company and Regions Bank, as trustee. The 2023 Indenture contains customary terms and covenants, including certain events of default after which the 2028 Notes may be due and payable immediately. The 2028 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2028 Notes is payable semi-annually, in arrears, on February 1 and August 1 of each year. Substantially all of the net proceeds received from the 2028 Notes were deposited into a newly-formed segregated deposit account, included in Restricted cash and cash equivalents on the Consolidated Balance Sheets, and the Company will use such proceeds to retire all or any portion of the 2023 Notes (as defined below) or to sat isfy any other obligations with respect to the 2023 Notes. The Company used the remainder of the net proceeds to repay a portion of its outstanding borrowings under the domestic revolving credit facility under the North America Credit Agreement. On or after February 1, 2025, the 2028 Notes may be redeemed, at the Company's option in whole or in part at a price equal to 104.188% of the aggregate principal amount of the 2028 Notes being redeemed. The applicable redemption price changes if redeemed during the 12-months beginning February 1 of each year to 102.094% for 2026 and then 100% for 2027 and thereafter. In addition, on or before February 1, 2025, the Company may redeem up to an aggregate of 40% of the aggregate principal amount of the 2028 Notes at a redemption price of 108.375% plus accrued and unpaid interest with the net cash proceeds of a public offering of common stock of the Company, provided, that at least 60% in aggregate principal amount of the 2028 Notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering. In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2028 Notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2028 Notes at 100% of their principal amount plus accrued and unpaid interest. Senior Notes due 2025 On August 27, 2020, the Company completed the private offering of $300.0 million in aggregate principal amount of its 7.375% Senior Notes due September 1, 2025 (the "2025 Notes" and, together with the 2029 Notes and the 2028 Notes, the "Senior Notes"). The 2025 Notes were issued pursuant to an Indenture dated August 27, 2020 (the "2020 Indenture"), between the Company and Regions Bank, as trustee. The 2020 Indenture contains customary terms and covenants, including certain events of default after which the 2025 Notes may be due and payable immediately. The 2025 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2025 Notes is payable semi-annually, in arrears, on March 1 and September 1 of each year. The 2025 Notes may be redeemed, at the Company's option, in whole or in part, at a price equal to 103.688% of the aggregate principal amount of the 2025 Notes being redeemed. The applicable redemption price changes if redeemed during the 12-months beginning September 1 of each year to, 101.844% for 2023 and then 100% for 2024 and thereafter. In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2025 Notes at a price equal to 101% of their aggregate principal amount, plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2025 Notes at 100% of their principal amount plus accrued and unpaid interest. 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 June 1, 2023 (the "2023 Notes" or "Convertible 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. As of March 31, 2023, the 2023 Notes are convertible at any time. Furthermore, the Company has the right, at its election, to redeem all or any part of the outstanding 2023 Notes at any time for cash, but only if the last reported sale price of the Company's common stock 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. The conversion rate for the 2023 Notes is 21.6275 shares per $1,000 principal amount, 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 has made an irrevocable election to settle conversions by paying holders of the 2023 Notes cash up to the aggregate principal amount of the 2023 Notes and shares of the Company's common stock or a combination of cash a n d shares of the Company's common stock, at the Company's election, for the remaining amounts owed, if any. In accordance with authoritative guidance related to derivatives and hedging and Earnings Per Share ("EPS"), 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 market conversion criteria is met. 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 of issuance cost as debt issuance cost and the remaining $1.3 million as equity issuance cost. As discussed above, the Company will use $345 million of the proceeds from the issuance of the 2028 Notes to retire the 2023 Notes when they mature on June 1, 2023. The balances of the liability component of the 2023 Notes outstanding as of March 31, 2023 and December 31, 2022, were as follows (amounts in thousands): March 31, 2023 December 31, 2022 Liability component - principal amount $ 345,000 $ 345,000 Unamortized debt issuance costs (311) (748) Liability component - net carrying amount $ 344,689 $ 344,252 The Company amortizes debt issuance costs over the life of the debt using an effective interest rate of 4.00%. Interest expense related to the 2023 Notes for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Interest expense - stated coupon rate $ 3,019 $ 3,019 Interest expense - amortization of debt issuance costs 437 420 Total interest expense - convertible notes $ 3,456 $ 3,439 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
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 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 Company's Consolidated Balance Sheets. The following tables summarize the fair value of derivative instruments in the Company's Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 31,240 Other assets $ 37,305 Interest rate contracts Other liabilities — Other liabilities — Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 115 Other assets 487 Foreign currency contracts Other liabilities 10,066 Other liabilities 19,120 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 March 31, 2023 and December 31, 2022, the notional amount of interest rate contracts designated as cash flow hedging instruments w as $814.6 million and $719.7 million, respectively. Derivatives designated as cash flow hedging instruments were evaluated and remained highly effective at March 31, 2023 and have remaining terms of three months to five years. The Co mpany estimates that approximatel y $15.2 million of net de rivative gain included in OCI will be reclassified into earnings within the next 12 months. The following tables summarize the effects of derivatives designated as cash flow hedging instruments on the Company's Consolidated Financial Statements for the three months ended March 31, 2023 and 2022 (amounts in thousands): Gain/(loss) recognized in OCI, net of tax Three Months Ended March 31, Derivatives designated as cash flow hedging instruments 2023 2022 Interest rate contracts $ (629) $ 16,410 Gain/(loss) reclassified from OCI into income Three Months Ended March 31, Location of gain or (loss) reclassified from OCI into income 2023 2022 Interest expense, net $ (5,498) $ (2,734) Derivatives Not Designated as Hedging Instruments: The Company 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. Changes in fair value of derivative contracts not designated as hedging instruments are recognized in earnings. As of March 31, 2023 and December 31, 2022, the notional amount of foreign currency contracts that were not designated as hedging instruments w as $383.3 million and $460.8 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 months ended March 31, 2023 and 2022 (amounts in thousands): Gain/(loss) recognized in income Three Months Ended March 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2023 2022 Foreign currency contracts Foreign exchange loss, net $ (7,697) $ 6,493 Foreign currency contracts Interest expense, net 521 (332) |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: As defined by ASC Topic 820, "Fair Value Measurement 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 in the table were recorded in the Company's Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 116,471 $ 116,471 $ 84,758 $ 84,758 Restricted cash and cash equivalents 359,208 359,208 1,382 1,382 Finance receivables, net 3,286,497 3,128,051 3,295,008 3,167,813 Financial liabilities: Interest-bearing deposits 108,779 108,779 112,992 112,992 Revolving lines of credit 1,110,016 1,110,016 1,060,251 1,060,251 Term loan 447,500 447,500 450,000 450,000 Senior Notes 1,050,000 992,225 650,000 580,433 Convertible Notes 345,000 344,276 345,000 341,926 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 equivalents: The carrying amount approximates fair value due to the short-term nature of the instruments and the observable quoted prices for identical assets in active markets. Accordingly, the Company uses Level 1 inputs for its fair value estimates. Finance receivables, net: The Company estimates the fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio acquisition decisions. Accordingly, the Company's fair value estimates use Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Interest-bearing deposits: The carrying amount approximates fair value due to the short-term nature of the deposits and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Revolving lines of credit: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Term loan: 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 estimate. Senior Notes and Convertible Notes: The fair value estimates for the Senior Notes and Convertible Notes incorporate quoted market prices, which were obtained from secondary market broker quotes, which were derived from a variety of inputs including client orders, information from their pricing vendors, modeling software and actual trading prices when they occur. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Financial Instruments Required To Be Carried At Fair Value The carrying amounts in the following tables were measured at fair value on a recurring basis in the Company's Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 (amounts in thousands): Fair Value Measurements as of March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Government securities $ 65,004 $ — $ — $ 65,004 Derivative contracts (recorded in Other assets) — 31,355 — 31,355 Liabilities: Derivative contracts (recorded in Other liabilities) — 10,066 — 10,066 Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Government securities $ 66,813 $ — $ — $ 66,813 Derivative contracts (recorded in Other assets) — 37,792 — 37,792 Liabilities: Derivative contracts (recorded in Other liabilities) — 19,120 — 19,120 Government securities: Fair value of the Company's investment in government instruments are 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. Investments measured using net asset value ("NAV") 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 nt was $4.0 million a |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, Gains and losses on cash flow hedges 2023 2022 Affected line in the Consolidated Income Statement Interest rate swaps $ 5,498 $ 2,734 Interest expense, net Income tax effect of item above (1,296) (564) Income tax (benefit)/expense Total gain on cash flow hedges $ 4,202 $ 2,170 Net of tax The following tables represent the changes in accumulated other comprehensive loss by component, after tax, for the three months ended March 31, 2023 and 2022 (amounts in thousands): Three Months Ended March 31, 2023 Debt Securities Cash Flow Currency Translation Accumulated Other Available-for-sale Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (237) $ 27,804 $ (375,493) $ (347,926) Other comprehensive gain/(loss) before reclassifications 128 (629) (4,101) (4,602) Reclassifications, net — (4,202) — (4,202) Net current period other comprehensive gain/(loss) 128 (4,831) (4,101) (8,804) Balance at end of period $ (109) $ 22,973 $ (379,594) $ (356,730) Three Months Ended March 31, 2022 Debt Securities Cash Flow Currency Translation Accumulated Other Available-for-sale Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (221) $ (5,371) $ (261,317) $ (266,909) Other comprehensive (loss)/gain before reclassifications (160) 16,410 4,780 21,030 Reclassifications, net — 2,170 — 2,170 Net current period other comprehensive (loss)/gain (160) 18,580 4,780 23,200 Balance at end of period $ (381) $ 13,209 $ (256,537) $ (243,709) (1) Net of deferred taxes for unrealized (gains)/losses from cash flow hedg es of $(7.6) million and $(1.2) million for the three months ended March 31, 2023 and 2022, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: Basic 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 conversion spread of the Convertible Notes and nonvested share awards, if they are dilutive. There has been no dilutive effect of the Convertible Notes since issuance through March 31, 2023. 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. On February 25, 2022, the Company's Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its common stock. We did not repurchase any common stock during the first quarter ended March 31, 2023. The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net Loss Attributable to PRA Group, Inc. Weighted EPS Net Income Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ (58,629) 39,033 $ (1.50) $ 39,972 40,777 $ 0.98 Dilutive effect of nonvested share awards — — — — 527 (0.01) Diluted EPS $ (58,629) 39,033 $ (1.50) $ 39,972 41,304 $ 0.97 There were no options outstanding, antidilutive or otherwise, as of March 31, 2023 and 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("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. At March 31, 2023, the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2014 and subsequent years. The Company intends for predominantly all international earnings to be indefinitely reinvested in its international operations; therefore, the recording of deferred tax liabilities for such unremitted earnings is not required. If international 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 international operations with indefinitely reinvested earnin gs was $88.4 million an d $75.3 million as of March 31, 2023 and December 31, 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies: Employment Agreements: The Company has entered into employment agreements with each of its U.S. executive officers, which expire on December 31, 2023. Such agreements provide for base salary payments as well as potential discretionary bonuses that consider the Company’s overall performance against its short and long-term financial and strategic objectives. The agreements also contain customary confidentiality and non-compete provisions. At March 31, 2023, estima ted future compensation under these agreements was approximately $8.8 million. Outside the U.S., the Company has entered into employment agreements with certain employees pursuant to local country regulations. Generally, these agreements do not have expiration dates. As a result 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 $8.8 million tot al above. Forward Flow Agreements: The Company is party to several forward flow agreements that allow for the purchase of nonperforming loans at pre-e stablished prices. The maximum remaining amount to be purchased under forward flow agreements at March 31, 2023, was $622.4 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 and its subsidiaries are from time to time subject to a variety of routine legal and regulatory claims, inquiries and 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 March 31, 2023, 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. CFPB Investigation Portfolio Recovery Associates, LLC ("LLC"), the Company's wholly owned subsidiary, entered into a consent order with the CFPB effective September 9, 2015 settling a previously disclosed investigation of certain debt collection practices of LLC (the "2015 Consent Order"). In response to requests and civil investigative demands from the CFPB, the Company provided certain documents and data regarding its debt collection practices to the CFPB. In December 2020, the CFPB advised the Company that the CFPB believed the Company may have violated certain provisions of the 2015 Consent Order and applicable law. On March 23, 2023, the CFPB filed a lawsuit against LLC alleging, among other things, that LLC had violated federal consumer financial law. On the same date, the CFPB and LLC entered into a final stipulated judgment and order to resolve the lawsuit. As part of the settlement, LLC agreed to pay a civil monetary penalty of $12 million and approximately $15 million to impacted consumers. Iris Pounds vs. Portfolio Recovery Associates, LLC Plaintiffs filed a putative class action on November 21, 2016 against the Company in Durham County, North Carolina alleging violations of the North Carolina Prohibited Practices by Collection agencies Act. Discovery in this matter is ongoing, the Company is defending this matter vigorously, and there remains uncertainty surrounding liability, class certification, and the interpretation of the statute, including statutory damages. Other matters that are not considered routine in nature were disclosed previously in the 2022 Form 10-K. |
Organization and Business (Poli
Organization and Business (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). 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 Sheets as of March 31, 2023, its Consolidated Income Statements, Statements of Comprehensive Income, Consolidated Statements of Changes in Equity and Statements of Cash Flows for the three months ended March 31, 2023 and 2022 have been included. The Company's Consolidated Income Statements for the three months ended March 31, 2023 may not be indicative of future results. |
Consolidation | Consolidation : The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Company control, consist of entities which purchase and collect on portfolios of nonperforming loans. Investments in companies in which the Company has significant influence over operating and financing decisions, but does not own a majority of the voting equity interests, are accounted for in accordance with the equity method of accounting, which requires the Company to recognize its proportionate share of the entity’s net earnings. Income or loss from these investments is included in Other revenue. The Company performs on-going reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with an entity cause the Company’s consolidation conclusion to change. Restricted cash and cash equivalents : Cash and cash equivalents that are subject to legal restrictions or are unavailable for general operating purposes are classified as restricted cash and cash equivalents on the Company's Consolidated Balance Sheets. The Company will use these funds to retire all or a portion of its $345.0 million aggregate principal amount of Convertible Senior Notes due June 1, 2023 or to satisfy any other obligations with respect to such notes, and to pay redress to customers as required by the Company's settlement with the Consumer Financial Protection Bureau ("CFPB"). See Note 12 for information on the CFPB settlement. |
Segments | Segments : The Company has determined that it has two operating segments that meet the aggregation criteria of Accounting Standards Codification ("ASC") 280, Segment Reporting ("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. |
New Accounting Pronouncements | Recently issued accounting standards not yet adopted: The Company does not expect that any recently issued accounting pronouncements will have a material effect on its Consolidated Financial Statements. |
Organization and Business (Tabl
Organization and Business (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue And Long-Lived Assets Held By Geographical Location | Revenues and long-lived assets by geographical location: Revenue for the three months ended March 31, 2023 and 2022, and long-lived assets held at March 31, 2023 and 2022, 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 March 31, 2023 Three Months Ended March 31, 2022 Revenues (2) Long-Lived Assets Revenues (2) Long-Lived Assets United States $ 59,147 $ 75,784 $ 151,425 $ 85,809 United Kingdom 33,309 11,988 43,954 6,851 Brazil 19,266 3 (4,478) — Other (1) 43,748 13,912 49,704 16,834 Total $ 155,470 $ 101,687 $ 240,605 $ 109,494 (1) None of the countries included in "Other" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers by product or service. |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net consisted of the following at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Amortized cost $ — $ — Negative allowance for expected recoveries 3,286,497 3,295,008 Balance at end of period $ 3,286,497 $ 3,295,008 |
Schedule of Changes in Negative Allowance for Expected Recoveries | Changes in the negative allowance for expected recoveries by portfolio segment for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Balance at beginning of period $ 2,936,207 $ 358,801 $ 3,295,008 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 207,322 22,903 230,225 Foreign currency translation adjustment 19,835 4,050 23,885 Recoveries applied to negative allowance (2) (186,386) (39,323) (225,709) Changes in expected recoveries (3) (41,128) 4,216 (36,912) Balance at end of period $ 2,935,850 $ 350,647 $ 3,286,497 Three Months Ended March 31, 2022 Core Insolvency Total Balance at beginning of period $ 2,989,932 $ 438,353 $ 3,428,285 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 129,404 18,048 147,452 Foreign currency translation adjustment (11,009) (5,624) (16,633) Recoveries applied to negative allowance (2) (231,153) (47,118) (278,271) Changes in expected recoveries (3) 25,147 4,767 29,914 Balance at end of period $ 2,902,321 $ 408,426 $ 3,310,747 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Face value $ 1,507,965 $ 104,809 $ 1,612,774 Noncredit discount (150,511) (8,042) (158,553) Allowance for credit losses at acquisition (1,150,132) (73,864) (1,223,996) Purchase price $ 207,322 $ 22,903 $ 230,225 Three Months Ended March 31, 2022 Core Insolvency Total Face value $ 948,057 $ 97,083 $ 1,045,140 Noncredit discount (91,600) (5,852) (97,452) Allowance for credit losses at acquisition (727,053) (73,183) (800,236) Purchase price $ 129,404 $ 18,048 $ 147,452 The initial negative allowance recorded on portfolio acquisitions for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Allowance for credit losses at acquisition $ (1,150,132) $ (73,864) $ (1,223,996) Writeoffs, net 1,150,132 73,864 1,223,996 Expected recoveries 207,322 22,903 230,225 Initial negative allowance for expected recoveries $ 207,322 $ 22,903 $ 230,225 Three Months Ended March 31, 2022 Core Insolvency Total Allowance for credit losses at acquisition $ (727,053) $ (73,183) $ (800,236) Writeoffs, net 727,053 73,183 800,236 Expected recoveries 129,404 18,048 147,452 Initial negative allowance for expected recoveries $ 129,404 $ 18,048 $ 147,452 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Recoveries (a) $ 364,236 $ 49,715 $ 413,951 Less - amounts reclassified to portfolio income 177,850 10,392 188,242 Recoveries applied to negative allowance $ 186,386 $ 39,323 $ 225,709 Three Months Ended March 31, 2022 Core Insolvency Total Recoveries (a) $ 425,508 $ 60,295 $ 485,803 Less - amounts reclassified to portfolio income 194,355 13,177 207,532 Recoveries applied to negative allowance $ 231,153 $ 47,118 $ 278,271 (a) Recoveries includes cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 Core Insolvency Total Changes in expected future recoveries $ (41,414) $ 664 $ (40,750) Recoveries received in excess of forecast 286 3,552 3,838 Changes in expected recoveries $ (41,128) $ 4,216 $ (36,912) Three Months Ended March 31, 2022 Core Insolvency Total Changes in expected future recoveries $ 9,771 $ (3,525) $ 6,246 Recoveries received in excess of forecast 15,376 8,292 23,668 Changes in expected recoveries $ 25,147 $ 4,767 $ 29,914 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consisted of the following at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Debt securities Available-for-sale $ 65,004 $ 66,813 Equity securities Private equity funds 4,003 4,373 Equity method investments 8,870 8,762 Total investments $ 77,877 $ 79,948 |
Schedule of Amortized Cost and Estimated Fair Value in Debt Securities | The amortized cost and estimated fair value of investments in debt securities at March 31, 2023 and December 31, 2022 were as follows (amounts in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 65,113 $ 111 $ 220 $ 65,004 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 67,049 $ 1 $ 237 $ 66,813 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 435,921 $ 480,263 Change in foreign currency translation adjustment (15,274) 3,117 Balance at end of period $ 420,647 $ 483,380 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Operating lease expense $ 2,911 $ 3,232 Short-term lease expense 461 904 Sublease income (138) (115) Total lease expense $ 3,234 $ 4,021 Supplemental cash flow information and non-cash activity related to leases for the three months ended March 31, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,146 $ 3,098 ROU assets obtained in exchange for operating lease obligations 1,078 1,106 Lease term and discount rate information related to operating leases were as follows: Three Months Ended March 31, 2023 2022 Weighted-average remaining lease term (years) 7.8 8.4 Weighted-average discount rate 4.53 % 4.48 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at March 31, 2023 are as follows for the following periods (amounts in thousands): Operating Leases For the nine months ending December 31, 2023 $ 7,977 For the year ending December 31, 2024 10,282 For the year ending December 31, 2025 10,040 For the year ending December 31, 2026 8,934 For the year ending December 31, 2027 6,131 Thereafter 25,875 Total lease payments 69,239 Less: imputed interest 11,300 Total present value of lease liabilities $ 57,939 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Americas revolving credit (1) $ 234,866 $ 186,867 UK revolving credit 473,712 453,528 Europe revolving credit 401,438 419,856 Term loan 447,500 450,000 Senior Notes 1,050,000 650,000 Convertible Notes 345,000 345,000 2,952,516 2,505,251 Less: Debt discount and issuance costs (14,621) (10,393) Total $ 2,937,895 $ 2,494,858 |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings as of March 31, 2023 for the 12-month periods ending March 31, (amounts in thousands): 2024 $ 355,262 2025 10,196 2026 310,000 2027 1,125,620 2028 801,438 Thereafter 350,000 Total $ 2,952,516 |
Schedule of Liability and Equity Components | The balances of the liability component of the 2023 Notes outstanding as of March 31, 2023 and December 31, 2022, were as follows (amounts in thousands): March 31, 2023 December 31, 2022 Liability component - principal amount $ 345,000 $ 345,000 Unamortized debt issuance costs (311) (748) Liability component - net carrying amount $ 344,689 $ 344,252 |
Schedule of Debt Interest Expense | Interest expense related to the 2023 Notes for the three months ended March 31, 2023 and 2022, were as follows (amounts in thousands): Three Months Ended March 31, 2023 2022 Interest expense - stated coupon rate $ 3,019 $ 3,019 Interest expense - amortization of debt issuance costs 437 420 Total interest expense - convertible notes $ 3,456 $ 3,439 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the fair value of derivative instruments in the Company's Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 31,240 Other assets $ 37,305 Interest rate contracts Other liabilities — Other liabilities — Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 115 Other assets 487 Foreign currency contracts Other liabilities 10,066 Other liabilities 19,120 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables summarize the effects of derivatives designated as cash flow hedging instruments on the Company's Consolidated Financial Statements for the three months ended March 31, 2023 and 2022 (amounts in thousands): Gain/(loss) recognized in OCI, net of tax Three Months Ended March 31, Derivatives designated as cash flow hedging instruments 2023 2022 Interest rate contracts $ (629) $ 16,410 Gain/(loss) reclassified from OCI into income Three Months Ended March 31, Location of gain or (loss) reclassified from OCI into income 2023 2022 Interest expense, net $ (5,498) $ (2,734) |
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 months ended March 31, 2023 and 2022 (amounts in thousands): Gain/(loss) recognized in income Three Months Ended March 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2023 2022 Foreign currency contracts Foreign exchange loss, net $ (7,697) $ 6,493 Foreign currency contracts Interest expense, net 521 (332) |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | The carrying amounts in the table were recorded in the Company's Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 (amounts in thousands): March 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 116,471 $ 116,471 $ 84,758 $ 84,758 Restricted cash and cash equivalents 359,208 359,208 1,382 1,382 Finance receivables, net 3,286,497 3,128,051 3,295,008 3,167,813 Financial liabilities: Interest-bearing deposits 108,779 108,779 112,992 112,992 Revolving lines of credit 1,110,016 1,110,016 1,060,251 1,060,251 Term loan 447,500 447,500 450,000 450,000 Senior Notes 1,050,000 992,225 650,000 580,433 Convertible Notes 345,000 344,276 345,000 341,926 |
Schedule of financial instruments required to be carried at fair value | The carrying amounts in the following tables were measured at fair value on a recurring basis in the Company's Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 (amounts in thousands): Fair Value Measurements as of March 31, 2023 Level 1 Level 2 Level 3 Total Assets: Government securities $ 65,004 $ — $ — $ 65,004 Derivative contracts (recorded in Other assets) — 31,355 — 31,355 Liabilities: Derivative contracts (recorded in Other liabilities) — 10,066 — 10,066 Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Government securities $ 66,813 $ — $ — $ 66,813 Derivative contracts (recorded in Other assets) — 37,792 — 37,792 Liabilities: Derivative contracts (recorded in Other liabilities) — 19,120 — 19,120 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables represent the changes in accumulated other comprehensive loss by component, after tax, for the three months ended March 31, 2023 and 2022 (amounts in thousands): Three Months Ended March 31, 2023 Debt Securities Cash Flow Currency Translation Accumulated Other Available-for-sale Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (237) $ 27,804 $ (375,493) $ (347,926) Other comprehensive gain/(loss) before reclassifications 128 (629) (4,101) (4,602) Reclassifications, net — (4,202) — (4,202) Net current period other comprehensive gain/(loss) 128 (4,831) (4,101) (8,804) Balance at end of period $ (109) $ 22,973 $ (379,594) $ (356,730) Three Months Ended March 31, 2022 Debt Securities Cash Flow Currency Translation Accumulated Other Available-for-sale Hedges Adjustments Comprehensive Loss (1) Balance at beginning of period $ (221) $ (5,371) $ (261,317) $ (266,909) Other comprehensive (loss)/gain before reclassifications (160) 16,410 4,780 21,030 Reclassifications, net — 2,170 — 2,170 Net current period other comprehensive (loss)/gain (160) 18,580 4,780 23,200 Balance at end of period $ (381) $ 13,209 $ (256,537) $ (243,709) (1) Net of deferred taxes for unrealized (gains)/losses from cash flow hedg es of $(7.6) million and $(1.2) million for the three months ended March 31, 2023 and 2022, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net Loss Attributable to PRA Group, Inc. Weighted EPS Net Income Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ (58,629) 39,033 $ (1.50) $ 39,972 40,777 $ 0.98 Dilutive effect of nonvested share awards — — — — 527 (0.01) Diluted EPS $ (58,629) 39,033 $ (1.50) $ 39,972 41,304 $ 0.97 |
Organization and Business (Deta
Organization and Business (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | May 26, 2017 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Revenues | $ 155,470,000 | $ 240,605,000 | |
Long-Lived Assets | 101,687,000 | 109,494,000 | |
Note Due 2023 | Convertible Senior Notes | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Principal amount | 345,000,000 | $ 345,000,000 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 59,147,000 | 151,425,000 | |
Long-Lived Assets | 75,784,000 | 85,809,000 | |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 33,309,000 | 43,954,000 | |
Long-Lived Assets | 11,988,000 | 6,851,000 | |
Outside the United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 43,748,000 | 49,704,000 | |
Long-Lived Assets | 13,912,000 | 16,834,000 | |
BRAZIL | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 19,266,000 | (4,478,000) | |
Long-Lived Assets | $ 3,000 | $ 0 |
Finance Receivables, net (Rollf
Finance Receivables, net (Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||||
Amortized cost | $ 0 | $ 0 | ||
Negative allowance for expected recoveries | 3,286,497 | 3,295,008 | ||
Balance at end of period | 3,286,497 | $ 3,310,747 | 3,295,008 | $ 3,428,285 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at end of period | 3,286,497 | 3,310,747 | 3,295,008 | 3,428,285 |
Initial negative allowance for expected recoveries - acquisitions | 230,225 | 147,452 | ||
Foreign currency translation adjustment | (23,885) | (16,633) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | (225,709) | (278,271) | ||
Changes in estimated recoveries | (36,912) | 29,914 | ||
Core | ||||
Receivables [Abstract] | ||||
Balance at end of period | 2,935,850 | 2,902,321 | 2,936,207 | 2,989,932 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at end of period | 2,935,850 | 2,902,321 | 2,936,207 | 2,989,932 |
Initial negative allowance for expected recoveries - acquisitions | 207,322 | 129,404 | ||
Foreign currency translation adjustment | (19,835) | (11,009) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | (186,386) | (231,153) | ||
Changes in estimated recoveries | (41,128) | 25,147 | ||
Insolvency | ||||
Receivables [Abstract] | ||||
Balance at end of period | 350,647 | 408,426 | 358,801 | 438,353 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance at end of period | 350,647 | 408,426 | $ 358,801 | $ 438,353 |
Initial negative allowance for expected recoveries - acquisitions | 22,903 | 18,048 | ||
Foreign currency translation adjustment | (4,050) | (5,624) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | (39,323) | (47,118) | ||
Changes in estimated recoveries | $ 4,216 | $ 4,767 |
Finance Receivables, net Financ
Finance Receivables, net Finance Receivables, net (Allowance for Expected Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 3,295,008 | |||
Initial negative allowance for expected recoveries - acquisitions | 230,225 | $ 147,452 | ||
Foreign currency translation adjustment | (23,885) | (16,633) | ||
Recoveries applied to negative allowance | (225,709) | (278,271) | ||
Changes in estimated recoveries | (36,912) | 29,914 | ||
Balance at end of period | 3,286,497 | |||
Balance at end of period | 3,286,497 | 3,310,747 | $ 3,295,008 | $ 3,428,285 |
Core | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Initial negative allowance for expected recoveries - acquisitions | 207,322 | 129,404 | ||
Foreign currency translation adjustment | (19,835) | (11,009) | ||
Recoveries applied to negative allowance | (186,386) | (231,153) | ||
Changes in estimated recoveries | (41,128) | 25,147 | ||
Balance at end of period | 2,935,850 | 2,902,321 | 2,936,207 | 2,989,932 |
Insolvency | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Initial negative allowance for expected recoveries - acquisitions | 22,903 | 18,048 | ||
Foreign currency translation adjustment | (4,050) | (5,624) | ||
Recoveries applied to negative allowance | (39,323) | (47,118) | ||
Changes in estimated recoveries | 4,216 | 4,767 | ||
Balance at end of period | $ 350,647 | $ 408,426 | $ 358,801 | $ 438,353 |
Finance Receivables, net (Portf
Finance Receivables, net (Portfolio Acquisitions) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | $ 1,612,774 | $ 1,045,140 |
Noncredit discount | (158,553) | (97,452) |
Allowance for credit losses at acquisition | (1,223,996) | (800,236) |
Purchase price | 230,225 | 147,452 |
Core | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | 1,507,965 | 948,057 |
Noncredit discount | (150,511) | (91,600) |
Allowance for credit losses at acquisition | (1,150,132) | (727,053) |
Purchase price | 207,322 | 129,404 |
Insolvency | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | 104,809 | 97,083 |
Noncredit discount | (8,042) | (5,852) |
Allowance for credit losses at acquisition | (73,864) | (73,183) |
Purchase price | $ 22,903 | $ 18,048 |
Finance Receivables, net Fina_2
Finance Receivables, net Finance Receivables, net (Initial Negative Allowance for Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses at acquisition | $ (1,223,996) | $ (800,236) | ||
Writeoffs, net | 1,223,996 | 800,236 | ||
Expected recoveries | 230,225 | 147,452 | ||
Purchase price | 230,225 | 147,452 | ||
Amortized cost | 0 | $ 0 | ||
Negative allowance for expected recoveries | 3,286,497 | 3,295,008 | ||
Balance at end of period | 3,286,497 | 3,310,747 | 3,295,008 | $ 3,428,285 |
Core | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses at acquisition | (1,150,132) | (727,053) | ||
Writeoffs, net | 1,150,132 | 727,053 | ||
Expected recoveries | 207,322 | 129,404 | ||
Purchase price | 207,322 | 129,404 | ||
Balance at end of period | 2,935,850 | 2,902,321 | 2,936,207 | 2,989,932 |
Insolvency | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses at acquisition | (73,864) | (73,183) | ||
Writeoffs, net | 73,864 | 73,183 | ||
Expected recoveries | 22,903 | 18,048 | ||
Purchase price | 22,903 | 18,048 | ||
Balance at end of period | $ 350,647 | $ 408,426 | $ 358,801 | $ 438,353 |
Finance Receivables, net Fina_3
Finance Receivables, net Finance Receivables, net (Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recoveries | $ 413,951 | $ 485,803 |
Less - amounts reclassified to portfolio income | 188,242 | 207,532 |
Recoveries applied to negative allowance | 225,709 | 278,271 |
Core | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recoveries | 364,236 | 425,508 |
Less - amounts reclassified to portfolio income | 177,850 | 194,355 |
Recoveries applied to negative allowance | 186,386 | 231,153 |
Insolvency | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recoveries | 49,715 | 60,295 |
Less - amounts reclassified to portfolio income | 10,392 | 13,177 |
Recoveries applied to negative allowance | $ 39,323 | $ 47,118 |
Finance Receivables, net (Chang
Finance Receivables, net (Changes in Estimated Future Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Changes in expected future recoveries | $ (40,750) | $ 6,246 |
Recoveries received in excess of forecast | 3,838 | 23,668 |
Changes in expected recoveries | (36,912) | 29,914 |
Core | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Changes in expected future recoveries | (41,414) | 9,771 |
Recoveries received in excess of forecast | 286 | 15,376 |
Changes in expected recoveries | (41,128) | 25,147 |
Insolvency | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Changes in expected future recoveries | 664 | (3,525) |
Recoveries received in excess of forecast | 3,552 | 8,292 |
Changes in expected recoveries | $ 4,216 | $ 4,767 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Changes in estimated recoveries | $ (36,912) | $ 29,914 |
Recoveries received in excess of forecast | 3,838 | 23,668 |
Changes in expected future recoveries | (40,750) | $ 6,246 |
Overperformance decrease | 19,800 | |
BRAZIL | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Write down | $ 20,500 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt securities | ||
Available-for-sale | $ 65,004 | $ 66,813 |
Equity securities | ||
Equity method investments | 8,870 | 8,762 |
Investments | 77,877 | 79,948 |
Private equity funds | ||
Equity securities | ||
Equity securities | $ 4,003 | $ 4,373 |
Investments - Amortized Costs (
Investments - Amortized Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale | ||
Government securities | $ 65,004 | $ 66,813 |
Government Bonds and Fixed Income Funds | ||
Available-for-sale | ||
Amortized Cost | 65,113 | 67,049 |
Gross Unrealized Gains | 111 | 1 |
Gross Unrealized Losses | 220 | 237 |
Government securities | $ 65,004 | $ 66,813 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |
Cost-method investment, ownership percentage | 1% |
Government Bonds and Fixed Income Funds [Member] | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | $ 4 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | $ 61 |
RCB Investimentos S.A. (RCB) | RCB Investimentos S.A. | |
Debt and Equity Securities, FV-NI [Line Items] | |
Ownership percentage | 11.70% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 435,921 | $ 480,263 |
Change in foreign currency translation adjustment | (15,274) | 3,117 |
Balance at end of period | $ 420,647 | $ 483,380 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Termination period | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 14 years |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 2,911 | $ 3,232 |
Short-term lease expense | 461 | 904 |
Sublease income | (138) | (115) |
Total lease expense | 3,234 | 4,021 |
Cash paid for amounts included in the measurement of operating lease liabilities | 3,146 | 3,098 |
ROU assets obtained in exchange for operating lease obligations | $ 1,078 | $ 1,106 |
Weighted-average remaining lease term (years) | 7 years 9 months 18 days | 8 years 4 months 24 days |
Weighted-average discount rate | 4.53% | 4.48% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
For the nine months ending December 31, 2023 | $ 7,977 | |
For the year ending December 31, 2024 | 10,282 | |
For the year ending December 31, 2025 | 10,040 | |
For the year ending December 31, 2026 | 8,934 | |
For the year ending December 31, 2027 | 6,131 | |
Thereafter | 25,875 | |
Total lease payments | 69,239 | |
Less: imputed interest | (11,300) | |
Total present value of lease liabilities | $ 57,939 | $ 59,384 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt outstanding | $ 2,952,516 | $ 2,505,251 | |
Less: Debt discount and issuance costs | (14,621) | (10,393) | |
Total | 2,937,895 | 2,494,858 | |
Operating Income (Loss) | 33,644 | $ (71,967) | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 447,500 | 450,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 1,050,000 | 650,000 | |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 345,000 | 345,000 | |
Americas Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 234,866 | 186,867 | |
UK revolving credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 473,712 | 453,528 | |
Europe revolving credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 401,438 | $ 419,856 |
Borrowings - Long-Term Debt Mat
Borrowings - Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 355,262 | |
2025 | 10,196 | |
2026 | 310,000 | |
2027 | 1,125,620 | |
2028 | 801,438 | |
Thereafter | 350,000 | |
Total | $ 2,952,516 | $ 2,505,251 |
Borrowings - North American Rev
Borrowings - North American Revolving Credit and Term Loan (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Credit Agreement | ||
Debt Instrument [Line Items] | ||
Credit agreement consolidated leverage ratio | 3.50 | |
Consolidated senior secured leverage ratio | 2.25 | |
Maximum cash dividends | $ 20,000,000 | |
Credit Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.30% | |
Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.35% | |
North American Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,500,000,000 | |
Unused portion | 840,600,000 | |
Current borrowing capacity | 118,700,000 | |
UK Credit Agreement | ||
Debt Instrument [Line Items] | ||
Unused portion | 326,300,000 | |
Current borrowing capacity | $ 116,200,000 | |
Credit agreement consolidated leverage ratio | 3.50 | |
Consolidated senior secured leverage ratio | 2.25 | |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 344,689,000 | $ 344,252,000 |
Convertible Senior Notes | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Consolidated senior secured leverage ratio | 1.60 | |
Eurodollar Rate | Credit Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 2% | |
Eurodollar Rate | Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 2.25% | |
Eurodollar Rate | UK Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 2.50% | |
Interest Rate Floor | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 0% | |
Line of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 447,500,000 | |
Revolving Credit Facility | North American Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
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 | |
Revolving Credit Facility | Line of Credit | UK Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 800,000,000 | |
Line of credit facility, optional increase in borrowing capacity | $ 200,000,000 | |
Revolving Credit Facility | Line of Credit | UK Credit Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.30% | |
Consolidated senior secured leverage ratio | 1.60 | |
Revolving Credit Facility | Line of Credit | UK Credit Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread variable rate | 2.75% | |
Unused commitment fee | 0.35% | |
Canadian Revolving Credit Facility | North American Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 75,000,000 | |
Eligible Core Asset Pool | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35% | |
Eligible Core Asset Pool | UK Credit Agreement | ||
Debt Instrument [Line Items] | ||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35% | |
Eligible Insolvent Asset Pool | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Percentage of maximum level of borrowings of ERC of insolvent asset pools | 55% | |
Eligible Insolvent Asset Pool | UK Credit Agreement | ||
Debt Instrument [Line Items] | ||
Percentage of maximum level of borrowings of ERC of insolvent asset pools | 55% |
Borrowings - European Revolving
Borrowings - European Revolving Credit Facility and Term Loan (Details) $ in Thousands, € in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |||
Debt outstanding | $ 2,952,516 | $ 2,505,251 | |
European Revolving Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | $ 432,600 | ||
Loan-to-value covenant | 45% | ||
Debt Instrument, covenant, interest bearing deposits, maximum | $ 1,200,000 | ||
Credit agreement consolidated leverage ratio | 3.50 | 3.50 | |
Consolidated senior secured leverage ratio | 2.25 | 2.25 | |
European Revolving Credit Facility | Overdraft Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 40,000 | ||
Facility line fee | 0.125% | ||
Line of Credit | Europe revolving credit | |||
Line of Credit Facility [Line Items] | |||
Debt outstanding | $ 401,438 | $ 419,856 | |
Line of Credit | European Revolving Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | € | € 730 | ||
Long Term Line of Debt, Accordion Feature | € | € 500 | ||
Unused commitment fee | 1.085% | ||
Unused line fee as a percentage of margin | 35% | ||
Current borrowing capacity | $ 201,900 | ||
Line of Credit Facility, Unused Capacity, Floor | 0 | 0 | |
Minimum | Interbank Offered Rate (IBOR) | Line of Credit | European Revolving Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 2.80% | ||
Maximum | Interbank Offered Rate (IBOR) | Line of Credit | European Revolving Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread variable rate | 3.80% |
Borrowings - Colombian Revolvin
Borrowings - Colombian Revolving Credit Facility (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revolving Credit Facility | Colombian Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings under credit facility | $ 0.5 | $ 0.5 |
Borrowings - Convertible Senior
Borrowings - Convertible Senior Notes (Details) | May 26, 2017 USD ($) day consecutiveTradingDay $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Debt outstanding | $ 2,952,516,000 | $ 2,505,251,000 | |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 345,000,000 | $ 345,000,000 | |
Note Due 2023 | Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 345,000,000 | $ 345,000,000 | |
Stated percentage | 3.50% | ||
Minimum sales price for conversion | 130% | ||
Trading days threshold | day | 20 | ||
Consecutive treading days threshold | consecutiveTradingDay | 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 cost | $ 1,300,000 | ||
Interest rate at period end | 4% |
Borrowings - Senior Notes (Deta
Borrowings - Senior Notes (Details) | Feb. 06, 2023 USD ($) | Sep. 22, 2021 USD ($) | Aug. 27, 2020 USD ($) | May 26, 2017 USD ($) day consecutiveTradingDay $ / shares | Mar. 31, 2023 USD ($) |
2028 Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 400,000,000 | ||||
Stated percentage | 8.375% | ||||
2028 Notes | Senior Notes | On Or After September 1, 2022 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 104.188% | ||||
2028 Notes | Senior Notes | February 1, 2023 To January 31, 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 102.094% | ||||
2028 Notes | Senior Notes | On Or Before February 1, 2025 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price, percentage of aggregate principal amount | 40% | ||||
Redemption price of original principal amount | 108.375% | ||||
Redemption price, minimum percentage of principal amount outstanding | 60% | ||||
2028 Notes | Senior Notes | On Or Before February 1, 2025 | Change Of Control Event | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 101% | ||||
2028 Notes | Senior Notes | February 1, 2025 And Thereafter | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 100% | ||||
2025 Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 300,000,000 | ||||
Stated percentage | 7.375% | ||||
2025 Notes | Senior Notes | On Or After September 1, 2022 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 103.688% | ||||
2025 Notes | Senior Notes | September 1, 2023 To October 31, 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 101.844% | ||||
2025 Notes | Senior Notes | September 1, 2024 And Thereafter | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 100% | ||||
2025 Notes | Senior Notes | On Or Before September 1, 2022 | Change Of Control Event | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 101% | ||||
2029 Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 350,000,000 | ||||
Stated percentage | 5% | ||||
2029 Notes | Senior Notes | On Or After September 1, 2022 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 102.50% | ||||
2029 Notes | Senior Notes | September 1, 2023 To October 31, 2024 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 101.25% | ||||
2029 Notes | Senior Notes | September 1, 2024 And Thereafter | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 100% | ||||
2029 Notes | Senior Notes | On Or Before September 1, 2022 | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price, percentage of aggregate principal amount | 40% | ||||
Redemption price of original principal amount | 105% | ||||
Debt redemption period | 90 days | ||||
Redemption price, minimum percentage of principal amount outstanding | 60% | ||||
2029 Notes | Senior Notes | On Or Before September 1, 2022 | Change Of Control Event | |||||
Line of Credit Facility [Line Items] | |||||
Redemption price of original principal amount | 101% | ||||
Note Due 2023 | Convertible Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 345,000,000 | $ 345,000,000 | |||
Stated percentage | 3.50% | ||||
Minimum sales price for conversion | 130% | ||||
Trading days threshold | day | 20 | ||||
Consecutive treading days threshold | consecutiveTradingDay | 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 | ||||
Equity component | 46,200,000 | ||||
Debt issuance cost | 8,300,000 | ||||
Equity and debt issuance costs | 9,600,000 | ||||
Equity issuance cost | $ 1,300,000 |
Borrowings - Balances of Liabil
Borrowings - Balances of Liability and Equity Components (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,952,516 | $ 2,505,251 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 345,000 | 345,000 |
Unamortized debt issuance costs | (311) | (748) |
Total | $ 344,689 | $ 344,252 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Interest expense - amortization of debt issuance costs | $ 437 | $ 420 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest expense - stated coupon rate | 3,019 | 3,019 |
Total interest expense - convertible notes | $ 3,456 | $ 3,439 |
Borrowings - UK Revolving Credi
Borrowings - UK Revolving Credit Facility (Details) - UK Credit Agreement | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |
Consolidated senior secured leverage ratio | 2.25 |
Unused portion | $ 326,300,000 |
Current borrowing capacity | $ 116,200,000 |
Credit agreement consolidated leverage ratio | 3.50 |
Eligible Core Asset Pool | |
Line of Credit Facility [Line Items] | |
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35% |
Eligible Insolvent Asset Pool | |
Line of Credit Facility [Line Items] | |
Percentage of maximum level of borrowings of ERC of insolvent asset pools | 55% |
Maximum | Eurodollar Rate | |
Line of Credit Facility [Line Items] | |
Basis spread variable rate | 2.50% |
Debt Instrument, Basis Spread on Variable Rate, Credit Adjustment Spread | 0.10% |
Revolving Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 800,000,000 |
Line of credit facility, optional increase in borrowing capacity | $ 200,000,000 |
Revolving Credit Facility | Line of Credit | Maximum | |
Line of Credit Facility [Line Items] | |
Basis spread variable rate | 2.75% |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% |
Revolving Credit Facility | Line of Credit | Minimum | |
Line of Credit Facility [Line Items] | |
Consolidated senior secured leverage ratio | 1.60 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other liabilities) | $ 10,066 | $ 19,120 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative contracts (recorded in Other assets) | $ 31,355 | $ 37,792 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Interest rate contracts | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other liabilities) | $ 0 | $ 0 |
Derivative contracts (recorded in Other assets) | 31,240 | 37,305 |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other liabilities) | 10,066 | 19,120 |
Derivative contracts (recorded in Other assets) | $ 115 | $ 487 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Net derivative gain (loss) included in OCI to be reclassified next 12 months | $ 15.2 | |
Derivative, Notional Amount1 | 814.6 | $ 719.7 |
Not Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount1 | $ 383.3 | $ 460.8 |
Maximum | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 5 years | |
Minimum | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 3 months |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in OCI, net of tax | $ (629) | $ 16,410 |
Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Three Months Ended March 31, | $ (5,498) | $ (2,734) |
Derivatives - Schedule of Eff_2
Derivatives - Schedule of Effects of Derivatives Not Designated as Hedging Instruments (Details) - Foreign currency contracts - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign exchange loss, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in income | $ (7,697) | $ 6,493 |
Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(loss) recognized in income | $ 521 | $ (332) |
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 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financial assets: | |||
Cash and cash equivalents, carrying amount | $ 116,471 | $ 83,376 | $ 79,089 |
Restricted Cash And Cash Equivalents, Fair Value | 359,208 | 1,382 | |
Finance receivables, net, carrying amount | 3,286,497 | 3,295,008 | |
Financial liabilities: | |||
Interest-bearing deposits, carrying value | 108,779 | 112,992 | |
Restricted cash and cash equivalents per Consolidated Balance Sheets | 359,208 | 1,382 | $ 1,831 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents, carrying amount | 116,471 | 84,758 | |
Finance receivables, net, carrying amount | 3,286,497 | 3,295,008 | |
Financial liabilities: | |||
Interest-bearing deposits, carrying value | 108,779 | 112,992 | |
Outstanding borrowings under credit facility | 1,110,016 | 1,060,251 | |
Term loans, carrying amount | 447,500 | 450,000 | |
Senior Notes, carrying amount | 1,050,000 | 650,000 | |
Convertible debt | 345,000 | 345,000 | |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents, estimated fair value | 116,471 | 84,758 | |
Finance receivables, net, estimated fair value | 3,128,051 | 3,167,813 | |
Financial liabilities: | |||
Interest-bearing deposits, fair value | 108,779 | 112,992 | |
Revolving lines of credit, estimated fair value | 1,110,016 | 1,060,251 | |
Term loans, estimated fair value | 447,500 | 450,000 | |
Debt Instrument, Fair Value Disclosure | 992,225 | 580,433 | |
Convertible debt, estimated fair value | $ 344,276 | $ 341,926 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Government securities | $ 65,004 | $ 66,813 |
Derivative contracts (recorded in Other assets) | 31,355 | 37,792 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 10,066 | 19,120 |
Level 1 | ||
Assets: | ||
Derivative contracts (recorded in Other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivative contracts (recorded in Other assets) | 31,355 | 37,792 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 10,066 | 19,120 |
Level 3 | ||
Assets: | ||
Derivative contracts (recorded in Other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 0 | 0 |
Government securities | ||
Assets: | ||
Government securities | 65,004 | 66,813 |
Government securities | Level 1 | ||
Assets: | ||
Government securities | 65,004 | 66,813 |
Government securities | Level 2 | ||
Assets: | ||
Government securities | 0 | 0 |
Government securities | Level 3 | ||
Assets: | ||
Government securities | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - Private equity funds - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds | $ 4 | $ 4.4 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 1 year | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 5 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest rate swaps | $ (650) | $ (490) | ||
Income tax effect of item above | (18,683) | 4,579 | ||
Net income | (53,903) | 34,618 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,224,709 | 1,346,167 | $ 1,286,750 | |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 22,973 | 13,209 | 27,804 | $ (5,371) |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (379,594) | (256,537) | $ (375,493) | $ (261,317) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest rate swaps | 5,498 | 2,734 | ||
Income tax effect of item above | (1,296) | (564) | ||
Net income | $ 4,202 | $ 2,170 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,286,750 | |
Other comprehensive (loss)/income before reclassifications, net | (4,602) | $ 21,030 |
Reclassifications | (4,202) | 2,170 |
Other comprehensive loss attributable to PRA Group, Inc. | (8,804) | 23,200 |
Ending balance | 1,224,709 | 1,346,167 |
Deferred taxes for unrealized losses from cash flow hedges | (7,600) | (1,200) |
Debt Securities Available-for-sale | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (237) | (221) |
Other comprehensive (loss)/income before reclassifications, net | 128 | (160) |
Reclassifications | 0 | 0 |
Other comprehensive loss attributable to PRA Group, Inc. | 128 | (160) |
Ending balance | (109) | (381) |
Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 27,804 | (5,371) |
Other comprehensive (loss)/income before reclassifications, net | (629) | 16,410 |
Reclassifications | (4,202) | 2,170 |
Other comprehensive loss attributable to PRA Group, Inc. | (4,831) | 18,580 |
Ending balance | 22,973 | 13,209 |
Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (375,493) | (261,317) |
Other comprehensive (loss)/income before reclassifications, net | (4,101) | 4,780 |
Reclassifications | 0 | 0 |
Other comprehensive loss attributable to PRA Group, Inc. | (4,101) | 4,780 |
Ending balance | (379,594) | (256,537) |
Accumulated Other Comprehensive (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (347,926) | (266,909) |
Ending balance | $ (356,730) | $ (243,709) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Feb. 25, 2022 | |
Schedule Of Earnings Per Share, By Common Class [Line Items] | |||
Net income | $ (58,629) | $ 39,972 | |
Weighted Average Common Shares, Basic EPS | 39,033,000 | 40,777,000 | |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 0 | 527,000 | |
Weighted Average Common Shares, Diluted EPS | 39,033,000 | 41,304,000 | |
EPS, Basic (in dollars per share) | $ (1.50) | $ 0.98 | |
EPS, Dilutive effect of nonvested share awards (in dollars per share) | 0 | (0.01) | |
EPS, Diluted (in dollars per share) | $ (1.50) | $ 0.97 | |
Antidilutive options outstanding | 0 | 0 | |
February 2022 Repurchase Program | |||
Schedule Of Earnings Per Share, By Common Class [Line Items] | |||
Stock repurchases authorized amount | $ 150,000 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Cash on hand related to foreign operations with permanently reinvested earnings | $ 88.4 | $ 75.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Future compensation under employment agreements | $ 8.8 |
Amount to be purchased under forward flow agreements | 622.4 |
CFPB Investigation | Settled Litigation | |
Loss Contingencies [Line Items] | |
Litigation settlement, amount awarded to other party | 12 |
CFPB Investigation | Settled Litigation | Impacted Customers | |
Loss Contingencies [Line Items] | |
Litigation settlement, amount awarded to other party | $ 15 |