Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 39,417,253 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001185348 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: Recently issued accounting standards not yet adopted: In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating both ASU 2023-07 and ASU 2023-09 to determine the impacts on its disclosures. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 118,865 | $ 112,528 |
Investments | 59,619 | 72,404 |
Financing Receivable, after Allowance for Credit Loss, Current | 3,820,186 | 3,656,598 |
Income Taxes Receivable, Current | 34,813 | 27,713 |
Deferred Income Tax Assets, Net | 76,486 | 74,694 |
Operating Lease, Right-of-Use Asset | 42,374 | 45,877 |
Property, Plant and Equipment, Net | 32,827 | 36,450 |
Goodwill | 415,646 | 431,564 |
Other Assets | 61,124 | 67,526 |
Assets, Total | 4,661,940 | 4,525,354 |
Liabilities [Abstract] | ||
Accounts Payable | 10,198 | 6,325 |
Accrued Liabilities | 114,260 | 131,893 |
Accrued Income Taxes | 23,583 | 17,912 |
Deferred Tax Liabilities, Net, After Adjustments | 18,423 | 17,051 |
Operating Lease, Liability | 46,746 | 50,300 |
Interest-Bearing Deposit Liabilities | 114,991 | 115,589 |
Debt, Long-Term and Short-Term, Combined Amount | 3,113,777 | 2,914,270 |
Other Liabilities, Current | 16,684 | 32,638 |
Liabilities, Total | 3,458,662 | 3,285,978 |
Equity, Attributable to Parent [Abstract] | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Outstanding | 394 | 392 |
Additional Paid in Capital, Common Stock | 12,339 | 7,071 |
Retained Earnings (Accumulated Deficit) | 1,514,539 | 1,489,548 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (381,809) | (329,899) |
Equity, Attributable to Parent, Total | 1,145,463 | 1,167,112 |
Equity, Attributable to Noncontrolling Interest | 57,815 | 72,264 |
Equity, Including Portion Attributable to Noncontrolling Interest, Total | 1,203,278 | 1,239,376 |
Liabilities and Equity, Total | $ 4,661,940 | $ 4,525,354 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 39,417,000 | 39,247,000 |
Common stock, shares outstanding | 39,417,000 | 39,247,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Financing Receivable, Allowance For Credit Losses, Recoveries Reclassified To Income | $ 209,290 | $ 184,290 | $ 411,346 | $ 372,532 |
Financing Receivable, Allowance For Credit Loss, Changes In Estimated Recoveries | 73,320 | 21,136 | 124,994 | (15,776) |
Financing Receivable, Allowance For Credit Loss, Portfolio Revenue | 282,610 | 205,426 | 536,340 | 356,756 |
Revenue From Contract With Customer And Fee Revenue, Excluding Assessed Tax | 1,619 | 3,810 | 3,475 | 7,950 |
Revenues, Total | 284,229 | 209,236 | 539,815 | 364,706 |
Operating Expenses [Abstract] | ||||
Labor and Related Expense | 74,241 | 65,788 | 147,838 | 148,191 |
Legal Fees | 13,762 | 9,551 | 25,874 | 18,389 |
Legal Costs | 35,274 | 21,522 | 61,965 | 45,467 |
Agency Fees | 21,008 | 17,677 | 40,731 | 35,055 |
Outside Fees And Services Expenses | 18,124 | 18,262 | 43,174 | 43,206 |
Communication | 11,577 | 10,117 | 24,155 | 20,644 |
Rent And Occupancy | 4,136 | 4,319 | 8,280 | 8,767 |
Depreciation, Depletion and Amortization, Nonproduction | 2,637 | 3,482 | 5,357 | 7,071 |
Other Cost and Expense, Operating | 14,248 | 12,957 | 26,823 | 25,999 |
Operating Expenses, Total | 195,007 | 163,675 | 384,197 | 352,789 |
Operating Income (Loss), Total | 89,222 | 45,561 | 155,618 | 11,917 |
Interest Income (Expense), Nonoperating | (55,353) | (43,022) | (107,631) | (81,305) |
Nonoperating Income (Expense) [Abstract] | ||||
Interest Income (Expense), Nonoperating | (55,353) | (43,022) | (107,631) | (81,305) |
Gain (Loss), Foreign Currency Transaction, before Tax | (99) | 429 | 128 | 420 |
Other Nonoperating Income (Expense) | 46 | (230) | (160) | (880) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 33,816 | 2,738 | 47,955 | (69,848) |
Income Tax Expense (Benefit) | 8,702 | 1,578 | 11,088 | (17,105) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 25,114 | 1,160 | 36,867 | (52,743) |
Net Income (Loss) Attributable to Noncontrolling Interest | 3,598 | 4,964 | 11,876 | 9,690 |
Net Income (Loss) Attributable to Parent, Total | $ 21,516 | $ (3,804) | $ 24,991 | $ (62,433) |
Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ 0.55 | $ (0.10) | $ 0.64 | $ (1.60) |
Diluted (in dollars per share) | $ 0.54 | $ (0.10) | $ 0.63 | $ (1.60) |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Basic (shares) | 39,364 | 39,190 | 39,319 | 39,111 |
Diluted (shares) | 39,546 | 39,190 | 39,497 | 39,111 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 25,114 | $ 1,160 | $ 36,867 | $ (52,743) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (14,258) | 7,083 | (62,449) | 5,533 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (1,293) | 5,719 | 1,515 | 888 |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax | 65 | (80) | 111 | 48 |
Other Comprehensive Income (Loss), Net of Tax, Total | (15,486) | 12,722 | (60,823) | 6,469 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 9,628 | 13,882 | (23,956) | (46,274) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (3,097) | 8,956 | 2,962 | 16,232 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ 12,725 | $ 4,926 | $ (26,918) | $ (62,506) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 38,980,000 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,286,750 | $ 390 | $ 2,172 | $ 1,573,025 | $ (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 | $ 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 | |||||
Ending balance at Mar. 31, 2023 | 1,224,709 | $ 392 | 285 | 1,514,396 | (356,730) | 66,366 |
Beginning balance (in shares) at Dec. 31, 2022 | 38,980,000 | |||||
Beginning balance at Dec. 31, 2022 | 1,286,750 | $ 390 | 2,172 | 1,573,025 | (347,926) | 59,089 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash flow hedges | 888 | |||||
Debt securities available-for-sale | 48 | |||||
Changes in estimated recoveries | (15,776) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 39,242,000 | |||||
Ending balance at Jun. 30, 2023 | 1,239,674 | $ 392 | 2,541 | 1,510,592 | (348,000) | 74,149 |
Beginning balance (in shares) at Mar. 31, 2023 | 39,170,000 | |||||
Beginning balance at Mar. 31, 2023 | 1,224,709 | $ 392 | 285 | 1,514,396 | (356,730) | 66,366 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,160 | (3,804) | 4,964 | |||
Currency translation adjustments | 7,083 | 3,091 | 3,992 | |||
Cash flow hedges | 5,719 | 5,719 | ||||
Debt securities available-for-sale | (80) | (80) | ||||
Changes in estimated recoveries | 21,136 | |||||
Distributions to noncontrolling interest | (1,173) | (1,173) | ||||
Vesting of restricted stock (in shares) | 72,000 | |||||
Vesting of restricted stock | $ 0 | 0 | ||||
Share-based compensation expense | 2,715 | 2,715 | ||||
Employee stock relinquished for payment of taxes | (459) | (459) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 39,242,000 | |||||
Ending balance at Jun. 30, 2023 | $ 1,239,674 | $ 392 | 2,541 | 1,510,592 | (348,000) | 74,149 |
Beginning balance (in shares) at Dec. 31, 2023 | 39,247,000 | 39,247,000 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,239,376 | $ 392 | 7,071 | 1,489,548 | (329,899) | 72,264 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,753 | 3,475 | 8,278 | |||
Currency translation adjustments | (48,191) | (45,973) | (2,218) | |||
Cash flow hedges | 2,808 | 2,808 | ||||
Debt securities available-for-sale | 46 | 46 | ||||
Distributions to noncontrolling interest | (11,332) | (11,332) | ||||
Vesting of restricted stock (in shares) | 98,000 | |||||
Vesting of restricted stock | $ 1 | (1) | ||||
Share-based compensation expense | 3,327 | 3,327 | ||||
Employee stock relinquished for payment of taxes | (1,469) | (1,469) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 39,345,000 | |||||
Ending balance at Mar. 31, 2024 | $ 1,196,318 | $ 393 | 8,928 | 1,493,023 | (373,018) | 66,992 |
Beginning balance (in shares) at Dec. 31, 2023 | 39,247,000 | 39,247,000 | ||||
Beginning balance at Dec. 31, 2023 | $ 1,239,376 | $ 392 | 7,071 | 1,489,548 | (329,899) | 72,264 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash flow hedges | 1,515 | |||||
Debt securities available-for-sale | 111 | |||||
Changes in estimated recoveries | $ 124,994 | |||||
Ending balance (in shares) at Jun. 30, 2024 | 39,417,000 | 39,417,000 | ||||
Ending balance at Jun. 30, 2024 | $ 1,203,278 | $ 394 | 12,339 | 1,514,539 | (381,809) | 57,815 |
Beginning balance (in shares) at Mar. 31, 2024 | 39,345,000 | |||||
Beginning balance at Mar. 31, 2024 | 1,196,318 | $ 393 | 8,928 | 1,493,023 | (373,018) | 66,992 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 25,114 | 21,516 | 3,598 | |||
Currency translation adjustments | (14,258) | (7,563) | (6,695) | |||
Cash flow hedges | (1,293) | (1,293) | ||||
Debt securities available-for-sale | 65 | 65 | ||||
Changes in estimated recoveries | 73,320 | |||||
Distributions to noncontrolling interest | (6,080) | (6,080) | ||||
Vesting of restricted stock (in shares) | 72,000 | |||||
Vesting of restricted stock | $ 1 | (1) | ||||
Share-based compensation expense | 3,555 | 3,555 | ||||
Employee stock relinquished for payment of taxes | $ (143) | (143) | ||||
Ending balance (in shares) at Jun. 30, 2024 | 39,417,000 | 39,417,000 | ||||
Ending balance at Jun. 30, 2024 | $ 1,203,278 | $ 394 | $ 12,339 | $ 1,514,539 | $ (381,809) | $ 57,815 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net income | $ 36,867 | $ (52,743) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Share-Based Payment Arrangement, Noncash Expense | 6,882 | 6,514 |
Depreciation and amortization | 5,357 | 7,071 |
Amortization of Debt Issuance Costs and Discounts | 4,531 | 4,825 |
Financing Receivable, Allowance For Credit Loss, Changes In Estimated Recoveries | (124,994) | 15,776 |
Deferred Income Taxes and Tax Credits | (2,073) | (24,439) |
Unrealized Gain (Loss), Foreign Currency Transaction, before Tax | 11,215 | 27,907 |
Other Noncash Income (Expense) | (1,027) | (1,051) |
Increase (Decrease) in Operating Capital [Abstract] | ||
Increase (Decrease) in Other Operating Assets | (1,046) | (1,306) |
Accrued expenses, accounts payable and other liabilities | (13,404) | 6,050 |
Increase (Decrease) in Income Taxes | (2,366) | (13,629) |
Net Cash Provided by (Used in) Operating Activities, Total | (102,488) | (80,839) |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Payments to Acquire Property, Plant, and Equipment | (1,832) | (1,091) |
Payments to Acquire Finance Receivables | (625,186) | (559,547) |
Proceeds From Recovery Of Negative Financing Receivable Allowance | 520,940 | 463,966 |
Payments For (Proceeds From) Marketable Securities) | (48,247) | (60,057) |
Proceeds from Sale and Maturity of Marketable Securities | 58,130 | 62,762 |
Net Cash Provided by (Used in) Investing Activities, Total | (96,195) | (93,967) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Long-Term Lines of Credit | 435,341 | 459,432 |
Repayments of Long-Term Lines of Credit | (604,938) | (274,772) |
Repayments of Convertible Debt | 0 | (345,000) |
Proceeds from Issuance of Unsecured Debt | 400,000 | 0 |
Repayments of Other Long-Term Debt | (7,500) | (5,000) |
Payments On Senior Notes | 0 | (3,657) |
Payments of Financing Costs | (5,111) | (5,324) |
Payment, Tax Withholding, Share-Based Payment Arrangement | (1,612) | (6,142) |
Payments to Noncontrolling Interests | (17,412) | (1,172) |
Net Change Interest-Bearing Deposits, Foreign | 5,058 | (9,869) |
Net Cash Provided by (Used in) Financing Activities, Total | 203,826 | 208,496 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | 1,082 | 6,216 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 6,225 | 39,906 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning Balance | 113,692 | 84,759 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Ending Balance | 119,917 | 124,665 |
Supplemental Cash Flow Information [Abstract] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 116,575 | 51,652 |
Income Taxes Paid | 15,326 | 20,859 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | 118,865 | 111,375 |
Restricted Cash and Cash Equivalents | 1,052 | 13,290 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 119,917 | 124,665 |
2028 Notes | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Issuance of Other Long-Term Debt | $ 0 | $ 400,000 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2024 | |
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 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 June 30, 2024, its Consolidated Income Statements and Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023, and its Consolidated Statements of Changes in Equity and Statements of Cash Flows for the six months ended June 30, 2024 and 2023, have been included. 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. 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, 2023 (the "2023 Form 10-K"). For further discussion of the Company's significant accounting policies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K. There were no material changes to these policies during the three months ended June 30, 2024. The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions, and the Company's Consolidated Income Statements for the three and six months ended June 30, 2024 may not be indicative of future results. Reclassification of prior year presentation: In the Consolidated Statements of Cash Flows, certain prior period amounts have been reclassified for consistency with the current period presentation. |
Finance Receivables, net
Finance Receivables, net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Finance receivables, net consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Amortized cost $ — $ — Negative allowance for expected recoveries 3,820,186 3,656,598 Balance at end of period $ 3,820,186 $ 3,656,598 Changes in the negative allowance for expected recoveries by portfolio segment for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Balance at beginning of period $ 3,298,092 $ 352,103 $ 3,650,195 $ 2,935,850 $ 350,647 $ 3,286,497 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 326,752 52,617 379,369 308,274 19,485 327,759 Foreign currency translation adjustment (13,623) 205 (13,418) 23,380 4,034 27,414 Recoveries applied to negative allowance (2) (226,247) (43,033) (269,280) (198,897) (39,361) (238,258) Changes in expected recoveries (3) 65,747 7,573 73,320 17,798 3,338 21,136 Balance at end of period $ 3,450,721 $ 369,465 $ 3,820,186 $ 3,086,405 $ 338,143 $ 3,424,548 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Balance at beginning of period $ 3,295,214 $ 361,384 $ 3,656,598 $ 2,936,207 $ 358,801 $ 3,295,008 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 545,409 79,777 625,186 515,595 42,389 557,984 Foreign currency translation adjustment (63,750) (1,902) (65,652) 43,216 8,082 51,298 Recoveries applied to negative allowance (2) (441,463) (79,477) (520,940) (385,283) (78,683) (463,966) Changes in expected recoveries (3) 115,311 9,683 124,994 (23,330) 7,554 (15,776) Balance at end of period $ 3,450,721 $ 369,465 $ 3,820,186 $ 3,086,405 $ 338,143 $ 3,424,548 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Face value $ 2,402,148 $ 279,417 $ 2,681,565 $ 2,217,262 $ 91,940 $ 2,309,202 Noncredit discount (316,934) (23,186) (340,120) (240,532) (6,742) (247,274) Allowance for credit losses at acquisition (1,758,462) (203,614) (1,962,076) (1,668,456) (65,713) (1,734,169) Purchase price $ 326,752 $ 52,617 $ 379,369 $ 308,274 $ 19,485 $ 327,759 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Face value $ 4,110,779 $ 393,633 $ 4,504,412 $ 3,725,226 $ 196,750 $ 3,921,976 Noncredit discount (548,319) (36,628) (584,947) (391,043) (14,784) (405,827) Allowance for credit losses at acquisition (3,017,051) (277,228) (3,294,279) (2,818,588) (139,577) (2,958,165) Purchase price $ 545,409 $ 79,777 $ 625,186 $ 515,595 $ 42,389 $ 557,984 The initial negative allowance recorded on portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 was as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Allowance for credit losses at acquisition $ (1,758,462) $ (203,614) $ (1,962,076) $ (1,668,456) $ (65,713) $ (1,734,169) Writeoffs, net 1,758,462 203,614 1,962,076 1,668,456 65,713 1,734,169 Expected recoveries 326,752 52,617 379,369 308,274 19,485 327,759 Initial negative allowance for expected recoveries $ 326,752 $ 52,617 $ 379,369 $ 308,274 $ 19,485 $ 327,759 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Allowance for credit losses at acquisition $ (3,017,051) $ (277,228) $ (3,294,279) $ (2,818,588) $ (139,577) $ (2,958,165) Writeoffs, net 3,017,051 277,228 3,294,279 2,818,588 139,577 2,958,165 Expected recoveries 545,409 79,777 625,186 515,595 42,389 557,984 Initial negative allowance for expected recoveries $ 545,409 $ 79,777 $ 625,186 $ 515,595 $ 42,389 $ 557,984 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries (a) $ 423,659 $ 54,911 $ 478,570 $ 373,178 $ 49,370 $ 422,548 Less - amounts reclassified to portfolio income 197,412 11,878 209,290 174,281 10,009 184,290 Recoveries applied to negative allowance $ 226,247 $ 43,033 $ 269,280 $ 198,897 $ 39,361 $ 238,258 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries (a) $ 829,972 $ 102,314 $ 932,286 $ 737,414 $ 99,084 $ 836,498 Less - amounts reclassified to portfolio income 388,509 22,837 411,346 352,131 20,401 372,532 Recoveries applied to negative allowance $ 441,463 $ 79,477 $ 520,940 $ 385,283 $ 78,683 $ 463,966 (a) Recoveries include cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries The Company develops its estimates of expected recoveries by applying discounted cash flow methodologies to its estimated remaining collections and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. For additional information about these methodologies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K. Changes in expected recoveries for the three months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries received in excess of forecast $ 46,830 $ 7,430 $ 54,260 $ 21,536 $ 3,812 $ 25,348 Changes in expected future recoveries 18,917 143 19,060 (3,738) (474) (4,212) Changes in expected recoveries $ 65,747 $ 7,573 $ 73,320 $ 17,798 $ 3,338 $ 21,136 Changes in expected recoveries for the three months ended June 30, 2024 were $73.3 million, which included $54.3 million in recoveries received in excess of forecast (cash collections overperformance), due mainly to collections performance in the U.S., driven in large part by the Company's cash-generating initiatives, coupled with collections performance in Europe. Changes in expected future recoveries of $19.1 million mainly reflect the Company's assessment of certain pools in the U.S. and Europe, resulting in an increase to the expected cash flows based primarily on overperformance in recent periods. The increase in expected cash flows was driven in large part by forecast increases to the 2013 to 2019 U.S. Core pools, as well as increases to a number of pools in Europe. Changes in expected recoveries for the three months ended June 30, 2023 were a net positive $21.1 million. This included $25.3 million in recoveries received in excess of forecast (cash collections overperformance) and a $4.2 million negative adjustment to changes in expected future recoveries. The $25.3 million in recoveries received in excess of forecast was largely due to overperformance generated from larger than expected one-time payments in Europe and performance on new vintages in South America. Changes in expected recoveries for the six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries received in excess of forecast $ 80,748 $ 9,350 $ 90,098 $ 21,823 $ 7,363 $ 29,186 Changes in expected future recoveries 34,563 333 34,896 (45,153) 191 (44,962) Changes in expected recoveries $ 115,311 $ 9,683 $ 124,994 $ (23,330) $ 7,554 $ (15,776) Changes in expected recoveries for the six months ended June 30, 2024 were $125.0 million, which included $90.1 million in recoveries received in excess of forecast, due mainly to collections performance in the U.S., driven in large part by the Company's cash-generating initiatives, coupled with collections performance in Brazil and Europe. Changes in expected future recoveries of $34.9 million mainly reflect the Company's assessment of certain pools in the U.S. and Europe, resulting in an increase to the expected cash flows based primarily on overperformance in recent periods. The increase in expected cash flows was driven in large part by forecast increases to the 2013 to 2019 U.S. Core pools, as well as increases to a number of pools in Europe. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Debt securities Available-for-sale $ 47,918 $ 59,470 Equity securities Private equity funds 2,281 2,451 Equity method investment 9,420 10,483 Total investments $ 59,619 $ 72,404 Debt Securities Government securities: As of June 30, 2024, the Company's available-for-sale debt securities consisted of Swedish treasury securities maturing within one year. As of June 30, 2024 and December 31, 2023, the amortized cost and fair value of these investments were as follows (amounts in thousands): June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 47,741 $ 177 $ — $ 47,918 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 59,404 $ 66 $ — $ 59,470 Equity Method Investment The Company ha s an 11.7% interest in RC |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
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, with the most recent annual review performed as of October 1, 2023 . The Company performed a quarterly assessment by evaluating whether any triggering events had occurred as of June 30, 2024 , which included considering current market conditions, and determined that goodwill was not more-likely-than-not impaired. Changes in goodwill for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance as of beginning of period $ 411,846 $ 420,647 $ 431,564 $ 435,921 Foreign currency translation 3,800 (5,742) (15,918) (21,016) Balance as of end of period $ 415,646 $ 414,905 $ 415,646 $ 414,905 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: Borrowings consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 North American revolving credit facility (1) $ 219,305 $ 396,303 United Kingdom revolving credit facility (2) 495,665 502,847 European revolving credit facility (3) 533,653 538,565 North American term loan (4) 435,000 442,500 Credit facility borrowings 1,683,623 1,880,215 Senior Notes due 2025 (the "2025 Notes") 298,000 298,000 Senior Notes due 2028 (the "2028 Notes") 398,000 398,000 Senior Notes due 2029 (the "2029 Notes") 350,000 350,000 Senior Notes due 2030 (the "2030 Notes") 400,000 — Senior notes 1,446,000 1,046,000 Credit facility borrowings and senior notes 3,129,623 2,926,215 Debt discount and issuance costs (15,846) (11,945) Borrowings $ 3,113,777 $ 2,914,270 (1) Revolving credit facility under the Company's North American Revolving Credit and Term Loan (the "North American Credit Agreement"), which includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), consisting of (i) a fully-funded $435.0 million term loan (the "Term Loan"), (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 million Canadian revolving credit facility, maturing on July 30, 2026. (2) Revolving credit facility under the Company's United Kingdom ("UK") Credit Agreement (the "UK Credit Agreement"), consisting of an $800.0 million revolving credit facility (subject to a borrowing base) a nd an accordion f eature for up to $200.0 million in additional commitments, subject to certain conditions, maturing on July 30, 2026 . (3) Revolving credit facility under the Company's European Credit Agreement (the "European Credit Agreement"), providing revolving borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base and applicable debt covenants) and an accordion feature for up to €500.0 million, subject to certain conditions, maturing on November 23, 2027. As of June 30, 2024, after an increase in the limit during the prior quarter, interest bearing deposits in AK Nordic AB cannot exceed SEK2.2 billion . (4) Term Loan under t he North American Credit Agreement. During the three months ended June 30, 2024, the Company repaid $395.9 million aggregate principal amount of outstanding borrowings under the North American revolving credit facility with the net proceeds from the issuance of the 2030 Notes. For additional details about the North American Credit Agreement, the UK Credit Agreement, the European Credit Agreement and the Company's senior notes, r efer to Note 7 to the Consolidated Financial Statements in the 2023 Form 10-K and description of the 2030 Notes below. Th e Company determined that it was in compliance with the covenants contained in its financing arrangements as of June 30, 2024 . 2030 Notes On May 20, 2024, the Company completed the private offering of $400.0 million in aggregate principal amount of its 8.875% Senior Notes due January 31, 2030. The 2030 Notes were issued pursuant to an Indenture dated May 20, 2024 (the "2024 Indenture"), between the Company and Regions Bank, as trustee. The 2024 Indenture contains customary terms and covenants, including certain events of default after which the 2030 Notes may be due and payable immediately. The 2030 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 2030 Notes is payable semi-annually, in arrears, on January 31 and July 31 of each year. Before June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 100% of the aggregate principal amount of the 2030 Notes being redeemed, plus the applicable "make whole" premium. On or before June 1, 2026, the Company may redeem up to 40% of the aggregate principal amount of the 2030 Notes at a redemption price of 108.875% 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 2030 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 ad dition, on or after June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 104.438% of the aggregate principal amount of the 2030 Notes being redeemed. The applicable redemption price changes if redeemed during the 12 months beginning June 1 of each year to 102.219% for 2027 and then 100% for 2028 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 2030 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 2030 Notes at 100% of their principal amount plus accrued and unpaid interest. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives: The Company periodically enters into derivative financial instruments; typically interest rate swaps and foreign currency contracts, to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. Derivative financial instruments are recognized at fair value in the Company's Consolidated Balance Sheets. For further discussion of the Company's use of, and accounting policies for, derivative instruments, refer to Notes 1 and 8 to the Consolidated Financial Statements in the 2023 Form 10-K. The following table summarizes the fair value of derivative financial instruments as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Balance Sheet Account Fair Value Balance Sheet Account Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 17,570 Other assets $ 21,770 Interest rate contracts Other liabilities 5,379 Other liabilities 11,627 Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 890 Other assets 1,007 Foreign currency contracts Other liabilities 506 Other liabilities 8,776 Derivatives Designated as Hedging Instruments: Changes in the fair value of derivative contracts designated as cash flow hedging instruments are recognized in other comprehensive income ("OCI"). As of June 30, 2024 and December 31, 2023, the notional amount of interest rate contracts designated as cash flow hedging instruments w as $813.6 million and $872.3 million, respectively. Derivatives designated as cash flow hedging instruments remained highly effective as of June 30, 2024, and have remaining ter ms from six months to four years . As of June 30, 2024, t he Company estimat es that $11.5 million of net derivative gains included in OCI w ill be reclassified into earnings within the next 12 months. The following tables summarize the effects of derivatives designated as cash flow hedging instruments for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Gain recognized in OCI, net of tax Three Months Ended June 30, Six Months Ended June 30, Hedging instrument 2024 2023 2024 2023 Interest rate contracts $ 2,860 $ 10,771 $ 9,930 $ 10,142 Gain reclassified from OCI into income Three Months Ended June 30, Six Months Ended June 30, Income statement account 2024 2023 2024 2023 Interest expense, net $ 5,532 $ 6,670 $ 11,206 $ 12,168 During the three months ended June 30, 2024, the Company elected certain of the optional expedients in accordance with ASU 2021-01, "Reference Rate Reform (Topic 848): Overall" ("ASU 2021-01"), and ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" (“ASU 2022-06”), to maintain cash flow hedge accounting for interest contracts with a combined notional amount of CAD 33.2 million. Derivatives Not Designated as Hedging Instruments: The Company enters into foreign currency contracts to economically hedge foreign currency remeasurement exposure related to certain balances denominated in currencies other than the functional currency of the Company or its international subsidiaries. Changes in fair value of derivative contracts not designated as hedging instruments are recognized in earnings. As of June 30, 2024 and December 31, 2023, the notional amount of foreign currency contracts w as $290.3 million and $368.5 million, respectively. The following table summarizes the effects of derivatives not designated as hedging instruments for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Gain/(loss) recognized in income Derivatives not designated as hedging instruments Three Months Ended June 30, Six Months Ended June 30, Income statement account 2024 2023 2024 2023 Foreign currency contracts Foreign exchange gain/(loss), net $ 726 $ (7,589) $ 826 $ (15,287) Foreign currency contracts Interest expense, net 117 631 309 1,153 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
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 different input levels in the determination of fair value, 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 Carried at Fair Value As of June 30, 2024 and December 31, 2023, the carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows (amounts in thousands): June 30, 2024 December 31, 2023 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 118,865 $ 118,865 $ 112,528 $ 112,528 Finance receivables, net 3,820,186 3,250,769 3,656,598 3,167,798 Financial liabilities: Interest-bearing deposits 114,991 114,991 115,589 115,589 Revolving lines of credit 1,248,623 1,248,623 1,437,715 1,437,715 Term Loan (1) 435,000 435,000 442,500 442,500 Senior notes (1) 1,446,000 1,397,557 1,046,000 964,907 (1) Carrying amounts and estimated fair values do not include debt issuance costs. The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments: Cash equivalents: 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. 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: 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: 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. Term loan: 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: Fair value estimates for the Senior Notes incorporate quoted market prices 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 Carried at Fair Value As of June 30, 2024 and December 31, 2023, financial instruments measured at fair value on a recurring basis were as follows (amounts in thousands): Fair Value Measurements as of June 30, 2024 Level 1 Level 2 Level 3 Total Assets: Government securities $ 47,918 $ — $ — $ 47,918 Derivative contracts (recorded in Other assets) — 18,460 — 18,460 Liabilities: Derivative contracts (recorded in Other liabilities) — 5,885 — 5,885 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Government securities $ 59,470 $ — $ — $ 59,470 Derivative contracts (recorded in Other assets) — 22,777 — 22,777 Liabilities: Derivative contracts (recorded in Other liabilities) — 20,403 — 20,403 The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments: Government securities: Fair value of the Company's investments in government securities is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Derivative contracts: Fair value of derivative contracts is estimated using industry standard valuation models. These models project future cash flows and discount the future amounts to 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain/(loss) on cash flow hedges Income Statement account 2024 2023 2024 2023 Interest rate swaps Interest expense, net $ 5,532 $ (6,670) $ 11,206 $ (12,168) Income tax effect of item above (1) Income tax expense/(benefit) (1,378) 1,618 (2,790) 2,914 Total gain/(loss) on cash flow hedges $ 4,154 $ (5,052) $ 8,416 $ (9,254) (1) Income tax effects are released from Accumulated other comprehensive loss contemporaneously with the related gross pretax amount. Changes in Accumulated other comprehensive loss by component, after tax, for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Debt Securities Cash Currency Accumulated Debt Securities Cash Currency Accumulated Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Balance as of beginning of period $ 111 $ 9,405 $ (382,534) $ (373,018) $ (109) $ 22,973 $ (379,594) $ (356,730) Other comprehensive gain/(loss) before reclassifications 65 2,861 (7,563) (4,637) (80) 10,771 3,091 13,782 Reclassifications, net — (4,154) — (4,154) — (5,052) — (5,052) Net current period other comprehensive gain/(loss) 65 (1,293) (7,563) (8,791) (80) 5,719 3,091 8,730 Balance as of end of period $ 176 $ 8,112 $ (390,097) $ (381,809) $ (189) $ 28,692 $ (376,503) $ (348,000) (1) Net of deferred taxes for unrealized (gains)/losses from cash flow hedges of $0.4 million and $(1.9) million for the three months ended June 30, 2024 and 2023, respectively. Six Months Ended June 30, 2024 2023 Debt Securities Cash Currency Accumulated Debt Securities Cash Currency Accumulated Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Balance at beginning of period $ 65 $ 6,597 $ (336,561) $ (329,899) $ (237) $ 27,804 $ (375,493) $ (347,926) Other comprehensive gain/(loss) before reclassifications 111 9,931 (53,536) (43,494) 48 10,142 (1,010) 9,180 Reclassifications, net — (8,416) — (8,416) — (9,254) — (9,254) Net current period other comprehensive gain/(loss) 111 1,515 (53,536) (51,910) 48 888 (1,010) (74) Balance at end of period $ 176 $ 8,112 $ (390,097) $ (381,809) $ (189) $ 28,692 $ (376,503) $ (348,000) (1) Net of deferred taxes for unrealized gains from cash flow hedges $(2.7) million and $(9.5) million for the six months ended June 30, 2024 and 2023, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share: Basic earnings per share ("EPS") are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS, with the denominator adjusted for nonvested share awards, if dilutive. Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive. The dilutive effect of nonvested shares is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the vesting of nonvested shares would be used to purchase common shares at the average market price for the period. The following tables provide a reconciliation between the computation of basic and diluted EPS f or the three and six months ended June 30, 2024 and 2023 (amounts in thousands, except per share amounts): Three Months Ended June 30, 2024 2023 Net Income Attributable to PRA Group, Inc. Weighted EPS Net Loss Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 21,516 39,364 $ 0.55 $ (3,804) 39,190 $ (0.10) Dilutive effect of nonvested share awards 182 (0.01) — — Diluted EPS $ 21,516 39,546 $ 0.54 $ (3,804) 39,190 $ (0.10) Six Months Ended June 30, 2024 2023 Net Loss Attributable to PRA Group, Inc. Weighted EPS Net Income Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 24,991 39,319 $ 0.64 $ (62,433) 39,111 $ (1.60) Dilutive effect of nonvested share awards 178 (0.01) — — Diluted EPS $ 24,991 39,497 $ 0.63 $ (62,433) 39,111 $ (1.60) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies: Forward Flow Agreements: The Company enters into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period. The amounts purchased are also dependent on actual delivery by the sellers, and while purchases under these agreements comprise a significant portion of the Company's overall purchases, as of June 30, 2024, the minimum purchase obligation under these forward flow agreements was not significant. Litigation and Regulatory Matters: The Company and its subsidiaries are from time-to-time subject to a variety of 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 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 claim, 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 exceed the current estimate. 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 21,516 | $ (3,804) | $ 24,991 | $ (62,433) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Martin Sjölund [Member] | |
Trading Arrangements, by Individual | |
Name | Martin Sjölund |
Title | President of PRA Group Europe |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 31, 2024 |
Expiration Date | May 30, 2025 |
Arrangement Duration | 364 days |
Aggregate Available | 14,433 |
Organization and Business (Poli
Organization and Business (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, its Consolidated Income Statements and Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023, and its Consolidated Statements of Changes in Equity and Statements of Cash Flows for the six months ended June 30, 2024 and 2023, have been included. 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. |
New Accounting Pronouncements | Recently issued accounting standards not yet adopted: In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating both ASU 2023-07 and ASU 2023-09 to determine the impacts on its disclosures. |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Amortized cost $ — $ — Negative allowance for expected recoveries 3,820,186 3,656,598 Balance at end of period $ 3,820,186 $ 3,656,598 |
Schedule of Changes in Negative Allowance for Expected Recoveries | Changes in the negative allowance for expected recoveries by portfolio segment for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Balance at beginning of period $ 3,298,092 $ 352,103 $ 3,650,195 $ 2,935,850 $ 350,647 $ 3,286,497 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 326,752 52,617 379,369 308,274 19,485 327,759 Foreign currency translation adjustment (13,623) 205 (13,418) 23,380 4,034 27,414 Recoveries applied to negative allowance (2) (226,247) (43,033) (269,280) (198,897) (39,361) (238,258) Changes in expected recoveries (3) 65,747 7,573 73,320 17,798 3,338 21,136 Balance at end of period $ 3,450,721 $ 369,465 $ 3,820,186 $ 3,086,405 $ 338,143 $ 3,424,548 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Balance at beginning of period $ 3,295,214 $ 361,384 $ 3,656,598 $ 2,936,207 $ 358,801 $ 3,295,008 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 545,409 79,777 625,186 515,595 42,389 557,984 Foreign currency translation adjustment (63,750) (1,902) (65,652) 43,216 8,082 51,298 Recoveries applied to negative allowance (2) (441,463) (79,477) (520,940) (385,283) (78,683) (463,966) Changes in expected recoveries (3) 115,311 9,683 124,994 (23,330) 7,554 (15,776) Balance at end of period $ 3,450,721 $ 369,465 $ 3,820,186 $ 3,086,405 $ 338,143 $ 3,424,548 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Face value $ 2,402,148 $ 279,417 $ 2,681,565 $ 2,217,262 $ 91,940 $ 2,309,202 Noncredit discount (316,934) (23,186) (340,120) (240,532) (6,742) (247,274) Allowance for credit losses at acquisition (1,758,462) (203,614) (1,962,076) (1,668,456) (65,713) (1,734,169) Purchase price $ 326,752 $ 52,617 $ 379,369 $ 308,274 $ 19,485 $ 327,759 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Face value $ 4,110,779 $ 393,633 $ 4,504,412 $ 3,725,226 $ 196,750 $ 3,921,976 Noncredit discount (548,319) (36,628) (584,947) (391,043) (14,784) (405,827) Allowance for credit losses at acquisition (3,017,051) (277,228) (3,294,279) (2,818,588) (139,577) (2,958,165) Purchase price $ 545,409 $ 79,777 $ 625,186 $ 515,595 $ 42,389 $ 557,984 The initial negative allowance recorded on portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 was as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Allowance for credit losses at acquisition $ (1,758,462) $ (203,614) $ (1,962,076) $ (1,668,456) $ (65,713) $ (1,734,169) Writeoffs, net 1,758,462 203,614 1,962,076 1,668,456 65,713 1,734,169 Expected recoveries 326,752 52,617 379,369 308,274 19,485 327,759 Initial negative allowance for expected recoveries $ 326,752 $ 52,617 $ 379,369 $ 308,274 $ 19,485 $ 327,759 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Allowance for credit losses at acquisition $ (3,017,051) $ (277,228) $ (3,294,279) $ (2,818,588) $ (139,577) $ (2,958,165) Writeoffs, net 3,017,051 277,228 3,294,279 2,818,588 139,577 2,958,165 Expected recoveries 545,409 79,777 625,186 515,595 42,389 557,984 Initial negative allowance for expected recoveries $ 545,409 $ 79,777 $ 625,186 $ 515,595 $ 42,389 $ 557,984 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries (a) $ 423,659 $ 54,911 $ 478,570 $ 373,178 $ 49,370 $ 422,548 Less - amounts reclassified to portfolio income 197,412 11,878 209,290 174,281 10,009 184,290 Recoveries applied to negative allowance $ 226,247 $ 43,033 $ 269,280 $ 198,897 $ 39,361 $ 238,258 Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries (a) $ 829,972 $ 102,314 $ 932,286 $ 737,414 $ 99,084 $ 836,498 Less - amounts reclassified to portfolio income 388,509 22,837 411,346 352,131 20,401 372,532 Recoveries applied to negative allowance $ 441,463 $ 79,477 $ 520,940 $ 385,283 $ 78,683 $ 463,966 (a) Recoveries include cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries The Company develops its estimates of expected recoveries by applying discounted cash flow methodologies to its estimated remaining collections and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. For additional information about these methodologies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K. Changes in expected recoveries for the three months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries received in excess of forecast $ 46,830 $ 7,430 $ 54,260 $ 21,536 $ 3,812 $ 25,348 Changes in expected future recoveries 18,917 143 19,060 (3,738) (474) (4,212) Changes in expected recoveries $ 65,747 $ 7,573 $ 73,320 $ 17,798 $ 3,338 $ 21,136 Changes in expected recoveries for the three months ended June 30, 2024 were $73.3 million, which included $54.3 million in recoveries received in excess of forecast (cash collections overperformance), due mainly to collections performance in the U.S., driven in large part by the Company's cash-generating initiatives, coupled with collections performance in Europe. Changes in expected future recoveries of $19.1 million mainly reflect the Company's assessment of certain pools in the U.S. and Europe, resulting in an increase to the expected cash flows based primarily on overperformance in recent periods. The increase in expected cash flows was driven in large part by forecast increases to the 2013 to 2019 U.S. Core pools, as well as increases to a number of pools in Europe. Changes in expected recoveries for the three months ended June 30, 2023 were a net positive $21.1 million. This included $25.3 million in recoveries received in excess of forecast (cash collections overperformance) and a $4.2 million negative adjustment to changes in expected future recoveries. The $25.3 million in recoveries received in excess of forecast was largely due to overperformance generated from larger than expected one-time payments in Europe and performance on new vintages in South America. Changes in expected recoveries for the six months ended June 30, 2024 and 2023 were as follows (amounts in thousands): Six Months Ended June 30, 2024 2023 Core Insolvency Total Core Insolvency Total Recoveries received in excess of forecast $ 80,748 $ 9,350 $ 90,098 $ 21,823 $ 7,363 $ 29,186 Changes in expected future recoveries 34,563 333 34,896 (45,153) 191 (44,962) Changes in expected recoveries $ 115,311 $ 9,683 $ 124,994 $ (23,330) $ 7,554 $ (15,776) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Debt securities Available-for-sale $ 47,918 $ 59,470 Equity securities Private equity funds 2,281 2,451 Equity method investment 9,420 10,483 Total investments $ 59,619 $ 72,404 |
Schedule of Amortized Cost and Estimated Fair Value in Debt Securities | June 30, 2024 and December 31, 2023, the amortized cost and fair value of these investments were as follows (amounts in thousands): June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 47,741 $ 177 $ — $ 47,918 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 59,404 $ 66 $ — $ 59,470 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | hanges in goodwill for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance as of beginning of period $ 411,846 $ 420,647 $ 431,564 $ 435,921 Foreign currency translation 3,800 (5,742) (15,918) (21,016) Balance as of end of period $ 415,646 $ 414,905 $ 415,646 $ 414,905 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 North American revolving credit facility (1) $ 219,305 $ 396,303 United Kingdom revolving credit facility (2) 495,665 502,847 European revolving credit facility (3) 533,653 538,565 North American term loan (4) 435,000 442,500 Credit facility borrowings 1,683,623 1,880,215 Senior Notes due 2025 (the "2025 Notes") 298,000 298,000 Senior Notes due 2028 (the "2028 Notes") 398,000 398,000 Senior Notes due 2029 (the "2029 Notes") 350,000 350,000 Senior Notes due 2030 (the "2030 Notes") 400,000 — Senior notes 1,446,000 1,046,000 Credit facility borrowings and senior notes 3,129,623 2,926,215 Debt discount and issuance costs (15,846) (11,945) Borrowings $ 3,113,777 $ 2,914,270 (1) Revolving credit facility under the Company's North American Revolving Credit and Term Loan (the "North American Credit Agreement"), which includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), consisting of (i) a fully-funded $435.0 million term loan (the "Term Loan"), (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 million Canadian revolving credit facility, maturing on July 30, 2026. (2) Revolving credit facility under the Company's United Kingdom ("UK") Credit Agreement (the "UK Credit Agreement"), consisting of an $800.0 million revolving credit facility (subject to a borrowing base) a nd an accordion f eature for up to $200.0 million in additional commitments, subject to certain conditions, maturing on July 30, 2026 . (3) Revolving credit facility under the Company's European Credit Agreement (the "European Credit Agreement"), providing revolving borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base and applicable debt covenants) and an accordion feature for up to €500.0 million, subject to certain conditions, maturing on November 23, 2027. As of June 30, 2024, after an increase in the limit during the prior quarter, interest bearing deposits in AK Nordic AB cannot exceed SEK2.2 billion . (4) Term Loan under t he North American Credit Agreement. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the fair value of derivative financial instruments as of June 30, 2024 and December 31, 2023 (amounts in thousands): June 30, 2024 December 31, 2023 Balance Sheet Account Fair Value Balance Sheet Account Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 17,570 Other assets $ 21,770 Interest rate contracts Other liabilities 5,379 Other liabilities 11,627 Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 890 Other assets 1,007 Foreign currency contracts Other liabilities 506 Other liabilities 8,776 |
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 for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Gain recognized in OCI, net of tax Three Months Ended June 30, Six Months Ended June 30, Hedging instrument 2024 2023 2024 2023 Interest rate contracts $ 2,860 $ 10,771 $ 9,930 $ 10,142 Gain reclassified from OCI into income Three Months Ended June 30, Six Months Ended June 30, Income statement account 2024 2023 2024 2023 Interest expense, net $ 5,532 $ 6,670 $ 11,206 $ 12,168 |
Schedule of derivative instruments not designated as hedging instruments | The following table summarizes the effects of derivatives not designated as hedging instruments for the three and six months ended June 30, 2024 and 2023 (amounts in thousands): Gain/(loss) recognized in income Derivatives not designated as hedging instruments Three Months Ended June 30, Six Months Ended June 30, Income statement account 2024 2023 2024 2023 Foreign currency contracts Foreign exchange gain/(loss), net $ 726 $ (7,589) $ 826 $ (15,287) Foreign currency contracts Interest expense, net 117 631 309 1,153 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not required to be carried at fair value | carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows (amounts in thousands): June 30, 2024 December 31, 2023 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 118,865 $ 118,865 $ 112,528 $ 112,528 Finance receivables, net 3,820,186 3,250,769 3,656,598 3,167,798 Financial liabilities: Interest-bearing deposits 114,991 114,991 115,589 115,589 Revolving lines of credit 1,248,623 1,248,623 1,437,715 1,437,715 Term Loan (1) 435,000 435,000 442,500 442,500 Senior notes (1) 1,446,000 1,397,557 1,046,000 964,907 (1) Carrying amounts and estimated fair values do not include debt issuance costs. The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments: Cash equivalents: 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. 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: 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: 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. Term loan: 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: Fair value estimates for the Senior Notes incorporate quoted market prices 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. |
Schedule of financial instruments required to be carried at fair value | at fair value on a recurring basis were as follows (amounts in thousands): Fair Value Measurements as of June 30, 2024 Level 1 Level 2 Level 3 Total Assets: Government securities $ 47,918 $ — $ — $ 47,918 Derivative contracts (recorded in Other assets) — 18,460 — 18,460 Liabilities: Derivative contracts (recorded in Other liabilities) — 5,885 — 5,885 Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Government securities $ 59,470 $ — $ — $ 59,470 Derivative contracts (recorded in Other assets) — 22,777 — 22,777 Liabilities: Derivative contracts (recorded in Other liabilities) — 20,403 — 20,403 The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments: Government securities: Fair value of the Company's investments in government securities is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Derivative contracts: Fair value of derivative contracts is estimated using industry standard valuation models. These models project future cash flows and discount the future amounts to 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. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain/(loss) on cash flow hedges Income Statement account 2024 2023 2024 2023 Interest rate swaps Interest expense, net $ 5,532 $ (6,670) $ 11,206 $ (12,168) Income tax effect of item above (1) Income tax expense/(benefit) (1,378) 1,618 (2,790) 2,914 Total gain/(loss) on cash flow hedges $ 4,154 $ (5,052) $ 8,416 $ (9,254) (1) Income tax effects are released from Accumulated other comprehensive loss contemporaneously with the related gross pretax amount. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive loss by component, after tax, for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands): Three Months Ended June 30, 2024 2023 Debt Securities Cash Currency Accumulated Debt Securities Cash Currency Accumulated Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Balance as of beginning of period $ 111 $ 9,405 $ (382,534) $ (373,018) $ (109) $ 22,973 $ (379,594) $ (356,730) Other comprehensive gain/(loss) before reclassifications 65 2,861 (7,563) (4,637) (80) 10,771 3,091 13,782 Reclassifications, net — (4,154) — (4,154) — (5,052) — (5,052) Net current period other comprehensive gain/(loss) 65 (1,293) (7,563) (8,791) (80) 5,719 3,091 8,730 Balance as of end of period $ 176 $ 8,112 $ (390,097) $ (381,809) $ (189) $ 28,692 $ (376,503) $ (348,000) (1) Net of deferred taxes for unrealized (gains)/losses from cash flow hedges of $0.4 million and $(1.9) million for the three months ended June 30, 2024 and 2023, respectively. Six Months Ended June 30, 2024 2023 Debt Securities Cash Currency Accumulated Debt Securities Cash Currency Accumulated Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Available-for-sale Flow Hedges Translation Adjustments Other Comp. Loss (1) Balance at beginning of period $ 65 $ 6,597 $ (336,561) $ (329,899) $ (237) $ 27,804 $ (375,493) $ (347,926) Other comprehensive gain/(loss) before reclassifications 111 9,931 (53,536) (43,494) 48 10,142 (1,010) 9,180 Reclassifications, net — (8,416) — (8,416) — (9,254) — (9,254) Net current period other comprehensive gain/(loss) 111 1,515 (53,536) (51,910) 48 888 (1,010) (74) Balance at end of period $ 176 $ 8,112 $ (390,097) $ (381,809) $ (189) $ 28,692 $ (376,503) $ (348,000) (1) Net of deferred taxes for unrealized gains from cash flow hedges $(2.7) million and $(9.5) million for the six months ended June 30, 2024 and 2023, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation Between the Computation of Basic and Diluted EPS | The following tables provide a reconciliation between the computation of basic and diluted EPS f or the three and six months ended June 30, 2024 and 2023 (amounts in thousands, except per share amounts): Three Months Ended June 30, 2024 2023 Net Income Attributable to PRA Group, Inc. Weighted EPS Net Loss Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 21,516 39,364 $ 0.55 $ (3,804) 39,190 $ (0.10) Dilutive effect of nonvested share awards 182 (0.01) — — Diluted EPS $ 21,516 39,546 $ 0.54 $ (3,804) 39,190 $ (0.10) Six Months Ended June 30, 2024 2023 Net Loss Attributable to PRA Group, Inc. Weighted EPS Net Income Attributable to PRA Group, Inc. Weighted EPS Basic EPS $ 24,991 39,319 $ 0.64 $ (62,433) 39,111 $ (1.60) Dilutive effect of nonvested share awards 178 (0.01) — — Diluted EPS $ 24,991 39,497 $ 0.63 $ (62,433) 39,111 $ (1.60) |
Finance Receivables, net (Rollf
Finance Receivables, net (Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||||||||
Amortized cost | $ 0 | $ 0 | $ 0 | |||||
Negative allowance for expected recoveries | 3,820,186 | 3,820,186 | 3,656,598 | |||||
Balance at end of period | 3,820,186 | $ 3,424,548 | 3,820,186 | $ 3,424,548 | $ 3,650,195 | 3,656,598 | $ 3,286,497 | $ 3,295,008 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Balance at end of period | 3,820,186 | 3,424,548 | 3,820,186 | 3,424,548 | 3,650,195 | 3,656,598 | 3,286,497 | 3,295,008 |
Initial negative allowance for expected recoveries - acquisitions | 379,369 | 327,759 | 625,186 | 557,984 | ||||
Foreign currency translation adjustment | (13,418) | 27,414 | (65,652) | 51,298 | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | (269,280) | (238,258) | (520,940) | (463,966) | ||||
Changes in estimated recoveries | 73,320 | 21,136 | 124,994 | (15,776) | ||||
Core | ||||||||
Receivables [Abstract] | ||||||||
Balance at end of period | 3,450,721 | 3,086,405 | 3,450,721 | 3,086,405 | 3,298,092 | 3,295,214 | 2,935,850 | 2,936,207 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Balance at end of period | 3,450,721 | 3,086,405 | 3,450,721 | 3,086,405 | 3,298,092 | 3,295,214 | 2,935,850 | 2,936,207 |
Initial negative allowance for expected recoveries - acquisitions | 326,752 | 308,274 | 545,409 | 515,595 | ||||
Foreign currency translation adjustment | (13,623) | 23,380 | (63,750) | 43,216 | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | (226,247) | (198,897) | (441,463) | (385,283) | ||||
Changes in estimated recoveries | 65,747 | 17,798 | 115,311 | (23,330) | ||||
Insolvency | ||||||||
Receivables [Abstract] | ||||||||
Balance at end of period | 369,465 | 338,143 | 369,465 | 338,143 | 352,103 | 361,384 | 350,647 | 358,801 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Balance at end of period | 369,465 | 338,143 | 369,465 | 338,143 | $ 352,103 | $ 361,384 | $ 350,647 | $ 358,801 |
Initial negative allowance for expected recoveries - acquisitions | 52,617 | 19,485 | 79,777 | 42,389 | ||||
Foreign currency translation adjustment | 205 | 4,034 | (1,902) | 8,082 | ||||
Financing Receivable, Allowance for Credit Loss, Recovery | (43,033) | (39,361) | (79,477) | (78,683) | ||||
Changes in estimated recoveries | $ 7,573 | $ 3,338 | $ 9,683 | $ 7,554 |
Finance Receivables, net Financ
Finance Receivables, net Finance Receivables, net (Allowance for Expected Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Balance at beginning of period | $ 3,656,598 | |||||||
Initial negative allowance for expected recoveries - acquisitions | $ 379,369 | $ 327,759 | 625,186 | $ 557,984 | ||||
Foreign currency translation adjustment | (13,418) | 27,414 | (65,652) | 51,298 | ||||
Recoveries applied to negative allowance | 269,280 | 238,258 | 520,940 | 463,966 | ||||
Changes in estimated recoveries | 73,320 | 21,136 | 124,994 | (15,776) | ||||
Balance at end of period | 3,820,186 | 3,820,186 | ||||||
Balance at end of period | 3,820,186 | 3,424,548 | 3,820,186 | 3,424,548 | $ 3,650,195 | $ 3,656,598 | $ 3,286,497 | $ 3,295,008 |
Core | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Initial negative allowance for expected recoveries - acquisitions | 326,752 | 308,274 | 545,409 | 515,595 | ||||
Foreign currency translation adjustment | (13,623) | 23,380 | (63,750) | 43,216 | ||||
Recoveries applied to negative allowance | 226,247 | 198,897 | 441,463 | 385,283 | ||||
Changes in estimated recoveries | 65,747 | 17,798 | 115,311 | (23,330) | ||||
Balance at end of period | 3,450,721 | 3,086,405 | 3,450,721 | 3,086,405 | 3,298,092 | 3,295,214 | 2,935,850 | 2,936,207 |
Insolvency | ||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||||
Initial negative allowance for expected recoveries - acquisitions | 52,617 | 19,485 | 79,777 | 42,389 | ||||
Foreign currency translation adjustment | 205 | 4,034 | (1,902) | 8,082 | ||||
Recoveries applied to negative allowance | 43,033 | 39,361 | 79,477 | 78,683 | ||||
Changes in estimated recoveries | 7,573 | 3,338 | 9,683 | 7,554 | ||||
Balance at end of period | $ 369,465 | $ 338,143 | $ 369,465 | $ 338,143 | $ 352,103 | $ 361,384 | $ 350,647 | $ 358,801 |
Finance Receivables, net (Portf
Finance Receivables, net (Portfolio Acquisitions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Face value | $ 2,681,565 | $ 2,309,202 | $ 4,504,412 | $ 3,921,976 |
Noncredit discount | (340,120) | (247,274) | (584,947) | (405,827) |
Allowance for credit losses at acquisition | (1,962,076) | (1,734,169) | (3,294,279) | (2,958,165) |
Purchase price | 379,369 | 327,759 | 625,186 | 557,984 |
Core | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Face value | 2,402,148 | 2,217,262 | 4,110,779 | 3,725,226 |
Noncredit discount | (316,934) | (240,532) | (548,319) | (391,043) |
Allowance for credit losses at acquisition | (1,758,462) | (1,668,456) | (3,017,051) | (2,818,588) |
Purchase price | 326,752 | 308,274 | 545,409 | 515,595 |
Insolvency | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Face value | 279,417 | 91,940 | 393,633 | 196,750 |
Noncredit discount | (23,186) | (6,742) | (36,628) | (14,784) |
Allowance for credit losses at acquisition | (203,614) | (65,713) | (277,228) | (139,577) |
Purchase price | $ 52,617 | $ 19,485 | $ 79,777 | $ 42,389 |
Finance Receivables, net Fina_2
Finance Receivables, net Finance Receivables, net (Initial Negative Allowance for Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for credit losses at acquisition | $ (1,962,076) | $ (1,734,169) | $ (3,294,279) | $ (2,958,165) | ||||
Writeoffs, net | 1,962,076 | 1,734,169 | 3,294,279 | 2,958,165 | ||||
Expected recoveries | 379,369 | 327,759 | 625,186 | 557,984 | ||||
Purchase price | 379,369 | 327,759 | 625,186 | 557,984 | ||||
Amortized cost | 0 | 0 | $ 0 | |||||
Negative allowance for expected recoveries | 3,820,186 | 3,820,186 | 3,656,598 | |||||
Balance at end of period | 3,820,186 | 3,424,548 | 3,820,186 | 3,424,548 | $ 3,650,195 | 3,656,598 | $ 3,286,497 | $ 3,295,008 |
Core | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for credit losses at acquisition | (1,758,462) | (1,668,456) | (3,017,051) | (2,818,588) | ||||
Writeoffs, net | 1,758,462 | 1,668,456 | 3,017,051 | 2,818,588 | ||||
Expected recoveries | 326,752 | 308,274 | 545,409 | 515,595 | ||||
Purchase price | 326,752 | 308,274 | 545,409 | 515,595 | ||||
Balance at end of period | 3,450,721 | 3,086,405 | 3,450,721 | 3,086,405 | 3,298,092 | 3,295,214 | 2,935,850 | 2,936,207 |
Insolvency | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for credit losses at acquisition | (203,614) | (65,713) | (277,228) | (139,577) | ||||
Writeoffs, net | 203,614 | 65,713 | 277,228 | 139,577 | ||||
Expected recoveries | 52,617 | 19,485 | 79,777 | 42,389 | ||||
Purchase price | 52,617 | 19,485 | 79,777 | 42,389 | ||||
Balance at end of period | $ 369,465 | $ 338,143 | $ 369,465 | $ 338,143 | $ 352,103 | $ 361,384 | $ 350,647 | $ 358,801 |
Finance Receivables, net Fina_3
Finance Receivables, net Finance Receivables, net (Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Recoveries | $ 478,570 | $ 422,548 | $ 932,286 | $ 836,498 | ||||
Less - amounts reclassified to portfolio income | 209,290 | 184,290 | 411,346 | 372,532 | ||||
Recoveries applied to negative allowance | 269,280 | 238,258 | 520,940 | 463,966 | ||||
Amortized cost | 0 | 0 | $ 0 | |||||
Balance at end of period | 3,820,186 | $ 3,650,195 | 3,424,548 | $ 3,286,497 | 3,820,186 | 3,424,548 | 3,656,598 | $ 3,295,008 |
Initial negative allowance for expected recoveries - acquisitions | 379,369 | 327,759 | 625,186 | 557,984 | ||||
Foreign currency translation adjustment | (13,418) | 27,414 | (65,652) | 51,298 | ||||
Changes in estimated recoveries | 73,320 | 21,136 | 124,994 | (15,776) | ||||
Debt Securities, Available-for-Sale | 47,918 | 47,918 | 59,470 | |||||
Equity Method Investments | 9,420 | 9,420 | 10,483 | |||||
Additional Paid-in Capital | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Vesting of restricted stock | (1) | (1) | 0 | (2) | ||||
Common Stock | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Vesting of restricted stock | 1 | 1 | 0 | 2 | ||||
Government Bonds and Fixed Income Funds [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Debt Securities, Available-for-Sale, Amortized Cost | 47,741 | 47,741 | 59,404 | |||||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 177 | 177 | 66 | |||||
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | 0 | |||||
Debt Securities, Available-for-Sale | 47,918 | 47,918 | 59,470 | |||||
Core | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Recoveries | 423,659 | 373,178 | 829,972 | 737,414 | ||||
Less - amounts reclassified to portfolio income | 197,412 | 174,281 | 388,509 | 352,131 | ||||
Recoveries applied to negative allowance | 226,247 | 198,897 | 441,463 | 385,283 | ||||
Balance at end of period | 3,450,721 | 3,298,092 | 3,086,405 | 2,935,850 | 3,450,721 | 3,086,405 | 3,295,214 | 2,936,207 |
Initial negative allowance for expected recoveries - acquisitions | 326,752 | 308,274 | 545,409 | 515,595 | ||||
Foreign currency translation adjustment | (13,623) | 23,380 | (63,750) | 43,216 | ||||
Changes in estimated recoveries | 65,747 | 17,798 | 115,311 | (23,330) | ||||
Insolvency | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Recoveries | 54,911 | 49,370 | 102,314 | 99,084 | ||||
Less - amounts reclassified to portfolio income | 11,878 | 10,009 | 22,837 | 20,401 | ||||
Recoveries applied to negative allowance | 43,033 | 39,361 | 79,477 | 78,683 | ||||
Balance at end of period | 369,465 | $ 352,103 | 338,143 | $ 350,647 | 369,465 | 338,143 | $ 361,384 | $ 358,801 |
Initial negative allowance for expected recoveries - acquisitions | 52,617 | 19,485 | 79,777 | 42,389 | ||||
Foreign currency translation adjustment | 205 | 4,034 | (1,902) | 8,082 | ||||
Changes in estimated recoveries | $ 7,573 | $ 3,338 | $ 9,683 | $ 7,554 |
Finance Receivables, net (Chang
Finance Receivables, net (Changes in Estimated Future Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Changes in expected future recoveries | $ 19,060 | $ (4,212) | $ 34,896 | $ (44,962) |
Recoveries received in excess of forecast | 54,260 | 25,348 | 90,098 | 29,186 |
Financing Receivable, Allowance For Credit Loss, Changes In Estimated Recoveries | 73,320 | 21,136 | 124,994 | (15,776) |
Recoveries | 478,570 | 422,548 | 932,286 | 836,498 |
Less - amounts reclassified to portfolio income | 209,290 | 184,290 | 411,346 | 372,532 |
Recoveries applied to negative allowance | 269,280 | 238,258 | 520,940 | 463,966 |
Core | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Changes in expected future recoveries | 18,917 | (3,738) | 34,563 | (45,153) |
Recoveries received in excess of forecast | 46,830 | 21,536 | 80,748 | 21,823 |
Financing Receivable, Allowance For Credit Loss, Changes In Estimated Recoveries | 65,747 | 17,798 | 115,311 | (23,330) |
Recoveries | 423,659 | 373,178 | 829,972 | 737,414 |
Less - amounts reclassified to portfolio income | 197,412 | 174,281 | 388,509 | 352,131 |
Recoveries applied to negative allowance | 226,247 | 198,897 | 441,463 | 385,283 |
Insolvency | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Changes in expected future recoveries | 143 | (474) | 333 | 191 |
Recoveries received in excess of forecast | 7,430 | 3,812 | 9,350 | 7,363 |
Financing Receivable, Allowance For Credit Loss, Changes In Estimated Recoveries | 7,573 | 3,338 | 9,683 | 7,554 |
Recoveries | 54,911 | 49,370 | 102,314 | 99,084 |
Less - amounts reclassified to portfolio income | 11,878 | 10,009 | 22,837 | 20,401 |
Recoveries applied to negative allowance | $ 43,033 | $ 39,361 | $ 79,477 | $ 78,683 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||||
Changes in estimated recoveries | $ 73,320 | $ 21,136 | $ 124,994 | $ (15,776) |
Recoveries received in excess of forecast | 54,260 | 25,348 | 90,098 | 29,186 |
Changes in expected future recoveries | $ 19,060 | $ (4,212) | $ 34,896 | $ (44,962) |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities [Abstract] | ||
Debt Securities, Available-for-Sale | $ 47,918 | $ 59,470 |
Equity Securities [Abstract] | ||
Equity Method Investments | 9,420 | 10,483 |
Investments | 59,619 | 72,404 |
Private equity funds | ||
Equity Securities [Abstract] | ||
Equity Securities, FV-NI, Current | $ 2,281 | $ 2,451 |
Investments - Amortized Costs (
Investments - Amortized Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-sale | ||
Debt Securities, Available-for-Sale | $ 47,918 | $ 59,470 |
Government Bonds and Fixed Income Funds | ||
Available-for-sale | ||
Debt Securities, Available-for-Sale, Amortized Cost | 47,741 | 59,404 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 177 | 66 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale | $ 47,918 | $ 59,470 |
Investments - Narrative (Detail
Investments - Narrative (Details) | Jun. 30, 2024 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 411,846 | $ 420,647 | $ 431,564 | $ 435,921 |
Goodwill, Foreign Currency Translation Gain (Loss) | 3,800 | (5,742) | (15,918) | (21,016) |
Goodwill, Ending Balance | $ 415,646 | $ 414,905 | $ 415,646 | $ 414,905 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) € in Millions, kr in Billions | 3 Months Ended | ||||
May 20, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 SEK (kr) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt outstanding | $ 3,129,623,000 | $ 2,926,215,000 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (15,846,000) | (11,945,000) | |||
Debt, Long-Term and Short-Term, Combined Amount | 3,113,777,000 | 2,914,270,000 | |||
North American Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | ||||
Repayments of Lines of Credit | 395,900,000 | ||||
Loans Payable | North American Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | 435,000,000 | 442,500,000 | |||
Line of Credit and Loans Payable | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | 1,683,623,000 | 1,880,215,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 1,446,000,000 | 1,046,000,000 | |||
Senior Notes | 2029 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 350,000,000 | 350,000,000 | |||
Senior Notes | 2028 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 398,000,000 | 398,000,000 | |||
Senior Notes | 2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 298,000,000 | 298,000,000 | |||
Senior Notes | 2030 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 400,000,000 | 400,000,000 | 0 | ||
Stated percentage | 8.875% | ||||
Senior Notes | 2030 Notes | Change Of Control Event | |||||
Debt Instrument [Line Items] | |||||
Redemption price of original principal amount | 101% | ||||
Senior Notes | 2030 Notes | Certain Asset Sale Events | |||||
Debt Instrument [Line Items] | |||||
Redemption price of original principal amount | 100% | ||||
Senior Notes | 2030 Notes | On or Before June 1, 2026 | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of aggregate principal amount | 100% | ||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed - Offering of Common Stock | 40% | ||||
Redemption price of original principal amount | 108.875% | ||||
Redemption price, minimum percentage of principal amount outstanding | 60% | ||||
Senior Notes | 2030 Notes | On or After June 1, 2026 | |||||
Debt Instrument [Line Items] | |||||
Redemption price of original principal amount | 104.438% | ||||
Senior Notes | 2030 Notes | June 1, 2027 to May 31, 2028 | |||||
Debt Instrument [Line Items] | |||||
Redemption price of original principal amount | 102.219% | ||||
Senior Notes | 2030 Notes | June 1, 2028 and Thereafter | |||||
Debt Instrument [Line Items] | |||||
Redemption price of original principal amount | 100% | ||||
Americas Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | 219,305,000 | 396,303,000 | |||
UK revolving credit facility | Line of Credit | UK Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | 495,665,000 | 502,847,000 | |||
Long term line of debt, accordion feature | 200,000,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 800,000,000 | ||||
European revolving credit facility | European Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, covenant, interest bearing deposits, maximum | kr | kr 2.2 | ||||
European revolving credit facility | Line of Credit | European Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding | 533,653,000 | $ 538,565,000 | |||
Long term line of debt, accordion feature | € | € 500 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 730 | ||||
Revolving Credit Facility | North American Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | ||||
Canadian Revolving Credit Facility | North American Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 5,885 | $ 20,403 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative Asset | $ 18,460 | $ 22,777 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Interest expense, net | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 5,379 | $ 11,627 |
Derivative Asset | 17,570 | 21,770 |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 506 | 8,776 |
Derivative Asset | $ 890 | $ 1,007 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions, $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 CAD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | |||
Hedging Contracts, ASU 2021-01 Optional Expedients, Notional Value | $ 33.2 | ||
Designated as Hedging Instrument | Interest expense, net | |||
Derivative [Line Items] | |||
Derivative, Notional Amount1 | $ 813.6 | $ 872.3 | |
Net derivative gain (loss) included in OCI to be reclassified next 12 months | 11.5 | ||
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Derivative, Notional Amount1 | $ 290.3 | $ 368.5 | |
Maximum | |||
Derivative [Line Items] | |||
Derivative, Term of Contract | 4 years | ||
Minimum | |||
Derivative [Line Items] | |||
Derivative, Term of Contract | 6 months |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effects of Derivatives Designated as Cash Flow Hedging Instruments (Details) - Interest expense, net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in OCI, net of tax | $ 2,860 | $ 10,771 | $ 9,930 | $ 10,142 |
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain reclassified from OCI into income | $ 5,532 | $ 6,670 | $ 11,206 | $ 12,168 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in income | $ 726 | $ (7,589) | $ 826 | $ (15,287) |
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in income | $ 117 | $ 631 | $ 309 | $ 1,153 |
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 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Cash and cash equivalents, carrying amount | $ 118,865 | $ 112,528 | $ 111,375 |
Financing Receivable, after Allowance for Credit Loss, Current | 3,820,186 | 3,656,598 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest-bearing deposits, carrying value | 114,991 | 115,589 | |
Restricted Cash and Cash Equivalents | 1,052 | $ 13,290 | |
Reported Value Measurement [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Cash and cash equivalents, carrying amount | 118,865 | 112,528 | |
Financing Receivable, after Allowance for Credit Loss, Current | 3,820,186 | 3,656,598 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest-bearing deposits, carrying value | 114,991 | 115,589 | |
Outstanding borrowings under credit facility | 1,248,623 | 1,437,715 | |
Term loans, carrying amount | 435,000 | 442,500 | |
Senior Notes, carrying amount | 1,446,000 | 1,046,000 | |
Estimate of Fair Value Measurement [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Cash and cash equivalents, estimated fair value | 118,865 | 112,528 | |
Finance receivables, net, estimated fair value | 3,250,769 | 3,167,798 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest-bearing deposits, fair value | 114,991 | 115,589 | |
Revolving lines of credit, estimated fair value | 1,248,623 | 1,437,715 | |
Term loans, estimated fair value | 435,000 | 442,500 | |
Debt Instrument, Fair Value Disclosure | $ 1,397,557 | $ 964,907 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Assets, Fair Value Disclosure [Abstract] | ||
Debt Securities, Available-for-Sale | $ 47,918 | $ 59,470 |
Derivative Asset | 18,460 | 22,777 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Derivative Liability | 5,885 | 20,403 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Asset | 0 | 0 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Asset | 18,460 | 22,777 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Derivative Liability | 5,885 | 20,403 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative Asset | 0 | 0 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Derivative Liability | 0 | 0 |
Government Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt Securities, Available-for-Sale | 47,918 | 59,470 |
Government Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt Securities, Available-for-Sale | 47,918 | 59,470 |
Government Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Government Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Debt Securities, Available-for-Sale | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income tax expense/(benefit) | $ 8,702 | $ 1,578 | $ 11,088 | $ (17,105) | ||||
Net income | 25,114 | 1,160 | 36,867 | (52,743) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,203,278 | 1,239,674 | 1,203,278 | 1,239,674 | $ 1,196,318 | $ 1,239,376 | $ 1,224,709 | $ 1,286,750 |
Other comprehensive (loss)/income before reclassifications, net | (4,637) | 13,782 | (43,494) | 9,180 | ||||
Reclassifications | (4,154) | (5,052) | (8,416) | (9,254) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8,791) | 8,730 | (51,910) | (74) | ||||
Interest Income (Expense), Nonoperating | (55,353) | (43,022) | (107,631) | (81,305) | ||||
Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 8,112 | 28,692 | 8,112 | 28,692 | 9,405 | 6,597 | 22,973 | 27,804 |
Other comprehensive (loss)/income before reclassifications, net | 2,861 | 10,771 | 9,931 | 10,142 | ||||
Reclassifications | (4,154) | (5,052) | (8,416) | (9,254) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1,293) | 5,719 | 1,515 | 888 | ||||
Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (390,097) | (376,503) | (390,097) | (376,503) | (382,534) | (336,561) | (379,594) | (375,493) |
Other comprehensive (loss)/income before reclassifications, net | (7,563) | 3,091 | (53,536) | (1,010) | ||||
Reclassifications | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (7,563) | 3,091 | (53,536) | (1,010) | ||||
Debt Securities Available-for-sale | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 176 | (189) | 176 | (189) | 111 | 65 | (109) | (237) |
Other comprehensive (loss)/income before reclassifications, net | 65 | (80) | 111 | 48 | ||||
Reclassifications | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 65 | (80) | 111 | 48 | ||||
Accumulated Other Comprehensive (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (381,809) | (348,000) | (381,809) | (348,000) | $ (373,018) | $ (329,899) | $ (356,730) | $ (347,926) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Income tax expense/(benefit) | (1,378) | 1,618 | (2,790) | 2,914 | ||||
Net income | 4,154 | (5,052) | 8,416 | (9,254) | ||||
Interest Income (Expense), Nonoperating | $ 5,532 | $ (6,670) | $ 11,206 | $ (12,168) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,196,318 | $ 1,224,709 | $ 1,239,376 | $ 1,286,750 |
Other comprehensive (loss)/income before reclassifications, net | (4,637) | 13,782 | (43,494) | 9,180 |
Reclassifications | (4,154) | (5,052) | (8,416) | (9,254) |
Other comprehensive loss attributable to PRA Group, Inc. | (8,791) | 8,730 | (51,910) | (74) |
Ending balance | 1,203,278 | 1,239,674 | 1,203,278 | 1,239,674 |
Deferred taxes for unrealized losses from cash flow hedges | 400 | (1,900) | (2,700) | (9,500) |
Debt Securities Available-for-sale | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 111 | (109) | 65 | (237) |
Other comprehensive (loss)/income before reclassifications, net | 65 | (80) | 111 | 48 |
Reclassifications | 0 | 0 | 0 | 0 |
Other comprehensive loss attributable to PRA Group, Inc. | 65 | (80) | 111 | 48 |
Ending balance | 176 | (189) | 176 | (189) |
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 9,405 | 22,973 | 6,597 | 27,804 |
Other comprehensive (loss)/income before reclassifications, net | 2,861 | 10,771 | 9,931 | 10,142 |
Reclassifications | (4,154) | (5,052) | (8,416) | (9,254) |
Other comprehensive loss attributable to PRA Group, Inc. | (1,293) | 5,719 | 1,515 | 888 |
Ending balance | 8,112 | 28,692 | 8,112 | 28,692 |
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (382,534) | (379,594) | (336,561) | (375,493) |
Other comprehensive (loss)/income before reclassifications, net | (7,563) | 3,091 | (53,536) | (1,010) |
Reclassifications | 0 | 0 | 0 | 0 |
Other comprehensive loss attributable to PRA Group, Inc. | (7,563) | 3,091 | (53,536) | (1,010) |
Ending balance | (390,097) | (376,503) | (390,097) | (376,503) |
Accumulated Other Comprehensive (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (373,018) | (356,730) | (329,899) | (347,926) |
Ending balance | $ (381,809) | $ (348,000) | $ (381,809) | $ (348,000) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 21,516 | $ (3,804) | $ 24,991 | $ (62,433) |
Weighted Average Common Shares, Basic EPS | 39,364 | 39,190 | 39,319 | 39,111 |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 182 | 0 | 178 | 0 |
Weighted Average Common Shares, Diluted EPS | 39,546 | 39,190 | 39,497 | 39,111 |
EPS, Basic (in dollars per share) | $ 0.55 | $ (0.10) | $ 0.64 | $ (1.60) |
EPS, Dilutive effect of nonvested share awards (in dollars per share) | (0.01) | 0 | (0.01) | 0 |
EPS, Diluted (in dollars per share) | $ 0.54 | $ (0.10) | $ 0.63 | $ (1.60) |