Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Nov. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Trading Symbol | ATLC | |
Entity Registrant Name | Atlanticus Holdings Corp | |
Entity Central Index Key | 1,464,343 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,867,972 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Entity Public Float | $ 14,443,220 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans and fees receivable, gross | $ 359,800 | $ 290,700 |
Loans and Leases Receivable, Net Amount | 283,843 | 239,431 |
Assets | ||
Unrestricted cash and cash equivalents | 68,582 | 76,052 |
Restricted cash and cash equivalents | 28,659 | 16,589 |
Rental merchandise, net of depreciation | 0 | 27 |
Property at cost, net of depreciation | 3,296 | 3,829 |
Investment in equity-method investee | 4,745 | 6,725 |
Deposits | 306 | 505 |
Prepaid expenses and other assets | 39,636 | 19,389 |
Total assets | 429,067 | 362,547 |
Liabilities | ||
Accounts payable and accrued expenses | 114,883 | 86,768 |
Notes Payable to Bank | 208,980 | 141,166 |
Notes Payable, Related Parties | 40,000 | 40,000 |
Notes payable associated with structured financings, at fair value | 9,769 | 12,276 |
Notes payable, at face value, net | 143,834 | 83,399 |
Convertible senior notes | 61,238 | 60,791 |
Income tax liability | 11,059 | 15,769 |
Total liabilities | 445,929 | 356,770 |
Commitments and contingencies (Note 9) | ||
Equity | ||
Common stock, no par value, 150,000,000 shares authorized: 15,443,384 shares issued and outstanding (including 1,459,233 loaned shares to be returned) at June 30, 2017; and 15,348,086 shares issued and outstanding (including 1,459,233 loaned shares to be returned) at December 31, 2016 | 0 | 0 |
Additional paid-in capital | 212,618 | 211,646 |
Accumulated other comprehensive loss | (1,096) | 0 |
Retained deficit | (228,382) | (205,859) |
Total shareholders’ equity | (16,860) | 5,787 |
Noncontrolling interests | (2) | (10) |
Total equity | (16,862) | 5,777 |
Total liabilities and equity | 429,067 | 362,547 |
Loans Receivable [Member] | ||
Loans and Fees Receivable, at Fair Value | 12,019 | 15,648 |
Loans and fees receivable, gross | 359,823 | 290,697 |
Loans and Leases Receivable, Allowance | (52,118) | (43,275) |
Loans and Leases Receivable, Deferred Income | $ 35,881 | $ 23,639 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Equity | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,335,468 | 15,348,086 |
Common stock, shares outstanding | 15,335,468 | 15,348,086 |
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Consumer loans, including past due fees | $ 28,985 | $ 24,053 | $ 81,457 | $ 63,663 |
Other | 34 | 36 | 178 | 188 |
Total interest income | 29,019 | 24,089 | 81,635 | 63,851 |
Interest expense | (7,268) | (5,257) | (19,504) | (14,693) |
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | 21,751 | 18,832 | 62,131 | 49,158 |
Fees and related income on earning assets | 4,166 | 75 | 10,938 | 13,840 |
Net recovery of charge off of loans and fees receivable recorded at fair value | 2,393 | 1,556 | 10,763 | 12,607 |
Provision for losses on loans and fees receivable recorded at net realizable value | (24,087) | (17,470) | (50,484) | (33,012) |
Net interest income, fees and related income on earning assets | 4,223 | 2,993 | 33,348 | 42,593 |
Other operating income: | ||||
Servicing income | 1,034 | 885 | 2,984 | 3,313 |
Other income | 590 | 69 | 939 | 214 |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 1,037 |
Equity in income of equity-method investee | 164 | 629 | 902 | 1,956 |
Total other operating income | 1,788 | 1,583 | 4,825 | 6,520 |
Other operating expense: | ||||
Salaries and benefits | 5,296 | 6,329 | 16,314 | 18,242 |
Cost of Services | 8,687 | 7,027 | 23,866 | 23,300 |
Marketing and solicitation | 2,072 | 587 | 6,731 | 2,374 |
Depreciation | 236 | 794 | 789 | 7,049 |
Other Nonoperating Income (Expense) | 4,210 | 3,570 | 16,842 | 6,199 |
Total other operating expense | 20,501 | 18,307 | 64,542 | 57,164 |
(Loss) Income before income taxes | (14,490) | (13,731) | (26,369) | (8,051) |
Income tax benefit (expense) | 22 | 4,666 | 3,847 | 3,811 |
Net (loss) income | (14,468) | (9,065) | (22,522) | (4,240) |
Net (income) loss attributable to noncontrolling interests | 1 | 0 | (1) | 5 |
Net (loss) income attributable to controlling interests | $ (14,467) | $ (9,065) | $ (22,523) | $ (4,235) |
Net (loss) income attributable to controlling interests per common share-basic (in dollars per share) | $ (1.04) | $ (0.65) | $ (1.61) | $ (0.31) |
Net (loss) income attributable to controlling interests per common share-diluted (in dollars per share) | $ (1.04) | $ (0.65) | $ (1.61) | $ (0.31) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other comprehensive income: | ||||
Net (loss) income | $ (14,468) | $ (9,065) | $ (22,522) | $ (4,240) |
Foreign currency translation adjustment | (1,721) | 0 | (1,721) | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | 0 | 600 |
Income tax expense related to other comprehensive income | 625 | 0 | 625 | 0 |
Comprehensive (loss) income | (15,564) | (9,065) | (23,618) | (3,640) |
Comprehensive (income) loss attributable to noncontrolling interests | 1 | 0 | (1) | 5 |
Comprehensive (loss) income attributable to controlling interests | $ (15,563) | $ (9,065) | $ (23,619) | $ (3,635) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Deficit [Member] | Noncontrolling Interests [Member] |
Balance (in shares) at Dec. 31, 2016 | 15,348,086 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 102,000 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 7,000 | $ (7,000) | ||||
Redemption and retirement of shares (in shares) | (114,618) | |||||
Balance (in shares) at Sep. 30, 2017 | 15,335,468 | |||||
Balance at Dec. 31, 2016 | 5,777,000 | $ 0 | $ 211,646,000 | $ 0 | $ (205,859,000) | (10,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Amortization of deferred stock-based compensation costs | 1,258,000 | 1,258,000 | ||||
Redemption and retirement of shares | (286,000) | (286,000) | 0 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | 0 | |||||
Net (loss) income | (22,522,000) | (22,523,000) | 1,000 | |||
Foreign currency translation adjustment, net of tax | (1,096,000) | |||||
Balance at Sep. 30, 2017 | (16,862,000) | $ 0 | $ 212,618,000 | $ (1,096,000) | $ (228,382,000) | $ (2,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (23,618,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net (loss) income | $ (22,522) | $ (4,240) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation of rental merchandise | 27 | 5,172 |
Depreciation, Depletion and Amortization | 762 | 1,877 |
Losses upon charge off of loans and fees receivable recorded at fair value | 2,973 | 4,647 |
Provision for losses on loans and fees receivable | 50,484 | 33,012 |
Interest expense from accretion of discount on convertible senior notes | 406 | 385 |
Income from accretion of discount associated with receivables purchases | (41,961) | (30,662) |
Unrealized gain on loans and fees receivable and underlying notes payable held at fair value | (4,504) | (2,931) |
Income from equity-method investments | (902) | (1,956) |
Gains (Losses) on Extinguishment of Debt | 0 | (1,037) |
Changes in assets and liabilities: | ||
Increase in uncollected fees on earning assets | (1,530) | (2,782) |
(Decrease) increase in income tax liability | (4,084) | (4,521) |
Decrease in deposits | 199 | 295 |
Increase in accounts payable and accrued expenses | 22,032 | 28,555 |
Additions to rental merchandise | 0 | (634) |
Other | (13,395) | (475) |
Net cash provided by operating activities | (12,015) | 24,705 |
Investing activities | ||
(Increase) decrease in restricted cash | (12,049) | 3,252 |
Proceeds from equity-method investee | 2,882 | 4,396 |
Investments in earning assets | (335,664) | (286,654) |
Proceeds from earning assets | 282,064 | 222,606 |
Purchases and development of property, net of disposals | (229) | (244) |
Net cash used in investing activities | (62,996) | (56,644) |
Financing activities | ||
Proceeds from Contributions from Affiliates | 7 | 4 |
Payments for Repurchase of Common Stock | 286 | 869 |
Proceeds from borrowings | 243,945 | 156,869 |
Repayments of Long-term Debt | 176,417 | 115,245 |
Net cash provided by financing activities | 67,249 | 40,759 |
Effect of exchange rate changes on cash | 292 | (1,133) |
Net decrease in unrestricted cash | (7,470) | 7,687 |
Unrestricted cash and cash equivalents at beginning of period | 76,052 | 51,033 |
Unrestricted cash and cash equivalents at end of period | 68,582 | 58,720 |
Supplemental cash flow information | ||
Cash paid for interest | 19,214 | 15,390 |
Net cash income tax payments | 238 | 710 |
Supplemental non-cash information | ||
Issuance of stock options and restricted stock | $ 1,364 | $ 2,310 |
Description of Our Business
Description of Our Business | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Our Business | Description of Our Business Our accompanying consolidated financial statements include the accounts of Atlanticus Holdings Corporation (the “Company”) and those entities we control. We are primarily focused on providing financial technology and related services. Through our subsidiaries, we provide technology and other support services to lenders who offer an array of financial products and services to consumers who may have been declined under traditional financing options. In most cases, we invest in the receivables originated by lenders who utilize our technology platform and other related services. As discussed further below, we reflect our business lines within two reportable segments: Credit and Other Investments; and Auto Finance. See also Note 3, “Segment Reporting,” for further details. Within our Credit and Other Investments segment, we facilitate consumer finance programs offered by our bank partners to originate consumer loans through multiple channels, including retail point-of-sale, direct mail solicitation, on-line and partnerships. In the retail credit (the “point-of-sale” operations) channel, we partner with retailers and service providers in various industries across the United States (“U.S.”) to enable them to provide credit to their customers for the purchase of goods and services. These services of our lending partners are often extended to consumers who may have been declined under traditional financing options. We specialize in supporting this “second look” credit service in various industries across the U.S. Additionally, we support lenders who market general purpose personal loans and credit cards directly to consumers (collectively, the “direct-to-consumer” operations) through additional channels enabling them to reach consumers through a diverse origination platform which includes direct mail, Internet-based marketing and through partnerships. Using our infrastructure and technology platform, we also provide loan servicing activities, including risk management and customer service outsourcing for third parties. Beyond these activities within our Credit and Other Investments segment, we continue to service portfolios of credit card receivables. One of our portfolios of credit card receivables is encumbered by non-recourse structured financing, and for this portfolio our principal remaining economic interest is the servicing compensation we receive as an offset against our servicing costs given that the likely future collections on the portfolio are insufficient to allow for full repayment of the financing. Additionally, we report within our Credit and Other Investments segment the income earned from an investment in an equity-method investee that holds credit card receivables for which we are the servicer. Lastly, we report within our Credit and Other Investments segment gains associated with investments previously made in consumer finance technology platforms. These include investments in companies engaged in mobile technologies, marketplace lending and other financial technologies. These investments are carried at the lower of cost or market valuation as of September 30, 2017 . Some of these investees have in the past raised capital at valuations substantially in excess of our associated book value. However, none of these companies are publicly-traded, there are no material pending liquidity events, and ascribing value to these investments at this time would be speculative. Within our Auto Finance segment, our CAR subsidiary operations principally purchase and service loans secured by automobiles from or for, and also provide floor plan financing for, a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, used car business. We purchase auto loans at a discount and with dealer retentions or holdbacks that provide risk protection. Also within our Auto Finance segment, we are providing certain installment lending products in addition to our traditional loans secured by automobiles. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate primarily within one industry consisting of two reportable segments by which we manage our business. Our two reportable segments are: Credit and Other Investments, and Auto Finance. As of both September 30, 2017 and December 31, 2016 , we did not have a material amount of long-lived assets located outside of the U.S., and only a negligible portion of our revenues for the nine months ended September 30, 2017 and 2016 were generated outside of the U.S. We measure the profitability of our reportable segments based on their income after allocation of specific costs and corporate overhead; however, our segment results do not reflect any charges for internal capital allocations among our segments. Overhead costs are allocated based on headcounts and other applicable measures to better align costs with the associated revenues. Summary operating segment information (in thousands) is as follows: Three months ended September 30, 2017 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 21,901 $ 7,084 $ 28,985 Other 34 — 34 Total interest income 21,935 7,084 29,019 Interest expense (6,998 ) (270 ) (7,268 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 14,937 $ 6,814 $ 21,751 Fees and related income on earning assets $ 4,137 $ 29 $ 4,166 Servicing income $ 831 $ 203 $ 1,034 Depreciation of rental merchandise $ — $ — $ — Equity in income of equity-method investee $ 164 $ — $ 164 (Loss) income before income taxes $ (16,547 ) $ 2,057 $ (14,490 ) Income tax benefit (expense) $ 655 $ (633 ) $ 22 Nine months ended September 30, 2017 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 60,320 $ 21,137 $ 81,457 Other 178 — 178 Total interest income 60,498 21,137 81,635 Interest expense (18,758 ) (746 ) (19,504 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 41,740 $ 20,391 $ 62,131 Fees and related income on earning assets $ 10,859 $ 79 $ 10,938 Servicing income $ 2,332 $ 652 $ 2,984 Depreciation of rental merchandise $ (27 ) $ — $ (27 ) Equity in income of equity-method investee $ 902 $ — $ 902 (Loss) income before income taxes $ (32,071 ) $ 5,702 $ (26,369 ) Income tax benefit (expense) $ 5,677 $ (1,830 ) $ 3,847 Total assets $ 363,526 $ 65,541 $ 429,067 Three months ended September 30, 2016 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 16,701 $ 7,352 $ 24,053 Other 36 — 36 Total interest income 16,737 7,352 24,089 Interest expense (4,944 ) (313 ) (5,257 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 11,793 $ 7,039 $ 18,832 Fees and related income on earning assets $ 92 $ (17 ) $ 75 Servicing income $ 645 $ 240 $ 885 Gain on repurchase of convertible senior notes $ — $ — $ — Depreciation of rental merchandise $ (458 ) $ — $ (458 ) Equity in income of equity-method investee $ 629 $ — $ 629 (Loss) income before income taxes $ (15,709 ) $ 1,978 $ (13,731 ) Income tax benefit (expense) $ 5,296 $ (630 ) $ 4,666 Nine months ended September 30, 2016 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 42,018 $ 21,645 $ 63,663 Other 188 — 188 Total interest income 42,206 21,645 63,851 Interest expense (13,735 ) (958 ) (14,693 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 28,471 $ 20,687 $ 49,158 Fees and related income on earning assets $ 13,761 $ 79 $ 13,840 Servicing income $ 2,569 $ 744 $ 3,313 Gain on repurchase of convertible senior notes $ 1,037 $ — $ 1,037 Depreciation of rental merchandise $ (5,172 ) $ — $ (5,172 ) Equity in income of equity-method investee $ 1,956 $ — $ 1,956 (Loss) income before income taxes $ (13,047 ) $ 4,996 $ (8,051 ) Income tax benefit (expense) $ 5,500 $ (1,689 ) $ 3,811 Total assets $ 267,390 $ 68,440 $ 335,830 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the three and nine months ended September 30, 2017 , we repurchased and contemporaneously retired 107,916 and 114,618 shares of our common stock at an aggregate cost of $268,000 and $286,000 , respectively, pursuant to both open market and private purchases and the return of stock by holders of equity incentive awards to pay tax withholding obligations. During the three and nine months ended September 30, 2016 , we repurchased and contemporaneously retired 39,580 and 286,223 shares of our common stock at an aggregate cost of $124,000 and $869,000 , respectively, pursuant to both open market and private purchases and the return of stock by holders of equity incentive awards to pay tax withholding obligations. We had 1,459,233 loaned shares outstanding at September 30, 2017 and December 31, 2016 , which were originally lent in connection with our November 2005 issuance of convertible senior notes. We retire lent shares as they are returned to us. |
Investments in Equity-Method In
Investments in Equity-Method Investees | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Equity-Method Investees | Investment in Equity-Method Investee Our equity-method investment outstanding at September 30, 2017 consists of our 66.7% interest in a joint venture formed to purchase a credit card receivable portfolio. In the following tables, we summarize (in thousands) balance sheet and results of operations data for our equity-method investee: As of September 30, 2017 December 31, 2016 Loans and fees receivable, at fair value $ 6,833 $ 9,650 Total assets $ 7,145 $ 10,291 Total liabilities $ 28 $ 204 Members’ capital $ 7,117 $ 10,087 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Net interest income, fees and related income on earning assets $ 247 $ 949 $ 1,358 $ 2,957 Net income $ 159 $ 822 $ 1,067 $ 2,537 Net income attributable to our equity investment in investee $ 164 $ 629 $ 902 $ 1,956 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Valuations and Techniques for Assets Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The table below summarizes (in thousands) by fair value hierarchy the September 30, 2017 and December 31, 2016 fair values and carrying amounts of (1) our assets that are required to be carried at fair value in our consolidated financial statements and (2) our assets not carried at fair value, but for which fair value disclosures are required: Assets – As of September 30, 2017 (1) Quoted Prices in Active Significant Other Significant Carrying Amount of Assets Loans and fees receivable, net for which it is practicable to estimate fair value $ — $ — $ 310,557 $ 271,824 Loans and fees receivable, at fair value $ — $ — $ 12,019 $ 12,019 Assets – As of December 31, 2016 (1) Quoted Prices in Active Significant Other Significant Carrying Amount of Assets Loans and fees receivable, net for which it is practicable to estimate fair value $ — $ — $ 248,171 $ 223,783 Loans and fees receivable, at fair value $ — $ — $ 15,648 $ 15,648 (1) For cash, deposits and other short-term investments, the carrying amount is a reasonable estimate of fair value. For those asset classes above that are required to be carried at fair value in our consolidated financial statements, gains and losses associated with fair value changes are detailed on our fees and related income on earning assets table within Note 2, “Significant Accounting Policies and Consolidated Financial Statement Components.” For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the nine months ended September 30, 2017 and 2016: Loans and Fees Receivable, at 2017 2016 Balance at January 1, $ 15,648 $ 26,706 Total gains—realized/unrealized: Net revaluations of loans and fees receivable, at fair value 2,718 568 Settlements (6,398 ) (8,590 ) Impact of foreign currency translation 51 (239 ) Balance at September 30, $ 12,019 $ 18,445 The unrealized gains and losses for assets within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. Impacts related to foreign currency translation are included as a component of other operating expense on the consolidated statements of operations. Net Revaluation of Loans and Fees Receivable. We record the net revaluation of loans and fees receivable (including those pledged as collateral) in the fees and related income on earning assets category in our consolidated statements of operations, specifically as changes in fair value of loans and fees receivable recorded at fair value. For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of September 30, 2017 and December 31, 2016 : Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at September 30, 2017 Valuation Technique Unobservable Input Range (Weighted Average) Loans and fees receivable, at fair value $ 12,019 Discounted cash flows Gross yield 16.3% to 26.7% (24.9%) Principal payment rate 1.7% to 2.8% (2.4%) Expected credit loss rate 11.2% to 13.4% (11.6%) Servicing rate 9.6% to 11.6% (9.8%) Discount rate 5.8% to 14.0% (12.7%) Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at December 31, 2016 Valuation Technique Unobservable Input Range (Weighted Average) Loans and fees receivable, at fair value $ 15,648 Discounted cash flows Gross yield 24.2% to 35.8% (26.1%) Principal payment rate 2.2% to 3.5% (2.4%) Expected credit loss rate 11.8% to 18.0% (12.9%) Servicing rate 8.6% to 9.6% (8.8%) Discount rate 5.8% to 13.6% (12.5%) Valuations and Techniques for Liabilities Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the liability. The table below summarizes (in thousands) by fair value hierarchy the September 30, 2017 and December 31, 2016 fair values and carrying amounts of (1) our liabilities that are required to be carried at fair value in our consolidated financial statements and (2) our liabilities not carried at fair value, but for which fair value disclosures are required: Liabilities – As of September 30, 2017 Quoted Prices in Active Significant Other Significant Carrying Amount of Liabilities Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 143,834 $ 143,834 Amortizing debt facilities $ — $ — $ 66,191 $ 66,191 Senior secured term loan $ — $ — $ 40,000 $ 40,000 5.875% convertible senior notes $ — $ 39,064 $ — $ 61,238 Liabilities carried at fair value Notes payable associated with structured financings, at fair value $ — $ — $ 9,769 $ 9,769 Liabilities - As of December 31, 2016 Quoted Prices in Active Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Liabilities Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 83,399 $ 83,399 Amortizing debt facilities $ — $ — $ 58,190 $ 58,190 Senior secured term loan $ — $ — $ 40,000 $ 40,000 5.875% convertible senior notes $ — $ 40,609 $ — $ 60,791 Liabilities carried at fair value Notes payable associated with structured financings, at fair value $ — $ — $ 12,276 $ 12,276 For our material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the nine months ended September 30, 2017 and 2016 . Notes Payable Associated with 2017 2016 Beginning balance, January 1 $ 12,276 $ 20,970 Total (gains) losses—realized/unrealized: Net revaluations of notes payable associated with structured financings, at fair value (1,786 ) (2,363 ) Repayments on outstanding notes payable, net (721 ) (4,240 ) Ending balance, September 30, $ 9,769 $ 14,367 The unrealized gains and losses for liabilities within the Level 3 category presented in the table above include changes in fair value that are attributable to both observable and unobservable inputs. We provide below a brief description of the valuation techniques used for Level 3 liabilities. Net Revaluation of Notes Payable Associated with Structured Financings, at Fair Value. We record the net revaluations of notes payable associated with structured financings, at fair value, in the changes in fair value of notes payable associated with structured financings line item within the fees and related income on earning assets category of our consolidated statements of operations. For material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of September 30, 2017 and December 31, 2016 : Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at September 30, 2017 Valuation Technique Unobservable Input Weighted Average Notes payable associated with structured financings, at fair value $ 9,769 Discounted cash flows Gross yield 26.7 % Principal payment rate 2.6 % Expected credit loss rate 11.2 % Discount rate 14.0 % Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at December 31, 2016 Valuation Technique Unobservable Input Weighted Average Notes payable associated with structured financings, at fair value $ 12,276 Discounted cash flows Gross yield 24.6 % Principal payment rate 2.2 % Expected credit loss rate 11.8 % Discount rate 13.6 % Other Relevant Data Other relevant data (in thousands) as of September 30, 2017 and December 31, 2016 concerning certain assets and liabilities we carry at fair value are as follows: As of September 30, 2017 Loans and Fees Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value $ 4,810 $ 12,473 Aggregate fair value of loans and fees receivable that are reported at fair value $ 2,250 $ 9,769 Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) $ 5 $ 24 Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable $ 110 $ 347 As of December 31, 2016 Loans and Fees Loans and Fees Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value $ 6,251 $ 16,614 Aggregate fair value of loans and fees receivable that are reported at fair value $ 3,484 $ 12,164 Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) $ 6 $ 22 Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable $ 204 $ 562 Notes Payable Notes Payable Associated with Structured Financings, at Fair Value as of September 30, 2017 Notes Payable Associated with Structured Financings, at Fair Value as of December 31, 2016 Aggregate unpaid principal balance of notes payable $ 101,314 $ 102,035 Aggregate fair value of notes payable $ 9,769 $ 12,276 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes Payable Associated with Structured Financings, at Fair Value Scheduled (in millions) in the table below are (1) the carrying amount of our structured financing note secured by certain credit card receivables and reported at fair value as of September 30, 2017 and December 31, 2016 , (2) the outstanding face amount of our structured financing note secured by certain credit card receivables and reported at fair value as of September 30, 2017 , and (3) the carrying amount of the credit card receivables and restricted cash that provide the exclusive means of repayment for the note (i.e., lenders have recourse only to the specific credit card receivables and restricted cash underlying each respective facility and cannot look to our general credit for repayment) as of September 30, 2017 and December 31, 2016 . Carrying Amounts at Fair Value as of September 30, 2017 December 31, 2016 Amortizing securitization facility (stated maturity of December 2021), outstanding face amount of $101.3 million as of September 30, 2017 ($102.0 million as of December 31, 2016) bearing interest at a weighted average 6.5% interest rate at September 30, 2017 (6.1% at December 31, 2016), which is secured by credit card receivables and restricted cash aggregating $9.8 million as of September 30, 2017 ($12.3 million as of December 31, 2016) in carrying amount $ 9.8 $ 12.3 Contractual payment allocations within this credit card receivables structured financing provide for a priority distribution of cash flows to us to service the credit card receivables, a distribution of cash flows to pay interest and principal due on the notes, and a distribution of all excess cash flows (if any) to us. The structured financing facility in the above table is amortizing down along with collections of the underlying receivables and there are no provisions within the debt agreement that allow for acceleration or bullet repayment of the facility prior to its scheduled expiration date. The aggregate carrying amount of the credit card receivables and restricted cash that provide security for the $9.8 million in fair value of the structured financing note in the above table is $9.8 million , which means that we have no aggregate exposure to pre-tax equity loss associated with the above structured financing arrangement at September 30, 2017 . Beyond our role as servicer of the underlying assets within the credit cards receivables structured financing, we have provided no other financial or other support to the structure, and we have no explicit or implicit arrangements that could require us to provide financial support to the structure. Notes Payable, at Face Value and Notes Payable to Related Parties Other notes payable outstanding as of September 30, 2017 and December 31, 2016 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities: As of September 30, 2017 December 31, 2016 Revolving credit facilities at a weighted average interest rate equal to 7.1% at September 30, 2017 (4.8% at December 31, 2016) secured by the financial and operating assets of CAR and/or certain receivables and restricted cash with a combined aggregate carrying amount of $194.2 million as of September 30, 2017 ($127.9 million at December 31, 2016) Revolving credit facility, not to exceed $40.0 million (expiring November 1, 2018) (3) 26.2 29.2 Revolving credit facility, not to exceed $50.0 million (expiring October 30, 2019) (1) (2) 49.2 34.7 Revolving credit facility, not to exceed $20.0 million (expiring December 31, 2019) (1) (2) 19.7 19.5 Revolving credit facility, not to exceed $90.0 million (expiring February 8, 2022) (1) (4) 50.0 — Amortizing facilities at a weighted average interest rate equal to 5.8% at September 30, 2017 (5.4% at December 31, 2016) secured by certain receivables and restricted cash with a combined aggregate carrying amount of $76.6 million as of September 30, 2017 ($69.9 million as of December 31, 2016) Amortizing debt facility (repaid in June 2017) (1) (2) (5) — 20.4 Amortizing debt facility (repaid in September 2017) (1) (2) — 9.7 Amortizing debt facility (expiring March 31, 2018) (1) (2) (5) 7.3 14.6 Amortizing debt facility (expiring June 30, 2018) (1) (2) (5) 27.5 — Amortizing debt facility (expiring August 15, 2018) (1) (2) 5.4 6.0 Amortizing debt facility (expiring September 14, 2018) (1) (2) 10.0 7.5 Amortizing debt facility (expiring November 30, 2018) (1) (2) (5) 16.0 — Other facilities Senior secured term loan from related parties (expiring November 22, 2017) that is secured by certain assets of the Company with an annual interest rate equal to 9.0% (4) 40.0 40.0 Total notes payable before unamortized debt issuance costs and discounts 251.3 181.6 Unamortized debt issuance costs and discounts 2.3 0.4 Total notes payable outstanding, net $ 249.0 $ 181.2 (1) Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. (2) These notes reflect modifications to either extend the maturity date, increase the loaned amount or both. (3) Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. (4) See below for additional information. (5) Loans are comprised of three tranches with the same lenders. Terms and conditions are substantially identical with the exception of maturity date as indicated in the table above. On November 26, 2014, we and certain of our subsidiaries entered into a Loan and Security Agreement with Dove Ventures, LLC, a Nevada limited liability company (“Dove”). The agreement provides for a senior secured term loan facility in an amount of up to $40.0 million at any time outstanding. The Loan and Security Agreement is fully drawn with $40.0 million outstanding as of September 30, 2017 . In November 2016, the agreement was amended to extend the maturity date of the term loan to November 22, 2017 . All other terms remain unchanged. Our obligations under the agreement are guaranteed by certain subsidiary guarantors and secured by a pledge of certain assets of ours and the subsidiary guarantors. The loans bear interest at the rate of 9.0% per annum, payable monthly in arrears. The principal amount of these loans is payable in a single installment on November 22, 2017 (as amended). The agreement includes customary affirmative and negative covenants, as well as customary representations, warranties and events of default. Subject to certain conditions, we can prepay the principal amounts of these loans without premium or penalty. Dove is a limited liability company owned by three trusts. David G. Hanna is the sole shareholder and the President of the corporation that serves as the sole trustee of one of the trusts, and David G. Hanna and members of his immediate family are the beneficiaries of this trust. Frank J. Hanna, III is the sole shareholder and the President of the corporation that serves as the sole trustee of the other two trusts, and Frank J. Hanna, III and members of his immediate family are the beneficiaries of these other two trusts. In February 2017, we (through a wholly owned subsidiary) established a program under which we sell certain receivables to a consolidated trust in exchange for notes issued by the trust. The notes are secured by the receivables and other assets of the trust. Simultaneously with the establishment of the program, the trust issued a series of variable funding notes and sold an aggregate amount of up to $90.0 million (of which $50.0 million was outstanding as of September 30, 2017 ) to an unaffiliated third party pursuant to a facility that can be drawn upon to the extent of outstanding eligible receivables. The facility matures on February 8, 2022 and is subject to certain affirmative covenants and collateral performance tests, the failure of which could result in required early repayment of all or a portion of the outstanding balance of notes. The facility also may be prepaid subject to payment of a prepayment fee. |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In November 2005, we issued $300.0 million aggregate principal amount of 5.875% convertible senior notes due November 30, 2035 (“ 5.875% convertible senior notes”). The 5.875% convertible senior notes are unsecured, subordinate to existing and future secured obligations and structurally subordinate to existing and future claims of our subsidiaries’ creditors. These notes (net of repurchases since the issuance dates) are reflected within convertible senior notes on our consolidated balance sheets. No put rights exist under our 5.875% convertible senior notes. In 2016 we repurchased $5.0 million aggregate principal amount of outstanding 5.875% convertible senior notes for $2.3 million plus accrued interest from unrelated third parties. The purchase resulted in a gain of $1.2 million (net of the notes’ applicable share of deferred costs, which were written off in connection with the repurchases). Upon acquisition, the notes were retired. The following summarizes (in thousands) components of our consolidated balance sheets associated with our convertible senior notes: As of September 30, 2017 December 31, 2016 Face amount of 5.875% convertible senior notes $ 88,280 $ 88,280 Discount (27,042 ) (27,489 ) Net carrying value $ 61,238 $ 60,791 Carrying amount of equity component included in additional paid-in capital $ 108,714 $ 108,714 Excess of instruments’ if-converted values over face principal amounts $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General Under finance products available in the point-of-sale and direct-to-consumer channels, consumers have the ability to borrow up to the maximum credit limit assigned to each individual’s account. Unfunded commitments under these products aggregated $369.9 million at September 30, 2017 . We have never experienced a situation in which all borrowers have exercised their entire available lines of credit at any given point in time, nor do we anticipate this will ever occur in the future. Moreover, there would be a concurrent increase in assets should there be any exercise of these lines of credit. We also have the effective right to reduce or cancel these available lines of credit at any time. Additionally our CAR operations provide floor-plan financing for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here used car business. The financings allow dealers and finance companies to borrow up to the maximum pre-approved credit limit allowed in order to finance ongoing inventory needs. These loans are secured by the underlying auto inventory and, in certain cases where we have other lending products outstanding with the dealer, are secured by the collateral under those lending arrangements as well, including any outstanding dealer reserves. As of September 30, 2017 , CAR had unfunded outstanding floor-plan financing commitments totaling $7.9 million . Each draw against unused commitments is reviewed for conformity to pre-established guidelines. Under agreements with third-party originating and other financial institutions we have pledged security (collateral) related to their issuance of consumer credit and purchases thereunder, of which $10.7 million remains pledged as of September 30, 2017 to support various ongoing contractual obligations. Under agreements with third-party originating and other financial institutions, we have agreed to indemnify the financial institutions for certain liabilities associated with the services we provide on behalf of the financial institutions—such indemnification obligations generally being limited to instances in which we either (a) have been afforded the opportunity to defend against any potentially indemnifiable claims or (b) have reached agreement with the financial institutions regarding settlement of potentially indemnifiable claims. As of September 30, 2017 , we have assessed the likelihood of any potential payments related to the aforementioned contingencies as remote. We will accrue liabilities related to these contingencies in any future period if and in which we assess the likelihood of an estimable payment as probable. We also are subject to certain minimum payments under cancelable and non-cancelable lease arrangements. For further information regarding these commitments, see Note 8, “Leases” to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. Litigation We are involved in various legal proceedings that are incidental to the conduct of our business, none of which are expected to be material to us. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to Controlling Interests Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to Controlling Interests Per Common Share | Net Loss Attributable to Controlling Interests Per Common Share The following table sets forth the computations of net loss per common share (in thousands, except per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net loss attributable to controlling interests $ (14,467 ) $ (9,065 ) $ (22,523 ) $ (4,235 ) Denominator: Basic (including unvested share-based payment awards) (1) 13,921 13,867 13,949 13,857 Effect of dilutive stock compensation arrangements (2) 10 63 19 68 Diluted (including unvested share-based payment awards) (1) 13,931 13,930 13,968 13,925 Net loss attributable to controlling interests per common share—basic $ (1.04 ) $ (0.65 ) $ (1.61 ) $ (0.31 ) Net loss attributable to controlling interests per common share—diluted $ (1.04 ) $ (0.65 ) $ (1.61 ) $ (0.31 ) (1) Shares related to unvested share-based payment awards included in our basic and diluted share counts were 238,967 and 318,253 for the three and nine months ended September 30, 2017 , compared to 358,970 and 277,361 for the three and nine months ended September 30, 2016 . (2) The effect of dilutive stock compensation arrangements is shown only for informational purposes where we are in a net loss position. In such situations, the effect of including outstanding options and restricted stock would be anti-dilutive, and they are thus excluded from all loss period calculations. For the three and nine months ended September 30, 2017 and 2016 , there were no shares potentially issuable and thus includible in the diluted net income attributable to controlling interests per common share calculations pursuant to our 5.875% convertible senior notes. However, in future reporting periods during which our closing stock price is above the $24.61 conversion price for the 5.875% convertible senior notes, and depending on the closing stock price at conversion, the maximum potential dilution under the conversion provisions of such notes is 3.6 million shares, which could be included in diluted share counts in net income per common share calculations. See Note 8, “Convertible Senior Notes,” for a further discussion of these convertible securities. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation We currently have two stock-based compensation plans, the Employee Stock Purchase Plan (the “ESPP”) and the Second Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”). As of September 30, 2017 , 14,064 shares remained available for issuance under the ESPP and 1,079,335 shares remained available for issuance under the 2014 Plan. Exercises and vestings under our stock-based compensation plans resulted in $0 in income tax-related charges to additional paid-in capital during both the three and nine months ended September 30, 2017 with $0 and $37,000 in such charges for the three and nine months ended September 30, 2016 , respectively. Restricted Stock and Restricted Stock Unit Awards During the nine months ended September 30, 2017 and 2016 , we granted 102,000 and 321,601 shares of restricted stock (net of any forfeitures), respectively, with aggregate grant date fair values of $0.3 million and $1.0 million , respectively. We incurred expenses of $0.6 million and $0.4 million during the nine months ended September 30, 2017 and 2016 , respectively, related to restricted stock and restricted stock unit awards. When we grant restricted stock, we defer the grant date value of the restricted stock and amortize that value (net of the value of anticipated forfeitures) as compensation expense with an offsetting entry to the additional paid-in capital component of our consolidated shareholders’ equity. Our restricted stock awards typically vest over a range of 12 to 60 months (or other term as specified in the grant) and are amortized to salaries and benefits expense ratably over applicable vesting periods. As of September 30, 2017 , our unamortized deferred compensation costs associated with non-vested restricted stock awards were $0.2 million with a weighted-average remaining amortization period of 0.4 years . Stock Options We had expense of $0.7 million and $0.6 million related to stock option-related compensation costs during the nine months ended September 30, 2017 and 2016 , respectively. When applicable, we recognize stock option-related compensation expense for any awards with graded vesting on a straight-line basis over the vesting period for the entire award. Information related to options outstanding is as follows: September 30, 2017 Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2016 1,411,667 $ 3.09 Issued 1,215,000 $ 2.98 Exercised — $ — Cancelled/Forfeited (4,000 ) $ 3.04 Outstanding at September 30, 2017 2,622,667 $ 3.04 3.6 $ 10,653 Exercisable at September 30, 2017 792,205 $ 2.92 2.3 $ 10,653 We had $1.1 million and $1.0 million of unamortized deferred compensation costs associated with non-vested stock options as of September 30, 2017 and 2016 , respectively. |
Significant Accounting Policies
Significant Accounting Policies and Consolidated Financial Statement Components (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses reflect both the billed and unbilled amounts owed at the end of a period for services rendered. Also included within accounts payable and accrued expenses are amounts which may be owed in respect of one of our portfolios. |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes. |
Loans and Fees Receivable | Loans and Fees Receivable Our loans and fees receivable include loans and fees receivable, at fair value and loans and fees receivable, gross. As of September 30, 2017 and December 31, 2016 , the weighted average remaining accretion period for the $35.9 million and $23.6 million of deferred revenue reflected in the consolidated balance sheets was 11 months . A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows: For the Three Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) Provision for loan losses (6.2 ) (0.2 ) (17.7 ) (24.1 ) Charge offs 0.7 0.5 13.2 14.4 Recoveries (0.1 ) (0.3 ) (0.8 ) (1.2 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) For the Nine Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.4 ) $ (2.1 ) $ (39.8 ) $ (43.3 ) Provision for loan losses (8.1 ) (1.0 ) (41.4 ) (50.5 ) Charge offs 1.9 2.1 42.2 46.2 Recoveries (1.2 ) (1.0 ) (2.3 ) (4.5 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) As of September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ — $ (0.2 ) $ (0.2 ) Balance at end of period collectively evaluated for impairment $ (8.8 ) $ (2.0 ) $ (41.1 ) $ (51.9 ) Loans and fees receivable: Loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Loans and fees receivable individually evaluated for impairment $ — $ 0.2 $ 0.2 $ 0.4 Loans and fees receivable collectively evaluated for impairment $ 61.8 $ 75.3 $ 222.3 $ 359.4 For the Three Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.1 ) $ (2.0 ) $ (21.1 ) $ (24.2 ) Provision for loan losses 0.1 (0.7 ) (16.9 ) (17.5 ) Charge offs 0.5 0.8 6.9 8.2 Recoveries (0.5 ) (0.2 ) (0.4 ) (1.1 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) For the Nine Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.2 ) $ (1.7 ) $ (18.6 ) $ (21.5 ) Provision for loan losses 0.7 (2.1 ) (31.6 ) (33.0 ) Charge offs 1.5 2.5 20.1 24.1 Recoveries (2.0 ) (0.8 ) (1.4 ) (4.2 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) As of December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ (0.3 ) $ (0.3 ) $ (0.6 ) Balance at end of period collectively evaluated for impairment $ (1.4 ) $ (1.8 ) $ (39.5 ) $ (42.7 ) Loans and fees receivable: Loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Loans and fees receivable individually evaluated for impairment $ — $ 0.7 $ 0.3 $ 1.0 Loans and fees receivable collectively evaluated for impairment $ 11.0 $ 76.4 $ 202.3 $ 289.7 An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of September 30, 2017 and December 31, 2016 is as follows: Balance at September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 1.7 $ 6.3 $ 9.3 $ 17.3 60-89 days past due 0.8 2.2 7.1 10.1 90 or more days past due 1.4 1.7 14.2 17.3 Delinquent loans and fees receivable, gross 3.9 10.2 30.6 44.7 Current loans and fees receivable, gross 57.9 65.3 191.9 315.1 Total loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.3 $ — $ 1.3 Balance at December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 0.2 $ 7.0 $ 8.2 $ 15.4 60-89 days past due 0.2 2.4 6.7 9.3 90 or more days past due 0.4 1.9 11.4 13.7 Delinquent loans and fees receivable, gross 0.8 11.3 26.3 38.4 Current loans and fees receivable, gross 10.2 65.8 176.3 252.3 Total loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.5 $ — $ 1.5 |
Income Tax, Policy [Policy Text Block] | Income Taxes We experienced effective income tax benefit rates of 0.2% and 14.6% for the three and nine months ended September 30, 2017 , respectively, compared to effective income tax benefit rates of 34.0% and 47.3% for the three and nine months ended September 30, 2016 , respectively. Our effective income tax benefit rates for the three and nine months ended September 30, 2017 are below the statutory rate principally due to (1) interest and penalties that we accrued on unpaid federal tax liabilities and (2) our establishment of, and increases in, our valuation allowances during such periods against our net federal deferred tax assets that arose during such periods associated with our net loss incurred during such periods. Our effective income tax benefit rate for the three months ended September 30, 2016 was below the statutory rate principally due to our accruals of interest and penalties on unpaid tax liabilities relative to our $13.7 million of pre-tax loss during that period. Our effective income tax benefit rate for the nine months ended September 30, 2016 was above the statutory rate principally due to income during that period of our U.K. subsidiary that was not subject to tax in the U.S. and the U.K. tax on which was fully offset by the release of U.K. valuation allowances in that period. We report income tax-related interest and penalties within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or unpaid tax liabilities in a manner favorable to our accruals therefor. During the three and nine months ended September 30, 2017 , our income tax benefits were offset by $0.2 million and $0.5 million of net income tax-related interest and penalties charges. During the three and nine months ended September 30, 2016 , we included $0.2 million and $0.6 million of net income tax-related interest and penalties within those periods’ respective income tax expense line items. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.4 million at September 30, 2017 ; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $3.9 million at September 30, 2017 . Prior to our filing amended return claims that would have eliminated the $7.4 million assessment (and corresponding interest and penalties) under a negotiated provision of the IRS settlement, the IRS filed a lien (as is customarily the case) associated with the assessment. |
Revenue Recognition, Policy | Income Taxes We experienced effective income tax benefit rates of 0.2% and 14.6% for the three and nine months ended September 30, 2017 , respectively, compared to effective income tax benefit rates of 34.0% and 47.3% for the three and nine months ended September 30, 2016 , respectively. Our effective income tax benefit rates for the three and nine months ended September 30, 2017 are below the statutory rate principally due to (1) interest and penalties that we accrued on unpaid federal tax liabilities and (2) our establishment of, and increases in, our valuation allowances during such periods against our net federal deferred tax assets that arose during such periods associated with our net loss incurred during such periods. Our effective income tax benefit rate for the three months ended September 30, 2016 was below the statutory rate principally due to our accruals of interest and penalties on unpaid tax liabilities relative to our $13.7 million of pre-tax loss during that period. Our effective income tax benefit rate for the nine months ended September 30, 2016 was above the statutory rate principally due to income during that period of our U.K. subsidiary that was not subject to tax in the U.S. and the U.K. tax on which was fully offset by the release of U.K. valuation allowances in that period. We report income tax-related interest and penalties within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or unpaid tax liabilities in a manner favorable to our accruals therefor. During the three and nine months ended September 30, 2017 , our income tax benefits were offset by $0.2 million and $0.5 million of net income tax-related interest and penalties charges. During the three and nine months ended September 30, 2016 , we included $0.2 million and $0.6 million of net income tax-related interest and penalties within those periods’ respective income tax expense line items. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.4 million at September 30, 2017 ; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $3.9 million at September 30, 2017 . Prior to our filing amended return claims that would have eliminated the $7.4 million assessment (and corresponding interest and penalties) under a negotiated provision of the IRS settlement, the IRS filed a lien (as is customarily the case) associated with the assessment. Subsequently, an IRS examination team denied our amended return claims, and we filed a protest with IRS Appeals. In October 2017, we attended an IRS Appeals conference related to the subject matter underlying our amended return claims, and we are in the process of preparing a supplemental submission to address matters on which the IRS Appeals Officer needed additional support. Fees and Related Income on Earning Assets The components (in thousands) of our fees and related income on earning assets are as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fees on credit products $ 3,248 $ 944 $ 6,351 $ 2,599 Changes in fair value of loans and fees receivable recorded at fair value 1,153 (1,857 ) 2,718 568 Changes in fair value of notes payable associated with structured financings recorded at fair value 259 259 1,786 2,363 Rental revenue — 758 148 8,091 Other (494 ) (29 ) (65 ) 219 Total fees and related income on earning assets $ 4,166 $ 75 $ 10,938 $ 13,840 The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of charge off of loans and fees receivable recorded at fair value on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | ecent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance requires an assessment of credit losses based on expected rather than incurred losses. This generally will result in the recognition of allowances for losses earlier than under current accounting guidance for trade and other receivables, held to maturity debt securities and other instruments. The standard will be adopted on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. While we are continuing to evaluate the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, this standard is expected to result in an increase to our allowance for loan losses given the change to expected losses for the estimated life of the financial asset. The extent of the increase will depend on the asset quality of the portfolio, and economic conditions and forecasts at adoption. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU was effective January 1, 2017. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of ASU 2016-02 will result in the Company recognizing a right-of-use asset and lease liability on the consolidated balance sheet based on the present value of remaining operating lease payments. We do not expect the adoption of ASU 2016-02 to have a material impact on our consolidated financial statements due to the limited lease activity we are involved in. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. The scope of ASU 2014-09 excludes interest and fee income on loans and as a result, the majority of our revenue will not be affected. As such the adoption of this standard, outside of the additional disclosures required under the standard, will not have a material impact on our consolidated financial statements. |
Subsequent Events | ubsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after September 30, 2017 , and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements. |
Significant Accounting Policies and Consolidated Financial Statement Components | Significant Accounting Policies and Consolidated Financial Statement Components The following is a summary of significant accounting policies we follow in preparing our consolidated financial statements, as well as a description of significant components of our consolidated financial statements. Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes. Loans and Fees Receivable Our loans and fees receivable include loans and fees receivable, at fair value and loans and fees receivable, gross. As of September 30, 2017 and December 31, 2016 , the weighted average remaining accretion period for the $35.9 million and $23.6 million of deferred revenue reflected in the consolidated balance sheets was 11 months . A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows: For the Three Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) Provision for loan losses (6.2 ) (0.2 ) (17.7 ) (24.1 ) Charge offs 0.7 0.5 13.2 14.4 Recoveries (0.1 ) (0.3 ) (0.8 ) (1.2 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) For the Nine Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.4 ) $ (2.1 ) $ (39.8 ) $ (43.3 ) Provision for loan losses (8.1 ) (1.0 ) (41.4 ) (50.5 ) Charge offs 1.9 2.1 42.2 46.2 Recoveries (1.2 ) (1.0 ) (2.3 ) (4.5 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) As of September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ — $ (0.2 ) $ (0.2 ) Balance at end of period collectively evaluated for impairment $ (8.8 ) $ (2.0 ) $ (41.1 ) $ (51.9 ) Loans and fees receivable: Loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Loans and fees receivable individually evaluated for impairment $ — $ 0.2 $ 0.2 $ 0.4 Loans and fees receivable collectively evaluated for impairment $ 61.8 $ 75.3 $ 222.3 $ 359.4 For the Three Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.1 ) $ (2.0 ) $ (21.1 ) $ (24.2 ) Provision for loan losses 0.1 (0.7 ) (16.9 ) (17.5 ) Charge offs 0.5 0.8 6.9 8.2 Recoveries (0.5 ) (0.2 ) (0.4 ) (1.1 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) For the Nine Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.2 ) $ (1.7 ) $ (18.6 ) $ (21.5 ) Provision for loan losses 0.7 (2.1 ) (31.6 ) (33.0 ) Charge offs 1.5 2.5 20.1 24.1 Recoveries (2.0 ) (0.8 ) (1.4 ) (4.2 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) As of December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ (0.3 ) $ (0.3 ) $ (0.6 ) Balance at end of period collectively evaluated for impairment $ (1.4 ) $ (1.8 ) $ (39.5 ) $ (42.7 ) Loans and fees receivable: Loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Loans and fees receivable individually evaluated for impairment $ — $ 0.7 $ 0.3 $ 1.0 Loans and fees receivable collectively evaluated for impairment $ 11.0 $ 76.4 $ 202.3 $ 289.7 An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of September 30, 2017 and December 31, 2016 is as follows: Balance at September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 1.7 $ 6.3 $ 9.3 $ 17.3 60-89 days past due 0.8 2.2 7.1 10.1 90 or more days past due 1.4 1.7 14.2 17.3 Delinquent loans and fees receivable, gross 3.9 10.2 30.6 44.7 Current loans and fees receivable, gross 57.9 65.3 191.9 315.1 Total loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.3 $ — $ 1.3 Balance at December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 0.2 $ 7.0 $ 8.2 $ 15.4 60-89 days past due 0.2 2.4 6.7 9.3 90 or more days past due 0.4 1.9 11.4 13.7 Delinquent loans and fees receivable, gross 0.8 11.3 26.3 38.4 Current loans and fees receivable, gross 10.2 65.8 176.3 252.3 Total loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.5 $ — $ 1.5 Prepaid Expenses and Other Assets Prepaid expenses and other assets include amounts paid to third parties for marketing and other services as well as amounts owed to us by third parties. Prepaid amounts are expensed as the underlying related services are performed. Also included are (1) commissions paid associated with our various office leases which we amortize into expense over the lease terms, (2) amounts due associated with reimbursements in respect of one of our portfolios and (3) ongoing deferred costs associated with service contracts. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses reflect both the billed and unbilled amounts owed at the end of a period for services rendered. Also included within accounts payable and accrued expenses are amounts which may be owed in respect of one of our portfolios. Income Taxes We experienced effective income tax benefit rates of 0.2% and 14.6% for the three and nine months ended September 30, 2017 , respectively, compared to effective income tax benefit rates of 34.0% and 47.3% for the three and nine months ended September 30, 2016 , respectively. Our effective income tax benefit rates for the three and nine months ended September 30, 2017 are below the statutory rate principally due to (1) interest and penalties that we accrued on unpaid federal tax liabilities and (2) our establishment of, and increases in, our valuation allowances during such periods against our net federal deferred tax assets that arose during such periods associated with our net loss incurred during such periods. Our effective income tax benefit rate for the three months ended September 30, 2016 was below the statutory rate principally due to our accruals of interest and penalties on unpaid tax liabilities relative to our $13.7 million of pre-tax loss during that period. Our effective income tax benefit rate for the nine months ended September 30, 2016 was above the statutory rate principally due to income during that period of our U.K. subsidiary that was not subject to tax in the U.S. and the U.K. tax on which was fully offset by the release of U.K. valuation allowances in that period. We report income tax-related interest and penalties within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or unpaid tax liabilities in a manner favorable to our accruals therefor. During the three and nine months ended September 30, 2017 , our income tax benefits were offset by $0.2 million and $0.5 million of net income tax-related interest and penalties charges. During the three and nine months ended September 30, 2016 , we included $0.2 million and $0.6 million of net income tax-related interest and penalties within those periods’ respective income tax expense line items. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.4 million at September 30, 2017 ; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $3.9 million at September 30, 2017 . Prior to our filing amended return claims that would have eliminated the $7.4 million assessment (and corresponding interest and penalties) under a negotiated provision of the IRS settlement, the IRS filed a lien (as is customarily the case) associated with the assessment. Subsequently, an IRS examination team denied our amended return claims, and we filed a protest with IRS Appeals. In October 2017, we attended an IRS Appeals conference related to the subject matter underlying our amended return claims, and we are in the process of preparing a supplemental submission to address matters on which the IRS Appeals Officer needed additional support. Fees and Related Income on Earning Assets The components (in thousands) of our fees and related income on earning assets are as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fees on credit products $ 3,248 $ 944 $ 6,351 $ 2,599 Changes in fair value of loans and fees receivable recorded at fair value 1,153 (1,857 ) 2,718 568 Changes in fair value of notes payable associated with structured financings recorded at fair value 259 259 1,786 2,363 Rental revenue — 758 148 8,091 Other (494 ) (29 ) (65 ) 219 Total fees and related income on earning assets $ 4,166 $ 75 $ 10,938 $ 13,840 The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of charge off of loans and fees receivable recorded at fair value on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance requires an assessment of credit losses based on expected rather than incurred losses. This generally will result in the recognition of allowances for losses earlier than under current accounting guidance for trade and other receivables, held to maturity debt securities and other instruments. The standard will be adopted on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. While we are continuing to evaluate the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures, this standard is expected to result in an increase to our allowance for loan losses given the change to expected losses for the estimated life of the financial asset. The extent of the increase will depend on the asset quality of the portfolio, and economic conditions and forecasts at adoption. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU was effective January 1, 2017. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of ASU 2016-02 will result in the Company recognizing a right-of-use asset and lease liability on the consolidated balance sheet based on the present value of remaining operating lease payments. We do not expect the adoption of ASU 2016-02 to have a material impact on our consolidated financial statements due to the limited lease activity we are involved in. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. The scope of ASU 2014-09 excludes interest and fee income on loans and as a result, the majority of our revenue will not be affected. As such the adoption of this standard, outside of the additional disclosures required under the standard, will not have a material impact on our consolidated financial statements. Subsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after September 30, 2017 , and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements. |
Significant Accounting Polici19
Significant Accounting Policies and Consolidated Financial Statement Components (Tables) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||
Roll-forward of allowance for uncollectible loans and fees receivable, net | A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows: For the Three Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) Provision for loan losses (6.2 ) (0.2 ) (17.7 ) (24.1 ) Charge offs 0.7 0.5 13.2 14.4 Recoveries (0.1 ) (0.3 ) (0.8 ) (1.2 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) For the Nine Months Ended September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.4 ) $ (2.1 ) $ (39.8 ) $ (43.3 ) Provision for loan losses (8.1 ) (1.0 ) (41.4 ) (50.5 ) Charge offs 1.9 2.1 42.2 46.2 Recoveries (1.2 ) (1.0 ) (2.3 ) (4.5 ) Balance at end of period $ (8.8 ) $ (2.0 ) $ (41.3 ) $ (52.1 ) As of September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ — $ (0.2 ) $ (0.2 ) Balance at end of period collectively evaluated for impairment $ (8.8 ) $ (2.0 ) $ (41.1 ) $ (51.9 ) Loans and fees receivable: Loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Loans and fees receivable individually evaluated for impairment $ — $ 0.2 $ 0.2 $ 0.4 Loans and fees receivable collectively evaluated for impairment $ 61.8 $ 75.3 $ 222.3 $ 359.4 | For the Three Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.1 ) $ (2.0 ) $ (21.1 ) $ (24.2 ) Provision for loan losses 0.1 (0.7 ) (16.9 ) (17.5 ) Charge offs 0.5 0.8 6.9 8.2 Recoveries (0.5 ) (0.2 ) (0.4 ) (1.1 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) For the Nine Months Ended September 30, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.2 ) $ (1.7 ) $ (18.6 ) $ (21.5 ) Provision for loan losses 0.7 (2.1 ) (31.6 ) (33.0 ) Charge offs 1.5 2.5 20.1 24.1 Recoveries (2.0 ) (0.8 ) (1.4 ) (4.2 ) Balance at end of period $ (1.0 ) $ (2.1 ) $ (31.5 ) $ (34.6 ) As of December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at end of period individually evaluated for impairment $ — $ (0.3 ) $ (0.3 ) $ (0.6 ) Balance at end of period collectively evaluated for impairment $ (1.4 ) $ (1.8 ) $ (39.5 ) $ (42.7 ) Loans and fees receivable: Loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Loans and fees receivable individually evaluated for impairment $ — $ 0.7 $ 0.3 $ 1.0 Loans and fees receivable collectively evaluated for impairment $ 11.0 $ 76.4 $ 202.3 $ 289.7 |
Delinquent loans and fees receivable, gross | An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of September 30, 2017 and December 31, 2016 is as follows: Balance at September 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 1.7 $ 6.3 $ 9.3 $ 17.3 60-89 days past due 0.8 2.2 7.1 10.1 90 or more days past due 1.4 1.7 14.2 17.3 Delinquent loans and fees receivable, gross 3.9 10.2 30.6 44.7 Current loans and fees receivable, gross 57.9 65.3 191.9 315.1 Total loans and fees receivable, gross $ 61.8 $ 75.5 $ 222.5 $ 359.8 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.3 $ — $ 1.3 | Balance at December 31, 2016 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 0.2 $ 7.0 $ 8.2 $ 15.4 60-89 days past due 0.2 2.4 6.7 9.3 90 or more days past due 0.4 1.9 11.4 13.7 Delinquent loans and fees receivable, gross 0.8 11.3 26.3 38.4 Current loans and fees receivable, gross 10.2 65.8 176.3 252.3 Total loans and fees receivable, gross $ 11.0 $ 77.1 $ 202.6 $ 290.7 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.5 $ — $ 1.5 |
Components of fees and related income on earning assets | The components (in thousands) of our fees and related income on earning assets are as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fees on credit products $ 3,248 $ 944 $ 6,351 $ 2,599 Changes in fair value of loans and fees receivable recorded at fair value 1,153 (1,857 ) 2,718 568 Changes in fair value of notes payable associated with structured financings recorded at fair value 259 259 1,786 2,363 Rental revenue — 758 148 8,091 Other (494 ) (29 ) (65 ) 219 Total fees and related income on earning assets $ 4,166 $ 75 $ 10,938 $ 13,840 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of operating segment information | Summary operating segment information (in thousands) is as follows: Three months ended September 30, 2017 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 21,901 $ 7,084 $ 28,985 Other 34 — 34 Total interest income 21,935 7,084 29,019 Interest expense (6,998 ) (270 ) (7,268 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 14,937 $ 6,814 $ 21,751 Fees and related income on earning assets $ 4,137 $ 29 $ 4,166 Servicing income $ 831 $ 203 $ 1,034 Depreciation of rental merchandise $ — $ — $ — Equity in income of equity-method investee $ 164 $ — $ 164 (Loss) income before income taxes $ (16,547 ) $ 2,057 $ (14,490 ) Income tax benefit (expense) $ 655 $ (633 ) $ 22 Nine months ended September 30, 2017 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 60,320 $ 21,137 $ 81,457 Other 178 — 178 Total interest income 60,498 21,137 81,635 Interest expense (18,758 ) (746 ) (19,504 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 41,740 $ 20,391 $ 62,131 Fees and related income on earning assets $ 10,859 $ 79 $ 10,938 Servicing income $ 2,332 $ 652 $ 2,984 Depreciation of rental merchandise $ (27 ) $ — $ (27 ) Equity in income of equity-method investee $ 902 $ — $ 902 (Loss) income before income taxes $ (32,071 ) $ 5,702 $ (26,369 ) Income tax benefit (expense) $ 5,677 $ (1,830 ) $ 3,847 Total assets $ 363,526 $ 65,541 $ 429,067 Three months ended September 30, 2016 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 16,701 $ 7,352 $ 24,053 Other 36 — 36 Total interest income 16,737 7,352 24,089 Interest expense (4,944 ) (313 ) (5,257 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 11,793 $ 7,039 $ 18,832 Fees and related income on earning assets $ 92 $ (17 ) $ 75 Servicing income $ 645 $ 240 $ 885 Gain on repurchase of convertible senior notes $ — $ — $ — Depreciation of rental merchandise $ (458 ) $ — $ (458 ) Equity in income of equity-method investee $ 629 $ — $ 629 (Loss) income before income taxes $ (15,709 ) $ 1,978 $ (13,731 ) Income tax benefit (expense) $ 5,296 $ (630 ) $ 4,666 Nine months ended September 30, 2016 Credit and Other Investments Auto Finance Total Interest income: Consumer loans, including past due fees $ 42,018 $ 21,645 $ 63,663 Other 188 — 188 Total interest income 42,206 21,645 63,851 Interest expense (13,735 ) (958 ) (14,693 ) Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable $ 28,471 $ 20,687 $ 49,158 Fees and related income on earning assets $ 13,761 $ 79 $ 13,840 Servicing income $ 2,569 $ 744 $ 3,313 Gain on repurchase of convertible senior notes $ 1,037 $ — $ 1,037 Depreciation of rental merchandise $ (5,172 ) $ — $ (5,172 ) Equity in income of equity-method investee $ 1,956 $ — $ 1,956 (Loss) income before income taxes $ (13,047 ) $ 4,996 $ (8,051 ) Income tax benefit (expense) $ 5,500 $ (1,689 ) $ 3,811 Total assets $ 267,390 $ 68,440 $ 335,830 |
Investments in Equity-Method 21
Investments in Equity-Method Investees (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized data of combined balance sheet and results of operations for our equity-method investees | In the following tables, we summarize (in thousands) balance sheet and results of operations data for our equity-method investee: As of September 30, 2017 December 31, 2016 Loans and fees receivable, at fair value $ 6,833 $ 9,650 Total assets $ 7,145 $ 10,291 Total liabilities $ 28 $ 204 Members’ capital $ 7,117 $ 10,087 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Net interest income, fees and related income on earning assets $ 247 $ 949 $ 1,358 $ 2,957 Net income $ 159 $ 822 $ 1,067 $ 2,537 Net income attributable to our equity investment in investee $ 164 $ 629 $ 902 $ 1,956 |
Fair Values of Assets and Lia22
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets measured on a recurring basis at fair value | The table below summarizes (in thousands) by fair value hierarchy the September 30, 2017 and December 31, 2016 fair values and carrying amounts of (1) our assets that are required to be carried at fair value in our consolidated financial statements and (2) our assets not carried at fair value, but for which fair value disclosures are required: Assets – As of September 30, 2017 (1) Quoted Prices in Active Significant Other Significant Carrying Amount of Assets Loans and fees receivable, net for which it is practicable to estimate fair value $ — $ — $ 310,557 $ 271,824 Loans and fees receivable, at fair value $ — $ — $ 12,019 $ 12,019 Assets – As of December 31, 2016 (1) Quoted Prices in Active Significant Other Significant Carrying Amount of Assets Loans and fees receivable, net for which it is practicable to estimate fair value $ — $ — $ 248,171 $ 223,783 Loans and fees receivable, at fair value $ — $ — $ 15,648 $ 15,648 (1) For cash, deposits and other short-term investments, the carrying amount is a reasonable estimate of fair value. |
Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the nine months ended September 30, 2017 and 2016: Loans and Fees Receivable, at 2017 2016 Balance at January 1, $ 15,648 $ 26,706 Total gains—realized/unrealized: Net revaluations of loans and fees receivable, at fair value 2,718 568 Settlements (6,398 ) (8,590 ) Impact of foreign currency translation 51 (239 ) Balance at September 30, $ 12,019 $ 18,445 |
Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs, quantitative information | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of September 30, 2017 and December 31, 2016 : Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at September 30, 2017 Valuation Technique Unobservable Input Range (Weighted Average) Loans and fees receivable, at fair value $ 12,019 Discounted cash flows Gross yield 16.3% to 26.7% (24.9%) Principal payment rate 1.7% to 2.8% (2.4%) Expected credit loss rate 11.2% to 13.4% (11.6%) Servicing rate 9.6% to 11.6% (9.8%) Discount rate 5.8% to 14.0% (12.7%) Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at December 31, 2016 Valuation Technique Unobservable Input Range (Weighted Average) Loans and fees receivable, at fair value $ 15,648 Discounted cash flows Gross yield 24.2% to 35.8% (26.1%) Principal payment rate 2.2% to 3.5% (2.4%) Expected credit loss rate 11.8% to 18.0% (12.9%) Servicing rate 8.6% to 9.6% (8.8%) Discount rate 5.8% to 13.6% (12.5%) |
Liabilities measured on a recurring basis at fair value | The table below summarizes (in thousands) by fair value hierarchy the September 30, 2017 and December 31, 2016 fair values and carrying amounts of (1) our liabilities that are required to be carried at fair value in our consolidated financial statements and (2) our liabilities not carried at fair value, but for which fair value disclosures are required: Liabilities – As of September 30, 2017 Quoted Prices in Active Significant Other Significant Carrying Amount of Liabilities Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 143,834 $ 143,834 Amortizing debt facilities $ — $ — $ 66,191 $ 66,191 Senior secured term loan $ — $ — $ 40,000 $ 40,000 5.875% convertible senior notes $ — $ 39,064 $ — $ 61,238 Liabilities carried at fair value Notes payable associated with structured financings, at fair value $ — $ — $ 9,769 $ 9,769 Liabilities - As of December 31, 2016 Quoted Prices in Active Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Liabilities Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 83,399 $ 83,399 Amortizing debt facilities $ — $ — $ 58,190 $ 58,190 Senior secured term loan $ — $ — $ 40,000 $ 40,000 5.875% convertible senior notes $ — $ 40,609 $ — $ 60,791 Liabilities carried at fair value Notes payable associated with structured financings, at fair value $ — $ — $ 12,276 $ 12,276 |
Reconciliation for Level 3 Liabilities measured at fair value on a recurring basis using significant unobservable inputs | For our material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the nine months ended September 30, 2017 and 2016 . Notes Payable Associated with 2017 2016 Beginning balance, January 1 $ 12,276 $ 20,970 Total (gains) losses—realized/unrealized: Net revaluations of notes payable associated with structured financings, at fair value (1,786 ) (2,363 ) Repayments on outstanding notes payable, net (721 ) (4,240 ) Ending balance, September 30, $ 9,769 $ 14,367 |
Level 3 liabilities measured at fair value on a recurring basis using significant unobservable inputs, quantitative information | For material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of September 30, 2017 and December 31, 2016 : Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at September 30, 2017 Valuation Technique Unobservable Input Weighted Average Notes payable associated with structured financings, at fair value $ 9,769 Discounted cash flows Gross yield 26.7 % Principal payment rate 2.6 % Expected credit loss rate 11.2 % Discount rate 14.0 % Quantitative Information about Level 3 Fair Value Measurements Fair Value Measurements Fair Value at December 31, 2016 Valuation Technique Unobservable Input Weighted Average Notes payable associated with structured financings, at fair value $ 12,276 Discounted cash flows Gross yield 24.6 % Principal payment rate 2.2 % Expected credit loss rate 11.8 % Discount rate 13.6 % |
Other relevant data concerning our assets and liabilities measured at fair value | Other relevant data (in thousands) as of September 30, 2017 and December 31, 2016 concerning certain assets and liabilities we carry at fair value are as follows: As of September 30, 2017 Loans and Fees Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value $ 4,810 $ 12,473 Aggregate fair value of loans and fees receivable that are reported at fair value $ 2,250 $ 9,769 Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) $ 5 $ 24 Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable $ 110 $ 347 As of December 31, 2016 Loans and Fees Loans and Fees Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value $ 6,251 $ 16,614 Aggregate fair value of loans and fees receivable that are reported at fair value $ 3,484 $ 12,164 Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) $ 6 $ 22 Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable $ 204 $ 562 Notes Payable Notes Payable Associated with Structured Financings, at Fair Value as of September 30, 2017 Notes Payable Associated with Structured Financings, at Fair Value as of December 31, 2016 Aggregate unpaid principal balance of notes payable $ 101,314 $ 102,035 Aggregate fair value of notes payable $ 9,769 $ 12,276 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of structured financing notes at fair value | Scheduled (in millions) in the table below are (1) the carrying amount of our structured financing note secured by certain credit card receivables and reported at fair value as of September 30, 2017 and December 31, 2016 , (2) the outstanding face amount of our structured financing note secured by certain credit card receivables and reported at fair value as of September 30, 2017 , and (3) the carrying amount of the credit card receivables and restricted cash that provide the exclusive means of repayment for the note (i.e., lenders have recourse only to the specific credit card receivables and restricted cash underlying each respective facility and cannot look to our general credit for repayment) as of September 30, 2017 and December 31, 2016 . Carrying Amounts at Fair Value as of September 30, 2017 December 31, 2016 Amortizing securitization facility (stated maturity of December 2021), outstanding face amount of $101.3 million as of September 30, 2017 ($102.0 million as of December 31, 2016) bearing interest at a weighted average 6.5% interest rate at September 30, 2017 (6.1% at December 31, 2016), which is secured by credit card receivables and restricted cash aggregating $9.8 million as of September 30, 2017 ($12.3 million as of December 31, 2016) in carrying amount $ 9.8 $ 12.3 |
Schedule of structured financing notes at face value | Other notes payable outstanding as of September 30, 2017 and December 31, 2016 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities: As of September 30, 2017 December 31, 2016 Revolving credit facilities at a weighted average interest rate equal to 7.1% at September 30, 2017 (4.8% at December 31, 2016) secured by the financial and operating assets of CAR and/or certain receivables and restricted cash with a combined aggregate carrying amount of $194.2 million as of September 30, 2017 ($127.9 million at December 31, 2016) Revolving credit facility, not to exceed $40.0 million (expiring November 1, 2018) (3) 26.2 29.2 Revolving credit facility, not to exceed $50.0 million (expiring October 30, 2019) (1) (2) 49.2 34.7 Revolving credit facility, not to exceed $20.0 million (expiring December 31, 2019) (1) (2) 19.7 19.5 Revolving credit facility, not to exceed $90.0 million (expiring February 8, 2022) (1) (4) 50.0 — Amortizing facilities at a weighted average interest rate equal to 5.8% at September 30, 2017 (5.4% at December 31, 2016) secured by certain receivables and restricted cash with a combined aggregate carrying amount of $76.6 million as of September 30, 2017 ($69.9 million as of December 31, 2016) Amortizing debt facility (repaid in June 2017) (1) (2) (5) — 20.4 Amortizing debt facility (repaid in September 2017) (1) (2) — 9.7 Amortizing debt facility (expiring March 31, 2018) (1) (2) (5) 7.3 14.6 Amortizing debt facility (expiring June 30, 2018) (1) (2) (5) 27.5 — Amortizing debt facility (expiring August 15, 2018) (1) (2) 5.4 6.0 Amortizing debt facility (expiring September 14, 2018) (1) (2) 10.0 7.5 Amortizing debt facility (expiring November 30, 2018) (1) (2) (5) 16.0 — Other facilities Senior secured term loan from related parties (expiring November 22, 2017) that is secured by certain assets of the Company with an annual interest rate equal to 9.0% (4) 40.0 40.0 Total notes payable before unamortized debt issuance costs and discounts 251.3 181.6 Unamortized debt issuance costs and discounts 2.3 0.4 Total notes payable outstanding, net $ 249.0 $ 181.2 (1) Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. (2) These notes reflect modifications to either extend the maturity date, increase the loaned amount or both. (3) Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. (4) See below for additional information. (5) Loans are comprised of three tranches with the same lenders. Terms and conditions are substantially identical with the exception of maturity date as indicated in the table above. |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of consolidated balance sheets associated with convertible senior notes | The following summarizes (in thousands) components of our consolidated balance sheets associated with our convertible senior notes: As of September 30, 2017 December 31, 2016 Face amount of 5.875% convertible senior notes $ 88,280 $ 88,280 Discount (27,042 ) (27,489 ) Net carrying value $ 61,238 $ 60,791 Carrying amount of equity component included in additional paid-in capital $ 108,714 $ 108,714 Excess of instruments’ if-converted values over face principal amounts $ — $ — |
Net Income (Loss) Attributabl25
Net Income (Loss) Attributable to Controlling Interests Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computations of net income (loss) per common share | The following table sets forth the computations of net loss per common share (in thousands, except per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net loss attributable to controlling interests $ (14,467 ) $ (9,065 ) $ (22,523 ) $ (4,235 ) Denominator: Basic (including unvested share-based payment awards) (1) 13,921 13,867 13,949 13,857 Effect of dilutive stock compensation arrangements (2) 10 63 19 68 Diluted (including unvested share-based payment awards) (1) 13,931 13,930 13,968 13,925 Net loss attributable to controlling interests per common share—basic $ (1.04 ) $ (0.65 ) $ (1.61 ) $ (0.31 ) Net loss attributable to controlling interests per common share—diluted $ (1.04 ) $ (0.65 ) $ (1.61 ) $ (0.31 ) (1) Shares related to unvested share-based payment awards included in our basic and diluted share counts were 238,967 and 318,253 for the three and nine months ended September 30, 2017 , compared to 358,970 and 277,361 for the three and nine months ended September 30, 2016 . (2) The effect of dilutive stock compensation arrangements is shown only for informational purposes where we are in a net loss position. In such situations, the effect of including outstanding options and restricted stock would be anti-dilutive, and they are thus excluded from all loss period calculations. |
Stock-Based Compensation Share
Stock-Based Compensation Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock Based Compensation [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Information related to options outstanding is as follows: September 30, 2017 Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2016 1,411,667 $ 3.09 Issued 1,215,000 $ 2.98 Exercised — $ — Cancelled/Forfeited (4,000 ) $ 3.04 Outstanding at September 30, 2017 2,622,667 $ 3.04 3.6 $ 10,653 Exercisable at September 30, 2017 792,205 $ 2.92 2.3 $ 10,653 |
Description of Our Business (De
Description of Our Business (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Significant Accounting Polici28
Significant Accounting Policies and Consolidated Financial Statement Components Loans and Fees Receivable, Net Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Weighted Average Remaining Accretion Period of Deferred Revenue | 11 months | 11 months |
Significant Accounting Polici29
Significant Accounting Policies and Consolidated Financial Statement Components Schedule of Allowance for uncollectible loans and fees receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Allowance for uncollectible loans and fees receivable: | |||||
Balance at beginning of period | $ (41.2) | $ (24.2) | $ (43.3) | $ (21.5) | |
Provision for loan losses | (24.1) | (17.5) | (50.5) | (33) | |
Charge offs | 14.4 | 8.2 | 46.2 | 24.1 | |
Recoveries | (1.2) | (1.1) | (4.5) | (4.2) | |
Balance at end of period | (52.1) | (34.6) | (52.1) | (34.6) | |
Loans and fees receivable: | |||||
Balance at end of period individually evaluated for impairment | (0.2) | (0.2) | $ (0.6) | ||
Balance at end of period collectively evaluated for impairment | (51.9) | (51.9) | (42.7) | ||
Loans and fees receivable, gross | 359.8 | 359.8 | 290.7 | ||
Loans and fees receivable individually evaluated for impairment | 0.4 | 0.4 | 1 | ||
Loans and fees receivable collectively evaluated for impairment | 359.4 | 359.4 | 289.7 | ||
Credit Cards [Member] | |||||
Allowance for uncollectible loans and fees receivable: | |||||
Balance at beginning of period | (3.2) | (1.1) | (1.4) | (1.2) | |
Provision for loan losses | (6.2) | 0.1 | (8.1) | 0.7 | |
Charge offs | 0.7 | 0.5 | 1.9 | 1.5 | |
Recoveries | (0.1) | (0.5) | (1.2) | (2) | |
Balance at end of period | (8.8) | (1) | (8.8) | (1) | |
Loans and fees receivable: | |||||
Balance at end of period individually evaluated for impairment | 0 | 0 | 0 | ||
Balance at end of period collectively evaluated for impairment | (8.8) | (8.8) | (1.4) | ||
Loans and fees receivable, gross | 61.8 | 61.8 | 11 | ||
Loans and fees receivable individually evaluated for impairment | 0 | 0 | 0 | ||
Loans and fees receivable collectively evaluated for impairment | 61.8 | 61.8 | 11 | ||
Automobile Loan [Member] | |||||
Allowance for uncollectible loans and fees receivable: | |||||
Balance at beginning of period | (2) | (2) | (2.1) | (1.7) | |
Provision for loan losses | (0.2) | (0.7) | (1) | (2.1) | |
Charge offs | 0.5 | 0.8 | 2.1 | 2.5 | |
Recoveries | (0.3) | (0.2) | (1) | (0.8) | |
Balance at end of period | (2) | (2.1) | (2) | (2.1) | |
Loans and fees receivable: | |||||
Balance at end of period individually evaluated for impairment | 0 | 0 | (0.3) | ||
Balance at end of period collectively evaluated for impairment | (2) | (2) | (1.8) | ||
Loans and fees receivable, gross | 75.5 | 75.5 | 77.1 | ||
Loans and fees receivable individually evaluated for impairment | 0.2 | 0.2 | 0.7 | ||
Loans and fees receivable collectively evaluated for impairment | 75.3 | 75.3 | 76.4 | ||
Other Unsecured Lending Products [Member] | |||||
Allowance for uncollectible loans and fees receivable: | |||||
Balance at beginning of period | (36) | (21.1) | (39.8) | (18.6) | |
Provision for loan losses | (17.7) | (16.9) | (41.4) | (31.6) | |
Charge offs | 13.2 | 6.9 | 42.2 | 20.1 | |
Recoveries | (0.8) | (0.4) | (2.3) | (1.4) | |
Balance at end of period | (41.3) | $ (31.5) | (41.3) | $ (31.5) | |
Loans and fees receivable: | |||||
Balance at end of period individually evaluated for impairment | (0.2) | (0.2) | (0.3) | ||
Balance at end of period collectively evaluated for impairment | (41.1) | (41.1) | (39.5) | ||
Loans and fees receivable, gross | 222.5 | 222.5 | 202.6 | ||
Loans and fees receivable individually evaluated for impairment | 0.2 | 0.2 | 0.3 | ||
Loans and fees receivable collectively evaluated for impairment | $ 222.3 | $ 222.3 | $ 202.3 |
Significant Accounting Polici30
Significant Accounting Policies and Consolidated Financial Statement Components Schedule of Aging of delinquent loans and fees receivable, gross (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Weighted Average Remaining Accretion Period of Deferred Revenue | 11 months | 11 months | |||
Delinquent loans and fees receivable, gross | $ 44,700 | $ 44,700 | $ 38,400 | ||
Current loans and fees receivable, gross | 315,100 | 315,100 | 252,300 | ||
Loans and fees receivable, gross | 359,800 | 359,800 | 290,700 | ||
Balance of loans 90 or more days past due and still accruing interest and fees | $ 1,300 | $ 1,300 | 1,500 | ||
Effective Income Tax Rate Reconciliation, Percent | 0.20% | 34.00% | 14.60% | 47.30% | |
(Loss) income before income taxes | $ (14,490) | $ (13,731) | $ (26,369) | $ (8,051) | |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 200 | $ 200 | 500 | $ 600 | |
Income tax settlement amount with taxing authority | 7,400 | 7,400 | |||
Income Tax Examination, Interest Accrued | 3,900 | $ 3,900 | |||
Credit Cards [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | ||||
Delinquent loans and fees receivable, gross | 3,900 | $ 3,900 | 800 | ||
Current loans and fees receivable, gross | 57,900 | 57,900 | 10,200 | ||
Loans and fees receivable, gross | 61,800 | 61,800 | 11,000 | ||
Balance of loans 90 or more days past due and still accruing interest and fees | 0 | 0 | 0 | ||
Automobile Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 10,200 | 10,200 | 11,300 | ||
Current loans and fees receivable, gross | 65,300 | 65,300 | 65,800 | ||
Loans and fees receivable, gross | 75,500 | 75,500 | 77,100 | ||
Balance of loans 90 or more days past due and still accruing interest and fees | 1,300 | 1,300 | 1,500 | ||
Other Unsecured Lending Products [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 30,600 | 30,600 | 26,300 | ||
Current loans and fees receivable, gross | 191,900 | 191,900 | 176,300 | ||
Loans and fees receivable, gross | 222,500 | 222,500 | 202,600 | ||
Balance of loans 90 or more days past due and still accruing interest and fees | 0 | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 17,300 | 17,300 | 15,400 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Credit Cards [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 1,700 | 1,700 | 200 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Automobile Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 6,300 | 6,300 | 7,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Other Unsecured Lending Products [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 9,300 | 9,300 | 8,200 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 10,100 | 10,100 | 9,300 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Credit Cards [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 800 | 800 | 200 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Automobile Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 2,200 | 2,200 | 2,400 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Other Unsecured Lending Products [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 7,100 | 7,100 | 6,700 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 17,300 | 17,300 | 13,700 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Credit Cards [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 1,400 | 1,400 | 400 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Automobile Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | 1,700 | 1,700 | 1,900 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Unsecured Lending Products [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Delinquent loans and fees receivable, gross | $ 14,200 | $ 14,200 | $ 11,400 |
Significant Accounting Polici31
Significant Accounting Policies and Consolidated Financial Statement Components Investments in Equity-Method Investees (Details) | Sep. 30, 2017 |
Schedule of Equity Method Investments [Line Items] | |
Equity-method investment, interests | 66.70% |
Significant Accounting Polici32
Significant Accounting Policies and Consolidated Financial Statement Components Rental Merchandise (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Leased Merchandise [Abstract] | ||||
Depreciation of rental merchandise | $ 0 | $ 458 | $ 27 | $ 5,172 |
Significant Accounting Polici33
Significant Accounting Policies and Consolidated Financial Statement Components Fees and Related Income on Earning Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Fees on credit products | $ 3,248 | $ 944 | $ 6,351 | $ 2,599 |
Changes in fair value of loans and fees receivable recorded at fair value | 1,153 | (1,857) | 2,718 | 568 |
Changes in fair value of notes payable associated with structured financings recorded at fair value | 259 | 259 | 1,786 | 2,363 |
Rental revenue | 0 | 758 | 148 | 8,091 |
Nonoperating Income (Expense) | (494) | (29) | (65) | 219 |
Total fees and related income on earning assets | $ 4,166 | $ 75 | $ 10,938 | $ 13,840 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)industrysegment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of industries the Company operates in | industry | 1 | ||||
Number of reportable segments | segment | 2 | ||||
Interest income: | |||||
Consumer loans, including past due fees | $ 28,985 | $ 24,053 | $ 81,457 | $ 63,663 | |
Other | 34 | 36 | 178 | 188 | |
Total interest income | 29,019 | 24,089 | 81,635 | 63,851 | |
Interest expense | (7,268) | (5,257) | (19,504) | (14,693) | |
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | 21,751 | 18,832 | 62,131 | 49,158 | |
Fees and related income on earning assets | 4,166 | 75 | 10,938 | 13,840 | |
Servicing income | 1,034 | 885 | 2,984 | 3,313 | |
Gain (Loss) on Repurchase of Debt Instrument | 0 | 1,037 | |||
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | 1,037 | |
Depreciation of rental merchandise | 0 | (458) | (27) | (5,172) | |
Equity in income of equity-method investee | 164 | 629 | 902 | 1,956 | |
(Loss) income before income taxes | (14,490) | (13,731) | (26,369) | (8,051) | |
Income Tax Expense (Benefit) | 22 | 4,666 | 3,847 | 3,811 | |
Total assets | 429,067 | 335,830 | 429,067 | 335,830 | $ 362,547 |
Credit Cards and Other Investments [Member] | |||||
Interest income: | |||||
Consumer loans, including past due fees | 21,901 | 16,701 | 60,320 | 42,018 | |
Other | 34 | 36 | 178 | 188 | |
Total interest income | 21,935 | 16,737 | 60,498 | 42,206 | |
Interest expense | (6,998) | (4,944) | (18,758) | (13,735) | |
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | 14,937 | 11,793 | 41,740 | 28,471 | |
Fees and related income on earning assets | 4,137 | 92 | 10,859 | 13,761 | |
Servicing income | 831 | 645 | 2,332 | 2,569 | |
Gain (Loss) on Repurchase of Debt Instrument | 0 | 1,037 | |||
Depreciation of rental merchandise | 0 | (458) | (27) | (5,172) | |
Equity in income of equity-method investee | 164 | 629 | 902 | 1,956 | |
(Loss) income before income taxes | (16,547) | (15,709) | (32,071) | (13,047) | |
Income Tax Expense (Benefit) | 655 | 5,296 | 5,677 | 5,500 | |
Total assets | 363,526 | 267,390 | 363,526 | 267,390 | |
Auto Finance [Member] | |||||
Interest income: | |||||
Consumer loans, including past due fees | 7,084 | 7,352 | 21,137 | 21,645 | |
Other | 0 | 0 | 0 | 0 | |
Total interest income | 7,084 | 7,352 | 21,137 | 21,645 | |
Interest expense | (270) | (313) | (746) | (958) | |
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | 6,814 | 7,039 | 20,391 | 20,687 | |
Fees and related income on earning assets | 29 | (17) | 79 | 79 | |
Servicing income | 203 | 240 | 652 | 744 | |
Gain (Loss) on Repurchase of Debt Instrument | 0 | 0 | |||
Depreciation of rental merchandise | 0 | 0 | 0 | 0 | |
Equity in income of equity-method investee | 0 | 0 | 0 | 0 | |
(Loss) income before income taxes | 2,057 | 1,978 | 5,702 | 4,996 | |
Income Tax Expense (Benefit) | (633) | (630) | (1,830) | (1,689) | |
Total assets | $ 65,541 | $ 68,440 | $ 65,541 | $ 68,440 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||
Stock Repurchased and Retired During Period, Value | $ 286,000 | ||||
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 | 1,459,233 | ||
Treasury Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares | 107,916 | 39,580 | 114,618 | 286,223 | |
Stock Repurchased and Retired During Period, Value | $ 268,000 | $ 124,000 | $ 286,000 | $ 869,000 |
Investments in Equity-Method 36
Investments in Equity-Method Investees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity-method investment, interests | 66.70% | 66.70% | |||
Summarized data of combined balance sheet and results of operations for our equity-method investees [Abstract] | |||||
Net income attributable to our equity investment in investee | $ 164 | $ 629 | $ 902 | $ 1,956 | |
Equity-Method Investees [Member] | |||||
Summarized data of combined balance sheet and results of operations for our equity-method investees [Abstract] | |||||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 6,833 | 6,833 | $ 9,650 | ||
Total assets | 7,145 | 7,145 | 10,291 | ||
Total liabilities | 28 | 28 | 204 | ||
Equity Method Investment Summarized Financial Information, Equity | 7,117 | 7,117 | $ 10,087 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 247 | 949 | 1,358 | 2,957 | |
Net income | 159 | 822 | 1,067 | 2,537 | |
Net income attributable to our equity investment in investee | $ 164 | $ 629 | $ 902 | $ 1,956 |
Fair Values of Assets and Lia37
Fair Values of Assets and Liabilities Summary of Fair Value Hierarchy for Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and fees receivable, net for which it is practicable to estimate fair value | [1] | $ 271,824 | $ 223,783 |
Loans and fees receivable, at fair value | [1] | 12,019 | 15,648 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and fees receivable, net for which it is practicable to estimate fair value | [1] | 0 | 0 |
Loans and fees receivable, at fair value | [1] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and fees receivable, net for which it is practicable to estimate fair value | [1] | 0 | 0 |
Loans and fees receivable, at fair value | [1] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and fees receivable, net for which it is practicable to estimate fair value | [1] | 310,557 | 248,171 |
Loans and fees receivable, at fair value | [1] | 12,019 | 15,648 |
Loans And Fees Receivable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and fees receivable, at fair value | $ 2,250 | $ 3,484 | |
[1] | For cash, deposits and other short-term investments, the carrying amount is a reasonable estimate of fair value. |
Fair Values of Assets and Lia38
Fair Values of Assets and Liabilities Reconciliation of Level 3 Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs [Abstract] | ||
Beginning Balance | $ 15,648 | $ 26,706 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description | 2,718 | 568 |
Settlements | (6,398) | (8,590) |
Impact of foreign currency translation | 51 | (239) |
Ending Balance | $ 12,019 | $ 18,445 |
Fair Values of Assets and Lia39
Fair Values of Assets and Liabilities Quantitative Information about Level 3 Assets Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Gross yield | 26.70% | 24.60% |
Principal payment rate | 2.60% | 2.20% |
Expected credit loss rate | 11.20% | 11.80% |
Discount rate | 14.00% | 13.60% |
Loans And Fees Receivable [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loans and Fees Receivable, at Fair Value | $ 12,019 | $ 15,648 |
Loans And Fees Receivable [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Gross yield | 16.30% | 24.20% |
Principal payment rate | 1.70% | 2.20% |
Expected credit loss rate | 11.20% | 11.80% |
Servicing rate | 9.60% | 8.60% |
Discount rate | 5.80% | 5.80% |
Loans And Fees Receivable [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Gross yield | 26.70% | 35.80% |
Principal payment rate | 2.80% | 3.50% |
Expected credit loss rate | 13.40% | 18.00% |
Servicing rate | 11.60% | 9.60% |
Discount rate | 14.00% | 13.60% |
Loans And Fees Receivable [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Gross yield | 24.90% | 26.10% |
Principal payment rate | 2.40% | 2.40% |
Expected credit loss rate | 11.60% | 12.90% |
Servicing rate | 9.80% | 8.80% |
Discount rate | 12.70% | 12.50% |
Fair Values of Assets and Lia40
Fair Values of Assets and Liabilities Summary of Fair Value Hierarchy for Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2005 | May 31, 2005 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Line of Credit | $ 143,834 | $ 83,399 | ||
Amortizing debt facilities | 66,191 | 58,190 | ||
Notes Payable, Related Parties | 40,000 | 40,000 | ||
Convertible Debt, Fair Value Disclosures | 61,238 | 60,791 | ||
Liabilities carried at fair value | ||||
Notes payable associated with structured financings, at fair value | 9,769 | 12,276 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Line of Credit | 0 | 0 | ||
Amortizing debt facilities | 0 | 0 | ||
Notes Payable, Related Parties | 0 | 0 | ||
Convertible Debt, Fair Value Disclosures | 0 | 0 | ||
Liabilities carried at fair value | ||||
Notes payable associated with structured financings, at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Line of Credit | 0 | 0 | ||
Amortizing debt facilities | 0 | 0 | ||
Notes Payable, Related Parties | 0 | 0 | ||
Convertible Debt, Fair Value Disclosures | 39,064 | 40,609 | ||
Liabilities carried at fair value | ||||
Notes payable associated with structured financings, at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Line of Credit | 143,834 | 83,399 | ||
Amortizing debt facilities | 66,191 | 58,190 | ||
Notes Payable, Related Parties | 40,000 | 40,000 | ||
Convertible Debt, Fair Value Disclosures | 0 | 0 | ||
Liabilities carried at fair value | ||||
Notes payable associated with structured financings, at fair value | $ 9,769 | $ 12,276 | ||
Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Five [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% |
Fair Values of Assets and Lia41
Fair Values of Assets and Liabilities Reconciliation of Level 3 Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 12,276 | $ 20,970 | ||
Total (gains) losses—realized/unrealized: | ||||
Net revaluations of notes payable associated with structured financings, at fair value | $ (259) | $ (259) | (1,786) | (2,363) |
Repayments on outstanding notes payable, net | (721) | (4,240) | ||
Ending Balance | $ 9,769 | $ 14,367 | $ 9,769 | $ 14,367 |
Fair Values of Assets and Lia42
Fair Values of Assets and Liabilities Quantitative Information about Level 3 Liabilities Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Notes payable associated with structured financings, at fair value | $ 9,769 | $ 12,276 |
Gross yield | 26.70% | 24.60% |
Principal payment rate | 2.60% | 2.20% |
Expected credit loss rate | 11.20% | 11.80% |
Discount rate | 14.00% | 13.60% |
Loans And Fees Receivable [Member] | Minimum [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Gross yield | 16.30% | 24.20% |
Principal payment rate | 1.70% | 2.20% |
Expected credit loss rate | 11.20% | 11.80% |
Discount rate | 5.80% | 5.80% |
Fair Value Inputs Servicing Rate | 9.60% | 8.60% |
Loans And Fees Receivable [Member] | Maximum [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Gross yield | 26.70% | 35.80% |
Principal payment rate | 2.80% | 3.50% |
Expected credit loss rate | 13.40% | 18.00% |
Discount rate | 14.00% | 13.60% |
Fair Value Inputs Servicing Rate | 11.60% | 9.60% |
Loans And Fees Receivable [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Gross yield | 24.90% | 26.10% |
Principal payment rate | 2.40% | 2.40% |
Expected credit loss rate | 11.60% | 12.90% |
Discount rate | 12.70% | 12.50% |
Fair Value Inputs Servicing Rate | 9.80% | 8.80% |
Fair Values of Assets and Lia43
Fair Values of Assets and Liabilities, Other Relevant Data (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2005 | May 31, 2005 |
Structured Financing Notes Payable [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance of notes payable | $ 101,314 | $ 102,035 | ||
Aggregate fair value of notes payable | 9,769 | 12,276 | ||
Loans and Fees Receivable, at Fair Value [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | 4,810 | 6,251 | ||
Aggregate fair value of loans and fees receivable that are reported at fair value | 2,250 | 3,484 | ||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | 5 | 6 | ||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | 110 | 204 | ||
Loans and Fees Receivable Pledged as Collateral under Structured Financings, at Fair Value [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | 12,473 | 16,614 | ||
Aggregate fair value of loans and fees receivable that are reported at fair value | 9,769 | 12,164 | ||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | 24 | 22 | ||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ 347 | $ 562 | ||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Interest rate on notes | 5.875% | 5.875% |
Notes Payable Schedule of struc
Notes Payable Schedule of structured financing notes at fair value (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | $ 9,769,000 | $ 12,276,000 | |
Weighted average interest rate | [1],[2] | 5.80% | 5.40% |
Credit card receivables and restricted cash carrying amount as security for notes payable | $ 9,800,000 | ||
Maturity date | Nov. 30, 2035 | ||
Loans Pledged as Collateral | [1] | $ 76,600,000 | $ 69,900,000 |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | 9,800,000 | ||
Amortizing Securitization Facility Expiration Date December 1, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 101,300,000 | $ 102,000,000 | |
Weighted average interest rate | 6.50% | 6.10% | |
Credit card receivables and restricted cash carrying amount as security for notes payable | $ 9,800,000 | $ 12,300,000 | |
Maturity date | Dec. 1, 2021 | ||
Amortizing Securitization Facility Expiration Date December 1, 2021 [Member] | Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | $ 12,300,000 | ||
[1] | (1)Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. | ||
[2] | (2)These notes reflect modifications to either extend the maturity date, increase the loaned amount or both. |
Notes Payable Narrative (Detail
Notes Payable Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 143,834 | $ 83,399 | |
Notes payable associated with structured financings, at fair value | 9,769 | $ 12,276 | |
Credit card receivables and restricted cash carrying amount as security for notes payable | 9,800 | ||
Maximum Aggregate Exposure to Pretax Equity Loss Associated With Structured Financing at Fair Value | $ 0 | ||
Senior Secured Term Loan, Expiring 2016 [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 9.00% | 9.00% |
Expiring November 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | [2] | $ 26,200 | $ 29,200 |
Line of Credit Facility, Expiration Date | [2] | Nov. 1, 2018 | |
Expiring February 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000 | ||
Long-term Line of Credit | [1],[3] | $ 50,000 | $ 0 |
Line of Credit Facility, Expiration Date | [1],[3] | Feb. 8, 2022 | |
[1] | (4)See below for additional information. | ||
[2] | (3)Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. | ||
[3] | (1)Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. |
Notes Payable Schedule of str46
Notes Payable Schedule of structured financing notes at face value (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | ||
Notes Payable, at Face Value [Abstract] | |||
Long-term Line of Credit | $ 143,834 | $ 83,399 | |
Amortizing debt facilities | 66,191 | 58,190 | |
Notes Payable, Related Parties | 40,000 | 40,000 | |
Notes Payable, Gross | 251,300 | 181,600 | |
Notes Payable | 249,000 | 181,200 | |
Debt Issuance Costs, Net | $ 2,300 | $ 400 | |
Weighted average interest rate | [1],[2] | 5.80% | 5.40% |
Loans Pledged as Collateral | [1] | $ 76,600 | $ 69,900 |
Maturity date | Nov. 30, 2035 | ||
Expires March 2018 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2],[3] | $ 7,300 | 14,600 |
Maturity date | [1],[2],[3] | Mar. 31, 2018 | |
Amortizing Debt Facility Secured By Underlying Merchant Expiring July 2017 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2],[3] | $ 0 | 20,400 |
Maturity date | [1],[2],[3] | Jul. 15, 2017 | |
Expiring June 2018 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2],[3] | $ 27,500 | 0 |
Maturity date | [1],[2],[3] | Jun. 30, 2018 | |
Expiring November 2018 2 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2],[3] | $ 16,000 | 0 |
Maturity date | [1],[2],[3] | Nov. 30, 2018 | |
Expires August 2018 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2] | $ 5,400 | 6,000 |
Maturity date | [1],[2] | Aug. 15, 2018 | |
Expiring August 2018 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2] | $ 0 | 9,700 |
Maturity date | [1],[2] | Aug. 24, 2018 | |
Expiring September 2017 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Amortizing debt facilities | [1],[2] | $ 10,000 | 7,500 |
Senior Secured Term Loan, Expiring 2016 [Domain] | |||
Notes Payable, at Face Value [Abstract] | |||
Notes Payable, Related Parties | [4] | $ 40,000 | $ 40,000 |
Debt Instrument, Interest Rate, Stated Percentage | [4] | 9.00% | 9.00% |
Related Party Transaction, Date | [4] | Nov. 22, 2017 | |
Expiring November 2018 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Long-term Line of Credit | [5] | $ 26,200 | $ 29,200 |
Line of Credit Facility, Expiration Date | [5] | Nov. 1, 2018 | |
Revolving Credit Facility [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Weighted average interest rate | 7.10% | 4.80% | |
Carrying Amount of Receivables as Security for Structured Financing Notes | $ 194,200 | $ 127,900 | |
Expiring October 2017 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Long-term Line of Credit | [1],[2] | $ 49,200 | 34,700 |
Line of Credit Facility, Expiration Date | [1],[2] | Oct. 30, 2019 | |
Expiring December 2019 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Long-term Line of Credit | [1],[2] | $ 19,700 | 19,500 |
Line of Credit Facility, Expiration Date | [1],[2] | Dec. 31, 2019 | |
Expiring February 2022 [Member] | |||
Notes Payable, at Face Value [Abstract] | |||
Long-term Line of Credit | [1],[4] | $ 50,000 | $ 0 |
Line of Credit Facility, Expiration Date | [1],[4] | Feb. 8, 2022 | |
[1] | (1)Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. | ||
[2] | (2)These notes reflect modifications to either extend the maturity date, increase the loaned amount or both. | ||
[3] | (5)Loans are comprised of three tranches with the same lenders. Terms and conditions are substantially identical with the exception of maturity date as indicated in the table above. | ||
[4] | (4)See below for additional information. | ||
[5] | (3)Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. |
Convertible Senior Notes Narrat
Convertible Senior Notes Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Nov. 30, 2005 | May 31, 2005 | |
Debt Instrument [Line Items] | |||||||
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 | 1,459,233 | ||||
Maturity date | Nov. 30, 2035 | ||||||
Gains (Losses) on Extinguishment of Debt | $ 0 | $ 0 | $ 0 | $ 1,037,000 | |||
5.875% Convertible Senior Notes Due 2035 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 88,280,000 | $ 88,280,000 | $ 88,280,000 | $ 300,000,000 | |||
Interest rate on notes | 5.875% | 5.875% | |||||
Tender Offer Repurchase Amount - Face Value | $ 5,000,000 | ||||||
Conversion price for convertible senior notes (in dollars per share) | $ 24.61 | $ 24.61 | |||||
Tender Offer Repurchase Amount | 2.3 | ||||||
Gains (Losses) on Extinguishment of Debt | $ 1,200,000 |
Convertible Senior Notes Compon
Convertible Senior Notes Components of consolidated balance sheets associated with convertible senior notes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2005 | May 31, 2005 | |
Debt Instrument [Line Items] | ||||
Convertible Debt | $ 61,238,000 | $ 60,791,000 | ||
Carrying amount of equity component included in additional paid-in capital | 108,714,000 | 108,714,000 | ||
Excess of instruments’ if-converted values over face principal amounts | 0 | 0 | ||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 88,280,000 | 88,280,000 | $ 300,000,000 | |
Debt Instrument, Unamortized Discount | $ 27,042,000 | $ 27,489,000 | ||
Interest rate on notes | 5.875% | 5.875% |
Convertible Senior Notes Accoun
Convertible Senior Notes Accounting for Convertible Senior Notes (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Nov. 30, 2005 | May 31, 2005 | |
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 30, 2035 | ||||
Interest expense from accretion of discount on convertible senior notes | $ 406,000 | $ 385,000 | |||
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 | |||
5.875% Convertible Senior Notes Due 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 88,280,000 | $ 88,280,000 | $ 300,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | |||
Conversion price for convertible senior notes (in dollars per share) | $ 24.61 |
Commitments and Contingencies G
Commitments and Contingencies General (Details) $ in Millions | Sep. 30, 2017USD ($) |
Supply Commitment [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance sheet risks, liability | $ 369.9 |
Commitments to Car Operations [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance sheet risks, liability | 7.9 |
Deposits [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance sheet risks, liability | $ 10.7 |
Net Income (Loss) Attributabl51
Net Income (Loss) Attributable to Controlling Interests Per Common Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)shares$ / shares | Sep. 30, 2016USD ($)$ / sharesshares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Weighted Average Number of Shares, Restricted Stock | 238,967 | 358,970 | 318,253 | 277,361 | |
Document Fiscal Year Focus | 2,017 | ||||
Numerator: | |||||
Net (loss) income attributable to controlling interests | $ | $ (14,467) | $ (9,065) | $ (22,523) | $ (4,235) | |
Denominator: | |||||
Basic (including unvested share-based payment awards) (in shares) | [1] | 13,921,000 | 13,867,000 | 13,949,000 | 13,857,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [2] | 10,000 | 63,000 | 19,000 | 68,000 |
Weighted Average Number of Shares Outstanding, Diluted | [1] | 13,931,000 | 13,930,000 | 13,968,000 | 13,925,000 |
Net (loss) income attributable to controlling interests per common share-basic (in dollars per share) | $ / shares | $ (1.04) | $ (0.65) | $ (1.61) | $ (0.31) | |
Net (loss) income attributable to controlling interests per common share-diluted (in dollars per share) | $ / shares | $ (1.04) | $ (0.65) | $ (1.61) | $ (0.31) | |
Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Five [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Debt Instrument, Convertible, Number of Equity Instruments | 3,600,000 | ||||
Denominator: | |||||
Incremental Common Shares Attributable to Conversion of Debt Securities | 0 | 0 | 0 | 0 | |
[1] | Shares related to unvested share-based payment awards included in our basic and diluted share counts were 238,967 and 318,253 for the three and nine months ended September 30, 2017, compared to 358,970 and 277,361 for the three and nine months ended September 30, 2016. | ||||
[2] | The effect of dilutive stock compensation arrangements is shown only for informational purposes where we are in a net loss position. In such situations, the effect of including outstanding options and restricted stock would be anti-dilutive, and they are thus excluded from all loss period calculations. |
Net Income (Loss) Attributabl52
Net Income (Loss) Attributable to Controlling Interests Per Common Share Antidilutive Securities (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017$ / sharesshares | Sep. 30, 2016shares | Sep. 30, 2017shares$ / shares | Sep. 30, 2016shares | Nov. 30, 2005 | May 31, 2005 | |
Debt Instrument [Line Items] | ||||||
Weighted Average Number of Shares, Restricted Stock | 238,967 | 358,970 | 318,253 | 277,361 | ||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares potentially issuable and includible in diluted net loss attributable to controlling interest per common share | 0 | 0 | 0 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | ||||
Conversion price for convertible senior notes | $ / shares | $ 24.61 | $ 24.61 | ||||
Debt Instrument, Convertible, Number of Equity Instruments | 3,600,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)stock_compensation_plan$ / sharesshares | Sep. 30, 2016USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 1,100,000 | $ 1,100,000 | $ 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 2,622,667 | 2,622,667 | 1,411,667 | ||
Number of stock based compensation plans | stock_compensation_plan | 2 | ||||
Employee Stock purchase plan, shares authorized | shares | 14,064 | 14,064 | |||
Maximum aggregate number of shares of common stock issued | shares | 1,079,335 | 1,079,335 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | $ | $ 0 | $ 0 | $ 0 | $ 37,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 3.04 | $ 3.04 | $ 3.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 1,215,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 2.98 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 0 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 4,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 3.04 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 7 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 10,653 | $ 10,653 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 792,205 | 792,205 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 2.92 | $ 2.92 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 4 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 10,653 | $ 10,653 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 102,000 | 321,601 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 300,000 | $ 1,000,000 | |||
Allocated Share-based Compensation Expense | $ | 600,000 | 400,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 200,000 | $ 200,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 months | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ | $ 699,000 | $ 566,000 | |||
Maximum [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 60 months | ||||
Minimum [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 12 months |
Property (Details)
Property (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property at cost, net of depreciation | $ 3,296 | $ 3,829 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017Rate | Sep. 30, 2016Rate | Sep. 30, 2017Rate | Sep. 30, 2016Rate | |
Income Tax [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 0.20% | 34.00% | 14.60% | 47.30% |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||||
Income Tax Expense (Benefit) | $ 22 | $ 4,666 | $ 3,847 | $ 3,811 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 0.20% | 34.00% | 14.60% | 47.30% |
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ (0.2) | $ (0.2) | $ (0.5) | $ (0.6) |
Income tax settlement amount with taxing authority | 7.4 | 7.4 | ||
Income Tax Examination, Interest Accrued | $ 3.9 | $ 3.9 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Notes Payable, Related Parties | $ 40,000 | $ 40,000 | $ 40,000 | ||
Gains (Losses) on Extinguishment of Debt | 0 | $ 0 | 0 | $ 1,037 | |
Related Party Transaction [Domain] | |||||
Related Party Transaction [Line Items] | |||||
Notes Payable, Related Party Max Facility Limit | $ 40,000 | $ 40,000 |