| Significant Accounting Policies and Consolidated Financial Statement Components (Policies) | 6 Months Ended |
| Jun. 30, 2018 |
| Accounting Policies [Abstract] | |
| Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Troubled Debt Restructurings. As part of ongoing collection efforts, once an account in our Credit and Other Investments segment is 90 days or more past due, the account is placed on a non-accrual status. Placement on a non-accrual status results in the elimination of the annual percentage rate (“APR”) charged to an account and a cessation of fee billing. Following this adjustment, if a customer demonstrates a willingness and ability to resume making monthly payments and meets certain additional criteria, we will re-age the customer’s account. When we re-age an account, we adjust the status of the account to bring a delinquent account current, but generally do not make any further modifications to the payment terms or amount owed. Once an account is placed on a non-accrual status, it is closed for further purchases. Accounts that are placed on a non-accrual status and thereafter make at least one payment qualify as troubled debt restructurings (“TDRs”). The following table details by class of receivable, the number and amount of modified loans, including TDRs that have been re-aged, as of June 30, 2018 and December 31, 2017 : As of June 30, 2018 December 31, 2017 Point-of-sale Direct-to-consumer Point-of-sale Direct-to-consumer Number of accounts on non-accrual status 11,377 8,789 11,432 6,681 Number of accounts on non-accrual status above that have been re-aged 1,283 311 915 80 Amount of receivables on non-accrual status (in thousands) $ 16,273 $ 9,148 $ 17,169 $ 7,067 Amount of receivables on non-accrual status above that have been re-aged (in thousands) $ 2,327 $ 341 $ 1,570 $ 86 Carrying value of receivables on non-accrual status (in thousands) $ 5,471 $ 1,589 $ 4,247 $ 1,173 TDRs - Performing (carrying value, in thousands)* $ 3,361 $ 894 $ 2,368 $ 508 TDRs - Nonperforming (carrying value, in thousands)* $ 2,110 $ 695 $ 1,879 $ 665 *“TDRs - Performing” include accounts that are current on all amounts owed, while “TDRs - Nonperforming” include all accounts with past due amounts owed. Given that the above TDRs have a high reserve rate prior to modification as TDRs, we do not separately reserve or impair these receivables outside of our general reserve process. The following table details by class of receivable, the number of accounts and carrying value of loans that completed a modification (including those that were classified as TDRs) within the prior twelve months and subsequently charged off. Twelve Months Ended June 30, 2018 June 30, 2017 Point-of-Sale Direct-to-Consumer Point-of-Sale Direct-to-Consumer Number of accounts 2,161 1,134 1,907 974 Loan balance at time of charge off (in thousands) $ 3,296 $ 1,749 $2,409 $2,788 |
| Prepaid Expenses and Other Assets [Policy Text Block] | 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 from a third party in respect of a servicing agreement totaling $5.3 million as of June 30, 2018 , (3) ongoing deferred costs associated with service contracts and (4) investments in consumer finance technology platforms carried at the lower of cost or market valuation. |
| 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. We show both an allowance for uncollectible loans and fees receivable and unearned fees (or “deferred revenue”) for our loans and fees receivable (i.e., as opposed to those carried at fair value). Our loans and fees receivable consist of smaller-balance, homogeneous loans, divided into two portfolio segments: Credit and Other Investments; and Auto Finance. Each of these portfolio segments is further divided into pools based on common characteristics such as contract or acquisition channel. For each pool, we determine the necessary allowance for uncollectible loans and fees receivable by analyzing some or all of the following unique attributes for each type of receivable pool: historical loss rates; current delinquency and roll-rate trends; vintage analyses based on the number of months an account has been in existence; the effects of changes in the economy on our customers; changes in underwriting criteria; and estimated recoveries. These reserves are considered in conjunction with (and potentially reduced by) any unearned fees and discounts that may be applicable for an outstanding loan receivable. A considerable amount of judgment is required to assess the ultimate amount of uncollectible loans and fees receivable, and we continuously evaluate and update our methodologies to determine the most appropriate allowance necessary. We may individually evaluate a receivable or pool of receivables for impairment if circumstances indicate that the receivable or pool of receivables may be at higher risk for non-performance than other receivables (e.g., if a particular retail or auto-finance partner has indications of non-performance (such as a bankruptcy) that could impact the underlying pool of receivables we purchased from the partner). As of June 30, 2018 and December 31, 2017 , the weighted average remaining accretion period for the $36.8 million and $37.0 million of deferred revenue reflected in the consolidated balance sheets was 12 months and 11 months , respectively. 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 June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (20.8 ) $ (1.9 ) $ (35.6 ) $ (58.3 ) Provision for loan losses (6.1 ) 0.3 (10.7 ) (16.5 ) Charge offs 7.0 0.3 14.1 21.4 Recoveries — (0.2 ) (1.2 ) (1.4 ) Balance at end of period $ (19.9 ) $ (1.5 ) $ (33.4 ) $ (54.8 ) For the Six Months Ended June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (18.2 ) $ (2.3 ) $ (42.5 ) $ (63.0 ) Provision for loan losses (15.1 ) 0.3 (17.7 ) (32.5 ) Charge offs 13.5 1.0 29.2 43.7 Recoveries (0.1 ) (0.5 ) (2.4 ) (3.0 ) Balance at end of period $ (19.9 ) $ (1.5 ) $ (33.4 ) $ (54.8 ) As of June 30, 2018 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 ) $ (0.4 ) Balance at end of period collectively evaluated for impairment $ (19.9 ) $ (1.3 ) $ (33.2 ) $ (54.4 ) Loans and fees receivable: Loans and fees receivable, gross $ 119.8 $ 83.9 $ 237.7 $ 441.4 Loans and fees receivable individually evaluated for impairment $ — $ 0.3 $ 0.2 $ 0.5 Loans and fees receivable collectively evaluated for impairment $ 119.8 $ 83.6 $ 237.5 $ 440.9 For the Three Months Ended June 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.8 ) $ (2.0 ) $ (35.7 ) $ (39.5 ) Provision for loan losses (1.5 ) (0.4 ) (13.8 ) (15.7 ) Charge offs 0.8 0.8 14.4 16.0 Recoveries (0.7 ) (0.4 ) (0.9 ) (2.0 ) Balance at end of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) For the Six Months Ended June 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 (1.9 ) (0.8 ) (23.7 ) (26.4 ) Charge offs 1.2 1.6 29.0 31.8 Recoveries (1.1 ) (0.7 ) (1.5 ) (3.3 ) Balance at end of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) As of December 31, 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 ) $ (0.4 ) Balance at end of period collectively evaluated for impairment $ (18.2 ) $ (2.1 ) $ (42.3 ) $ (62.6 ) Loans and fees receivable: Loans and fees receivable, gross $ 87.2 $ 77.8 $ 228.9 $ 393.9 Loans and fees receivable individually evaluated for impairment $ — $ 0.4 $ 0.2 $ 0.6 Loans and fees receivable collectively evaluated for impairment $ 87.2 $ 77.4 $ 228.7 $ 393.3 An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of June 30, 2018 and December 31, 2017 is as follows: Balance at June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 3.4 $ 6.1 $ 8.7 $ 18.2 60-89 days past due 3.0 1.8 7.1 11.9 90 or more days past due 7.4 1.2 13.4 22.0 Delinquent loans and fees receivable, gross 13.8 9.1 29.2 52.1 Current loans and fees receivable, gross 106.0 74.8 208.5 389.3 Total loans and fees receivable, gross $ 119.8 $ 83.9 $ 237.7 $ 441.4 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.0 $ — $ 1.0 Balance at December 31, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 3.2 $ 6.4 $ 9.0 $ 18.6 60-89 days past due 3.3 2.1 7.1 12.5 90 or more days past due 4.9 1.9 15.7 22.5 Delinquent loans and fees receivable, gross 11.4 10.4 31.8 53.6 Current loans and fees receivable, gross 75.8 67.4 197.1 340.3 Total loans and fees receivable, gross $ 87.2 $ 77.8 $ 228.9 $ 393.9 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.6 $ — $ 1.6 |
| Income Tax, Policy [Policy Text Block] | Income Taxes We experienced a negative effective income tax expense rate of 866.2% for the three months ended June 30, 2018, and an effective income tax benefit rate of 121.4% for the six months ended June 30, 2018; this compares to effective income tax benefit rates of 33.6% and 32.2% for the three and six months ended June 30, 2017, respectively. Our negative effective income tax expense rate for the three months ended June 30, 2018, and our effective income tax benefit rate for the six months ended June 30, 2018, significantly differ from the statutory rate. This difference is caused primarily by the favorable effects on results during the three months ended June 30, 2018, of our settlement in such period of the Internal Revenue Service (“IRS”) examination of our 2008 tax return and the carryback of its resulting net operating losses to pre-2008 tax years. Our effective income tax benefit rates for the three and six months ended June 30, 2017, were below the statutory rate principally due to interest accruals on unpaid federal tax liabilities and valuation allowances established against net federal deferred tax assets that arose during those periods associated with our net losses incurred during those periods. We report income tax-related interest and penalties (including those associated with both our accrued liabilities for uncertain tax positions and unpaid tax liabilities) within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of income tax-related interest and penalties within such 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 six months ended June 30, 2018, we accrued $0.2 million and $0.4 million of net income tax-related interest and penalties, respectively. Also, during these periods, we reached a favorable settlement with the IRS concerning the level of our 2008 net operating losses eligible to be carried back to pre-2008 tax years for refunds. As a result, for the three and six months ended June 30, 2018, we reduced income tax expense based on the reversal of $1.5 million of accrued interest and penalties on over-assessed taxes we will not be required to pay under the terms of our settlement with the IRS. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. At March 31, 2018 (i.e., prior to our June 2018 settlement with the IRS), our net unpaid income tax assessment associated with the December 2014 settlement was $7.4 million , such amount excluding unpaid interest and penalties on the tax assessment, the accruals for which aggregated $4.3 million at March 31, 2018. Prior to our filing amended return claims that, if accepted, would have eliminated the $7.4 million assessment (and corresponding interest and penalties) under a negotiated provision of the December 2014 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. Following correspondence and conferences we held with IRS Appeals, we received and accepted a settlement offer from IRS Appeals in June 2018 that reduced our $7.4 million net unpaid income tax assessment referenced above to $3.7 million , and in July 2018 we paid $5.4 million to the IRS to cover the $3.7 million unpaid income tax assessment and the interest that had accrued thereon. In due course, we expect the IRS to remove the aforementioned lien associated with the now-paid assessment. |
| Revenue Recognition, Policy | Revenue Recognition and Revenue from Contracts with Customers Consumer Loans, Including Past Due Fees Consumer loans, including past due fees reflect interest income, including finance charges, and late fees on loans in accordance with the terms of the related customer agreements. Premiums and discounts paid or received associated with a loan are generally deferred and amortized over the average life of the related loans using the effective interest method. Finance charges and fees, net of amounts that we consider uncollectible, are included in loans and fees receivable and revenue when the fees are earned. Fees and Related Income on Earning Assets Fees and related income on earning assets primarily include: (1) fees associated with our credit products, including the receivables underlying our U.S. point-of-sale finance and direct-to-consumer activities, and our historical credit card receivables; (2) changes in the fair value of loans and fees receivable recorded at fair value; (3) changes in fair value of notes payable associated with structured financings recorded at fair value; (4) revenues associated with rent payments on rental merchandise; and (5) gains or losses associated with our investments in securities. We assess fees on credit card accounts underlying our credit card receivables according to the terms of the related cardholder agreements and, except for annual membership fees, we recognize these fees as income when they are charged to the customers’ accounts. We accrete annual membership fees associated with our credit card receivables into income on a straight-line basis over the cardholder privilege period. Similarly, fees on our other credit products are recognized when earned, which coincides with the time they are charged to the customer’s account. Fees and related income on earning assets, net of amounts that we consider uncollectible, are included in loans and fees receivable and revenue when the fees are earned. In periods where applicable, we accrue periodic billed rental amounts (net of allowances for uncollectible billings) into revenues over the rental period to which the billed amounts relate, and we defer recognition in revenues of any advanced customer rental payments until the rental period in which they are properly recognizable under the terms of the contract. The components (in thousands) of our fees and related income on earning assets are as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Fees on credit products $ 5,498 $ 2,007 $ 10,403 $ 3,103 Changes in fair value of loans and fees receivable recorded at fair value 513 1,002 495 1,565 Changes in fair value of notes payable associated with structured financings recorded at fair value 1,112 821 2,443 1,527 Rental revenue — — — 148 Other (29 ) 141 (33 ) 429 Total fees and related income on earning assets $ 7,094 $ 3,971 $ 13,308 $ 6,772 The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of current period charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) 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. Revenue from Contracts with Customers In the first quarter of 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” under the modified retrospective transition method. We have determined that revenue from contracts with customers would primarily consist of interchange revenues in our Credit and Other Investments segment and servicing revenue and other customer-related fees in both our Credit and Other Investments segment and our Auto Finance segment. Revenue from these contracts with customers is included as a component of Other income on our consolidated statements of operations. Components (in thousands) of our revenue from contracts with customers is as follows: Three months ended June 30, 2018 Credit and Other Investments Auto Finance Total Interchange revenues, net (1) $ 695 $ — $ 695 Servicing income 338 294 632 Service charges and other customer related fees 89 (13 ) 76 Total Other income 1,122 281 1,403 Six months ended June 30, 2018 Credit and Other Investments Auto Finance Total Interchange revenues, net (1) $ 1,139 $ — $ 1,139 Servicing income 740 524 1,264 Service charges and other customer related fees 114 34 148 Total Other income 1,993 558 2,551 (1) Interchange revenue is presented net of customer reward expense |
| New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, the FASB issued 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 (known as the current expected credit loss model). 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. We are currently in the process of reviewing accounting interpretations, expected data requirements and necessary changes to our loss estimation methods, processes and systems. 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases and changes 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. Net future minimum lease payments totaled $12.2 million as of December 31, 2017. 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 was effective for annual and interim periods beginning January 1, 2018. Most revenue associated with financial instruments, including interest income, loan origination fees and credit card fees, is outside the scope of the guidance. We adopted this standard as of January 1, 2018 using the modified retrospective method of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. |
| Subsequent Events | 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 June 30, 2018 , 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. We show both an allowance for uncollectible loans and fees receivable and unearned fees (or “deferred revenue”) for our loans and fees receivable (i.e., as opposed to those carried at fair value). Our loans and fees receivable consist of smaller-balance, homogeneous loans, divided into two portfolio segments: Credit and Other Investments; and Auto Finance. Each of these portfolio segments is further divided into pools based on common characteristics such as contract or acquisition channel. For each pool, we determine the necessary allowance for uncollectible loans and fees receivable by analyzing some or all of the following unique attributes for each type of receivable pool: historical loss rates; current delinquency and roll-rate trends; vintage analyses based on the number of months an account has been in existence; the effects of changes in the economy on our customers; changes in underwriting criteria; and estimated recoveries. These reserves are considered in conjunction with (and potentially reduced by) any unearned fees and discounts that may be applicable for an outstanding loan receivable. A considerable amount of judgment is required to assess the ultimate amount of uncollectible loans and fees receivable, and we continuously evaluate and update our methodologies to determine the most appropriate allowance necessary. We may individually evaluate a receivable or pool of receivables for impairment if circumstances indicate that the receivable or pool of receivables may be at higher risk for non-performance than other receivables (e.g., if a particular retail or auto-finance partner has indications of non-performance (such as a bankruptcy) that could impact the underlying pool of receivables we purchased from the partner). As of June 30, 2018 and December 31, 2017 , the weighted average remaining accretion period for the $36.8 million and $37.0 million of deferred revenue reflected in the consolidated balance sheets was 12 months and 11 months , respectively. 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 June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (20.8 ) $ (1.9 ) $ (35.6 ) $ (58.3 ) Provision for loan losses (6.1 ) 0.3 (10.7 ) (16.5 ) Charge offs 7.0 0.3 14.1 21.4 Recoveries — (0.2 ) (1.2 ) (1.4 ) Balance at end of period $ (19.9 ) $ (1.5 ) $ (33.4 ) $ (54.8 ) For the Six Months Ended June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (18.2 ) $ (2.3 ) $ (42.5 ) $ (63.0 ) Provision for loan losses (15.1 ) 0.3 (17.7 ) (32.5 ) Charge offs 13.5 1.0 29.2 43.7 Recoveries (0.1 ) (0.5 ) (2.4 ) (3.0 ) Balance at end of period $ (19.9 ) $ (1.5 ) $ (33.4 ) $ (54.8 ) As of June 30, 2018 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 ) $ (0.4 ) Balance at end of period collectively evaluated for impairment $ (19.9 ) $ (1.3 ) $ (33.2 ) $ (54.4 ) Loans and fees receivable: Loans and fees receivable, gross $ 119.8 $ 83.9 $ 237.7 $ 441.4 Loans and fees receivable individually evaluated for impairment $ — $ 0.3 $ 0.2 $ 0.5 Loans and fees receivable collectively evaluated for impairment $ 119.8 $ 83.6 $ 237.5 $ 440.9 For the Three Months Ended June 30, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total Allowance for uncollectible loans and fees receivable: Balance at beginning of period $ (1.8 ) $ (2.0 ) $ (35.7 ) $ (39.5 ) Provision for loan losses (1.5 ) (0.4 ) (13.8 ) (15.7 ) Charge offs 0.8 0.8 14.4 16.0 Recoveries (0.7 ) (0.4 ) (0.9 ) (2.0 ) Balance at end of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) For the Six Months Ended June 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 (1.9 ) (0.8 ) (23.7 ) (26.4 ) Charge offs 1.2 1.6 29.0 31.8 Recoveries (1.1 ) (0.7 ) (1.5 ) (3.3 ) Balance at end of period $ (3.2 ) $ (2.0 ) $ (36.0 ) $ (41.2 ) As of December 31, 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 ) $ (0.4 ) Balance at end of period collectively evaluated for impairment $ (18.2 ) $ (2.1 ) $ (42.3 ) $ (62.6 ) Loans and fees receivable: Loans and fees receivable, gross $ 87.2 $ 77.8 $ 228.9 $ 393.9 Loans and fees receivable individually evaluated for impairment $ — $ 0.4 $ 0.2 $ 0.6 Loans and fees receivable collectively evaluated for impairment $ 87.2 $ 77.4 $ 228.7 $ 393.3 An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of June 30, 2018 and December 31, 2017 is as follows: Balance at June 30, 2018 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 3.4 $ 6.1 $ 8.7 $ 18.2 60-89 days past due 3.0 1.8 7.1 11.9 90 or more days past due 7.4 1.2 13.4 22.0 Delinquent loans and fees receivable, gross 13.8 9.1 29.2 52.1 Current loans and fees receivable, gross 106.0 74.8 208.5 389.3 Total loans and fees receivable, gross $ 119.8 $ 83.9 $ 237.7 $ 441.4 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.0 $ — $ 1.0 Balance at December 31, 2017 Credit Cards Auto Finance Other Unsecured Lending Products Total 30-59 days past due $ 3.2 $ 6.4 $ 9.0 $ 18.6 60-89 days past due 3.3 2.1 7.1 12.5 90 or more days past due 4.9 1.9 15.7 22.5 Delinquent loans and fees receivable, gross 11.4 10.4 31.8 53.6 Current loans and fees receivable, gross 75.8 67.4 197.1 340.3 Total loans and fees receivable, gross $ 87.2 $ 77.8 $ 228.9 $ 393.9 Balance of loans 90 or more days past due and still accruing interest and fees $ — $ 1.6 $ — $ 1.6 Troubled Debt Restructurings. As part of ongoing collection efforts, once an account in our Credit and Other Investments segment is 90 days or more past due, the account is placed on a non-accrual status. Placement on a non-accrual status results in the elimination of the annual percentage rate (“APR”) charged to an account and a cessation of fee billing. Following this adjustment, if a customer demonstrates a willingness and ability to resume making monthly payments and meets certain additional criteria, we will re-age the customer’s account. When we re-age an account, we adjust the status of the account to bring a delinquent account current, but generally do not make any further modifications to the payment terms or amount owed. Once an account is placed on a non-accrual status, it is closed for further purchases. Accounts that are placed on a non-accrual status and thereafter make at least one payment qualify as troubled debt restructurings (“TDRs”). The following table details by class of receivable, the number and amount of modified loans, including TDRs that have been re-aged, as of June 30, 2018 and December 31, 2017 : As of June 30, 2018 December 31, 2017 Point-of-sale Direct-to-consumer Point-of-sale Direct-to-consumer Number of accounts on non-accrual status 11,377 8,789 11,432 6,681 Number of accounts on non-accrual status above that have been re-aged 1,283 311 915 80 Amount of receivables on non-accrual status (in thousands) $ 16,273 $ 9,148 $ 17,169 $ 7,067 Amount of receivables on non-accrual status above that have been re-aged (in thousands) $ 2,327 $ 341 $ 1,570 $ 86 Carrying value of receivables on non-accrual status (in thousands) $ 5,471 $ 1,589 $ 4,247 $ 1,173 TDRs - Performing (carrying value, in thousands)* $ 3,361 $ 894 $ 2,368 $ 508 TDRs - Nonperforming (carrying value, in thousands)* $ 2,110 $ 695 $ 1,879 $ 665 *“TDRs - Performing” include accounts that are current on all amounts owed, while “TDRs - Nonperforming” include all accounts with past due amounts owed. Given that the above TDRs have a high reserve rate prior to modification as TDRs, we do not separately reserve or impair these receivables outside of our general reserve process. The following table details by class of receivable, the number of accounts and carrying value of loans that completed a modification (including those that were classified as TDRs) within the prior twelve months and subsequently charged off. Twelve Months Ended June 30, 2018 June 30, 2017 Point-of-Sale Direct-to-Consumer Point-of-Sale Direct-to-Consumer Number of accounts 2,161 1,134 1,907 974 Loan balance at time of charge off (in thousands) $ 3,296 $ 1,749 $2,409 $2,788 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 from a third party in respect of a servicing agreement totaling $5.3 million as of June 30, 2018 , (3) ongoing deferred costs associated with service contracts and (4) investments in consumer finance technology platforms carried at the lower of cost or market valuation. 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 a negative effective income tax expense rate of 866.2% for the three months ended June 30, 2018, and an effective income tax benefit rate of 121.4% for the six months ended June 30, 2018; this compares to effective income tax benefit rates of 33.6% and 32.2% for the three and six months ended June 30, 2017, respectively. Our negative effective income tax expense rate for the three months ended June 30, 2018, and our effective income tax benefit rate for the six months ended June 30, 2018, significantly differ from the statutory rate. This difference is caused primarily by the favorable effects on results during the three months ended June 30, 2018, of our settlement in such period of the Internal Revenue Service (“IRS”) examination of our 2008 tax return and the carryback of its resulting net operating losses to pre-2008 tax years. Our effective income tax benefit rates for the three and six months ended June 30, 2017, were below the statutory rate principally due to interest accruals on unpaid federal tax liabilities and valuation allowances established against net federal deferred tax assets that arose during those periods associated with our net losses incurred during those periods. We report income tax-related interest and penalties (including those associated with both our accrued liabilities for uncertain tax positions and unpaid tax liabilities) within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of income tax-related interest and penalties within such 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 six months ended June 30, 2018, we accrued $0.2 million and $0.4 million of net income tax-related interest and penalties, respectively. Also, during these periods, we reached a favorable settlement with the IRS concerning the level of our 2008 net operating losses eligible to be carried back to pre-2008 tax years for refunds. As a result, for the three and six months ended June 30, 2018, we reduced income tax expense based on the reversal of $1.5 million of accrued interest and penalties on over-assessed taxes we will not be required to pay under the terms of our settlement with the IRS. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. At March 31, 2018 (i.e., prior to our June 2018 settlement with the IRS), our net unpaid income tax assessment associated with the December 2014 settlement was $7.4 million , such amount excluding unpaid interest and penalties on the tax assessment, the accruals for which aggregated $4.3 million at March 31, 2018. Prior to our filing amended return claims that, if accepted, would have eliminated the $7.4 million assessment (and corresponding interest and penalties) under a negotiated provision of the December 2014 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. Following correspondence and conferences we held with IRS Appeals, we received and accepted a settlement offer from IRS Appeals in June 2018 that reduced our $7.4 million net unpaid income tax assessment referenced above to $3.7 million , and in July 2018 we paid $5.4 million to the IRS to cover the $3.7 million unpaid income tax assessment and the interest that had accrued thereon. In due course, we expect the IRS to remove the aforementioned lien associated with the now-paid assessment. Revenue Recognition and Revenue from Contracts with Customers Consumer Loans, Including Past Due Fees Consumer loans, including past due fees reflect interest income, including finance charges, and late fees on loans in accordance with the terms of the related customer agreements. Premiums and discounts paid or received associated with a loan are generally deferred and amortized over the average life of the related loans using the effective interest method. Finance charges and fees, net of amounts that we consider uncollectible, are included in loans and fees receivable and revenue when the fees are earned. Fees and Related Income on Earning Assets Fees and related income on earning assets primarily include: (1) fees associated with our credit products, including the receivables underlying our U.S. point-of-sale finance and direct-to-consumer activities, and our historical credit card receivables; (2) changes in the fair value of loans and fees receivable recorded at fair value; (3) changes in fair value of notes payable associated with structured financings recorded at fair value; (4) revenues associated with rent payments on rental merchandise; and (5) gains or losses associated with our investments in securities. We assess fees on credit card accounts underlying our credit card receivables according to the terms of the related cardholder agreements and, except for annual membership fees, we recognize these fees as income when they are charged to the customers’ accounts. We accrete annual membership fees associated with our credit card receivables into income on a straight-line basis over the cardholder privilege period. Similarly, fees on our other credit products are recognized when earned, which coincides with the time they are charged to the customer’s account. Fees and related income on earning assets, net of amounts that we consider uncollectible, are included in loans and fees receivable and revenue when the fees are earned. In periods where applicable, we accrue periodic billed rental amounts (net of allowances for uncollectible billings) into revenues over the rental period to which the billed amounts relate, and we defer recognition in revenues of any advanced customer rental payments until the rental period in which they are properly recognizable under the terms of the contract. The components (in thousands) of our fees and related income on earning assets are as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Fees on credit products $ 5,498 $ 2,007 $ 10,403 $ 3,103 Changes in fair value of loans and fees receivable recorded at fair value 513 1,002 495 1,565 Changes in fair value of notes payable associated with structured financings recorded at fair value 1,112 821 2,443 1,527 Rental revenue — — — 148 Other (29 ) 141 (33 ) 429 Total fees and related income on earning assets $ 7,094 $ 3,971 $ 13,308 $ 6,772 The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of current period charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) 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. Revenue from Contracts with Customers In the first quarter of 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” under the modified retrospective transition method. We have determined that revenue from contracts with customers would primarily consist of interchange revenues in our Credit and Other Investments segment and servicing revenue and other customer-related fees in both our Credit and Other Investments segment and our Auto Finance segment. Revenue from these contracts with customers is included as a component of Other income on our consolidated statements of operations. Components (in thousands) of our revenue from contracts with customers is as follows: Three months ended June 30, 2018 Credit and Other Investments Auto Finance Total Interchange revenues, net (1) $ 695 $ — $ 695 Servicing income 338 294 632 Service charges and other customer related fees 89 (13 ) 76 Total Other income 1,122 281 1,403 Six months ended June 30, 2018 Credit and Other Investments Auto Finance Total Interchange revenues, net (1) $ 1,139 $ — $ 1,139 Servicing income 740 524 1,264 Service charges and other customer related fees 114 34 148 Total Other income 1,993 558 2,551 (1) Interchange revenue is presented net of customer reward expense Recent Accounting Pronouncements In June 2016, the FASB issued 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 (known as the current expected credit loss model). 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. We are currently in the process of reviewing accounting interpretations, expected data requirements and necessary changes to our loss estimation methods, processes and systems. 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 February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases and changes 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. Net future minimum lease payments totaled $12.2 million as of December 31, 2017. 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 was effective for annual and interim periods beginning January 1, 2018. Most revenue associated with financial instruments, including interest income, loan origination fees and credit card fees, is outside the scope of the guidance. We adopted this standard as of January 1, 2018 using the modified retrospective method of adoption. Our adoption of this standard did 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 June 30, 2018 , 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. |
