Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'JGWPT Holdings Inc. | ' |
Entity Central Index Key | '0001580185 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 12,793,276 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $35,412 | $39,061 | ||
Restricted cash and investments | 112,499 | 109,338 | ||
VIE finance receivables, at fair market value | 4,208,144 | [1] | 3,818,704 | [1] |
Other finance receivables, at fair market value | 79,581 | 51,945 | ||
VIE finance receivables, net of allowances for losses of $7,143 and $6,443, respectively | 116,147 | [1] | 117,826 | [1] |
Other finance receivables, net of allowances for losses of $1,841 and $1,899, respectively | 18,892 | 15,166 | ||
Notes receivable, at fair market value | ' | 5,610 | [1] | |
Other receivables, net of allowances for losses of $252 and $243, respectively | 12,748 | 13,529 | ||
Fixed assets, net of accumulated depreciation of $5,108 and $4,544, respectively | 3,581 | 3,112 | ||
Intangible assets, net of accumulated amortization of $19,166 and $17,781, respectively | 46,493 | 47,878 | ||
Goodwill | 84,993 | 84,993 | ||
Marketable securities | 115,981 | 121,954 | ||
Deferred tax assets, net | ' | 1,830 | ||
Other assets | 37,312 | 41,151 | ||
Total Assets | 4,871,783 | 4,472,097 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ||
Accounts payable | 9,127 | 3,903 | ||
Accrued expenses | 14,131 | 21,181 | ||
Accrued interest | 16,483 | 14,485 | ||
VIE derivative liabilities, at fair market value | 74,542 | 70,296 | ||
VIE borrowings under revolving credit facilities and other similar borrowings | 73,767 | 41,274 | ||
VIE long-term debt | 184,676 | 150,802 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,431,283 | ||
Term loan payable | 435,683 | 434,184 | ||
Other liabilities | 7,551 | 7,646 | ||
Deferred tax liabilities, net | 13,625 | 1,707 | ||
Installment obligations payable | 115,981 | 121,954 | ||
Total Liabilities | 4,644,066 | 4,298,715 | ||
Additional paid-in-capital | 81,796 | 70,236 | ||
Retained earnings (accumulated deficit) | 9,713 | -5,577 | ||
Accumulated other comprehensive income | ' | 612 | ||
Total stockholders' equity including treasury stock | 91,509 | 65,271 | ||
Less: treasury stock at cost , 91,949 and 3,929 shares as of June 30, 2014 and December 31, 2013, respectively. | -139 | ' | ||
Total stockholders' equity, JGWPT Holdings Inc. | 91,370 | 65,271 | ||
Non-controlling interests | 136,347 | 108,111 | ||
Total Stockholders' Equity | 227,717 | 173,382 | ||
Total Liabilities and Stockholders' Equity | 4,871,783 | 4,472,097 | ||
Common Stock- Class A | ' | ' | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ||
Common stock | ' | ' | ||
Class B Common Stock | ' | ' | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ||
Common stock | ' | ' | ||
Class C Common Stock | ' | ' | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ||
Common stock | ' | ' | ||
[1] | Pledged as collateral to credit and long-term debt facilities |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
VIE finance receivables, allowances for losses | $7,143 | $6,443 |
Other finance receivables, allowances for losses | 1,841 | 1,899 |
Other receivables, allowance for losses | 252 | 243 |
Fixed assets, accumulated depreciation | 5,108 | 4,544 |
Intangible assets, accumulated amortization | $19,166 | $17,781 |
Treasury stock at cost, shares | 91,949 | 3,929 |
Common Stock- Class A | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 12,885,225 | 11,220,358 |
Common stock, shares outstanding | 12,793,276 | 11,216,429 |
Class B Common Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 12,266,967 | 14,001,583 |
Common stock, shares outstanding | 12,266,967 | 13,984,065 |
Class C Common Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES | ' | ' | ' | ' |
Interest income | $46,638 | $37,943 | $94,460 | $80,582 |
Unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 70,317 | 30,245 | 157,628 | 163,843 |
Loss on swap terminations, net | ' | ' | -574 | -174 |
Servicing, broker, and other fees | 1,030 | 1,423 | 2,172 | 2,536 |
Realized and unrealized gains (losses) on marketable securities, net | 3,467 | -1,080 | 4,356 | 4,997 |
Realized gain (loss) on notes receivable, at fair value | 2,098 | -1,862 | 2,098 | -1,862 |
Other | -62 | -8 | -62 | -53 |
Total Revenues | 123,488 | 66,661 | 260,078 | 249,869 |
EXPENSES | ' | ' | ' | ' |
Advertising | 16,432 | 17,349 | 33,925 | 33,803 |
Interest expense | 50,700 | 43,346 | 101,930 | 85,970 |
Compensation and benefits | 10,483 | 11,551 | 19,769 | 23,396 |
General and administrative | 4,613 | 6,226 | 9,083 | 10,361 |
Professional and consulting | 5,518 | 4,975 | 8,962 | 9,098 |
Debt issuance | 19 | 44 | 3,020 | 3,072 |
Securitization debt maintenance | 1,564 | 1,544 | 3,121 | 2,984 |
Provision for losses on finance receivables | 1,127 | 1,587 | 2,218 | 2,683 |
Depreciation and amortization | 1,121 | 1,386 | 2,202 | 2,763 |
Installment obligations expense (income), net | 4,122 | -231 | 5,614 | 6,519 |
Total Expenses | 95,699 | 87,777 | 189,844 | 180,649 |
Income (loss) before income taxes | 27,789 | -21,116 | 70,234 | 69,220 |
Provision for income taxes | 6,081 | 524 | 13,993 | 1,155 |
Net Income (Loss) | 21,708 | -21,640 | 56,241 | 68,065 |
Less net income attributable to non-controlling interests | 15,440 | ' | 40,951 | ' |
Net income attributable to JGWPT Holdings Inc. | 6,268 | ' | 15,290 | ' |
Common Stock- Class A | ' | ' | ' | ' |
EXPENSES | ' | ' | ' | ' |
Net income attributable to JGWPT Holdings Inc. | $6,268 | ' | $15,290 | ' |
Weighted average shares of Class A common stock outstanding: | ' | ' | ' | ' |
Basic (in shares) | 12,559,957 | ' | 12,104,172 | ' |
Diluted (in shares) | 12,562,042 | ' | 12,105,548 | ' |
Net income per share attributable to stockholders of Class A common stock of JGWPT Holdings Inc. | ' | ' | ' | ' |
Basic (in dollars per share) | $0.50 | ' | $1.26 | ' |
Diluted (in dollars per share) | $0.50 | ' | $1.26 | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' | ' |
Net income (loss) | $21,708 | ($21,640) | $56,241 | $68,065 |
Other comprehensive gain (loss): | ' | ' | ' | ' |
Reclassification adjustment for (gain) loss included in net income | -2,098 | 1,862 | -2,098 | 1,862 |
Unrealized gains on notes receivable arising during the year | 76 | 345 | 480 | 499 |
Total other comprehensive gain (loss) | -2,022 | 2,207 | -1,618 | 2,361 |
Total comprehensive income (loss) | 19,686 | -19,433 | 54,623 | 70,426 |
Less: comprehensive income allocated to non-controlling interests | 14,189 | ' | 39,945 | ' |
Comprehensive income (loss) attributable to JGWPT Holdings Inc. | $5,497 | ($19,433) | $14,678 | $70,426 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock- Class A | Common Stock- Class B | Accumulated Other Comprehensive Income | Non-controlling Interests | Retained Earnings (Accumulated Deficit) | Additional Paid-In-Capital | Treasury stock |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance (in shares) at Dec. 31, 2013 | ' | 11,216,429 | 13,984,065 | ' | ' | ' | ' | 3,929 |
Balance at Dec. 31, 2013 | $173,382,000 | ' | ' | $612,000 | $108,111,000 | ($5,577,000) | $70,236,000 | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 56,241,000 | ' | ' | ' | 40,951,000 | 15,290,000 | ' | ' |
Share-based compensation | 1,300,000 | ' | ' | ' | 762,000 | ' | 538,000 | ' |
Share-based compensation (in shares) | ' | 3,268 | -55,499 | ' | ' | ' | ' | ' |
Unrealized gains on notes receivable arising during the period | 480,000 | ' | ' | 191,000 | 289,000 | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -2,098,000 | ' | ' | -803,000 | -1,295,000 | ' | ' | ' |
Exchange of JGWPT Holdings LLC Common Interests into Class A common stock | ' | ' | ' | ' | -11,293,000 | ' | 11,293,000 | ' |
Exchange of JGWPT Holdings LLC Common Interests into Class A common stock (in shares) | ' | 1,661,599 | -1,661,599 | ' | ' | ' | ' | ' |
Equity financing costs | -671,000 | ' | ' | ' | -400,000 | ' | -271,000 | ' |
Repurchase of Class A common stock | -917,000 | -900,000 | ' | ' | -778,000 | ' | ' | -139,000 |
Repurchase of Class A common stock (in shares) | ' | -88,020 | ' | ' | ' | ' | ' | 88,020 |
Balance (in shares) at Jun. 30, 2014 | ' | 12,793,276 | 12,266,967 | ' | ' | ' | ' | 91,949 |
Balance at Jun. 30, 2014 | 227,717,000 | ' | ' | ' | 136,347,000 | 9,713,000 | 81,796,000 | -139,000 |
Balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 21,708,000 | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains on notes receivable arising during the period | 76,000 | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | -2,098,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of Class A common stock (in shares) | ' | -88,020 | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Jun. 30, 2014 | ' | 12,793,276 | ' | ' | ' | ' | ' | ' |
Balance at Jun. 30, 2014 | $227,717,000 | ' | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $56,241 | $68,065 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Provision for losses on finance and other receivables | 2,218 | 2,683 |
Depreciation | 817 | 1,005 |
Loss on disposal of fixed assets | 69 | ' |
Amortization of finance receivables acquisition costs | 214 | 5 |
Amortization of intangibles | 1,385 | 1,758 |
Amortization of debt issuance costs | 3,919 | 2,073 |
Change in unrealized gains/losses on finance receivables | -337,525 | -93,471 |
Change in unrealized gains/losses on long-term debt | 175,425 | -34,170 |
Change in unrealized gains/losses on derivatives | 4,472 | -36,202 |
(Gain) loss on notes receivable, at fair market value | -2,098 | 1,862 |
Net proceeds from sale of finance receivables | ' | 473 |
Purchases of finance receivables | -236,660 | -208,064 |
Collections on finance receivables | 245,693 | 231,504 |
Gain on sale of finance receivables | ' | -20 |
Recoveries of finance receivables | 67 | ' |
Accretion of interest income | -94,220 | -80,189 |
Accretion of interest expense | -15,211 | -25,244 |
Share-based compensation expense | 1,300 | 1,070 |
Change in marketable securities, net | -4,356 | -4,997 |
Installment obligations expense, net | 5,614 | 6,519 |
Change in fair value of life settlement contracts | 116 | 73 |
Premiums and other costs paid, and proceeds from sale of life settlement contracts | -116 | -240 |
Deferred income taxes | 13,748 | 787 |
(Increase) decrease in operating assets: | ' | ' |
Restricted cash and investments | -3,161 | 1,193 |
Other assets | 681 | -1,437 |
Other receivables | 824 | -680 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable | 5,224 | -2,652 |
Accrued expenses | -7,050 | 4,268 |
Accrued interest | 1,998 | 811 |
Other liabilities | -163 | -126 |
Net cash used in operating activities | -180,535 | -163,343 |
Cash flows from investing activities: | ' | ' |
Purchase of intangible assets | ' | -125 |
Receipts from notes receivable | 6,093 | 2,186 |
Collections on notes receivable from affiliate | ' | 5,243 |
Purchases of fixed assets, net of sales proceeds | -1,355 | -1,860 |
Net cash provided by investing activities | 4,738 | 5,444 |
Cash flows from financing activities: | ' | ' |
Distributions of member's capital | ' | -459,612 |
Payments of equity financing costs | -671 | ' |
Purchases of treasury stock | -917 | ' |
Issuance of VIE long-term debt | 352,593 | 226,780 |
Payments for debt issuance costs | -2,767 | -17,842 |
Payments on lease obligations | ' | -449 |
Repayments of long-term debt and derivatives | -208,583 | -122,579 |
Gross proceeds from revolving credit facility | 181,603 | 198,460 |
Repayments of revolving credit facilities | -149,110 | -153,517 |
Issuance of installment obligations payable | ' | 2,297 |
Purchase of marketable securities | ' | -2,297 |
Repayments of installment obligations payable | -11,587 | -9,713 |
Proceeds from sale of marketable securities | 11,587 | 9,713 |
Repayments under term loan | ' | -143,504 |
Net proceeds from new term loan | ' | 557,175 |
Net cash provided by financing activities | 172,148 | 84,912 |
Net decrease in cash | -3,649 | -72,987 |
Cash and cash equivalents at beginning of the period | 39,061 | 103,137 |
Cash and cash equivalents at the end of the period | 35,412 | 30,150 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 109,474 | 91,507 |
Capital distributions | ' | 459,612 |
Supplemental disclosure of noncash items: | ' | ' |
Non-cash asset distribution of member's capital | ' | $16,265 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Background and Basis of Presentation | ' |
Background and Basis of Presentation | ' |
1. Background and Basis of Presentation | |
Organization and Description of Business Activities | |
JGWPT Holdings Inc., a Delaware holding company incorporated on June 21, 2013, provides liquidity to individuals with financial assets such as structured settlements, annuities, and lottery winnings, among others, by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Company also provides pre-settlement funding to people with pending personal injury claims. | |
The Company, operating through its subsidiaries and affiliates, has its principal office in Radnor, Pennsylvania. The Company engages in warehousing and subsequent resale or securitization of these various financial assets. The Company operates through its managing membership interest in Holdings LLC, the Company’s sole operating asset. Holdings LLC is a minority-owned, controlled and consolidated subsidiary of the Company. Holdings LLC’s sole asset is its membership interest in J.G. Wentworth, LLC. | |
Prior to the completion of the Company’s reorganization and IPO on November 14, 2013, described in Note 2, Holdings LLC was primarily owned by its members. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X and do not include all of the information required by GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations, and cash flows for the interim periods presented. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results for the entire year. | |
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and the amounts of revenues and expenses during the reporting periods. The most significant balance sheet accounts that could be affected by such estimates are variable interest entity (“VIE”) and other finance receivables, at fair market value, VIE derivative liabilities at fair market value, VIE long-term debt issued by securitization and permanent financing trusts at fair market value, intangible assets and goodwill. Actual results could differ from those estimates and such differences could be material. These interim financial statements should be read in conjunction with the Company’s 2013 audited consolidated financial statements that are included in its Annual Report on Form 10-K. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, including those entities that are considered VIEs, and where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). Excluded from the unaudited condensed consolidated financial statements of the Company are those entities that are considered VIEs and where the Company has been deemed not to be the primary beneficiary according to ASC 810. | |
As indicated above, the Company operates and controls all of the businesses and affairs of Holdings LLC and its subsidiaries. As such, Holdings LLC meets the definition of a VIE under ASC 810. Further, the Company is the primary beneficiary of Holdings LLC as a result of its control over Holdings LLC. As the primary beneficiary of Holdings LLC, the Company consolidates the financial results of Holdings LLC and records a non-controlling interest for the economic interest in Holdings LLC not owned by the Company. The Company’s and the non-controlling Common Interestholders’ economic interest in Holdings LLC was 43.5% and 56.5%, respectively, as of June 30, 2014. The Company’s and the non-controlling Common Interestholders’ economic interest in Holdings LLC was 37.9% and 62.1%, respectively, as of December 31, 2013. | |
Net income attributable to the non-controlling interests in the unaudited condensed consolidated statements of operations represents the portion of earnings attributable to the economic interest in Holdings LLC held by the non-controlling Common Interestholders. The allocation of net income to the non-controlling interests is based on the weighted average percentage of Holdings LLC owned by the non-controlling interests during the reporting period. The Company’s and the non-controlling Common Interestholders’ weighted average economic interests in Holdings LLC for the three months ended June 30, 2014 were 42.6% and 57.4%, respectively. The Company’s and the non-controlling Common Interestholders’ weighted average economic interests in Holdings LLC for the six months ended June 30, 2014 were 41.0% and 59.0%, respectively. | |
Non-controlling interests in the unaudited condensed consolidated balance sheets represents the portion of equity attributable to the non-controlling interests of Holdings LLC. The allocation of equity to the non-controlling interests in Holdings LLC is based on the percentage owned by the non-controlling interests in the entity. | |
All material inter-company balances and transactions are eliminated in consolidation. | |
Business_Changes_and_Developme
Business Changes and Developments | 6 Months Ended |
Jun. 30, 2014 | |
Business Changes and Developments | ' |
Business Changes and Developments | ' |
2. Business Changes and Developments | |
Initial Public Offering & Reorganization | |
On November 14, 2013, the Company consummated an IPO whereby 11,212,500 shares of Class A common stock were sold to the public for net proceeds of $141.3 million, after payment of underwriting discounts and offering expenses. The 11,212,500 shares sold were inclusive of 1,462,500 Class A common stock sold pursuant to the full exercise of an overallotment option granted to the underwriters which was consummated on December 11, 2013. The net proceeds from the IPO were used to purchase 11,212,500 newly issued Common Interests directly from Holdings LLC representing 37.9% of the then outstanding membership Common Interests. Concurrent with the consummation of the Company’s IPO, the Company amended and restated its certificate of incorporation to provide for, among other things, the issuance of shares of Class A common stock, shares of “vote only” Class B common stock, par value $0.00001 per share, and shares of Class C “non-voting” common stock, par value $0.00001 per share. Also concurrent with the consummation of the Company’s IPO, Holdings LLC merged with and into a newly formed subsidiary of the Company and the surviving, newly formed subsidiary changed its name to JGWPT Holdings, LLC. | |
Pursuant to this merger, the operating agreement of Holdings LLC was amended and restated such that, among other things, (i) the Company became the sole managing member of Holdings LLC, (ii) Holdings LLC Common Interests became exchangeable for one share of Class A common stock, or in the case of PGHI Corp., one share of the Company’s Class C common stock. Additionally, in connection with the merger, each holder of Holdings LLC Common Interests, other than PGHI Corp., was issued an equivalent number of shares of the Company’s “vote-only” Class B common stock. As a result of these transactions, as of and subsequent to November 14, 2013, the Company consolidates the financial results of Holdings LLC with its own and reflects the membership interest in Holdings LLC it does not own as a non-controlling interest in its unaudited condensed consolidated financial statements. | |
Tax Receivable Agreement | |
Holders of Common Interests (the “Common Interestholders”) may exchange their Common Interests for shares of JGWPT Holdings Inc. Class A common stock or, in the case of PGHI Corp., shares of JGWPT Holdings Inc. Class C common stock, on a one-for-one basis or, in each case, at the option of Holdings LLC, cash. Holdings LLC is expected to make an election under Section 754 of the Internal Revenue Code of 1986 in connection with the filing of its 2014 federal income tax return, which may result in an adjustment to JGWPT Holdings Inc.’s share of the tax basis of the assets owned by Holdings LLC at the time of such initial sale of and subsequent exchanges of Common Interests. The sale and exchanges may result in increases in JGWPT Holdings Inc.’s share of the tax basis of the tangible and intangible assets of Holdings LLC that otherwise would not have been available. Any such increases in tax basis are, in turn, anticipated to create incremental tax deductions that would reduce the amount of tax that JGWPT Holdings Inc. would otherwise be required to pay in the future. | |
In connection with our IPO, JGWPT Holdings Inc. entered into a tax receivable agreement with Common Interestholders who held in excess of approximately 1% of the Common Interests outstanding immediately prior to the IPO. The tax receivable agreement requires JGWPT Holdings Inc. to pay those Common Interestholders 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that JGWPT Holdings Inc. actually realizes in any tax year beginning with 2013 from increases in tax basis realized as a result of any future exchanges by Common Interestholders of their Common Interests for shares of Class A or Class C common stock (or cash). The cash savings in income tax paid to any such Common Interestholders will reduce the cash that may otherwise be available to JGWPT Holdings Inc. for operations and to make future distributions to holders of Class A common stock. | |
For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing JGWPT Holdings Inc.’s actual income tax liability for a covered tax year to the amount of such taxes that JGWPT Holdings Inc. would have been required to pay for such covered tax year had there been no increase to JGWPT Holdings Inc.’s share of the tax basis of the tangible and intangible assets of Holdings LLC as a result of such sale and any such exchanges and had JGWPT Holdings Inc. not entered into the tax receivable agreement. The tax receivable agreement continues until all such tax benefits have been utilized or expired, unless JGWPT Holdings Inc. exercises its right to terminate the tax receivable agreement upon a change of control for an amount based on the remaining payments expected to be made under the tax receivable agreement. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
Effective January 1, 2014, the Company adopted ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. This adoption of ASU 2013-11 did not materially impact the Company’s financial statements. | |
Variable_Interest_Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2014 | |
Variable Interest Entities | ' |
Variable Interest Entities | ' |
4. Variable Interest Entities | |
In the normal course of business, the Company is involved with various entities that are considered to be VIEs. A VIE is an entity that has either a total investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest under the voting interest model of consolidation. The Company is required to consolidate any VIE for which it is determined to be the primary beneficiary. The primary beneficiary is the entity that has the power to direct those activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses from or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company reviews all significant interests in the VIEs it is involved with including consideration of the activities of the VIEs that most significantly impact the VIEs’ economic performance and whether the Company has control over those activities. On an ongoing basis, the Company assesses whether or not it is the primary beneficiary of a VIE. | |
As a result of adopting ASC 810, the Company was deemed to be the primary beneficiary of the VIEs used to securitize its finance receivables (“VIE finance receivables”). The Company elected the fair value option with respect to assets and liabilities in its securitization VIEs as part of their initial consolidation on January 1, 2010. | |
The debt issued by the Company’s securitization VIEs is reported on the Company’s condensed consolidated balance sheets as VIE long-term debt issued by securitization and permanent financing trusts, at fair market value (“VIE securitization debt”). The VIE securitization debt is recourse solely to the VIE finance receivables held by such special purpose entities (“SPEs”) (Note 6 and 7) and thus is non-recourse to the Company and other consolidated subsidiaries. The VIEs will continue in operation until all securitization debt is paid and all residual cash flows are collected. Most consolidated VIEs have expected lives in excess of 20 years. | |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
5. Fair Value Measurements | ||||||||||||||
ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels are defined as follows: | ||||||||||||||
· Level 1 — inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. | ||||||||||||||
· Level 2 — inputs to the valuation methodology include quoted prices in markets that are not active or quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||
· Level 3 — inputs to the valuation methodology are unobservable, reflecting the entity’s own assumptions about assumptions market participants would use in pricing the asset or liability. | ||||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair value is a market based measure considered from the perspective of a market participant who holds the asset or owes the liabilities rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the assets or liabilities at the measurement date. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company also evaluates various factors to determine whether certain transactions are orderly and may make adjustments to transactions or quoted prices when the volume and level of activity for an asset or liability have decreased significantly. | ||||||||||||||
The above conditions could cause certain assets and liabilities to be reclassified from Level 1 to Level 2/Level 3 or Level 2 to Level 3. The inputs or methodology used for valuing the assets or liabilities are not necessarily an indication of the risk associated with the assets and liabilities. | ||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | ||||||||||||||
For assets and liabilities measured at fair value in the unaudited condensed consolidated financial statements: | ||||||||||||||
Marketable securities — The estimated fair value of investments in marketable securities is based on quoted market prices. | ||||||||||||||
VIE and other finance receivables and VIE long-term debt issued by securitization and permanent financing trusts, at fair market value — The estimated fair value of VIE and other finance receivables and VIE long- term debt issued by securitization and permanent financing trusts, at fair value is determined based on a discounted cash flow model using expected future collections discounted at a calculated rate as described below. | ||||||||||||||
For guaranteed structured settlements and annuities, the Company allocates the projected cash flows based on the waterfall of the securitization and permanent financing trusts (collectivity the “Trusts”). The waterfall includes fees to operate the Trusts (servicing fees, admin fees, etc.), note holder principal and note holder interest. Many of the Trusts have various tranches of debt that have varying subordinations in the waterfall calculation (Note 10). The remaining cash flows, net of those obligations, are considered a residual interest which is projected to be paid to the Company’s retained interest holders. | ||||||||||||||
The projected finance receivable cash flows used to pay the obligations of the Trusts are discounted using a calculated rate derived from the fair value interest rates of the debt in the Trusts. The fair value interest rate of the debt is derived using a swap curve and applying a calculated spread that is based on market indices that are highly correlated with the spreads from the Company’s previous securitizations. The calculated spread is adjusted for the specific attributes of the debt in the Trusts, such as years to maturity and credit grade. The debt’s fair value interest rates are applied to the projected future cash payments paid on the principal and interest to derive the debt’s fair value. The debt’s fair value interest rates are blended using the debt’s principal balance to obtain a weighted average fair value interest rate; this rate is used to determine the value of the finance receivables’ asset cash flows. In addition, the Company considers transformation cost and profit margin associated with its securitizations to derive the fair value of its finance receivables’ asset cash flows. The finance receivables’ residual cash flows remaining after the projected obligations of the Trusts are satisfied are discounted using a separate yield based on an assumed rating of the residual tranche (6.59% and 7.85% as of June 30, 2014 and December 31, 2013, respectively, with a weighted average life of 20 years as of both dates). | ||||||||||||||
The residual cash flows are adjusted for a loss assumption of 0.25% over the life of the finance receivables in its fair value calculation. Finance receivable cash flows, including the residual asset cash flows, are included in VIE and other finance receivables, at fair market value in the Company’s condensed consolidated balance sheets. The associated debt’s projected future cash payments for principal and interest are included in VIE long-term debt issued by securitization and permanent financing trusts, at fair market value. | ||||||||||||||
For finance receivables not yet securitized, the Company uses the calculated spreads based on market indices, as well as considering transformation costs and profit margin to determine the fair value yield adjusting for expected losses and applying the residual yield for the cash flows the Company projects would make up the retained interest in a securitization. | ||||||||||||||
For the Company’s Life Contingent Structured Settlements (“LCSS”) receivables and long-term debt issued by its related permanent financing trusts, the blended weighted average discount rate of the LCSS receivables at the time of borrowing (which occurs frequently throughout the year) is used to determine the fair value of the receivables’ cash flows. The residual cash flows relating to the LCSS receivables are discounted using a separate yield based on the assumed rating to the residual tranche reflecting the life contingent feature of these receivables. | ||||||||||||||
Life settlement contracts, at fair market value — The fair values of life settlement contracts are determined by reference to the transfer price of similar life settlement contracts under a discounted cash flow calculation that takes into account the net death benefit under the policy, estimated future premium payments and the life expectancy of the insured, as well as other qualitative factors regarding market participants assumptions. Life expectancy is determined on a policy-by-policy basis using the results of medical underwriting performed by independent agencies. | ||||||||||||||
Notes receivable, at fair market value — The fair values of notes receivable are determined based on the discounted present value of future expected cash flows using management’s best estimates of the key assumptions regarding credit losses and discount rates determined to be commensurate with the risks involved. The notes receivable was repaid in June 2014. As of December 31, 2013, the amortized cost and fair value of the notes receivable was $6.2 million and $5.6 million, respectively. | ||||||||||||||
VIE derivative liabilities, at fair value — The fair value of interest rate swaps, is based on pricing models which consider current interest rates, and the amount and timing of cash flows (Note 12). | ||||||||||||||
Assets and liabilities for which fair value is only disclosed: | ||||||||||||||
VIE and other finance receivables, net of allowance for losses — The fair value of structured settlement, annuity, and lottery receivables was estimated based on the present value of future expected cash flows using discount rates commensurate with the risks involved. The fair value of pre-settlement funding transactions and attorney cost financing was based on expected losses and historical loss experience associated with the respective receivables using management’s best estimates of the key assumptions regarding credit losses. | ||||||||||||||
Other receivables, net of allowance for losses — The estimated fair value of advances receivable and certain other receivables, which are generally recovered in less than three months, is equal to the carrying amount. The carrying value of other receivables which have expected recoverability of greater than three months, which consist primarily of a note receivable, have been estimated based on the present value of future expected cash flows using management’s best estimate of the key assumptions, including discount rates commensurate with the risks involved. | ||||||||||||||
Installment obligations payable — Installment obligations payable are reported at contract value determined based on changes in the measuring indices selected by the obligees under the terms of the obligations over the lives of the obligations. The fair value of installment obligations payable is estimated to be equal to carrying value. | ||||||||||||||
Term loan payable — The estimated fair value of the term loan payable is based on recently executed transactions and market price quotations obtained from third-parties (Note 11). | ||||||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings — The estimated fair value of borrowings under revolving credit facilities and other similar borrowings is based on the borrowing rates currently available to the Company for debt with similar terms and remaining maturities. | ||||||||||||||
VIE long-term debt — The estimated fair value of VIE long-term debt is based on fair value borrowing rates available to the Company based on recently executed transactions with similar underlying collateral characteristics, reflecting the specific terms and conditions of the debt. | ||||||||||||||
The following table sets forth the Company’s assets and liabilities that are carried at fair value on the Company’s condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013: | ||||||||||||||
Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | Total at | |||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
(In thousands) | ||||||||||||||
June 30, 2014: | ||||||||||||||
Assets | ||||||||||||||
Marketable Securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 39,811 | $ | — | $ | — | $ | 39,811 | ||||||
US mid cap | 12,620 | — | — | 12,620 | ||||||||||
US small cap | 5,662 | — | — | 5,662 | ||||||||||
International | 18,112 | — | — | 18,112 | ||||||||||
Other equity | 2,091 | — | — | 2,091 | ||||||||||
Total equity securities | 78,296 | — | — | 78,296 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 23,249 | — | — | 23,249 | ||||||||||
International fixed income | 3,523 | — | — | 3,523 | ||||||||||
Other fixed income | 28 | — | — | 28 | ||||||||||
Total fixed income securities | 26,800 | — | — | 26,800 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 7,046 | — | — | 7,046 | ||||||||||
Alternative investments | 1,657 | — | — | 1,657 | ||||||||||
Annuities | 2,182 | — | — | 2,182 | ||||||||||
Total other securities | 10,885 | — | — | 10,885 | ||||||||||
Total marketable securities | 115,981 | 115,981 | ||||||||||||
VIE and other finance receivables at fair market value | — | — | 4,287,725 | 4,287,725 | ||||||||||
Notes receivable at fair market value | — | — | — | — | ||||||||||
Life settlements contracts, at fair market value (1) | — | — | — | — | ||||||||||
Total Assets | $ | 115,981 | $ | — | $ | 4,287,725 | $ | 4,403,706 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,698,500 | $ | 3,698,500 | ||||||
VIE derivative liabilities, at fair market value | — | 74,542 | — | 74,542 | ||||||||||
Total Liabilities | $ | — | $ | 74,542 | $ | 3,698,500 | $ | 3,773,042 | ||||||
(1) Included in other assets on the Company’s unaudited condensed consolidated balance sheet. | ||||||||||||||
Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | Total at | |||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
(In thousands) | ||||||||||||||
December 31, 2013: | ||||||||||||||
Assets | ||||||||||||||
Marketable Securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 41,821 | $ | — | $ | — | $ | 41,821 | ||||||
US mid cap | 9,769 | — | — | 9,769 | ||||||||||
US small cap | 10,212 | — | — | 10,212 | ||||||||||
International | 19,938 | — | — | 19,938 | ||||||||||
Other equity | 936 | — | — | 936 | ||||||||||
Total equity securities | 82,676 | — | — | 82,676 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 26,713 | — | — | 26,713 | ||||||||||
International fixed income | 4,089 | — | — | 4,089 | ||||||||||
Other fixed income | 29 | — | — | 29 | ||||||||||
Total fixed income securities | 30,831 | — | — | 30,831 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 5,534 | — | — | 5,534 | ||||||||||
Alternative investments | 705 | — | — | 705 | ||||||||||
Annuities | 2,208 | — | — | 2,208 | ||||||||||
Total other securities | 8,447 | — | — | 8,447 | ||||||||||
Total marketable securities | 121,954 | 121,954 | ||||||||||||
VIE and other finance receivables at fair market value | — | — | 3,870,649 | 3,870,649 | ||||||||||
Notes receivable at fair market value | — | — | 5,610 | 5,610 | ||||||||||
Life settlements contracts, at fair market value (1) | — | — | — | — | ||||||||||
Total Assets | $ | 121,954 | $ | — | $ | 3,876,259 | $ | 3,998,213 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,431,283 | $ | 3,431,283 | ||||||
VIE derivative liabilities, at fair market value | — | 70,296 | — | 70,296 | ||||||||||
Total Liabilities | $ | — | $ | 70,296 | $ | 3,431,283 | $ | 3,501,579 | ||||||
(1) Included in other assets on the Company’s condensed consolidated balance sheet. | ||||||||||||||
The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of June 30, 2014 and December 31, 2013, respectively: | ||||||||||||||
Range | ||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | (Weighted Average) | |||||||||||
(Dollars in thousands) | ||||||||||||||
June 30, 2014: | ||||||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 4,287,725 | Discounted cash flow | Discount rate | 2.43% - 12.68% (3.63%) | |||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 8 to 244 months (142) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 4,287,725 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | Discounted cash flow | Discount rate | 0.50% - 12.68% (3.30%) | ||||||||||
Total Liabilities | $ | 3,698,500 | ||||||||||||
Range | ||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | (Weighted Average) | |||||||||||
(Dollars in thousands) | ||||||||||||||
December 31, 2013: | ||||||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,870,649 | Discounted cash flow | Discount rate | 2.79% - 13.69% (4.33%) | |||||||||
Notes receivable, at fair market value | 5,610 | Discounted cash flow | Discount rate | 7.85% (7.85%) | ||||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 14 to 250 months (148) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,876,259 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,431,283 | Discounted cash flow | Discount rate | 0.73% - 12.70% (3.94%) | ||||||||||
Total Liabilities | $ | 3,431,283 | ||||||||||||
A significant unobservable input used in the fair value measurement of all of the Company’s assets and liabilities measured at fair value using unobservable inputs (Level 3) is the discount rate. Significant increases (decreases) in the discount rate used to estimate fair value in isolation would result in a significantly lower (higher) fair value measurement of the corresponding asset or liability. An additional significant unobservable input used in the fair value measurement of the life settlement contracts, at fair value, is life expectancy. Significant increases (decreases) in the life expectancy used to estimate the fair value of life settlement contracts in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||
The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||
VIE and other | Life settlement | Notes receivable, at | Total | |||||||||||
finance receivables, | contracts, at fair | fair market value | ||||||||||||
at fair market value | market value | |||||||||||||
(In thousands) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3,870,649 | $ | — | $ | 5,610 | $ | 3,876,259 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 337,525 | (116 | ) | 2,098 | 339,507 | |||||||||
Included in other comprehensive gain | — | — | (1,615 | ) | (1,615 | ) | ||||||||
Purchases of finance receivables | 220,742 | — | — | 220,742 | ||||||||||
Life insurance premiums paid | — | 116 | — | 116 | ||||||||||
Interest accreted | 83,777 | — | — | 83,777 | ||||||||||
Payments received | (224,968 | ) | — | (6,093 | ) | (231,061 | ) | |||||||
Maturities | — | — | — | — | ||||||||||
Asset distribution | — | — | — | — | ||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance as of June 30, 2014 | $ | 4,287,725 | $ | — | $ | — | $ | 4,287,725 | ||||||
The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: | ||||||||||||||
June 30, 2014 | $ | 337,525 | $ | (116 | ) | $ | — | $ | 337,409 | |||||
Balance as of December 31, 2012 | $ | 3,615,188 | $ | 1,724 | $ | 8,074 | $ | 3,624,986 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 93,471 | (73 | ) | (1,862 | ) | 91,536 | ||||||||
Included in other comprehensive gain | — | — | 2,361 | 2,361 | ||||||||||
Purchases of finance receivables | 197,172 | — | — | 197,172 | ||||||||||
Life insurance premiums paid | — | 241 | — | 241 | ||||||||||
Interest accreted | 67,795 | — | — | 67,795 | ||||||||||
Payments received | (204,275 | ) | — | — | (204,275 | ) | ||||||||
Maturities | — | — | (2,186 | ) | (2,186 | ) | ||||||||
Asset distribution | (9,615 | ) | (1,892 | ) | — | (11,507 | ) | |||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance as of June 30, 2013 | $ | 3,759,736 | $ | — | $ | 6,387 | 3,766,123 | |||||||
The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: | ||||||||||||||
June 30, 2013 | $ | 93,470 | $ | (20 | ) | $ | — | $ | 93,450 | |||||
The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||
VIE long-term debt issued | ||||||||||||||
by securitizations and | ||||||||||||||
permanent financing | ||||||||||||||
trusts | ||||||||||||||
(In thousands) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3,431,283 | ||||||||||||
Net (gains) losses: | ||||||||||||||
Included in earnings / losses | 175,425 | |||||||||||||
Issuances | 242,593 | |||||||||||||
Interest accreted | (17,145 | ) | ||||||||||||
Repayments | (133,656 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance as of June 30, 2014 | $ | 3,698,500 | ||||||||||||
The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: | ||||||||||||||
June 30, 2014 | $ | 175,425 | ||||||||||||
Balance as of December 31, 2012 | $ | 3,229,591 | ||||||||||||
Net (gains) losses: | ||||||||||||||
Included in earnings / losses | (34,170 | ) | ||||||||||||
Issuances | 226,780 | |||||||||||||
Interest accreted | (27,183 | ) | ||||||||||||
Repayments | (116,541 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance as of June 30, 2013 | $ | 3,278,477 | ||||||||||||
The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: | ||||||||||||||
June 30, 2013 | $ | (34,170 | ) | |||||||||||
Realized and unrealized gains and losses included in revenues in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2014 and 2013 are reported in the following revenue categories: | ||||||||||||||
VIE and other finance | Life settlement | |||||||||||||
receivables and long- | contracts income | |||||||||||||
term debt | ||||||||||||||
(In thousands) | ||||||||||||||
Net gains (losses) included in revenues in the three months ended June 30, 2014 | $ | 73,326 | $ | (116 | ) | |||||||||
Unrealized gains (losses) for the three months ended June 30, 2014 relating to assets still held as of June 30, 2014 | $ | 73,326 | $ | (116 | ) | |||||||||
Net gains (losses) included in revenues in the six months ended June 30, 2014 | $ | 162,100 | $ | (116 | ) | |||||||||
Unrealized gains (losses) for the six months ended June 30, 2014 relating to assets still held as of June 30, 2014 | $ | 162,100 | $ | (116 | ) | |||||||||
Net gains (losses) included in revenues in the three months ended June 30, 2013 | $ | 5,345 | $ | (8 | ) | |||||||||
Unrealized gains (losses) for the three months ended June 30, 2013 relating to assets still held as of June 30, 2013 | $ | 5,345 | $ | (8 | ) | |||||||||
Net gains (losses) included in revenues in the six months ended June 30, 2013 | $ | 127,640 | $ | (73 | ) | |||||||||
Unrealized gains (losses) for the six months ended June 30, 2013 relating to assets still held as of June 30, 2013 | $ | 127,640 | $ | (20 | ) | |||||||||
The Company discloses fair value information about financial instruments, whether or not recognized at fair value in the Company’s condensed consolidated balance sheets, for which it is practicable to estimate that value. As such, the estimated fair values of the Company’s financial instruments are as follows: | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Estimated | Estimated | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Amount | Value | Amount | |||||||||||
Financial assets | ||||||||||||||
Marketable securities | $ | 115,981 | $ | 115,981 | $ | 121,954 | $ | 121,954 | ||||||
VIE and other finance receivables, at fair market value | 4,287,725 | 4,287,725 | 3,870,649 | 3,870,649 | ||||||||||
VIE and other finance receivables, net of allowance for losses (1) | 127,948 | 135,039 | 126,502 | 132,992 | ||||||||||
Notes receivable, at fair market value | — | — | 5,610 | 5,610 | ||||||||||
Other receivables, net of allowance for losses (1) | 12,748 | 12,748 | 13,529 | 13,529 | ||||||||||
Financial liabilities | ||||||||||||||
VIE derivative liabilities, at fair market value | 74,542 | 74,542 | 70,296 | 70,296 | ||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings (1) | 75,733 | 73,767 | 42,275 | 41,274 | ||||||||||
VIE long-term debt (1) | 181,581 | 184,676 | 147,112 | 150,802 | ||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,698,500 | 3,431,283 | 3,431,283 | ||||||||||
Installment obligations payable (1) | 115,981 | 115,981 | 121,954 | 121,954 | ||||||||||
Term loan payable (1) | 451,186 | 435,683 | 434,184 | 434,184 | ||||||||||
(1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. | ||||||||||||||
VIE_and_Other_Finance_Receivab
VIE and Other Finance Receivables, at Fair Market Value | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
VIE and Other Finance Receivables, at Fair Market Value | ' | |||||||||||||
VIE and Other Finance Receivables, at Fair Market Value | ' | |||||||||||||
6. VIE and Other Finance Receivables, at Fair Market Value | ||||||||||||||
The Company has elected to fair value newly originated guaranteed structured settlements in accordance with ASC 810. Additionally, as a result of the Company including lottery winning finance receivables in its 2013-1 asset securitization, the Company also elected to fair value newly originated lottery winnings effective January 1, 2013. As of June 30, 2014 and December 31, 2013, VIE and other finance receivables for which the fair value option was elected consist of the following: | ||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Maturity value | $ | 6,243,644 | $ | 5,917,596 | ||||||||||
Unearned income | (1,955,919 | ) | (2,046,947 | ) | ||||||||||
Net carrying amount | $ | 4,287,725 | $ | 3,870,649 | ||||||||||
Encumbrances on VIE and other finance receivables, at fair market value are as follows: | ||||||||||||||
Encumbrance | June 30, 2014 | December 31, 2013 | ||||||||||||
(In thousands) | ||||||||||||||
VIE securitization debt (2) | $ | 4,069,366 | $ | 3,742,218 | ||||||||||
$100 million credit facility (1) | 37,256 | 11,073 | ||||||||||||
$50 million credit facility (1) | 1,903 | — | ||||||||||||
$300 million credit facility (1) | 31,283 | 16,681 | ||||||||||||
$300 million credit facility (1) | 15,810 | 7,568 | ||||||||||||
$100 million permanent financing related to 2011-A (2) | 52,526 | 41,164 | ||||||||||||
Total VIE finance receivables at fair value | 4,208,144 | 3,818,704 | ||||||||||||
Not encumbered | 79,581 | 51,945 | ||||||||||||
Total VIE and other finance receivables at fair value | $ | 4,287,725 | $ | 3,870,649 | ||||||||||
(1) See Note 8 | ||||||||||||||
(2) See Note 10 | ||||||||||||||
As of June 30, 2014 and December 31, 2013, the residual cash flows from the Company’s finance receivables, at fair market value held in securitizations were pledged as collateral for the Residual Term Facility (Note 9). Additionally, as of December 31, 2013, the Company’s notes receivables, at fair market value, were pledged as collateral for the Residual Term Facility. The Company’s notes receivables, at fair market value, were repaid during the six months ended June 30, 2014. | ||||||||||||||
The Company is engaged to service certain finance receivables it sells to third parties. Servicing fee revenue related to those receivables are included in servicing, broker, and other fees in the Company’s unaudited condensed consolidated statements of operations, and for the three and six months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Servicing fees | $ | 230 | $ | 234 | $ | 461 | $ | 475 | ||||||
VIE_and_Other_Finance_Receivab1
VIE and Other Finance Receivables, net of Allowance for Losses | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ||||||||||||||||||||||
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ||||||||||||||||||||||
7. VIE and Other Finance Receivables, net of Allowance for Losses | |||||||||||||||||||||||
VIE and other finance receivables, net of allowance for losses, as of June 30, 2014 and December 31, 2013 consist of the following: | |||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Structured settlements and annuities | $ | 78,031 | $ | 75,894 | |||||||||||||||||||
Less: unearned income | (50,763 | ) | (49,751 | ) | |||||||||||||||||||
27,268 | 26,143 | ||||||||||||||||||||||
Lottery winnings | 84,760 | 87,495 | |||||||||||||||||||||
Less: unearned income | (26,411 | ) | (28,442 | ) | |||||||||||||||||||
58,349 | 59,053 | ||||||||||||||||||||||
Pre-settlement funding transactions | 58,605 | 56,309 | |||||||||||||||||||||
Less: deferred revenue | (1,716 | ) | (2,240 | ) | |||||||||||||||||||
56,889 | 54,069 | ||||||||||||||||||||||
Attorney cost financing | 1,517 | 2,069 | |||||||||||||||||||||
Less: deferred revenue | — | — | |||||||||||||||||||||
1,517 | 2,069 | ||||||||||||||||||||||
VIE and other finance receivables, gross | 144,023 | 141,334 | |||||||||||||||||||||
Less: allowance for losses | (8,984 | ) | (8,342 | ) | |||||||||||||||||||
VIE and other finance receivables, net | $ | 135,039 | $ | 132,992 | |||||||||||||||||||
Encumbrances on VIE and other finance receivables, net of allowance for losses are as follows: | |||||||||||||||||||||||
Encumbrance | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
VIE securitization debt (2) | $ | 76,615 | $ | 78,575 | |||||||||||||||||||
$35 million pre-settlement credit facility (1) | 29,116 | 25,047 | |||||||||||||||||||||
$45.1 million long-term pre-settlement facility (2) | 8,282 | 11,680 | |||||||||||||||||||||
$2.4 million long-term facility (2) | 2,134 | 2,524 | |||||||||||||||||||||
Total VIE finance receivables, net of allowances | 116,147 | 117,826 | |||||||||||||||||||||
Not encumbered | 18,892 | 15,166 | |||||||||||||||||||||
Total VIE and other finance receivables, net of allowances | $ | 135,039 | $ | 132,992 | |||||||||||||||||||
(1) See Note 8 | |||||||||||||||||||||||
(2) See Note 9 | |||||||||||||||||||||||
Activity in the allowance for losses for VIE and other finance receivables for the three and six months ended June 30, 2014 and June 30, 2013 was as follows: | |||||||||||||||||||||||
Structured | Lottery | Pre-settlement | Life insurance | Attorney cost | Total | ||||||||||||||||||
settlements and | funding | premium financing | financing | ||||||||||||||||||||
annuities | transactions | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three Months Ended June, 2014 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of March 31, 2014 | $ | (53 | ) | $ | (4 | ) | $ | (8,176 | ) | $ | — | $ | (283 | ) | $ | (8,516 | ) | ||||||
Provision for loss | (68 | ) | 3 | (1,062 | ) | — | — | (1,127 | ) | ||||||||||||||
Charge-offs | 91 | 22 | 596 | — | — | 709 | |||||||||||||||||
Recoveries | (25 | ) | (25 | ) | — | — | — | (50 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
Six Months Ended June, 2014 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of December 31, 2013 | $ | (48 | ) | $ | — | $ | (8,011 | ) | $ | — | $ | (283 | ) | $ | (8,342 | ) | |||||||
Provision for loss | (8 | ) | (8 | ) | (2,202 | ) | — | — | (2,218 | ) | |||||||||||||
Charge-offs | 104 | 29 | 1,571 | — | — | 1,704 | |||||||||||||||||
Recoveries | (103 | ) | (25 | ) | — | — | — | (128 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
Individually evaluated for impairment | $ | (55 | ) | $ | (4 | ) | $ | (3,255 | ) | $ | — | $ | — | $ | (3,314 | ) | |||||||
Collectively evaluated for impairment | — | — | (5,387 | ) | — | (283 | ) | (5,670 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 27,213 | $ | 58,345 | $ | 3,681 | $ | — | $ | — | $ | 89,239 | |||||||||||
Collectively evaluated for impairment | — | — | 44,566 | — | 1,234 | 45,800 | |||||||||||||||||
Balance as of June 30, 2014 | $ | 27,213 | $ | 58,345 | $ | 48,247 | $ | — | $ | 1,234 | $ | 135,039 | |||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of March 31, 2013 | $ | (181 | ) | $ | — | $ | (5,272 | ) | $ | — | $ | (215 | ) | $ | (5,668 | ) | |||||||
Provision for loss | (139 | ) | 11 | (1,383 | ) | 2 | (78 | ) | (1,587 | ) | |||||||||||||
Charge-offs | 139 | 35 | 373 | — | — | 547 | |||||||||||||||||
Recoveries | (1 | ) | (46 | ) | — | (2 | ) | — | (49 | ) | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | (181 | ) | $ | (6 | ) | $ | (4,194 | ) | $ | — | $ | (269 | ) | $ | (4,650 | ) | ||||||
Provision for loss | (139 | ) | 11 | (2,533 | ) | 2 | (24 | ) | (2,683 | ) | |||||||||||||
Charge-offs | 139 | 35 | 445 | — | — | 619 | |||||||||||||||||
Recoveries | (1 | ) | (40 | ) | — | (2 | ) | — | (43 | ) | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Individually evaluated for impairment | $ | (182 | ) | $ | — | $ | (1,498 | ) | $ | — | $ | — | $ | (1,680 | ) | ||||||||
Collectively evaluated for impairment | — | — | (4,784 | ) | — | (293 | ) | (5,077 | ) | ||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 25,890 | $ | 59,850 | $ | 1,826 | $ | — | $ | — | $ | 87,566 | |||||||||||
Collectively evaluated for impairment | — | — | 46,753 | — | 2,373 | 49,126 | |||||||||||||||||
Balance as of June 30, 2013 | $ | 25,890 | $ | 59,850 | $ | 48,579 | $ | — | $ | 2,373 | $ | 136,692 | |||||||||||
Management makes significant estimates in determining the allowance for losses on finance receivables. Consideration is given to a variety of factors in establishing these estimates, including current economic conditions and anticipated delinquencies. Because the allowance for losses is dependent on general and other economic conditions beyond the Company’s control, it is at least reasonably possible that the estimate for the allowance for losses could differ materially from the currently reported amount in the near term. | |||||||||||||||||||||||
The Company suspends recognizing interest income on a receivable when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreement. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. | |||||||||||||||||||||||
Payments received on past due receivables and finance receivables the Company has suspended recognizing revenue on are applied first to principal and then to accrued interest. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. As of June 30, 2014, the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables in the amount of $11.2 million and $0.7 million, respectively. As of December 31, 2013, the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables in the amount of $11.5 million and $0.8 million, respectively. | |||||||||||||||||||||||
Pre-settlement funding transactions and attorney cost financing are usually outstanding for a period of time exceeding one year. The Company performs underwriting procedures to assess the quality of the underlying pending litigation collateral prior to making such advances. The underwriting process involves an evaluation of each transaction’s case merits, counsel track record, and case concentration. | |||||||||||||||||||||||
The Company assesses the status of the individual pre-settlement funding transactions to determine whether there are any case specific concerns that need to be addressed and included in the allowance for losses on finance receivables. The Company also analyzes pre-settlement funding transactions on a portfolio basis based on the advances’ age as the ability to collect is correlated to the duration of time the advances are outstanding. | |||||||||||||||||||||||
The following table presents gross pre-settlement funding transactions as of June 30, 2014 and December 31, 2013, based on their year of origination: | |||||||||||||||||||||||
Year of | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Origination | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
2009 | $ | 3,682 | $ | 4,578 | |||||||||||||||||||
2010 | 4,957 | 5,740 | |||||||||||||||||||||
2011 | 8,473 | 10,915 | |||||||||||||||||||||
2012 | 13,831 | 17,527 | |||||||||||||||||||||
2013 | 14,176 | 17,549 | |||||||||||||||||||||
2014 | 13,486 | — | |||||||||||||||||||||
$ | 58,605 | $ | 56,309 | ||||||||||||||||||||
Based on historical portfolio experience, the Company has reserved for pre-settlement funding transactions and attorney cost financing $8.6 million and $0.3 million as of June 30, 2014 and $8.0 million and $0.3 million as of December 31, 2013, respectively. | |||||||||||||||||||||||
The following table presents portfolio delinquency status as of June 30, 2014 and as of December 31, 2013, respectively: | |||||||||||||||||||||||
VIE and Other | |||||||||||||||||||||||
30-59 | 60-89 | Greater | VIE and Other | Finance | |||||||||||||||||||
Finance | Receivables, net | ||||||||||||||||||||||
Days | Days | than | Total | Receivables, | > 90 days | ||||||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Current | net | accruing | |||||||||||||||||
(In thousands) | |||||||||||||||||||||||
As of June 30, 2014: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 7 | $ | 4 | $ | 190 | $ | 201 | $ | 27,067 | $ | 27,268 | $ | — | |||||||||
Lottery winnings | 3 | 2 | 168 | 173 | 58,176 | 58,349 | — | ||||||||||||||||
Total | $ | 10 | $ | 6 | $ | 358 | $ | 374 | $ | 85,243 | $ | 85,617 | $ | — | |||||||||
As of December 31, 2013: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 4 | $ | 1 | $ | 62 | $ | 67 | $ | 26,028 | $ | 26,095 | $ | — | |||||||||
Lottery winnings | — | — | 18 | 18 | 59,035 | 59,053 | — | ||||||||||||||||
Total | $ | 4 | $ | 1 | $ | 80 | $ | 85 | $ | 85,063 | $ | 85,148 | $ | — | |||||||||
Pre-settlement funding transactions and attorney cost financing do not have set due dates as payment is dependent on the underlying case settling. | |||||||||||||||||||||||
VIE_Borrowings_Under_Revolving
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | |||||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | |||||||||
8. VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ||||||||||
As of June 30, 2014 and December 31, 2013, VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following: | ||||||||||
June 30, | December 31, | |||||||||
Entity | 2014 | 2013 | ||||||||
(In thousands) | ||||||||||
$100 million variable funding note facility with interest payable monthly at 9.0%, collateralized by JGW-S III’s structured settlements receivables, 2-year revolving period with 18 months amortization period thereafter upon notice by the issuer or the note holder with all principal and interest outstanding payable no later than October 15, 2048. JGW-S III is charged monthly an unused fee of 1.00% per annum for the undrawn balance of its line of credit. | JGW-S III | $ | 23,863 | $ | 7,535 | |||||
$50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.40% as of June 30, 2014 and 3.42% as of December 31, 2013) maturing on April 2, 2017, collateralized by JGW IV’s structured settlements and annuity receivables. JGW IV, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW IV | 1,302 | — | |||||||
$300 million multi-tranche and lender credit facility with interest payable monthly. The Facility was revised on July 24, 2013 as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.15% and 3.25% as of June 30, 2014 and 3.17% and 3.29% at December 31, 2013). Tranche B rate is 5.5% plus LIBOR (5.65% as of June 30, 2014, 5.67% at December 31, 2013). The facility matures on July 24, 2016 and is collateralized by JGW V’s structured settlements, annuity and lottery receivables. JGW V, LLC is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. | JGW V | 19,851 | 10,985 | |||||||
$300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (2.98% as of June 30, 2014 and 2.95% at December 31, 2013), maturing on November 15, 2016, collateralized by JGW VII’s structured settlements, annuity and lottery receivables. JGW VII, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW VII | 9,823 | 5,769 | |||||||
$35 million multi class credit facility with interest payable monthly as follows: Class A rate comprises the lender’s “prime rate” plus 1.00%, subject to a floor of 4.50% (4.50% as of June 30, 2014 and December 31, 2013). Class B rate comprises the Class A rate plus 1.00% (5.50% as of June 30 2014). The facility matures December 31, 2014 and is collateralized by certain pre-settlement receivables. Peach One is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | Peach One | 18,928 | 16,985 | |||||||
Total | $ | 73,767 | $ | 41,274 | ||||||
Interest expense, including unused fees, for the three months ended June 30, 2014 and 2013 related to VIE borrowings under revolving credit facilities and other similar borrowings was $2.4 million and $1.8 million, respectively. Interest expense, including unused fees, for the six months ended June 30, 2014 and 2013 related to VIE borrowings under revolving credit facilities and other similar borrowings was $4.6 million and $3.9 million, respectively. | ||||||||||
The weighted average interest rate on outstanding VIE borrowings under revolving credit facilities and other similar borrowings as of June 30, 2014 and December 31, 2013 was 5.43% and 4.81%, respectively. | ||||||||||
VIE_LongTerm_Debt
VIE Long-Term Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
VIE Long-Term Debt | ' | |||||||
VIE Long-Term Debt | ' | |||||||
9. VIE Long-Term Debt | ||||||||
As of June 30, 2014 and December 31, 2013, VIE long-term debt consisted of the following: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(In thousands) | ||||||||
PLMT Permanent Facility | $ | 44,864 | $ | 47,267 | ||||
Residual Term Facility | 107,540 | 68,785 | ||||||
Long-Term Pre-settlement Facility | 10,314 | 12,435 | ||||||
2012-A Facility | 1,918 | 2,276 | ||||||
LCSS Facility (2010-C) | 12,881 | 12,880 | ||||||
LCSS Facility (2010-D) | 7,159 | 7,159 | ||||||
Total | $ | 184,676 | $ | 150,802 | ||||
PLMT Permanent Facility | ||||||||
The Company has a $75.0 million floating rate asset backed loan with interest payable monthly at one-month LIBOR plus 1.25% which is currently in a runoff mode with the outstanding balance being reduced by periodic cash collections on the underlying lottery receivables. The loan matures on November 1, 2038. | ||||||||
The debt agreement with the counterparty requires Peachtree Lottery Master Trust (“PLMT”) to hedge each lottery receivable with a pay fixed and receive variable interest rate swap with the counterparty. The swaps are recorded at fair value in VIE derivative liabilities, at fair market value on the condensed consolidated balance sheets. | ||||||||
Residual Term Facility | ||||||||
In September 2011 and August 2012, the Company issued term debt of $56.0 million and $14.0 million, respectively, to a financial institution (the “Residual Term Facility”). The Residual Term Facility is collateralized by notes receivable and the cash flows from securitization residuals related to certain securitizations. Initially, interest on the Residual Term Facility was payable at 8.0% until September 15, 2014 and 9.0% thereafter. The $56.0 million term debt and the $14.0 million term debt were to mature on September 15, 2018 and September 15, 2019, respectively. Principal payments from collateral cash flows began on September 15, 2014 and were scheduled to continue through 2018. In addition, the $14.0 million term debt required annual additional principal payments of $2.0 million beginning on September 15, 2014 and continuing through 2019. | ||||||||
In May 2014, the Company amended the terms of the Residual Term Facility to increase the principal balance from $70.0 million to $110.0 million, reduce the interest rate to 7.0% per annum, payable monthly, and eliminate the requirement to make the additional $2.0 million annual principal payments. | ||||||||
Long-Term Pre-settlement Facility | ||||||||
In 2011, the Company issued three fixed rate notes totaling $45.1 million, of which, $10.3 million and $12.4 million principal amount remains outstanding as of June 30, 2014 and December 31, 2013, respectively. Interest accrues on the notes at a rate of 9.25% per annum with interest and principal payable monthly from the cash receipts of collateralized pre-settlement funding transactions. The notes mature on June 6, 2016. | ||||||||
2012-A Facility | ||||||||
In December 2012, the Company issued a series of notes collateralized by structured settlements. The proceeds to the Company from the issuance of the notes was $2.5 million and interest accrues on the notes at a fixed interest rate of 9.25%. Interest and principal are payable monthly from cash receipts of collateralized structured settlement receivables. The notes mature on June 15, 2024. | ||||||||
Long-term Debt for Life Contingent Structured Settlements (2010-C & 2010-D) | ||||||||
Long-term Debt (2010-C) | ||||||||
In November 2010, the Company issued a private asset class securitization note under Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”). The 2010-C bond issuance of $12.9 million is collateralized by life-contingent structured settlements. 2010-C accrues interest at 10% per annum and matures on March 15, 2039. | ||||||||
The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. | ||||||||
Long-term Debt (2010-D) | ||||||||
In December 2010, the Company paid $0.2 million to purchase the membership interests of LCSS, LLC from JLL Partners. LCSS, LLC owns 100% of the membership interests of LCSS II, which owns 100% of the membership interests of LCSS III. In November 2010, LCSS III issued $7.2 million long-term debt 2010-D collateralized by life-contingent structured settlements. 2010-D accrues interest at 10% per annum and matures on July 15, 2040. | ||||||||
The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. | ||||||||
VIE_Longterm_Debt_Issued_by_Se
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ' | |||||||||||||
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ' | |||||||||||||
10. VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ||||||||||||||
Securitization Debt | ||||||||||||||
The Company elected fair value treatment under ASC 825 to measure the securitization issuer debt and related finance receivables. The Company has determined that measurement of the securitization debt issued by SPEs at fair value better correlates with the value of the finance receivables held by SPEs, which are held to provide the cash flows for the note obligations. Debt issued by SPEs is non-recourse to other subsidiaries. Certain subsidiaries of the Company continue to receive fees for servicing the securitized assets which are eliminated in consolidation. In addition, the risk to the Company’s non-SPE subsidiaries from SPE losses is limited to cash reserve and residual interest amounts. | ||||||||||||||
During the six months ended June 30, 2014, the Company completed one asset securitization transaction under Rule 144A. The following table summarizes this securitization SPE transaction: | ||||||||||||||
2014-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 2/18/14 | |||||||||||||
Bond proceeds | $233.90 | |||||||||||||
Receivables securitized | 4,128 | |||||||||||||
Deal discount rate | 4.24% | |||||||||||||
Retained interest % | 6.00% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.75% | |||||||||||||
Subsequent to the six months ended June 30, 2014, the Company completed its second asset securitization transaction under Rule 144A (Note 21). | ||||||||||||||
During the six months ended June 30, 2013, the Company also completed one asset securitization transaction under Rule 144A. The following table summarizes this securitization SPE transaction: | ||||||||||||||
2013-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/20/13 | |||||||||||||
Bond proceeds | $216.50 | |||||||||||||
Receivables securitized | 2,425 | |||||||||||||
Deal discount rate | 3.65% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
The following table summarizes notes issued by securitization trusts and permanent financing trusts as of June 30, 2014 and December 31, 2013 for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair market value in the Company’s condensed consolidated balance sheets: | ||||||||||||||
Outstanding | Outstanding | Fair Value | Fair Value | |||||||||||
Principal as of | Principal as of | as of | as of | |||||||||||
June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||
Securitization trusts | $ | 3,175,572 | $ | 3,063,520 | $ | 3,439,595 | $ | 3,177,404 | ||||||
Permanent financing VIEs | 253,960 | 256,914 | 258,905 | 253,879 | ||||||||||
Total | $ | 3,429,532 | $ | 3,320,434 | $ | 3,698,500 | $ | 3,431,283 | ||||||
On March 18, 2014, the Company amended the terms of its $50 million permanent financing related to the 2011-A note issued by JGW-S LC II, LLC primarily to increase the maximum borrowing capacity to $100 million. | ||||||||||||||
Term_Loan_Payable
Term Loan Payable | 6 Months Ended |
Jun. 30, 2014 | |
Term Loan Payable | ' |
Term Loan Payable | ' |
11. Term Loan Payable | |
In connection with our merger with Orchard Acquisition Company, LLC (“OAC”) and its subsidiaries on July 12, 2011 (the “OAC Merger”), the Company assumed OAC’s term loan payable in the amount of $176.5 million, with interest payable at Eurodollar base rate plus applicable and additional margins (8.75% as of December 31, 2012), which was scheduled to mature on November 21, 2013 (the “Term Loan”). Interest expense relating to the Term Loan for the six months ended June 30, 2014 and 2013 was $0 and $1.4 million, respectively. | |
On February 8, 2013, the Term Loan was refinanced with a new senior secured credit facility (the “Credit Facility”) that consisted of a $425.0 million term loan (the “New Term Loan”) and a $20.0 million revolving commitment maturing in February 2019 and August 2017, respectively. The Company and certain of its subsidiaries are guarantors of the Credit Facility. Substantially all of the non-securitized and non-collateralized assets of the Company are pledged as security for the repayment of borrowings outstanding under the Credit Facility. In connection with the Company’s entry into the Credit Facility, the Company paid approximately $15.0 million in amendment, legal and other fees during the three months ended March 31, 2013. | |
At each interest reset date, the Company has the option to elect that the New Term Loan be either a Eurodollar loan or a base rate loan. If a Eurodollar loan, interest on the New Term Loan accrues at either Libor or 1.5% (whichever is greater) plus a spread of 7.5%. If a base rate loan, interest accrues at prime or 2.5% (whichever is greater) plus a spread of 6.5%. The revolving commitment has the same interest rate terms as the New Term Loan. In addition, the revolving commitment is subject to an unused fee of 0.5% per annum and provides for the issuance of letters of credit equal to $10.0 million, subject to customary terms and fees. | |
The Credit Facility requires the Company, to the extent that as of the last day of any fiscal quarter outstanding balances on the revolving commitment exceed specific thresholds, to comply with a maximum total leverage ratio. As of June 30, 2014 and December 31, 2013, there were no outstanding borrowings under the revolving commitment and, as a result, the maximum total leverage ratio requirement was not applicable. The Credit Facility also limits the Company and certain of its subsidiaries from engaging in certain activities, including mergers and acquisitions, incurrence of additional indebtedness, incurring liens, making investments, transacting with affiliates, disposing of assets, and various other activities. In addition, the Credit Facility limits, with certain exceptions, certain of the Company’s subsidiaries from making cash dividends and loans to the Company. As a result, essentially none of the Company’s $227.7 million and $173.4 million in stockholders’ equity as of June 30, 2014 and December 31, 2013, respectively, was free of limitations on the payment of dividends. | |
In conjunction with the refinancing of the Term Loan, Holdings LLC made a cash distribution to its members in the amount of $309.6 million as well as an asset distribution in the amount of $16.3 million to PGHI Corp during the three months ended March 31, 2013. The distribution assets were originally acquired by Holdings LLC as part of the OAC Merger. | |
On May 31, 2013, the Credit Facility was amended to provide for an additional term loan of $150.0 million on the same terms as the New Term Loan. In conjunction with this amendment, Holdings LLC made a cash distribution to its members in the amount of $150.0 million and paid approximately $2.9 million in amendment, legal and other fees. | |
As a result of the distributions by Holdings LLC to its members described above, each outstanding preferred interest in Holdings LLC was converted into one Common Interest on May 31, 2013 in accordance with the Amended and Restated Limited Liability Company Agreement of Holdings LLC. | |
On December 6, 2013, the Company repaid $123.0 million of its New Term Loan from the proceeds of its IPO and amended the terms of the Credit Facility. The amendment, among other things: (i) reduced the applicable margin on the initial term loans from 7.50% to 6.00% for Eurodollar loans and from 6.50% to 5.00% for base rate loans, and (ii) reduced the interest rate floor on the initial term loans from 1.50% to 1.00% for Eurodollar loans and from 2.50% to 2.00% for base rate loans. As of June 30, 2014, the interest rate on the New Term Loan was 7.0%. In connection with the repayment and amendment of the New Term Loan, the Company paid approximately $13.1 million in amendment, legal and other fees. Additionally, as a result of the Company’s repayment, no further principal payments are due on the New Term Loan until its maturity in February 2019. | |
Interest expense relating to the New Term Loan for the three months ended June 30, 2014 and 2013 was approximately $8.0 million and $10.9 million, respectively. Interest expense relating to the New Term Loan for the six months ended June 30, 2014 and 2013 was approximately $15.9 million and $16.4 million, respectively. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||
12. Derivative Financial Instruments | ||||||||||||||||
The Company utilizes interest rate swaps to manage its exposure to changes in interest rates related to borrowings on its revolving credit facilities. Hedge accounting has not been applied to any of the Company’s interest rate swaps. | ||||||||||||||||
As of June 30, 2014, the Company held an interest rate swap related to its JGW VII revolving credit facility with a total notional value of $11.6 million and a term of approximately 18 years. The Company pays a fixed rate of 2.53% and receives a floating rate equal to 1-month LIBOR rate. | ||||||||||||||||
During the six months ended June 30, 2014 and 2013, and in connection with its securitizations, the Company terminated $35.0 million and $55.4 million of interest rate swap notional value, respectively. The total loss on the termination of these interest rate swaps for the three months ended June 30, 2014 and 2013 was $0. The total loss on the termination of these interest rate swaps for the six months ended June 30, 2014 and 2013 was $0.6 million and $0.2 million, respectively. These losses were recorded in loss on swap terminations, net, in the Company’s unaudited condensed consolidated statements of operations. The unrealized gain (loss) for these swaps for both the three months and six months ended June 30, 2014 and 2013 was less than ($0.1) million and $0.5 million, respectively. These gains (losses) were recorded in unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s unaudited condensed consolidated statements of operations. | ||||||||||||||||
The Company also has interest-rate swaps to manage its exposure to changes in interest rates related to its borrowings on certain VIE long-term debt issued by securitization and permanent financing trusts. As of June 30, 2014, the Company had 8 outstanding swaps with a total notional amount of approximately $267.8 million. The Company pays fixed rates ranging from 4.66% to 5.77% and receives floating rates equal to 1-month LIBOR plus applicable margin. | ||||||||||||||||
These interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. As of June 30, 2014, the term of these interest rate swaps range from approximately 8 to 22 years. For the three months ended June 30, 2014 and 2013, the amount of unrealized gain (loss) recognized was less than ($0.1) million and $10.8 million, respectively. For the six months ended June 30, 2014 and 2013, the amount of unrealized gain recognized was $0.3 million and $16.5 million, respectively. These gains (losses) were recorded in unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s unaudited condensed consolidated statements of operations. | ||||||||||||||||
Additionally, the Company has interest-rate swaps to manage its exposure to changes in interest rates related to its borrowings under Peachtree Structured Settlements, LLC (“PSS”), a permanent financing VIE (Note 10), and PLMT (Note 9). As of June 30, 2014, the Company had 157 outstanding swaps with a total notional value of approximately $240.7 million. The Company pays fixed rates ranging from 4.38% to 8.70% and receives floating rates equal to 1-month LIBOR rate plus applicable margin. | ||||||||||||||||
The PSS and PLMT interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. As of June 30, 2014, the term of the interest rate swaps for PSS and PLMT range approximately from less than 1 month to approximately 20 years. For the three months ended June 30, 2014 and 2013, the amount of unrealized gain (loss) recognized was ($2.9) million and $13.6 million, respectively. For the six months ended June 30, 2014 and 2013, the amount of unrealized gain (loss) recognized was ($4.7) million and $19.2 million, respectively. These gains (losses) were included in unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s unaudited condensed consolidated statements of operations. | ||||||||||||||||
The notional amounts and fair values of interest rate swaps as of June 30, 2014 and December 31, 2013 are as follows: | ||||||||||||||||
Notional as of | Fair Market Value as of | Notional as of | Fair Market Value as of | |||||||||||||
Entity | Securitization | June 30, 2014 | June 30, 2014 | December 31, 2013 | December 31, 2013 | |||||||||||
(In Thousands) | ||||||||||||||||
321 Henderson I | 2004-A A-1 | $ | 36,320 | $ | (3,463 | ) | $ | 40,734 | $ | (3,745 | ) | |||||
321 Henderson I | 2005-1 A-1 | 66,722 | (8,144 | ) | 73,269 | (8,559 | ) | |||||||||
321 Henderson II | 2006-1 A-1 | 18,180 | (1,835 | ) | 20,976 | (2,137 | ) | |||||||||
322 Henderson II | 2006-2 A-1 | 21,768 | (3,010 | ) | 23,620 | (3,202 | ) | |||||||||
323 Henderson II | 2006-3 A-1 | 23,393 | (2,793 | ) | 25,902 | (3,023 | ) | |||||||||
324 Henderson II | 2006-4 A-1 | 21,908 | (2,417 | ) | 23,842 | (2,643 | ) | |||||||||
325 Henderson II | 2007-1 A-2 | 39,364 | (5,560 | ) | 39,364 | (5,159 | ) | |||||||||
326 Henderson II | 2007-2 A-3 | 40,160 | (8,653 | ) | 41,544 | (8,015 | ) | |||||||||
JGW V, LLC | — | — | — | 10,985 | 16 | |||||||||||
JGW VII, LLC | — | 11,562 | (67 | ) | — | — | ||||||||||
PSS | — | 185,740 | (29,295 | ) | 192,444 | (25,120 | ) | |||||||||
PLMT | — | 54,913 | (9,305 | ) | 56,942 | (8,709 | ) | |||||||||
Total | $ | 520,030 | $ | (74,542 | ) | $ | 549,622 | $ | (70,296 | ) |
Risks_and_Uncertainties
Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties | ' |
Risks and Uncertainties | ' |
13. Risks and Uncertainties | |
The Company’s finance receivables are primarily obligations of insurance companies. The exposure to credit risk with respect to these finance receivables is generally limited due to the large number of insurance companies of generally high credit quality comprising the receivable base, their dispersion across geographical areas, and possible availability of state insurance guarantee funds. The Company is also subject to numerous risks associated with structured settlements. These risks include, but are not limited to, restrictions on assignability of structured settlements, potential changes in the U.S. tax law related to taxation of structured settlements, diversion by a seller of scheduled payments to the Company, nonperformance by our service providers, and other potential risks of regulation and/or legislation. A majority of states have regulated the business by passing statutes that govern the sale of structured settlement payments. Generally, the laws require a court approval to consummate a sale. The Company’s earnings are dependent upon the fair value of the finance receivables it purchases relative to the value it can obtain by financing these assets in securitization or other transactions. Accordingly, earnings are subject to risks and uncertainties surrounding exposure to changes in the interest rate environment, competitive pressures affecting the ability to maintain sufficient effective purchase yields, and the ability to sell or securitize finance receivables at profitable levels in the future. | |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
14. Commitments and Contingencies | |
The Company had an arrangement (the “Arrangement”) with a counterparty for the sale of LCSS assets that met certain eligibility criteria, which expired on June 30, 2012. Pursuant to the Arrangement, the Company also had a borrowing agreement (the “Borrowing Agreement”) with the counterparty that gave the counterparty a borrowing base to draw on from the Company for the purchase of LCSS assets. As of June 30, 2014 and December 31, 2013, the amount owed from the counterparty pursuant to this Borrowing Agreement is approximately $9.4 million and $9.1 million, respectively, and is earning interest at an annual rate of 5.35% and is included in other receivables, net of allowance for losses in the Company’s condensed consolidated balance sheets. | |
The Arrangement also has put options, which expire on December 30, 2019 and 2020, that gives the counterparty the option to sell purchased LCSS assets back to the Company. The put options, if exercised by the counterparty, require the Company to purchase LCSS assets at a target IRR of 3.5% above the original target IRR paid by the counterparty. | |
In the normal course of business, the Company is subject to various legal proceedings and claims. These proceedings and claims have not been finally resolved and the Company cannot make any assurances as to their ultimate disposition. It is in management’s opinion, based on the information currently available at this time, that the expected outcome of these matters will not have a material adverse effect on the financial position, the results of operations or cash flows of the Company. | |
Segment_Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2014 | |
Segment Reporting | ' |
Segment Reporting | ' |
15. Segment Reporting | |
ASC 280, Segment Reporting, establishes standards for segment reporting in the financial statements. Management has determined that all of the operations have similar economic characteristics and may be aggregated into a single segment for disclosure under ASC 280. | |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
16. Income Taxes | |
JGWPT Holdings Inc. is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income, which to-date has consisted primarily of its share of Holdings LLC’s pre-tax income. Holdings LLC is organized as a limited liability company which is treated as a “flow-through” entity for income tax purposes and therefore is not subject to income taxes. As a result, the JGWPT Holdings Inc.’s unaudited condensed consolidated financial statements do not reflect a benefit or provision for income taxes for Holdings LLC for periods prior to the IPO or any benefit or provision for income taxes on the pre-tax income or loss attributable to the non-controlling interests in Holdings LLC. | |
The Company’s effective tax rate includes a rate benefit attributable to the fact that a portion of Holding LLC’s income is allocated to the non-controlling interests. Accordingly, a portion of the Company’s earnings attributable to the non-controlling interests are not subject to corporate level taxes. | |
The Company’s effective tax rate was 19.9% for the six months ended June 30, 2014, as compared to an effective rate of less than 1.7% for the six months ended June 30, 2013. The increase in the effective tax rate was due to the allocation of income from Holdings LLC to the Company for all of 2014. For the year ended December 31, 2013, the Company was only allocated taxable income for the period after the IPO. The Company’s share of Holdings LLC’s income also increased as a result of holders of Common Interests having exchanged their Common Interests for shares of the Company’s Class A common stock during the six months ended June 30, 2014 (Note 18). | |
The Company’s effective tax rate was 21.9% for the three months ended June 30, 2014 compared to an effective tax rate of 19.9% for the six months ended June 30, 2014. The increase in the effective tax rate is primarily due to the Company’s increased ownership of Holdings LLC resulting from the exchanges of Common Interests for shares of Class A common stock that occurred during the three months ended June 30, 2014. | |
Restructure_Expense
Restructure Expense | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Restructure Expense | ' | ||||
Restructure Expense | ' | ||||
17. Restructure Expense | |||||
In April 2013, the Company announced its intention to close its Boynton Beach office. The associated workforce reductions were substantially complete as of December 31, 2013. A reconciliation of the associated restructure liability for the six months ended June 30, 2014 is as follows: | |||||
Total | |||||
(In thousands) | |||||
Balance as of December 31, 2013 | $ | 921 | |||
Restructuring expense | (140 | ) | |||
Payments for restructuring charges | (651 | ) | |||
Balance as of June 30, 2014 | $ | 130 |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stockholders' Equity | ' | ||||||||
Stockholders' Equity | ' | ||||||||
18. Stockholders’ Equity | |||||||||
Refer to Note 2 for a description of the IPO and associated reorganization of the Company. | |||||||||
The Company’s authorized capital stock consists of 500,000,000 shares of Class A common stock, par value $.00001 per share, 500,000,000 shares of Class B common stock, par value $.00001 per share, 500,000,000 shares of Class C common stock, par value $.00001 per share, and 100,000,000 shares of blank check preferred stock. | |||||||||
As of June 30, 2014, there were 12,885,225 shares of the Company’s Class A common stock issued and 12,793,276 shares outstanding. Additionally, there were 12,266,967 shares of the Company’s Class B common stock issued and outstanding, respectively, as of June 30, 2014. | |||||||||
Class A Common Stock Repurchase Program | |||||||||
On May 2, 2014, the Company’s Board of Directors approved the repurchase of an aggregate of $15.0 million of the Company’s Class A common stock (the “Stock Repurchase Program”) under Rule 10b5-1 of the Securities Exchange Act of 1934. Purchases under the Stock Repurchase Program may be made from time to time in open market purchases, privately negotiated transactions, accelerated stock repurchase programs, issuer self-tender offers or otherwise in accordance with applicable federal securities laws. The Stock Repurchase Program does not obligate the Company to acquire any particular amount of Class A common stock and the pace of repurchase activity will depend on factors such as levels of cash generation from operations, cash requirements for investment in the Company’s business, repayment of debt, current stock price, market conditions and other factors. The Stock Repurchase Program may be suspended, modified or discontinued at any time and has no set expiration date. | |||||||||
During the six months ended June 30, 2014, the Company repurchased 88,020 shares of its Class A common stock for an aggregate purchase price of approximately $0.9 million, or $10.42 per share, pursuant to the Stock Repurchase Program. The repurchased shares are classified as treasury stock at cost on the Company’s unaudited condensed consolidated balance sheet. | |||||||||
Class A Common Stock | |||||||||
Holders of Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of Class A common stock are entitled to share ratably (based on the number of shares of Class A common stock held) if and when any dividend is declared by the JGWPT Holdings Inc.’s board of directors. Upon dissolution, liquidation or winding up, Holders of Class A common stock are entitled to a pro rata distribution of any assets available for distribution to common stockholders, and do not have preemptive, subscription, redemption or conversion rights. | |||||||||
Class B Common Stock | |||||||||
Shares of Class B common stock will only be issued in the future to the extent that additional Common Interests are issued by Holdings LLC, in which case JGWPT Holdings Inc. would issue a corresponding number of shares of Class B common stock. | |||||||||
Holders of Class B common stock are entitled to ten votes for each share held of record on all matters submitted to a vote of stockholders. Holders of Class B common stock do not have any right to receive dividends and upon liquidation, dissolution or winding up and will only be entitled to receive an amount per share equal to the $0.00001 par value. Holders of Class B common stock do not have preemptive rights to purchase additional shares of Class B common stock. | |||||||||
Subject to the terms and conditions of the operating agreement of Holdings LLC, each Common Interestholder has the right to exchange their Common Interests in Holdings LLC together with the corresponding number of shares of Class B common stock, for shares of Class A common stock, or at the option of Holdings LLC, cash equal to the market value of one share of JGWPT Holdings Inc.’s Class A common stock. | |||||||||
Class C Common Stock | |||||||||
Holders of Class C common stock generally are not entitled to vote on any matters. Holders of Class C common stock are entitled to share ratably (based on the number of shares of Class C common stock held) if and when any dividend is declared by the Company’s board of directors. Upon dissolution, liquidation or winding up, holders of Class C common stock will be entitled to a pro rata distribution of any assets available for distribution to common stockholders (except the de minimis par value of the Class B common stock), and do not have preemptive rights to purchase additional shares of Class C common stock. | |||||||||
Subject to the terms and conditions of the operating agreement of Holdings LLC, PGHI Corp. and its permitted transferees have the right to exchange the non-voting Common Interests in Holdings LLC they hold for shares of Class C common stock, or at the option of Holdings LLC, cash equal to the market value of JGWPT Holdings Inc.’s Class C common stock. | |||||||||
Each share of Class C common stock may, at the option of the holder, be converted at any time into a share of Class A common stock on a one-for-one basis. | |||||||||
Preferred Stock | |||||||||
JGWPT Holdings Inc.’s certificate of incorporation provides that the board of directors has the authority, without action by the stockholders, to designate and issue up to 100,000,000 shares of preferred stock in one or more classes or series and to fix the powers, rights, preferences, and privileges of each class or series of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, and the number of shares constituting any class or series, which may be greater than the rights of the holders of the common stock. No preferred stock had been issued or was outstanding as of June 30, 2014. | |||||||||
Warrants Issued to PGHI Corp. | |||||||||
In connection with the IPO and restructuring, the Class C Profits Interests of Holdings LLC held by PGHI Corp. were cancelled and holders received in-exchange warrants to purchase shares of Class A common stock. The warrants issued in respect of the Tranche C-1 profit interests entitle the holders thereof to purchase up to 483,217 shares of Class A common stock and have an exercise price of $35.78 per share. The warrants issued in respect of the Tranche C-2 profits interests also entitle the holders thereof to purchase up to 483,217 shares of Class A common stock and have an exercise price of $63.01 per share. All of the warrants issued are exercisable beginning on May 13, 2014 (180 days after the consummation of the IPO), terminate on January 8, 2022, and may not be transferred. | |||||||||
Holdings LLC Operating Agreement | |||||||||
Pursuant to the operating agreement of Holdings LLC, the holders of Holdings LLC Common Interests (other than the Company) have the right, subject to terms of the operating agreement as described therein, to exchange their Common Interests and an equal number of shares of the Company’s “vote-only” Class B common stock for an equivalent number of shares of the Company’s Class A common stock, or in the case of PGHI Corp., an equivalent number of shares of the Company’s Class C common stock. During the six months ended June 30, 2014, 1,661,599 Common Interests in Holdings LLC, in addition to an equal number of shares of the Company’s Class B common stock, were exchanged for 1,661,599 shares of the Company’s Class A common stock pursuant to the operating agreement. | |||||||||
Amounts Reclassified Out of Accumulated Other Comprehensive Income | |||||||||
ASU 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income requires entities to report, either on the face of the income statement or in the notes, the effect of significant reclassifications out of accumulated other comprehensive income (“AOCI”) on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. During the three and six months ended June 2014 and 2013, the Company recorded the following reclassifications out of accumulated other comprehensive income: | |||||||||
Period | Details about accumulated | Amount reclassified from | Affected line item in the | ||||||
other comprehensive income | accumulated other | unaudited condensed | |||||||
components | comprehensive income | consolidated statement of | |||||||
operations | |||||||||
Three and six months ended June 30, 2014 | Unrealized gains and losses on available-for-sale securities | $ | 2,098 | Realized gain (loss) on notes receivable, at fair value | |||||
Three and six months ended June 30, 2013 | Unrealized gains and losses on available-for-sale securities | $ | (1,862 | ) | Realized gain (loss) on notes receivable, at fair value | ||||
In June 2014, a third party repaid its fixed rate note receivable held by the Company. As a result, the Company reclassified $2.1 million out of accumulated other comprehensive income during the three months ended June 30, 2014. The $1.9 million was reclassified out of accumulated other comprehensive income during the three months ended June 30, 2013 as a result of the note receivable maturing during the period. Both notes receivables had been treated as debt securities, classified as available-for-sale, and carried at fair value in accordance with ASC Topic 320 Investments — Debt and Equity Securities. As a result of this classification, unrealized gains on the notes receivables that arose were reflected within accumulated other comprehensive gain (loss) in the Company’s unaudited condensed consolidated statements of comprehensive income (loss) and unaudited condensed consolidated statements of changes in stockholders’ equity. | |||||||||
NonControlling_Interests
Non-Controlling Interests | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Non-Controlling Interests | ' | |||||||
Non-Controlling Interests | ' | |||||||
19. Non-Controlling Interests | ||||||||
JGWPT Holdings Inc. consolidates the financial results of Holdings LLC whereby it records a non-controlling interest for the economic interest in Holdings LLC held by the Common Interestholders (see Note 2). Pursuant to an agreement between JGWPT Holdings Inc. and Holdings LLC, any time JGWPT Holdings Inc. cancels, issues or repurchases shares of its Class A common stock, Holdings LLC cancels, issues or repurchases, as applicable, an equivalent number of Common Interests. In addition, any time Common Interestholders exchange their Common Interests for shares of JGWPT Holdings Inc.’s Class A common stock, Holdings LLC is required to transfer an equal number of Common Interests to JGWPT Holdings Inc. Changes in the non-controlling and JGWPT Holdings Inc.’s interest in Holdings LLC for the six months ended June 30, 2014 are presented in the following table: | ||||||||
Total Common Interests Held By: | ||||||||
JGWPT Holding | Non-controlling | |||||||
Inc. | Interests | Total | ||||||
Balance as of December 31, 2013 | 11,216,429 | 18,344,688 | 29,561,117 | |||||
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the issuance of restricted common stock | 3,268 | — | 3,268 | |||||
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | 1,661,599 | (1,661,599 | ) | — | ||||
Holdings LLC common interests repurchased related to Class A common stock repurchased | (88,020 | ) | — | (88,020 | ) | |||
Common interests forfeited | — | (55,499 | ) | (55,499 | ) | |||
Balance as of June 30, 2014 | 12,793,276 | 16,627,590 | 29,420,866 |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share | ' | |||||||
Earnings Per Share | ' | |||||||
20. Earnings Per Share | ||||||||
Basic earnings per share (“EPS”) measures the performance of an entity over the reporting period. Diluted EPS measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. | ||||||||
In accordance with ASC 260 Earnings Per Share all outstanding unvested share-based payments that contain rights to non-forfeitable dividends and participate in the undistributed earnings with the common stockholders are considered participating securities. The shares of Class B common stock do not share in the earnings of the Company and are therefore not considered participating securities. Accordingly, basic and diluted net earnings per share of Class B common stock have not been presented. Furthermore, EPS for the three and six months ended June 30, 2013 is not presented since the Company was not a public company. | ||||||||
In connection with the IPO and restructuring, Class C Profit Interests of Holdings LLC held by PGHI Corp. were exchanged for a total of 966,434 warrants to purchase shares of the Company’s Class A common stock (Note 18). For the three and six months ended June 30, 2014, these warrants were not included in the computation of diluted earnings per common share because they were antidilutive under the treasury stock method. | ||||||||
During the six months ended June 30, 2014, the Company granted 232,500 stock options to purchase shares of the Company’s Class A common stock to certain employees. During the six months ended June 30, 2014, an aggregate of 496,547stock options granted to certain employees that were not included in the computation of diluted earnings per common share because they were antidilutive under the treasury stock method. | ||||||||
Additionally, as discussed in Note 2, the operating agreement of Holdings LLC gives Common Interestholders the right (subject to the terms of the operating agreement as described therein) to exchange their Common Interests for shares of the Company’s Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. The Company applies the “if-converted” method to the Common Interests and vested restricted Common Interests in Holdings LLC to determine the dilutive weighted average shares of Class A common stock outstanding. The Company applies the treasury stock method to the unvested restricted Common Interests and the “if-converted” method on the resulting number of additional Common Interests to determine the dilutive weighted average shares of Class A common stock outstanding represented by these interests. | ||||||||
In computing the dilutive effect that the exchange of Common Interests and restricted Common Interests would have on EPS, the Company considered that net income available to holders of Class A common stock would increase due to the elimination of non-controlling interests (including any tax impact). Based on these calculations, the 16,659,035 weighted average Common Interest and vested restricted Common Interests outstanding and the 768,121 weighted average unvested restricted Common Interests outstanding for the six months ended June 30, 2014 were antidilutive. | ||||||||
The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations for the three and six months ended June 30, 2014: | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2014 | June 30, 2014 | |||||||
(In thousands, except for shares and per share data) | ||||||||
Numerator: | ||||||||
Numerator for basic EPS- Net income attributable to holders of JGWPT Holdings Inc. Class A common stock | $ | 6,268 | $ | 15,290 | ||||
Effect of dilutive securities: | ||||||||
Holdings LLC Common Interests and vested restricted Common Interests | — | — | ||||||
Holdings LLC unvested restricted Common Interests | — | — | ||||||
Numerator for diluted EPS- Net income attributable to holders of JGWPT Holdings Inc. Class A common stock | $ | 6,268 | $ | 15,290 | ||||
Denominator: | ||||||||
Denominator for basic EPS - Weighted average shares of Class A common stock | 12,559,957 | 12,104,172 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | — | — | ||||||
Warrants | — | — | ||||||
Restricted common stock and restricted stock units | 2,085 | 1,376 | ||||||
Holdings LLC Common Interests and vested restricted Common Interests | — | — | ||||||
Holdings LLC unvested restricted Common Interests | — | — | ||||||
Dilutive potential common shares | 2,085 | 1,376 | ||||||
Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock | 12,562,042 | 12,105,548 | ||||||
Basic income per share of Class A common stock | $ | 0.5 | $ | 1.26 | ||||
Diluted income per share of Class A common stock | $ | 0.5 | $ | 1.26 |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
21. Subsequent Events | |
On July 16, 2014, the Company priced its 2014-2 securitization. The 2014-2 securitization closed on July 23, 2014 with an aggregate issuance amount of $227.6 million and a discount rate of 3.95%. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of fair value of assets and liabilities | ' | |||||||||||||
Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | Total at | |||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
(In thousands) | ||||||||||||||
June 30, 2014: | ||||||||||||||
Assets | ||||||||||||||
Marketable Securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 39,811 | $ | — | $ | — | $ | 39,811 | ||||||
US mid cap | 12,620 | — | — | 12,620 | ||||||||||
US small cap | 5,662 | — | — | 5,662 | ||||||||||
International | 18,112 | — | — | 18,112 | ||||||||||
Other equity | 2,091 | — | — | 2,091 | ||||||||||
Total equity securities | 78,296 | — | — | 78,296 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 23,249 | — | — | 23,249 | ||||||||||
International fixed income | 3,523 | — | — | 3,523 | ||||||||||
Other fixed income | 28 | — | — | 28 | ||||||||||
Total fixed income securities | 26,800 | — | — | 26,800 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 7,046 | — | — | 7,046 | ||||||||||
Alternative investments | 1,657 | — | — | 1,657 | ||||||||||
Annuities | 2,182 | — | — | 2,182 | ||||||||||
Total other securities | 10,885 | — | — | 10,885 | ||||||||||
Total marketable securities | 115,981 | 115,981 | ||||||||||||
VIE and other finance receivables at fair market value | — | — | 4,287,725 | 4,287,725 | ||||||||||
Notes receivable at fair market value | — | — | — | — | ||||||||||
Life settlements contracts, at fair market value (1) | — | — | — | — | ||||||||||
Total Assets | $ | 115,981 | $ | — | $ | 4,287,725 | $ | 4,403,706 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,698,500 | $ | 3,698,500 | ||||||
VIE derivative liabilities, at fair market value | — | 74,542 | — | 74,542 | ||||||||||
Total Liabilities | $ | — | $ | 74,542 | $ | 3,698,500 | $ | 3,773,042 | ||||||
(1) Included in other assets on the Company’s unaudited condensed consolidated balance sheet. | ||||||||||||||
Quoted Prices in Active | Significant Other | Significant | ||||||||||||
Markets for Identical Assets | Observable Inputs | Unobservable Inputs | Total at | |||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||
(In thousands) | ||||||||||||||
December 31, 2013: | ||||||||||||||
Assets | ||||||||||||||
Marketable Securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 41,821 | $ | — | $ | — | $ | 41,821 | ||||||
US mid cap | 9,769 | — | — | 9,769 | ||||||||||
US small cap | 10,212 | — | — | 10,212 | ||||||||||
International | 19,938 | — | — | 19,938 | ||||||||||
Other equity | 936 | — | — | 936 | ||||||||||
Total equity securities | 82,676 | — | — | 82,676 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 26,713 | — | — | 26,713 | ||||||||||
International fixed income | 4,089 | — | — | 4,089 | ||||||||||
Other fixed income | 29 | — | — | 29 | ||||||||||
Total fixed income securities | 30,831 | — | — | 30,831 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 5,534 | — | — | 5,534 | ||||||||||
Alternative investments | 705 | — | — | 705 | ||||||||||
Annuities | 2,208 | — | — | 2,208 | ||||||||||
Total other securities | 8,447 | — | — | 8,447 | ||||||||||
Total marketable securities | 121,954 | 121,954 | ||||||||||||
VIE and other finance receivables at fair market value | — | — | 3,870,649 | 3,870,649 | ||||||||||
Notes receivable at fair market value | — | — | 5,610 | 5,610 | ||||||||||
Life settlements contracts, at fair market value (1) | — | — | — | — | ||||||||||
Total Assets | $ | 121,954 | $ | — | $ | 3,876,259 | $ | 3,998,213 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,431,283 | $ | 3,431,283 | ||||||
VIE derivative liabilities, at fair market value | — | 70,296 | — | 70,296 | ||||||||||
Total Liabilities | $ | — | $ | 70,296 | $ | 3,431,283 | $ | 3,501,579 | ||||||
(1) Included in other assets on the Company’s condensed consolidated balance sheet. | ||||||||||||||
Schedule of the Company's quantitative information about Level 3 fair value measurements | ' | |||||||||||||
Range | ||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | (Weighted Average) | |||||||||||
(Dollars in thousands) | ||||||||||||||
June 30, 2014: | ||||||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 4,287,725 | Discounted cash flow | Discount rate | 2.43% - 12.68% (3.63%) | |||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 8 to 244 months (142) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 4,287,725 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | Discounted cash flow | Discount rate | 0.50% - 12.68% (3.30%) | ||||||||||
Total Liabilities | $ | 3,698,500 | ||||||||||||
Range | ||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | (Weighted Average) | |||||||||||
(Dollars in thousands) | ||||||||||||||
December 31, 2013: | ||||||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,870,649 | Discounted cash flow | Discount rate | 2.79% - 13.69% (4.33%) | |||||||||
Notes receivable, at fair market value | 5,610 | Discounted cash flow | Discount rate | 7.85% (7.85%) | ||||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 14 to 250 months (148) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,876,259 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,431,283 | Discounted cash flow | Discount rate | 0.73% - 12.70% (3.94%) | ||||||||||
Total Liabilities | $ | 3,431,283 | ||||||||||||
Schedule of changes in assets measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||
VIE and other | Life settlement | Notes receivable, at | Total | |||||||||||
finance receivables, | contracts, at fair | fair market value | ||||||||||||
at fair market value | market value | |||||||||||||
(In thousands) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3,870,649 | $ | — | $ | 5,610 | $ | 3,876,259 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 337,525 | (116 | ) | 2,098 | 339,507 | |||||||||
Included in other comprehensive gain | — | — | (1,615 | ) | (1,615 | ) | ||||||||
Purchases of finance receivables | 220,742 | — | — | 220,742 | ||||||||||
Life insurance premiums paid | — | 116 | — | 116 | ||||||||||
Interest accreted | 83,777 | — | — | 83,777 | ||||||||||
Payments received | (224,968 | ) | — | (6,093 | ) | (231,061 | ) | |||||||
Maturities | — | — | — | — | ||||||||||
Asset distribution | — | — | — | — | ||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance as of June 30, 2014 | $ | 4,287,725 | $ | — | $ | — | $ | 4,287,725 | ||||||
The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: | ||||||||||||||
June 30, 2014 | $ | 337,525 | $ | (116 | ) | $ | — | $ | 337,409 | |||||
Balance as of December 31, 2012 | $ | 3,615,188 | $ | 1,724 | $ | 8,074 | $ | 3,624,986 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 93,471 | (73 | ) | (1,862 | ) | 91,536 | ||||||||
Included in other comprehensive gain | — | — | 2,361 | 2,361 | ||||||||||
Purchases of finance receivables | 197,172 | — | — | 197,172 | ||||||||||
Life insurance premiums paid | — | 241 | — | 241 | ||||||||||
Interest accreted | 67,795 | — | — | 67,795 | ||||||||||
Payments received | (204,275 | ) | — | — | (204,275 | ) | ||||||||
Maturities | — | — | (2,186 | ) | (2,186 | ) | ||||||||
Asset distribution | (9,615 | ) | (1,892 | ) | — | (11,507 | ) | |||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance as of June 30, 2013 | $ | 3,759,736 | $ | — | $ | 6,387 | 3,766,123 | |||||||
The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: | ||||||||||||||
June 30, 2013 | $ | 93,470 | $ | (20 | ) | $ | — | $ | 93,450 | |||||
Schedule of changes in liabilities measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||
VIE long-term debt issued | ||||||||||||||
by securitizations and | ||||||||||||||
permanent financing | ||||||||||||||
trusts | ||||||||||||||
(In thousands) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3,431,283 | ||||||||||||
Net (gains) losses: | ||||||||||||||
Included in earnings / losses | 175,425 | |||||||||||||
Issuances | 242,593 | |||||||||||||
Interest accreted | (17,145 | ) | ||||||||||||
Repayments | (133,656 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance as of June 30, 2014 | $ | 3,698,500 | ||||||||||||
The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: | ||||||||||||||
June 30, 2014 | $ | 175,425 | ||||||||||||
Balance as of December 31, 2012 | $ | 3,229,591 | ||||||||||||
Net (gains) losses: | ||||||||||||||
Included in earnings / losses | (34,170 | ) | ||||||||||||
Issuances | 226,780 | |||||||||||||
Interest accreted | (27,183 | ) | ||||||||||||
Repayments | (116,541 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance as of June 30, 2013 | $ | 3,278,477 | ||||||||||||
The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: | ||||||||||||||
June 30, 2013 | $ | (34,170 | ) | |||||||||||
Schedule of realized and unrealized gains and losses included in revenues in the accompanying consolidated statements of operations | ' | |||||||||||||
VIE and other finance | Life settlement | |||||||||||||
receivables and long- | contracts income | |||||||||||||
term debt | ||||||||||||||
(In thousands) | ||||||||||||||
Net gains (losses) included in revenues in the three months ended June 30, 2014 | $ | 73,326 | $ | (116 | ) | |||||||||
Unrealized gains (losses) for the three months ended June 30, 2014 relating to assets still held as of June 30, 2014 | $ | 73,326 | $ | (116 | ) | |||||||||
Net gains (losses) included in revenues in the six months ended June 30, 2014 | $ | 162,100 | $ | (116 | ) | |||||||||
Unrealized gains (losses) for the six months ended June 30, 2014 relating to assets still held as of June 30, 2014 | $ | 162,100 | $ | (116 | ) | |||||||||
Net gains (losses) included in revenues in the three months ended June 30, 2013 | $ | 5,345 | $ | (8 | ) | |||||||||
Unrealized gains (losses) for the three months ended June 30, 2013 relating to assets still held as of June 30, 2013 | $ | 5,345 | $ | (8 | ) | |||||||||
Net gains (losses) included in revenues in the six months ended June 30, 2013 | $ | 127,640 | $ | (73 | ) | |||||||||
Unrealized gains (losses) for the six months ended June 30, 2013 relating to assets still held as of June 30, 2013 | $ | 127,640 | $ | (20 | ) | |||||||||
Schedule of estimated fair values of financial instruments | ' | |||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Estimated | Estimated | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Amount | Value | Amount | |||||||||||
Financial assets | ||||||||||||||
Marketable securities | $ | 115,981 | $ | 115,981 | $ | 121,954 | $ | 121,954 | ||||||
VIE and other finance receivables, at fair market value | 4,287,725 | 4,287,725 | 3,870,649 | 3,870,649 | ||||||||||
VIE and other finance receivables, net of allowance for losses (1) | 127,948 | 135,039 | 126,502 | 132,992 | ||||||||||
Notes receivable, at fair market value | — | — | 5,610 | 5,610 | ||||||||||
Other receivables, net of allowance for losses (1) | 12,748 | 12,748 | 13,529 | 13,529 | ||||||||||
Financial liabilities | ||||||||||||||
VIE derivative liabilities, at fair market value | 74,542 | 74,542 | 70,296 | 70,296 | ||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings (1) | 75,733 | 73,767 | 42,275 | 41,274 | ||||||||||
VIE long-term debt (1) | 181,581 | 184,676 | 147,112 | 150,802 | ||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,698,500 | 3,431,283 | 3,431,283 | ||||||||||
Installment obligations payable (1) | 115,981 | 115,981 | 121,954 | 121,954 | ||||||||||
Term loan payable (1) | 451,186 | 435,683 | 434,184 | 434,184 | ||||||||||
(1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. |
VIE_and_Other_Finance_Receivab2
VIE and Other Finance Receivables, at Fair Market Value (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Schedule of VIE and other finance receivables for which the fair value option was elected | ' | |||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Maturity value | $ | 6,243,644 | $ | 5,917,596 | ||||||||||
Unearned income | (1,955,919 | ) | (2,046,947 | ) | ||||||||||
Net carrying amount | $ | 4,287,725 | $ | 3,870,649 | ||||||||||
Schedule of encumbrances on VIE and other finance receivables, at fair value | ' | |||||||||||||
Encumbrance | June 30, 2014 | December 31, 2013 | ||||||||||||
(In thousands) | ||||||||||||||
VIE securitization debt (2) | $ | 4,069,366 | $ | 3,742,218 | ||||||||||
$100 million credit facility (1) | 37,256 | 11,073 | ||||||||||||
$50 million credit facility (1) | 1,903 | — | ||||||||||||
$300 million credit facility (1) | 31,283 | 16,681 | ||||||||||||
$300 million credit facility (1) | 15,810 | 7,568 | ||||||||||||
$100 million permanent financing related to 2011-A (2) | 52,526 | 41,164 | ||||||||||||
Total VIE finance receivables at fair value | 4,208,144 | 3,818,704 | ||||||||||||
Not encumbered | 79,581 | 51,945 | ||||||||||||
Total VIE and other finance receivables at fair value | $ | 4,287,725 | $ | 3,870,649 | ||||||||||
(1) See Note 8 | ||||||||||||||
(2) See Note 10 | ||||||||||||||
Schedule of servicing fee | ' | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Servicing fees | $ | 230 | $ | 234 | $ | 461 | $ | 475 | ||||||
VIE_and_Other_Finance_Receivab3
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Schedule of VIE and other finance receivables, net of allowance for losses | ' | ||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Structured settlements and annuities | $ | 78,031 | $ | 75,894 | |||||||||||||||||||
Less: unearned income | (50,763 | ) | (49,751 | ) | |||||||||||||||||||
27,268 | 26,143 | ||||||||||||||||||||||
Lottery winnings | 84,760 | 87,495 | |||||||||||||||||||||
Less: unearned income | (26,411 | ) | (28,442 | ) | |||||||||||||||||||
58,349 | 59,053 | ||||||||||||||||||||||
Pre-settlement funding transactions | 58,605 | 56,309 | |||||||||||||||||||||
Less: deferred revenue | (1,716 | ) | (2,240 | ) | |||||||||||||||||||
56,889 | 54,069 | ||||||||||||||||||||||
Attorney cost financing | 1,517 | 2,069 | |||||||||||||||||||||
Less: deferred revenue | — | — | |||||||||||||||||||||
1,517 | 2,069 | ||||||||||||||||||||||
VIE and other finance receivables, gross | 144,023 | 141,334 | |||||||||||||||||||||
Less: allowance for losses | (8,984 | ) | (8,342 | ) | |||||||||||||||||||
VIE and other finance receivables, net | $ | 135,039 | $ | 132,992 | |||||||||||||||||||
Schedule of encumbrances on VIE and other finance receivables, net of allowance for losses | ' | ||||||||||||||||||||||
Encumbrance | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
VIE securitization debt (2) | $ | 76,615 | $ | 78,575 | |||||||||||||||||||
$35 million pre-settlement credit facility (1) | 29,116 | 25,047 | |||||||||||||||||||||
$45.1 million long-term pre-settlement facility (2) | 8,282 | 11,680 | |||||||||||||||||||||
$2.4 million long-term facility (2) | 2,134 | 2,524 | |||||||||||||||||||||
Total VIE finance receivables, net of allowances | 116,147 | 117,826 | |||||||||||||||||||||
Not encumbered | 18,892 | 15,166 | |||||||||||||||||||||
Total VIE and other finance receivables, net of allowances | $ | 135,039 | $ | 132,992 | |||||||||||||||||||
(1) See Note 8 | |||||||||||||||||||||||
(2) See Note 9 | |||||||||||||||||||||||
Schedule of activity in the allowance for losses for VIE and other finance receivables | ' | ||||||||||||||||||||||
Structured | Lottery | Pre-settlement | Life insurance | Attorney cost | Total | ||||||||||||||||||
settlements and | funding | premium financing | financing | ||||||||||||||||||||
annuities | transactions | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three Months Ended June, 2014 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of March 31, 2014 | $ | (53 | ) | $ | (4 | ) | $ | (8,176 | ) | $ | — | $ | (283 | ) | $ | (8,516 | ) | ||||||
Provision for loss | (68 | ) | 3 | (1,062 | ) | — | — | (1,127 | ) | ||||||||||||||
Charge-offs | 91 | 22 | 596 | — | — | 709 | |||||||||||||||||
Recoveries | (25 | ) | (25 | ) | — | — | — | (50 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
Six Months Ended June, 2014 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of December 31, 2013 | $ | (48 | ) | $ | — | $ | (8,011 | ) | $ | — | $ | (283 | ) | $ | (8,342 | ) | |||||||
Provision for loss | (8 | ) | (8 | ) | (2,202 | ) | — | — | (2,218 | ) | |||||||||||||
Charge-offs | 104 | 29 | 1,571 | — | — | 1,704 | |||||||||||||||||
Recoveries | (103 | ) | (25 | ) | — | — | — | (128 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
Individually evaluated for impairment | $ | (55 | ) | $ | (4 | ) | $ | (3,255 | ) | $ | — | $ | — | $ | (3,314 | ) | |||||||
Collectively evaluated for impairment | — | — | (5,387 | ) | — | (283 | ) | (5,670 | ) | ||||||||||||||
Balance as of June 30, 2014 | $ | (55 | ) | $ | (4 | ) | $ | (8,642 | ) | $ | — | $ | (283 | ) | $ | (8,984 | ) | ||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 27,213 | $ | 58,345 | $ | 3,681 | $ | — | $ | — | $ | 89,239 | |||||||||||
Collectively evaluated for impairment | — | — | 44,566 | — | 1,234 | 45,800 | |||||||||||||||||
Balance as of June 30, 2014 | $ | 27,213 | $ | 58,345 | $ | 48,247 | $ | — | $ | 1,234 | $ | 135,039 | |||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of March 31, 2013 | $ | (181 | ) | $ | — | $ | (5,272 | ) | $ | — | $ | (215 | ) | $ | (5,668 | ) | |||||||
Provision for loss | (139 | ) | 11 | (1,383 | ) | 2 | (78 | ) | (1,587 | ) | |||||||||||||
Charge-offs | 139 | 35 | 373 | — | — | 547 | |||||||||||||||||
Recoveries | (1 | ) | (46 | ) | — | (2 | ) | — | (49 | ) | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | (181 | ) | $ | (6 | ) | $ | (4,194 | ) | $ | — | $ | (269 | ) | $ | (4,650 | ) | ||||||
Provision for loss | (139 | ) | 11 | (2,533 | ) | 2 | (24 | ) | (2,683 | ) | |||||||||||||
Charge-offs | 139 | 35 | 445 | — | — | 619 | |||||||||||||||||
Recoveries | (1 | ) | (40 | ) | — | (2 | ) | — | (43 | ) | |||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Individually evaluated for impairment | $ | (182 | ) | $ | — | $ | (1,498 | ) | $ | — | $ | — | $ | (1,680 | ) | ||||||||
Collectively evaluated for impairment | — | — | (4,784 | ) | — | (293 | ) | (5,077 | ) | ||||||||||||||
Balance as of June 30, 2013 | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 25,890 | $ | 59,850 | $ | 1,826 | $ | — | $ | — | $ | 87,566 | |||||||||||
Collectively evaluated for impairment | — | — | 46,753 | — | 2,373 | 49,126 | |||||||||||||||||
Balance as of June 30, 2013 | $ | 25,890 | $ | 59,850 | $ | 48,579 | $ | — | $ | 2,373 | $ | 136,692 | |||||||||||
Schedule of gross pre-settlement funding transactions based on their year of origination | ' | ||||||||||||||||||||||
Year of | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Origination | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
2009 | $ | 3,682 | $ | 4,578 | |||||||||||||||||||
2010 | 4,957 | 5,740 | |||||||||||||||||||||
2011 | 8,473 | 10,915 | |||||||||||||||||||||
2012 | 13,831 | 17,527 | |||||||||||||||||||||
2013 | 14,176 | 17,549 | |||||||||||||||||||||
2014 | 13,486 | — | |||||||||||||||||||||
$ | 58,605 | $ | 56,309 | ||||||||||||||||||||
Schedule of portfolio delinquency status excluding presettlement funding transactions and attorney cost financing | ' | ||||||||||||||||||||||
VIE and Other | |||||||||||||||||||||||
30-59 | 60-89 | Greater | VIE and Other | Finance | |||||||||||||||||||
Finance | Receivables, net | ||||||||||||||||||||||
Days | Days | than | Total | Receivables, | > 90 days | ||||||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Current | net | accruing | |||||||||||||||||
(In thousands) | |||||||||||||||||||||||
As of June 30, 2014: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 7 | $ | 4 | $ | 190 | $ | 201 | $ | 27,067 | $ | 27,268 | $ | — | |||||||||
Lottery winnings | 3 | 2 | 168 | 173 | 58,176 | 58,349 | — | ||||||||||||||||
Total | $ | 10 | $ | 6 | $ | 358 | $ | 374 | $ | 85,243 | $ | 85,617 | $ | — | |||||||||
As of December 31, 2013: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 4 | $ | 1 | $ | 62 | $ | 67 | $ | 26,028 | $ | 26,095 | $ | — | |||||||||
Lottery winnings | — | — | 18 | 18 | 59,035 | 59,053 | — | ||||||||||||||||
Total | $ | 4 | $ | 1 | $ | 80 | $ | 85 | $ | 85,063 | $ | 85,148 | $ | — |
VIE_Borrowings_Under_Revolving1
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | |||||||||
Schedule of VIE borrowings under revolving credit facilities and other similar borrowings | ' | |||||||||
June 30, | December 31, | |||||||||
Entity | 2014 | 2013 | ||||||||
(In thousands) | ||||||||||
$100 million variable funding note facility with interest payable monthly at 9.0%, collateralized by JGW-S III’s structured settlements receivables, 2-year revolving period with 18 months amortization period thereafter upon notice by the issuer or the note holder with all principal and interest outstanding payable no later than October 15, 2048. JGW-S III is charged monthly an unused fee of 1.00% per annum for the undrawn balance of its line of credit. | JGW-S III | $ | 23,863 | $ | 7,535 | |||||
$50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.40% as of June 30, 2014 and 3.42% as of December 31, 2013) maturing on April 2, 2017, collateralized by JGW IV’s structured settlements and annuity receivables. JGW IV, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW IV | 1,302 | — | |||||||
$300 million multi-tranche and lender credit facility with interest payable monthly. The Facility was revised on July 24, 2013 as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.15% and 3.25% as of June 30, 2014 and 3.17% and 3.29% at December 31, 2013). Tranche B rate is 5.5% plus LIBOR (5.65% as of June 30, 2014, 5.67% at December 31, 2013). The facility matures on July 24, 2016 and is collateralized by JGW V’s structured settlements, annuity and lottery receivables. JGW V, LLC is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. | JGW V | 19,851 | 10,985 | |||||||
$300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (2.98% as of June 30, 2014 and 2.95% at December 31, 2013), maturing on November 15, 2016, collateralized by JGW VII’s structured settlements, annuity and lottery receivables. JGW VII, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW VII | 9,823 | 5,769 | |||||||
$35 million multi class credit facility with interest payable monthly as follows: Class A rate comprises the lender’s “prime rate” plus 1.00%, subject to a floor of 4.50% (4.50% as of June 30, 2014 and December 31, 2013). Class B rate comprises the Class A rate plus 1.00% (5.50% as of June 30 2014). The facility matures December 31, 2014 and is collateralized by certain pre-settlement receivables. Peach One is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | Peach One | 18,928 | 16,985 | |||||||
Total | $ | 73,767 | $ | 41,274 |
VIE_LongTerm_Debt_Tables
VIE Long-Term Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Schedule of VIE long-term debt | ' | |||||||
June 30, 2014 | December 31, 2013 | |||||||
(In thousands) | ||||||||
PLMT Permanent Facility | $ | 44,864 | $ | 47,267 | ||||
Residual Term Facility | 107,540 | 68,785 | ||||||
Long-Term Pre-settlement Facility | 10,314 | 12,435 | ||||||
2012-A Facility | 1,918 | 2,276 | ||||||
LCSS Facility (2010-C) | 12,881 | 12,880 | ||||||
LCSS Facility (2010-D) | 7,159 | 7,159 | ||||||
Total | $ | 184,676 | $ | 150,802 |
VIE_Longterm_Debt_Issued_by_Se1
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Summary of securitization SPE transaction | ' | |||||||||||||
2014-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 2/18/14 | |||||||||||||
Bond proceeds | $233.90 | |||||||||||||
Receivables securitized | 4,128 | |||||||||||||
Deal discount rate | 4.24% | |||||||||||||
Retained interest % | 6.00% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.75% | |||||||||||||
2013-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/20/13 | |||||||||||||
Bond proceeds | $216.50 | |||||||||||||
Receivables securitized | 2,425 | |||||||||||||
Deal discount rate | 3.65% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
Summary of notes issued by securitization trusts and permanent financing trusts for which the Company has elected the fair value option | ' | |||||||||||||
Outstanding | Outstanding | Fair Value | Fair Value | |||||||||||
Principal as of | Principal as of | as of | as of | |||||||||||
June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||
Securitization trusts | $ | 3,175,572 | $ | 3,063,520 | $ | 3,439,595 | $ | 3,177,404 | ||||||
Permanent financing VIEs | 253,960 | 256,914 | 258,905 | 253,879 | ||||||||||
Total | $ | 3,429,532 | $ | 3,320,434 | $ | 3,698,500 | $ | 3,431,283 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||
Schedule of notional amounts and fair values of the Company's interest rate swaps | ' | |||||||||||||||
Notional as of | Fair Market Value as of | Notional as of | Fair Market Value as of | |||||||||||||
Entity | Securitization | June 30, 2014 | June 30, 2014 | December 31, 2013 | December 31, 2013 | |||||||||||
(In Thousands) | ||||||||||||||||
321 Henderson I | 2004-A A-1 | $ | 36,320 | $ | (3,463 | ) | $ | 40,734 | $ | (3,745 | ) | |||||
321 Henderson I | 2005-1 A-1 | 66,722 | (8,144 | ) | 73,269 | (8,559 | ) | |||||||||
321 Henderson II | 2006-1 A-1 | 18,180 | (1,835 | ) | 20,976 | (2,137 | ) | |||||||||
322 Henderson II | 2006-2 A-1 | 21,768 | (3,010 | ) | 23,620 | (3,202 | ) | |||||||||
323 Henderson II | 2006-3 A-1 | 23,393 | (2,793 | ) | 25,902 | (3,023 | ) | |||||||||
324 Henderson II | 2006-4 A-1 | 21,908 | (2,417 | ) | 23,842 | (2,643 | ) | |||||||||
325 Henderson II | 2007-1 A-2 | 39,364 | (5,560 | ) | 39,364 | (5,159 | ) | |||||||||
326 Henderson II | 2007-2 A-3 | 40,160 | (8,653 | ) | 41,544 | (8,015 | ) | |||||||||
JGW V, LLC | — | — | — | 10,985 | 16 | |||||||||||
JGW VII, LLC | — | 11,562 | (67 | ) | — | — | ||||||||||
PSS | — | 185,740 | (29,295 | ) | 192,444 | (25,120 | ) | |||||||||
PLMT | — | 54,913 | (9,305 | ) | 56,942 | (8,709 | ) | |||||||||
Total | $ | 520,030 | $ | (74,542 | ) | $ | 549,622 | $ | (70,296 | ) |
Restructure_Expense_Tables
Restructure Expense (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Restructure Expense | ' | ||||
Schedule of reconciliation of the associated restructure liability | ' | ||||
Total | |||||
(In thousands) | |||||
Balance as of December 31, 2013 | $ | 921 | |||
Restructuring expense | (140 | ) | |||
Payments for restructuring charges | (651 | ) | |||
Balance as of June 30, 2014 | $ | 130 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stockholders' Equity | ' | ||||||||
Schedule of reclassifications out of accumulated other comprehensive income | ' | ||||||||
Period | Details about accumulated | Amount reclassified from | Affected line item in the | ||||||
other comprehensive income | accumulated other | unaudited condensed | |||||||
components | comprehensive income | consolidated statement of | |||||||
operations | |||||||||
Three and six months ended June 30, 2014 | Unrealized gains and losses on available-for-sale securities | $ | 2,098 | Realized gain (loss) on notes receivable, at fair value | |||||
Three and six months ended June 30, 2013 | Unrealized gains and losses on available-for-sale securities | $ | (1,862 | ) | Realized gain (loss) on notes receivable, at fair value |
NonControlling_Interests_Table
Non-Controlling Interests (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Non-Controlling Interests | ' | |||||||
Schedule of changes in the non-controlling and JGWPT Holdings Inc.'s interests in Holdings LLC | ' | |||||||
Total Common Interests Held By: | ||||||||
JGWPT Holding | Non-controlling | |||||||
Inc. | Interests | Total | ||||||
Balance as of December 31, 2013 | 11,216,429 | 18,344,688 | 29,561,117 | |||||
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the issuance of restricted common stock | 3,268 | — | 3,268 | |||||
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | 1,661,599 | (1,661,599 | ) | — | ||||
Holdings LLC common interests repurchased related to Class A common stock repurchased | (88,020 | ) | — | (88,020 | ) | |||
Common interests forfeited | — | (55,499 | ) | (55,499 | ) | |||
Balance as of June 30, 2014 | 12,793,276 | 16,627,590 | 29,420,866 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share | ' | |||||||
Schedule of reconciliation of the numerator and denominator used in the basic and diluted EPS calculations | ' | |||||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2014 | June 30, 2014 | |||||||
(In thousands, except for shares and per share data) | ||||||||
Numerator: | ||||||||
Numerator for basic EPS- Net income attributable to holders of JGWPT Holdings Inc. Class A common stock | $ | 6,268 | $ | 15,290 | ||||
Effect of dilutive securities: | ||||||||
Holdings LLC Common Interests and vested restricted Common Interests | — | — | ||||||
Holdings LLC unvested restricted Common Interests | — | — | ||||||
Numerator for diluted EPS- Net income attributable to holders of JGWPT Holdings Inc. Class A common stock | $ | 6,268 | $ | 15,290 | ||||
Denominator: | ||||||||
Denominator for basic EPS - Weighted average shares of Class A common stock | 12,559,957 | 12,104,172 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | — | — | ||||||
Warrants | — | — | ||||||
Restricted common stock and restricted stock units | 2,085 | 1,376 | ||||||
Holdings LLC Common Interests and vested restricted Common Interests | — | — | ||||||
Holdings LLC unvested restricted Common Interests | — | — | ||||||
Dilutive potential common shares | 2,085 | 1,376 | ||||||
Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock | 12,562,042 | 12,105,548 | ||||||
Basic income per share of Class A common stock | $ | 0.5 | $ | 1.26 | ||||
Diluted income per share of Class A common stock | $ | 0.5 | $ | 1.26 |
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Details) (Merger Sub) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Merger Sub | ' | ' | ' |
Basis of Presentation | ' | ' | ' |
Ownership interest (as a percent) | 43.50% | 43.50% | 37.90% |
Non-controlling interest (as a percent) | 56.50% | 56.50% | 62.10% |
Ownership percentage of weighted average economic interests | 42.60% | 41.00% | ' |
Non-controlling weighted average economic interests (as a percent) | 57.40% | 59.00% | ' |
Business_Changes_and_Developme1
Business Changes and Developments (Details) (USD $) | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Nov. 14, 2013 | Jun. 30, 2014 | Nov. 14, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Tax Receivable Agreement | JGWPT Holdings, LLC | JGWPT Holdings, LLC | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class B Common Stock | Class B Common Stock | Class C Shares | Class C Shares | Class C Shares | |
Tax Receivable Agreement | JGWPT Holdings, LLC | JGWPT Holdings, LLC | Underwriter's overallotment option | JGWPT Holdings, LLC | PGHI Corp | ||||||||||
Minimum | |||||||||||||||
Business Changes and Developments. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in initial public offering | ' | ' | ' | 11,212,500 | ' | ' | ' | ' | 1,462,500 | ' | ' | ' | ' | ' | ' |
Net proceeds from initial public offering | ' | ' | ' | $141.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common interests acquired | ' | 11,212,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | 37.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' |
Shares issued pursuant to merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 |
Share exchange ratio | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | 1 | ' | ' |
Common interest holders ownership percentage (as a percent) | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash savings in income tax to be paid to common interest holders (as a percent) | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Variable Interest Entities | ' |
Minimum expected life of consolidated VIEs | '20 years |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | ||
Notes receivable, at fair market value | ' | ' | |
Amortized cost of the notes receivable | 6,200,000 | 5,600,000 | |
Marketable securities: | ' | ' | |
Total marketable securities | 115,981,000 | 121,954,000 | |
VIE and other finance receivables at fair market value | 4,287,725,000 | 3,870,649,000 | |
Notes receivable, at fair market value | ' | 5,610,000 | [1] |
Maximum recovery period of other receivables | '3 months | ' | |
Liabilities | ' | ' | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500,000 | 3,431,283,000 | |
VIE derivative liabilities, at fair market value | 74,542,000 | 70,296,000 | |
VIE and other finance receivables | ' | ' | |
Assets and liabilities that are carried at fair value | ' | ' | |
Discount rate for discounting residual cash flows (as a percent) | 6.59% | 7.85% | |
Weighted average life | '20 years | '20 years | |
Loss assumption (as a percent) | 0.25% | ' | |
Quoted Prices in Active Markets for Identical Assets Level 1 | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 78,296,000 | 82,676,000 | |
Total fixed income securities | 26,800,000 | 30,831,000 | |
Total other securities | 10,885,000 | 8,447,000 | |
Total marketable securities | 115,981,000 | 121,954,000 | |
Total Assets | 115,981,000 | 121,954,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US large cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 39,811,000 | 41,821,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US mid cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 12,620,000 | 9,769,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US small cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 5,662,000 | 10,212,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | International | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 18,112,000 | 19,938,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Other equity | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 2,091,000 | 936,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 23,249,000 | 26,713,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | International fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 3,523,000 | 4,089,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Other fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 28,000 | 29,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Cash & cash equivalents | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 7,046,000 | 5,534,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Alternative investments | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 1,657,000 | 705,000 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Annuities | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 2,182,000 | 2,208,000 | |
Significant Other Observable Inputs Level 2 | ' | ' | |
Liabilities | ' | ' | |
VIE derivative liabilities, at fair market value | 74,542,000 | 70,296,000 | |
Total Liabilities | 74,542,000 | 70,296,000 | |
Significant Unobservable Inputs Level 3 | ' | ' | |
Marketable securities: | ' | ' | |
VIE and other finance receivables at fair market value | 4,287,725,000 | 3,870,649,000 | |
Notes receivable, at fair market value | ' | 5,610,000 | |
Total Assets | 4,287,725,000 | 3,876,259,000 | |
Liabilities | ' | ' | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500,000 | 3,431,283,000 | |
Total Liabilities | 3,698,500,000 | 3,431,283,000 | |
Significant Unobservable Inputs Level 3 | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' | |
Liabilities | ' | ' | |
Total Liabilities | 3,698,500,000 | 3,431,283,000 | |
Significant Unobservable Inputs Level 3 | VIE and other finance receivables | ' | ' | |
Marketable securities: | ' | ' | |
Total Assets | 4,287,725,000 | 3,870,649,000 | |
Total at Fair Value | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 78,296,000 | 82,676,000 | |
Total fixed income securities | 26,800,000 | 30,831,000 | |
Total other securities | 10,885,000 | 8,447,000 | |
Total marketable securities | 115,981,000 | 121,954,000 | |
VIE and other finance receivables at fair market value | 4,287,725,000 | 3,870,649,000 | |
Notes receivable, at fair market value | ' | 5,610,000 | |
Total Assets | 4,403,706,000 | 3,998,213,000 | |
Liabilities | ' | ' | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500,000 | 3,431,283,000 | |
VIE derivative liabilities, at fair market value | 74,542,000 | 70,296,000 | |
Total Liabilities | 3,773,042,000 | 3,501,579,000 | |
Total at Fair Value | US large cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 39,811,000 | 41,821,000 | |
Total at Fair Value | US mid cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 12,620,000 | 9,769,000 | |
Total at Fair Value | US small cap | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 5,662,000 | 10,212,000 | |
Total at Fair Value | International | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 18,112,000 | 19,938,000 | |
Total at Fair Value | Other equity | ' | ' | |
Marketable securities: | ' | ' | |
Total equity securities | 2,091,000 | 936,000 | |
Total at Fair Value | US fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 23,249,000 | 26,713,000 | |
Total at Fair Value | International fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 3,523,000 | 4,089,000 | |
Total at Fair Value | Other fixed income | ' | ' | |
Marketable securities: | ' | ' | |
Total fixed income securities | 28,000 | 29,000 | |
Total at Fair Value | Cash & cash equivalents | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 7,046,000 | 5,534,000 | |
Total at Fair Value | Alternative investments | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 1,657,000 | 705,000 | |
Total at Fair Value | Annuities | ' | ' | |
Marketable securities: | ' | ' | |
Total other securities | 2,182,000 | 2,208,000 | |
[1] | Pledged as collateral to credit and long-term debt facilities |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Life settlement contracts, at fair market value | Minimum | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '8 months | '14 months |
Life settlement contracts, at fair market value | Maximum | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '244 months | '250 months |
Life settlement contracts, at fair market value | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '142 months | '148 months |
Level 3 | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | 4,287,725 | 3,876,259 |
Fair Value of Liabilities | 3,698,500 | 3,431,283 |
Level 3 | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Liabilities | 3,698,500 | 3,431,283 |
Level 3 | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Minimum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 0.50% | 0.73% |
Level 3 | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Maximum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 12.68% | 12.70% |
Level 3 | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 3.30% | 3.94% |
Level 3 | VIE and other finance receivables, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | 4,287,725 | 3,870,649 |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Minimum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 2.43% | 2.79% |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Maximum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 12.68% | 13.69% |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 3.63% | 4.33% |
Level 3 | Notes receivable, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | ' | 5,610 |
Level 3 | Notes receivable, at fair market value | Discounted cash flow | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | ' | 7.85% |
Level 3 | Notes receivable, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | ' | 7.85% |
Level 3 | Life settlement contracts, at fair market value | Discounted cash flow | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 18.50% | 18.50% |
Level 3 | Life settlement contracts, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 18.50% | 18.50% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in assets | ' | ' |
Balance at the beginning of the period | $3,876,259 | $3,624,986 |
Total gains (losses) included in earnings / losses | 339,507 | 91,536 |
Total gains (losses) included in other comprehensive gain | -1,615 | 2,361 |
Purchases of finance receivables | 220,742 | 197,172 |
Life insurance premiums paid | 116 | 241 |
Interest accreted | 83,777 | 67,795 |
Payments received | -231,061 | -204,275 |
Maturities | ' | -2,186 |
Asset distribution | ' | -11,507 |
Balance at the end of the period | 4,287,725 | 3,766,123 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 337,409 | 93,450 |
VIE and other finance receivables, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | 3,870,649 | 3,615,188 |
Total gains (losses) included in earnings / losses | 337,525 | 93,471 |
Purchases of finance receivables | 220,742 | 197,172 |
Interest accreted | 83,777 | 67,795 |
Payments received | -224,968 | -204,275 |
Asset distribution | ' | -9,615 |
Balance at the end of the period | 4,287,725 | 3,759,736 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 337,525 | 93,470 |
Life settlement contracts, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | ' | 1,724 |
Total gains (losses) included in earnings / losses | -116 | -73 |
Life insurance premiums paid | 116 | 241 |
Asset distribution | ' | -1,892 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | -116 | -20 |
Notes receivable, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | 5,610 | 8,074 |
Total gains (losses) included in earnings / losses | 2,098 | -1,862 |
Total gains (losses) included in other comprehensive gain | -1,615 | 2,361 |
Payments received | -6,093 | ' |
Maturities | ' | -2,186 |
Balance at the end of the period | $5,610 | $6,387 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (VIE long-term debt issued by securitization and permanent financing trusts, at fair market value, USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' |
Changes in liabilities | ' | ' |
Balance at the beginning of the period | $3,431,283 | $3,229,591 |
Net (gains) losses included in earnings / losses | 175,425 | -34,170 |
Issuances | 242,593 | 226,780 |
Interest accreted | -17,145 | -27,183 |
Repayments | -133,656 | -116,541 |
Balance at the end of the period | 3,698,500 | 3,278,477 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held at the end of the period | $175,425 | ($34,170) |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
VIE and other finance receivables and long-term debt | ' | ' | ' | ' |
Realized and unrealized gains and losses included in earnings | ' | ' | ' | ' |
Net gains (losses) included in revenues | $73,326 | $5,345 | $162,100 | $127,640 |
Unrealized gains (losses) relating to assets still held | 73,326 | 5,345 | 162,100 | 127,640 |
Life settlement contracts income | ' | ' | ' | ' |
Realized and unrealized gains and losses included in earnings | ' | ' | ' | ' |
Net gains (losses) included in revenues | -116 | -8 | -116 | -73 |
Unrealized gains (losses) relating to assets still held | ($116) | ($8) | ($116) | ($20) |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details 6) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial assets | ' | ' | |
Marketable securities | $115,981 | $121,954 | |
VIE and other finance receivables at fair market value | 4,287,725 | 3,870,649 | |
Notes receivable at fair market value | ' | 5,610 | [1] |
Other receivables, net of allowance for losses | 12,748 | 13,529 | |
Financial liabilities | ' | ' | |
VIE derivative liabilities, at fair market value | 74,542 | 70,296 | |
Total VIE borrowings under revolving credit facilities and other similar borrowings | 73,767 | 41,274 | |
VIE long-term debt | 184,676 | 150,802 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,431,283 | |
Installment obligations payable | 115,981 | 121,954 | |
Estimated Fair Value | ' | ' | |
Financial assets | ' | ' | |
Marketable securities | 115,981 | 121,954 | |
VIE and other finance receivables at fair market value | 4,287,725 | 3,870,649 | |
VIE and other finance receivables, net of allowance for losses | 127,948 | 126,502 | |
Notes receivable at fair market value | ' | 5,610 | |
Other receivables, net of allowance for losses | 12,748 | 13,529 | |
Financial liabilities | ' | ' | |
VIE derivative liabilities, at fair market value | 74,542 | 70,296 | |
Total VIE borrowings under revolving credit facilities and other similar borrowings | 75,733 | 42,275 | |
VIE long-term debt | 181,581 | 147,112 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,431,283 | |
Installment obligations payable | 115,981 | 121,954 | |
Term loan payable | 451,186 | 434,184 | |
Carrying Amount | ' | ' | |
Financial assets | ' | ' | |
Marketable securities | 115,981 | 121,954 | |
VIE and other finance receivables at fair market value | 4,287,725 | 3,870,649 | |
VIE and other finance receivables, net of allowance for losses | 135,039 | 132,992 | |
Notes receivable at fair market value | ' | 5,610 | |
Other receivables, net of allowance for losses | 12,748 | 13,529 | |
Financial liabilities | ' | ' | |
VIE derivative liabilities, at fair market value | 74,542 | 70,296 | |
Total VIE borrowings under revolving credit facilities and other similar borrowings | 73,767 | 41,274 | |
VIE long-term debt | 184,676 | 150,802 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,698,500 | 3,431,283 | |
Installment obligations payable | 115,981 | 121,954 | |
Term loan payable | $435,683 | $434,184 | |
[1] | Pledged as collateral to credit and long-term debt facilities |
VIE_and_Other_Finance_Receivab4
VIE and Other Finance Receivables, at Fair Market Value (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Maturity value | $6,243,644,000 | ' | $6,243,644,000 | ' | $5,917,596,000 | |||
Unearned income | -1,955,919,000 | ' | -1,955,919,000 | ' | -2,046,947,000 | |||
Total VIE finance receivables at fair value | 4,208,144,000 | [1] | ' | 4,208,144,000 | [1] | ' | 3,818,704,000 | [1] |
Not encumbered | 79,581,000 | ' | 79,581,000 | ' | 51,945,000 | |||
Total VIE and other finance receivables at fair value | 4,287,725,000 | ' | 4,287,725,000 | ' | 3,870,649,000 | |||
Servicing fees | 230,000 | 234,000 | 461,000 | 475,000 | ' | |||
Variable funding note facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 37,256,000 | ' | 37,256,000 | ' | 11,073,000 | |||
Maximum borrowing capacity | 100,000,000 | ' | 100,000,000 | ' | 100,000,000 | |||
Credit facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 1,903,000 | ' | 1,903,000 | ' | ' | |||
Maximum borrowing capacity | 50,000,000 | ' | 50,000,000 | ' | ' | |||
Multi-tranche and lender credit facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 31,283,000 | ' | 31,283,000 | ' | 16,681,000 | |||
Maximum borrowing capacity | 300,000,000 | ' | 300,000,000 | ' | 300,000,000 | |||
Permanent financing related to 2011-A | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 52,526,000 | ' | 52,526,000 | ' | 41,164,000 | |||
Maximum borrowing capacity | 100,000,000 | ' | 100,000,000 | ' | 100,000,000 | |||
VIE securitization debt | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 4,069,366,000 | ' | 4,069,366,000 | ' | 3,742,218,000 | |||
JGW VII, LLC | Credit facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 15,810,000 | ' | 15,810,000 | ' | 7,568,000 | |||
Maximum borrowing capacity | $300,000,000 | ' | $300,000,000 | ' | $300,000,000 | |||
[1] | Pledged as collateral to credit and long-term debt facilities |
VIE_and_Other_Finance_Receivab5
VIE and Other Finance Receivables, net of Allowance for Losses (Details) (VIE and Other Finance Receivables, net, USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivables, gross | $144,023 | ' | $141,334 | ' | ' | ' |
Less: allowance for losses | -8,984 | -8,516 | -8,342 | -6,757 | -5,668 | -4,650 |
Finance receivables, net | 135,039 | ' | 132,992 | 136,692 | ' | ' |
Structured settlements and annuities | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 78,031 | ' | 75,894 | ' | ' | ' |
Less: unearned income or deferred revenue | -50,763 | ' | -49,751 | ' | ' | ' |
Finance receivables, gross | 27,268 | ' | 26,143 | ' | ' | ' |
Less: allowance for losses | -55 | -53 | -48 | -182 | -181 | -181 |
Finance receivables, net | 27,213 | ' | ' | 25,890 | ' | ' |
Lottery winnings | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 84,760 | ' | 87,495 | ' | ' | ' |
Less: unearned income or deferred revenue | -26,411 | ' | -28,442 | ' | ' | ' |
Finance receivables, gross | 58,349 | ' | 59,053 | ' | ' | ' |
Less: allowance for losses | -4 | -4 | ' | ' | ' | -6 |
Finance receivables, net | 58,345 | ' | ' | 59,850 | ' | ' |
Pre-settlement funding transactions | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 58,605 | ' | 56,309 | ' | ' | ' |
Less: unearned income or deferred revenue | -1,716 | ' | -2,240 | ' | ' | ' |
Finance receivables, gross | 56,889 | ' | 54,069 | ' | ' | ' |
Less: allowance for losses | -8,642 | -8,176 | -8,011 | -6,282 | -5,272 | -4,194 |
Finance receivables, net | 48,247 | ' | ' | 48,579 | ' | ' |
Attorney cost financing | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 1,517 | ' | 2,069 | ' | ' | ' |
Finance receivables, gross | 1,517 | ' | 2,069 | ' | ' | ' |
Less: allowance for losses | -283 | -283 | -283 | -293 | -215 | -269 |
Finance receivables, net | $1,234 | ' | ' | $2,373 | ' | ' |
VIE_and_Other_Finance_Receivab6
VIE and Other Finance Receivables, net of Allowance for Losses (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Maximum borrowing capacity | $50,000,000 | ' | ' |
VIE and Other Finance Receivables, net | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 116,147,000 | 117,826,000 | ' |
Not encumbered | 18,892,000 | 15,166,000 | ' |
Finance receivables, net | 135,039,000 | 132,992,000 | 136,692,000 |
VIE and Other Finance Receivables, net | VIE securitization debt | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 76,615,000 | 78,575,000 | ' |
VIE and Other Finance Receivables, net | $45.1 million long-term pre-settlement facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 8,282,000 | 11,680,000 | ' |
Maximum borrowing capacity | 45,100,000 | 45,100,000 | ' |
VIE and Other Finance Receivables, net | $2.4 Long-term facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 2,134,000 | 2,524,000 | ' |
Maximum borrowing capacity | 2,400,000 | 2,400,000 | ' |
Peach One | Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Maximum borrowing capacity | 35,000,000 | 35,000,000 | ' |
Peach One | VIE and Other Finance Receivables, net | Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | $29,116,000 | $25,047,000 | ' |
VIE_and_Other_Finance_Receivab7
VIE and Other Finance Receivables, net of Allowance for Losses (Details 3) (VIE and Other Finance Receivables, net, USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Structured settlements and annuities | Structured settlements and annuities | Structured settlements and annuities | Structured settlements and annuities | Lottery | Lottery | Lottery | Lottery | Pre-settlement funding transactions | Pre-settlement funding transactions | Pre-settlement funding transactions | Pre-settlement funding transactions | Pre-settlement funding transactions | Life insurance premium financing | Life insurance premium financing | Attorney cost financing | Attorney cost financing | Attorney cost financing | Attorney cost financing | Attorney cost financing | Pre-settlement funding transactions and attorney cost financing | ||||||
Activity in the allowance for losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ($8,516,000) | ($5,668,000) | ($8,342,000) | ($4,650,000) | ' | ($53,000) | ($181,000) | ($48,000) | ($181,000) | ($4,000) | ' | ' | ($6,000) | ($8,176,000) | ($5,272,000) | ($8,011,000) | ($4,194,000) | ' | ' | ' | ($215,000) | ($269,000) | ($283,000) | ($283,000) | ($283,000) | ' |
Provision for loss | -1,127,000 | -1,587,000 | -2,218,000 | -2,683,000 | ' | -68,000 | -139,000 | -8,000 | -139,000 | 3,000 | 11,000 | -8,000 | 11,000 | -1,062,000 | -1,383,000 | -2,202,000 | -2,533,000 | ' | 2,000 | 2,000 | -78,000 | -24,000 | ' | ' | ' | ' |
Charge-offs | 709,000 | 547,000 | 1,704,000 | 619,000 | ' | 91,000 | 139,000 | 104,000 | 139,000 | 22,000 | 35,000 | 29,000 | 35,000 | 596,000 | 373,000 | 1,571,000 | 445,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries | -50,000 | -49,000 | -128,000 | -43,000 | ' | -25,000 | -1,000 | -103,000 | -1,000 | -25,000 | -46,000 | -25,000 | -40,000 | ' | ' | ' | ' | ' | -2,000 | -2,000 | ' | ' | ' | ' | ' | ' |
Balance at end of year | -8,984,000 | -6,757,000 | -8,984,000 | -6,757,000 | ' | -55,000 | -182,000 | -55,000 | -182,000 | -4,000 | ' | -4,000 | ' | -8,642,000 | -6,282,000 | -8,642,000 | -6,282,000 | ' | ' | ' | -293,000 | -293,000 | -283,000 | -283,000 | -283,000 | ' |
Individually evaluated for impairment | -3,314,000 | -1,680,000 | -3,314,000 | -1,680,000 | ' | -55,000 | -182,000 | -55,000 | -182,000 | -4,000 | ' | -4,000 | ' | -3,255,000 | -1,498,000 | -3,255,000 | -1,498,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | -5,670,000 | -5,077,000 | -5,670,000 | -5,077,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,387,000 | -4,784,000 | -5,387,000 | -4,784,000 | ' | ' | ' | -293,000 | -293,000 | -283,000 | ' | ' | ' |
Individually evaluated for impairment | 89,239,000 | 87,566,000 | 89,239,000 | 87,566,000 | ' | 27,213,000 | 25,890,000 | 27,213,000 | 25,890,000 | 58,345,000 | 59,850,000 | 58,345,000 | 59,850,000 | 3,681,000 | 1,826,000 | 3,681,000 | 1,826,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 45,800,000 | 49,126,000 | 45,800,000 | 49,126,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,566,000 | 46,753,000 | 44,566,000 | 46,753,000 | ' | ' | ' | 2,373,000 | 2,373,000 | 1,234,000 | ' | ' | ' |
Finance receivables, net | 135,039,000 | 136,692,000 | 135,039,000 | 136,692,000 | 132,992,000 | 27,213,000 | 25,890,000 | 27,213,000 | 25,890,000 | 58,345,000 | 59,850,000 | 58,345,000 | 59,850,000 | 48,247,000 | 48,579,000 | 48,247,000 | 48,579,000 | ' | ' | ' | 2,373,000 | 2,373,000 | 1,234,000 | ' | ' | ' |
Minimum term of financing receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year |
Impaired financing receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,200,000 | ' | $11,200,000 | ' | $11,500,000 | ' | ' | ' | ' | $700,000 | ' | $800,000 | ' |
VIE_and_Other_Finance_Receivab8
VIE and Other Finance Receivables, net of Allowance for Losses (Details 4) (VIE and Other Finance Receivables, net, USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Reserve for financing receivable | $8,984 | $8,516 | $8,342 | $6,757 | $5,668 | $4,650 |
Pre-settlement advances | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 58,605 | ' | 56,309 | ' | ' | ' |
Reserve for financing receivable | 8,642 | 8,176 | 8,011 | 6,282 | 5,272 | 4,194 |
Pre-settlement advances | 2009 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 3,682 | ' | 4,578 | ' | ' | ' |
Pre-settlement advances | 2010 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 4,957 | ' | 5,740 | ' | ' | ' |
Pre-settlement advances | 2011 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 8,473 | ' | 10,915 | ' | ' | ' |
Pre-settlement advances | 2012 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 13,831 | ' | 17,527 | ' | ' | ' |
Pre-settlement advances | 2013 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 14,176 | ' | 17,549 | ' | ' | ' |
Pre-settlement advances | 2014 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 13,486 | ' | ' | ' | ' | ' |
Attorney cost financing | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 1,517 | ' | 2,069 | ' | ' | ' |
Reserve for financing receivable | $283 | $283 | $283 | $293 | $215 | $269 |
VIE_and_Other_Finance_Receivab9
VIE and Other Finance Receivables, net of Allowance for Losses (Details 5) (VIE and Other Finance Receivables, net, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Portfolio delinquency status | ' | ' |
30-59 Days Past Due | $10 | $4 |
60-89 Days Past Due | 6 | 1 |
Greater than 90 Days | 358 | 80 |
Total Past Due | 374 | 85 |
Current | 85,243 | 85,063 |
VIE and Other Finance Receivables, net | 85,617 | 85,148 |
Structured settlements and annuities | ' | ' |
Portfolio delinquency status | ' | ' |
30-59 Days Past Due | 7 | 4 |
60-89 Days Past Due | 4 | 1 |
Greater than 90 Days | 190 | 62 |
Total Past Due | 201 | 67 |
Current | 27,067 | 26,028 |
VIE and Other Finance Receivables, net | 27,268 | 26,095 |
Lottery winnings | ' | ' |
Portfolio delinquency status | ' | ' |
30-59 Days Past Due | 3 | ' |
60-89 Days Past Due | 2 | ' |
Greater than 90 Days | 168 | 18 |
Total Past Due | 173 | 18 |
Current | 58,176 | 59,035 |
VIE and Other Finance Receivables, net | $58,349 | $59,053 |
VIE_Borrowings_Under_Revolving2
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
JGW-S III | JGW-S III | JGW IV | JGW V | JGW V | JGW VII | JGW VII | Peach One | Peach One | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | |||
Variable funding note facility | Variable funding note facility | Credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | JGW-S III | JGW-S III | JGW IV | JGW IV | JGW V | JGW V | JGW V | JGW V | JGW V | JGW V | JGW V | JGW V | JGW VII | JGW VII | Peach One | Peach One | Peach One | Peach One | Peach One | Peach One | |||
Variable funding note facility | Variable funding note facility | Credit facility | Credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Multi-tranche and lender credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | |||||||||||||||||
Tranche A | Tranche A | Tranche A | Tranche A | Tranche B | Tranche B | Class A rate | Class A rate | Class B rate | Class B rate | |||||||||||||||||||||||||||
LIBOR | LIBOR | Commercial Paper rate | Commercial Paper rate | LIBOR | LIBOR | |||||||||||||||||||||||||||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total VIE borrowings under revolving credit facilities and other similar borrowings | $73,767,000 | $41,274,000 | $23,863,000 | $7,535,000 | $1,302,000 | $19,851,000 | $10,985,000 | $9,823,000 | $5,769,000 | $18,928,000 | $16,985,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 | 50,000,000 | 50,000,000 | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | 300,000,000 | 300,000,000 | 35,000,000 | 35,000,000 | ' | ' | ' | ' |
Interest payable monthly (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate payable monthly (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.75% | ' | ' | ' | ' | ' | ' |
Revolving period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly unused fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 0.50% | 0.50% | 0.63% | 0.63% | ' | ' | ' | ' | ' | ' | 0.50% | 0.50% | 0.50% | 0.50% | ' | ' | ' | ' |
Interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 4.50% | ' | ' |
Variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | 'LIBOR | 'LIBOR | 'Commercial Paper rate | 'Commercial Paper rate | 'LIBOR | 'LIBOR | ' | ' | ' | ' | 'prime rate | 'prime rate | 'Class A | 'Class A |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.15% | 3.17% | 3.25% | 3.29% | 5.65% | 5.67% | 2.98% | 2.95% | ' | ' | 4.50% | 4.50% | 5.50% | ' |
Margin added to variable interest rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% | 3.42% | ' | ' | 3.00% | 3.00% | 3.00% | 3.00% | 5.50% | 5.50% | ' | ' | ' | ' | 1.00% | 1.00% | 1.00% | 1.00% |
Interest expense related to borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,400,000 | $1,800,000 | $4,600,000 | $3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate on outstanding borrowings (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.43% | ' | 5.43% | ' | 4.81% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIE_LongTerm_Debt_Details
VIE Long-Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-14 | Aug. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2014 | Dec. 31, 2011 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 30, 2010 | Jun. 30, 2014 | Nov. 30, 2010 |
PLMT Permanent Facility | PLMT Permanent Facility | Residual Term Facility | Residual Term Facility | Long-Term Pre-settlement Facility | Long-Term Pre-settlement Facility | 2012-A Facility | 2012-A Facility | LCSS Facility (2010-C) | LCSS Facility (2010-C) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | |||
LCSS II | LCSS III | LCSS, LLC | PLMT Permanent Facility | Residual Term Facility | Residual Term Facility | Residual Term Facility | Residual Term Facility | Term debt maturing on September 15, 2019 | Long-Term Pre-settlement Facility | Long-Term Pre-settlement Facility | 2012-A Facility | 2012-A Facility | LCSS Facility (2010-C) | LCSS Facility (2010-C) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | |||||||||||||||
LCSS, LLC | LCSS II | item | LCSS III | LCSS III | |||||||||||||||||||||||||||
VIE long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIE long-term debt | $184,676,000 | $150,802,000 | $44,864,000 | $47,267,000 | $107,540,000 | $68,785,000 | $10,314,000 | $12,435,000 | $1,918,000 | $2,276,000 | $12,881,000 | $12,880,000 | $7,159,000 | $7,159,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | 70,000,000 | 110,000,000 | 14,000,000 | 56,000,000 | ' | 45,100,000 | ' | ' | ' | ' | 12,900,000 | ' | 7,200,000 |
Interest rate until September 15, 2014 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate after September 15, 2014 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal payments required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin added to variable interest rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | 9.25% | ' | 9.25% | 10.00% | ' | 10.00% | ' |
Number of fixed rate notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' |
Payment to purchase membership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIE_Longterm_Debt_Issued_by_Se2
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 20, 2013 | Mar. 20, 2013 | Mar. 20, 2013 | Feb. 18, 2014 | Feb. 18, 2014 | Feb. 18, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
JGW-S LC II | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | |||
2011-A | item | item | 2013-1 | 2013-1 | 2013-1 | 2014-1 | 2014-1 | 2014-1 | Securitization trusts | Securitization trusts | Permanent financing VIEs | Permanent financing VIEs | ||||
Aaa | Baa2 | Aaa | Baa2 | |||||||||||||
Term loan payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of asset securitization transactions completed | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bond proceeds | ' | ' | ' | ' | ' | ' | $216,500,000 | ' | ' | $233,900,000 | ' | ' | ' | ' | ' | ' |
Receivables securitized | ' | ' | ' | ' | ' | ' | 2,425,000 | ' | ' | 4,128,000 | ' | ' | ' | ' | ' | ' |
Deal discount rate (as a percent) | ' | ' | ' | ' | ' | ' | 3.65% | ' | ' | 4.24% | ' | ' | ' | ' | ' | ' |
Retained interest % | ' | ' | ' | ' | ' | ' | 6.75% | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' |
Class allocation (as a percent) | ' | ' | ' | ' | ' | ' | ' | 85.25% | 8.00% | ' | 85.25% | 8.75% | ' | ' | ' | ' |
Outstanding Principal | ' | ' | ' | 3,429,532,000 | ' | 3,320,434,000 | ' | ' | ' | ' | ' | ' | 3,175,572,000 | 3,063,520,000 | 253,960,000 | 256,914,000 |
Fair Value | 3,698,500,000 | 3,431,283,000 | ' | 3,698,500,000 | ' | 3,431,283,000 | ' | ' | ' | ' | ' | ' | 3,439,595,000 | 3,177,404,000 | 258,905,000 | 253,879,000 |
Maximum borrowing capacity | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in maximum borrowing capacity | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term_Loan_Payable_Details
Term Loan Payable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 06, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Dec. 06, 2013 | Jun. 30, 2013 | Feb. 08, 2013 | 31-May-13 | Jun. 30, 2014 | 31-May-13 | Jun. 30, 2014 | 31-May-13 | Jun. 30, 2014 | Dec. 31, 2013 | Feb. 08, 2013 | Feb. 08, 2013 | 31-May-13 | 31-May-13 | Mar. 31, 2013 | Jul. 12, 2011 | Jul. 12, 2011 | Dec. 31, 2012 | Mar. 31, 2013 |
Term Loan | Term Loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | New term loan | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Letters of credit | Additional term loan issued May 2013 | JGWPT Holdings, LLC | JGWPT Holdings, LLC | OAC Merger | OAC Merger | OAC Merger | OAC Merger | |||
Eurodollar | Eurodollar | Base rate | Base rate | Term Loan | Term Loan | Term Loan | PGHI | |||||||||||||||||||||
Eurodollar | Eurodollar | |||||||||||||||||||||||||||
Term loan payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | $176,500,000 | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Libor | ' | 'Prime | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'eurodollar base rate | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | 7.00% | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.75% | ' |
Margin on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 7.50% | 5.00% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payment at closing | ' | ' | ' | ' | 123,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity free of limitations on payment of dividends | 227,700,000 | 173,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | 0 | 1,400,000 | ' | 8,000,000 | 10,900,000 | ' | 15,900,000 | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amendment, legal and other fees | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 13,100,000 | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.50% | 2.00% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | $309,600,000 | ' | ' | ' | $16,300,000 |
Number of common interest shares issued for preferred interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | 321 Henderson I | 321 Henderson I | 321 Henderson I | 321 Henderson I | 321 Henderson II | 321 Henderson II | 322 Henderson II | 322 Henderson II | 323 Henderson II | 323 Henderson II | 324 Henderson II | 324 Henderson II | 325 Henderson II | 325 Henderson II | 326 Henderson II | 326 Henderson II | JGW V, LLC | JGW VII, LLC | JGW VII, LLC | PSS | PSS | PLMT | PLMT | ||||
Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | ||||
Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | 2004-A A-1 | 2004-A A-1 | 2005-1 A-1 | 2005-1 A-1 | 2006-1 A-1 | 2006-1 A-1 | 2006-2 A-1 | 2006-2 A-1 | 2006-3 A-1 | 2006-3 A-1 | 2006-4 A-1 | 2006-4 A-1 | 2007-1 A-2 | 2007-1 A-2 | 2007-2 A-3 | 2007-2 A-3 | Hedge accounting has not been applied | Hedge accounting has not been applied | Credit Facility | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | ||||||||
item | item | Minimum | Maximum | item | item | Minimum | Maximum | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | VIE | VIE | ||||||||||||||||
Derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terminated notional value | ' | ' | ' | ' | ' | $35,000,000 | $55,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional | 520,030,000 | ' | 549,622,000 | ' | ' | ' | ' | 267,800,000 | ' | 267,800,000 | ' | ' | ' | 240,700,000 | ' | 240,700,000 | ' | ' | ' | 36,320,000 | 40,734,000 | 66,722,000 | 73,269,000 | 18,180,000 | 20,976,000 | 21,768,000 | 23,620,000 | 23,393,000 | 25,902,000 | 21,908,000 | 23,842,000 | 39,364,000 | 39,364,000 | 40,160,000 | 41,544,000 | 10,985,000 | 11,562,000 | 11,600,000 | 185,740,000 | 192,444,000 | 54,913,000 | 56,942,000 |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.66% | 5.77% | ' | ' | ' | ' | 4.38% | 8.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.53% | ' | ' | ' | ' |
Floating rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1-month LIBOR | ' | ' | ' | ' |
Term of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '22 years | ' | ' | ' | ' | '1 month | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 years | ' | ' | ' | ' |
Total loss on termination of derivative | -574,000 | -174,000 | ' | 0 | 0 | 600,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) | -4,472,000 | 36,202,000 | ' | -100,000 | -100,000 | 500,000 | 500,000 | -100,000 | 10,800,000 | 300,000 | 16,500,000 | ' | ' | -2,900,000 | 13,600,000 | -4,700,000 | 19,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of outstanding derivatives | ' | ' | ' | ' | ' | ' | ' | 8 | ' | 8 | ' | ' | ' | 157 | ' | 157 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Market Value | ($74,542,000) | ' | ($70,296,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($3,463,000) | ($3,745,000) | ($8,144,000) | ($8,559,000) | ($1,835,000) | ($2,137,000) | ($3,010,000) | ($3,202,000) | ($2,793,000) | ($3,023,000) | ($2,417,000) | ($2,643,000) | ($5,560,000) | ($5,159,000) | ($8,653,000) | ($8,015,000) | $16,000 | ($67,000) | ' | ($29,295,000) | ($25,120,000) | ($9,305,000) | ($8,709,000) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Counterparty under agreement to purchase LCSS assets, USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Arrangement | ' | ' |
Commitments and contingencies | ' | ' |
Percentage of target IRR above original target IRR paid by counterparty | 3.50% | ' |
Borrowing Agreement | ' | ' |
Commitments and contingencies | ' | ' |
Amount owed by counterparty | $9.40 | $9.10 |
Annual rate of interest for counterparty borrowing (as a percent) | 5.35% | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Maximum | |||
Income Taxes | ' | ' | ' |
Effective income tax rate (as a percent) | 21.90% | 19.90% | 1.70% |
Restructure_Expense_Details
Restructure Expense (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Reconciliation of associated restructure liability | ' |
Balance at the beginning of the period | $921 |
Restructuring expense | -140 |
Payments for restructuring charges | -651 |
Balance at the end of the period | $130 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Jun. 30, 2014 | 2-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
JGWPT Holdings, LLC | PGHI Corp | PGHI Corp | PGHI Corp | PGHI Corp | PGHI Corp | Preferred Stock | Common Stock- Class A | Common Stock- Class A | Common Stock- Class A | Common Stock- Class A | Class B Common Stock | Class B Common Stock | Class B Common Stock | Class C Common Stock | Class C Common Stock | ||
Tranche C-1 profit interests | Tranche C-1 profit interests | Tranche C-2 profits interests | Tranche C-2 profits interests | item | item | item | JGWPT Holdings, LLC | ||||||||||
Maximum | Maximum | ||||||||||||||||
Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, authorized shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ' | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' | $0.00 | $0.00 |
Preferred stock, authorized shares | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,885,225 | 12,885,225 | 11,220,358 | 12,266,967 | 14,001,583 | ' | 0 | 0 |
Common stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,793,276 | 12,793,276 | 11,216,429 | 12,266,967 | 13,984,065 | ' | 0 | 0 |
Aggregate value of shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased under Stock Repurchase Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,020 | 88,020 | ' | ' | ' | ' | ' | ' |
Aggregate purchase price of shares repurchased under Stock Repurchase Program | $917,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' | ' | ' | ' |
Shares repurchase price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.42 | ' | ' | ' | ' | ' | ' |
Number of votes per share of common stock held | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | 10 | ' | ' | ' | ' |
Number of shares of Class A common stock whose market value is given as cash on optional exchange of common interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Conversion ratio of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares entitled by warrants (in shares) | ' | ' | ' | ' | 483,217 | ' | 483,217 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants issued (in dollars per share) | ' | ' | ' | $35.78 | ' | $63.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period after consummation of IPO for exercise of warrants | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exchanged (in shares) | ' | 1,661,599 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange of JGWPT Holdings LLC Common Interests into Class A common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,661,599 | ' | -1,661,599 | ' | 1,661,599 | ' | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (Unrealized gains and losses on available-for-sale securities, Amount reclassified from accumulated other comprehensive income, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Unrealized gains and losses on available-for-sale securities | Amount reclassified from accumulated other comprehensive income | ' | ' | ' | ' |
Amount reclassified from accumulated other comprehensive income | ' | ' | ' | ' |
Realized gain (loss) on notes receivable, at fair value | $2,098 | ($1,862) | $2,098 | ($1,862) |
NonControlling_Interests_Detai
Non-Controlling Interests (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Non-Controlling Interests | ' |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | $1,300,000 |
Holdings LLC common interest repurchased related to Class A common stock repurchased | -917,000 |
Non-controlling Interests | ' |
Non-Controlling Interests | ' |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the issuance of restricted common stock | -11,293,000 |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | 762,000 |
Holdings LLC common interest repurchased related to Class A common stock repurchased | -778,000 |
JGWPT Holdings, LLC | ' |
Non-Controlling Interests | ' |
Balance at the beginning of period | 29,561,117 |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the issuance of restricted common stock | 3,268 |
Holdings LLC common interest repurchased related to Class A common stock repurchased | -88,020 |
Common interests forfeited | -55,499 |
Balance at the end of period | 29,420,866 |
JGWPT Holdings, LLC | JGWPT Holding Inc. | ' |
Non-Controlling Interests | ' |
Balance at the beginning of period | 11,216,429 |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the issuance of restricted common stock | 3,268 |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | 1,661,599 |
Holdings LLC common interest repurchased related to Class A common stock repurchased | -88,020 |
Balance at the end of period | 12,793,276 |
JGWPT Holdings, LLC | Non-controlling Interests | ' |
Non-Controlling Interests | ' |
Balance at the beginning of period | 18,344,688 |
Holdings LLC common interests acquired by JGWPT Holdings Inc. as a result of the exchange of Holdings LLC units for shares of Class A common stock | -1,661,599 |
Common interests forfeited | -55,499 |
Balance at the end of period | $16,627,590 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 0 Months Ended | 6 Months Ended |
Nov. 14, 2013 | Jun. 30, 2014 | |
Stock options | Common Stock- Class A | ' | ' |
Earnings per share | ' | ' |
Granted (in shares) | ' | 232,500 |
PGHI Corp | Class C Profits Interests | Common Stock- Class A | ' | ' |
Earnings per share | ' | ' |
Number of shares entitled by warrants (in shares) | ' | 966,434 |
JGWPT Holdings, LLC | Common Stock- Class A | ' | ' |
Earnings per share | ' | ' |
Share exchange ratio | 1 | 1 |
Common interest and vested restricted common interests | ' | ' |
Earnings per share | ' | ' |
Antidilutive shares excluded from computation of diluted earnings per share | ' | 16,659,035 |
Unvested restricted common interests | ' | ' |
Earnings per share | ' | ' |
Antidilutive shares excluded from computation of diluted earnings per share | ' | 768,121 |
Stock options | Common Stock- Class A | ' | ' |
Earnings per share | ' | ' |
Antidilutive shares excluded from computation of diluted earnings per share | ' | 496,547 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Numerator: | ' | ' |
Numerator for basic EPS- Net income attributable to holders of JGWPT Holdings Inc. | $6,268 | $15,290 |
Common Stock- Class A | ' | ' |
Numerator: | ' | ' |
Numerator for basic EPS- Net income attributable to holders of JGWPT Holdings Inc. | 6,268 | 15,290 |
Numerator for diluted EPS- Net income attributable to holders of JGWPT Holdings Inc. | $6,268 | $15,290 |
Denominator: | ' | ' |
Denominator for basic EPS - Weighted average shares | 12,559,957 | 12,104,172 |
Effect of dilutive securities: | ' | ' |
Restricted common stock and restricted stock units (in shares) | 2,085 | 1,376 |
Dilutive potential common shares (in shares) | 2,085 | 1,376 |
Denominator for diluted EPS - Adjusted weighted average shares | 12,562,042 | 12,105,548 |
Basic income per share of Class A common stock (in dollars per share) | $0.50 | $1.26 |
Diluted income per share of Class A common stock (in dollars per share) | $0.50 | $1.26 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event, 2014-2, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jul. 23, 2014 |
Subsequent Event | 2014-2 | ' |
Subsequent events | ' |
Aggregate issuance amount | $227.60 |
Discount rate (as a percent) | 3.95% |