Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | J.G. Wentworth Co | |
Entity Central Index Key | 1,580,185 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Common Stock - Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,386,513 | |
Common Stock- Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,042,349 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | $ 56,091 | $ 41,648 | |
Restricted cash and investments | 130,604 | 198,206 | |
VIE finance receivables, at fair market value | [1] | 4,402,887 | 4,422,033 |
Other finance receivables, at fair market value | 66,753 | 101,802 | |
VIE finance receivables, net of allowances for losses of $8,494 and $7,674, respectively | [1] | 112,152 | 113,489 |
Other finance receivables, net of allowances for losses of $2,474 and $2,454, respectively | 13,541 | 17,803 | |
Other receivables, net of allowances for losses of $273 and $204, respectively | 13,979 | 14,165 | |
Fixed assets, net of accumulated depreciation of $7,076 and $5,976, respectively | 4,375 | 3,758 | |
Intangible assets, net of accumulated amortization of $21,168 and $20,273, respectively | 44,541 | 45,436 | |
Goodwill | 84,993 | 84,993 | |
Marketable securities | 96,649 | 103,419 | |
Deferred tax assets, net | 0 | 2,170 | |
Other assets | 30,235 | 33,787 | |
Total Assets | 5,056,800 | 5,182,709 | |
Liabilities | |||
Accounts payable | 8,952 | 5,301 | |
Accrued expenses | 18,367 | 13,955 | |
Accrued interest | 19,815 | 17,416 | |
VIE derivative liabilities, at fair market value | 68,251 | 75,706 | |
VIE borrowings under revolving credit facilities and other similar borrowings | 41,672 | 19,339 | |
VIE long-term debt | 178,619 | 181,558 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 | |
Term loan payable | 438,682 | 437,183 | |
Other liabilities | 7,717 | 6,677 | |
Deferred tax liabilities, net | 28,541 | 36,656 | |
Installment obligations payable | 96,649 | 103,419 | |
Total Liabilities | 4,846,005 | 4,929,074 | |
Equity | |||
Additional paid-in-capital | 104,109 | 95,453 | |
Retained earnings | 11,993 | 25,634 | |
Total stockholders' equity including treasury stock | 116,102 | 121,087 | |
Less: treasury stock at cost, 1,825,084 and 600,755 shares as of June 30, 2015 and December 31, 2014, respectively. | (8,453) | (2,443) | |
Total stockholders’ equity, The J.G. Wentworth Company | 107,649 | 118,644 | |
Non-controlling interests | 103,146 | 134,991 | |
Total Stockholders’ Equity | 210,795 | 253,635 | |
Total Liabilities and Stockholders’ Equity | 5,056,800 | 5,182,709 | |
Common Stock - Class A | |||
Equity | |||
Common stock | 0 | 0 | |
Common Stock - Class B | |||
Equity | |||
Common stock | 0 | 0 | |
Common Stock - Class C | |||
Equity | |||
Common stock | $ 0 | $ 0 | |
[1] | Pledged as collateral to VIE credit and long-term debt facilities. Refer to Note 5 “VIE and Other Finance Receivables, at Fair Market Value” and Note 6 “VIE and Other Finance Receivables, net of Allowance for Losses.” |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
VIE finance receivables, allowances for losses | $ 8,494 | $ 7,674 |
Other finance receivables, allowances for losses | 2,474 | 2,454 |
Other receivables, allowance for losses | 273 | 204 |
Fixed assets, accumulated depreciation | 7,076 | 5,976 |
Intangible assets, accumulated amortization | $ 21,168 | $ 20,273 |
Treasury stock at cost, shares | 1,825,084 | 600,755 |
Common Stock - Class A | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 15,928,585 | 15,021,147 |
Common stock, shares outstanding | 14,103,501 | 14,420,392 |
Common Stock - Class B | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 9,042,349 | 9,963,750 |
Common stock, shares outstanding | 9,042,349 | 9,963,750 |
Common Stock - Class C | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Interest income | $ 45,568 | $ 46,638 | $ 89,960 | $ 94,460 |
Unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 15,581 | 70,317 | 55,002 | 157,628 |
Loss on swap terminations, net | 0 | 0 | (275) | (574) |
Servicing, broker, and other | 1,130 | 968 | 1,999 | 2,110 |
Realized and unrealized (losses) gains on marketable securities, net | (916) | 3,467 | 914 | 4,356 |
Realized gain on notes receivable, at fair value | 0 | 2,098 | 0 | 2,098 |
Gain on extinguishment of debt | 0 | 0 | 593 | 0 |
Total Revenues | 61,363 | 123,488 | 148,193 | 260,078 |
EXPENSES | ||||
Advertising | 16,942 | 16,432 | 32,782 | 33,925 |
Interest expense | 50,068 | 50,700 | 98,903 | 101,930 |
Compensation and benefits | 9,418 | 10,483 | 22,216 | 19,769 |
General and administrative | 4,733 | 4,613 | 9,372 | 9,083 |
Professional and consulting | 4,861 | 5,518 | 9,299 | 8,962 |
Debt issuance | 123 | 19 | 2,872 | 3,020 |
Securitization debt maintenance | 1,494 | 1,564 | 2,990 | 3,121 |
Provision for losses on finance receivables | 1,618 | 1,127 | 2,957 | 2,218 |
Depreciation and amortization | 1,004 | 1,121 | 1,995 | 2,202 |
Installment obligations (income) expense, net | (249) | 4,122 | 2,071 | 5,614 |
Total Expenses | 90,012 | 95,699 | 185,457 | 189,844 |
(Loss) income before income taxes | (28,649) | 27,789 | (37,264) | 70,234 |
(Benefit) provision for income taxes | (2,016) | 6,081 | (5,171) | 13,993 |
Net (Loss) Income | (26,633) | 21,708 | (32,093) | 56,241 |
Less net (loss) income attributable to non-controlling interests | (14,337) | 15,440 | (18,452) | 40,951 |
Net (loss) income attributable to The J.G. Wentworth Company | (12,296) | 6,268 | (13,641) | 15,290 |
Common Stock - Class A | ||||
EXPENSES | ||||
Net (loss) income attributable to The J.G. Wentworth Company | $ (12,296) | $ 6,268 | $ (13,641) | $ 15,290 |
Weighted average shares of Class A common stock outstanding: | ||||
Basic (in shares) | 14,113,990 | 12,559,957 | 14,192,480 | 12,104,172 |
Diluted (in shares) | 14,113,990 | 12,562,042 | 14,192,480 | 12,105,548 |
Net income per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | ||||
Basic (in dollars per share) | $ (0.87) | $ 0.50 | $ (0.96) | $ 1.26 |
Diluted (in dollars per share) | $ (0.87) | $ 0.50 | $ (0.96) | $ 1.26 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (26,633) | $ 21,708 | $ (32,093) | $ 56,241 |
Other comprehensive gain (loss): | ||||
Reclassification adjustment for gain included in net income | 0 | (2,098) | 0 | (2,098) |
Unrealized gains on notes receivable arising during the year | 0 | 76 | 0 | 480 |
Total other comprehensive loss | 0 | (2,022) | 0 | (1,618) |
Total comprehensive (loss) income | (26,633) | 19,686 | (32,093) | 54,623 |
Less: comprehensive (loss) income allocated to non-controlling interests | (14,337) | 14,189 | (18,452) | 39,945 |
Comprehensive (loss) income attributable to The J.G. Wentworth Company | $ (12,296) | $ 5,497 | $ (13,641) | $ 14,678 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock - Class A | Common Stock- Class B | Non-controlling Interests | Retained Earnings (Accumulated Deficit) | Additional Paid-In-Capital | Treasury Stock |
Balance at Dec. 31, 2014 | $ 253,635 | $ 134,991 | $ 25,634 | $ 95,453 | $ (2,443) | ||
Balance (in shares) at Dec. 31, 2014 | 14,420,392 | 9,963,750 | 600,755 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (32,093) | (18,452) | (13,641) | ||||
Share-based compensation | 1,116 | 555 | 561 | ||||
Share-based compensation (in shares) | 4,310 | (18,273) | |||||
Repurchases of Class A common stock | (11,819) | (5,809) | $ (6,010) | ||||
Repurchase of Class A common stock (in shares) | (1,224,329) | 1,224,329 | |||||
Equity financing costs | (44) | (22) | (22) | ||||
Exchange of The J.G. Wentworth LLC common interests into Class A common stock | (8,117) | 8,117 | |||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | 903,128 | (903,128) | |||||
Balance at Jun. 30, 2015 | $ 210,795 | $ 103,146 | $ 11,993 | $ 104,109 | $ (8,453) | ||
Balance (in shares) at Jun. 30, 2015 | 14,103,501 | 9,042,349 | 1,825,084 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (32,093) | $ 56,241 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Provision for losses on finance and other receivables | 2,957 | 2,218 |
Depreciation | 1,100 | 817 |
Loss on disposal of fixed assets | 0 | 69 |
Amortization of finance receivables acquisition costs | 330 | 214 |
Amortization of intangibles | 895 | 1,385 |
Amortization of debt issuance costs | 3,864 | 3,919 |
Change in unrealized gains/losses on finance receivables | 87,526 | (337,525) |
Change in unrealized gains/losses on long-term debt | (134,966) | 175,425 |
Change in unrealized gains/losses on derivatives | (7,562) | 4,472 |
Gain on notes receivable, at fair market value | 0 | (2,098) |
Purchases of finance receivables | (211,240) | (236,660) |
Collections on finance receivables | 269,097 | 245,693 |
Recoveries of finance receivables | 1 | 67 |
Accretion of interest income | (90,034) | (94,220) |
Accretion of interest expense | (23,412) | (15,211) |
Gain on extinguishment of debt | (593) | 0 |
Share-based compensation expense | 1,116 | 1,300 |
Change in marketable securities, net | (914) | (4,356) |
Installment obligations expense, net | 2,071 | 5,614 |
Decrease in fair value of life settlement contracts | 10 | 116 |
Premiums and other costs paid, and proceeds from sale of life settlement contracts | (10) | (116) |
Deferred income taxes | (5,945) | 13,748 |
(Increase) decrease in operating assets: | ||
Restricted cash and investments | 67,602 | (3,161) |
Other assets | (174) | 681 |
Other receivables | 186 | 824 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | 3,651 | 5,224 |
Accrued expenses | 4,412 | (7,050) |
Accrued interest | 2,399 | 1,998 |
Other liabilities | 1,040 | (163) |
Net cash used in operating activities | (58,686) | (180,535) |
Cash flows from investing activities: | ||
Receipts from notes receivable | 0 | 6,093 |
Purchases of fixed assets, net of sales proceeds | (1,717) | (1,355) |
Net cash (used in) provided by investing activities | (1,717) | 4,738 |
Cash flows from financing activities: | ||
Payments of equity financing costs | (44) | (671) |
Purchases of treasury stock | (11,819) | (917) |
Issuance of VIE long-term debt | 220,229 | 352,593 |
Payments for debt issuance costs | 0 | (2,767) |
Repayments of long-term debt and derivatives | (155,853) | (208,583) |
Gross proceeds from revolving credit facility | 117,417 | 181,603 |
Repayments of revolving credit facilities | (95,084) | (149,110) |
Issuance of installment obligations payable | 999 | 0 |
Purchase of marketable securities | (999) | 0 |
Repayments of installment obligations payable | (9,840) | (11,587) |
Proceeds from sale of marketable securities | 9,840 | 11,587 |
Net cash provided by financing activities | 74,846 | 172,148 |
Net increase (decrease) in cash | 14,443 | (3,649) |
Cash and cash equivalents at beginning of the period | 41,648 | 39,061 |
Cash and cash equivalents at the end of the period | 56,091 | 35,412 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 116,103 | 109,474 |
Cash paid for income taxes | 47 | 4 |
Exchange of LLC Common Interests for shares of Class A common stock | $ 8,117 | $ 11,293 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Organization and Description of Business Activities The J.G. Wentworth Company (the “Corporation”) is a Delaware holding company that was incorporated on June 21, 2013. The Corporation operates through its managing membership in The J.G. Wentworth Company, LLC (“JGW LLC”), the Corporation's sole operating asset. JGW LLC is a controlled and consolidated subsidiary of the Corporation whose sole asset is its membership interest in J.G. Wentworth, LLC. As used in these notes, the “Company” refers collectively to the Corporation, and unless otherwise stated, all of its subsidiaries. The Company, operating through its subsidiaries and affiliates, has its principal office in Radnor, Pennsylvania. The Company provides liquidity to individuals with financial assets such as structured settlements, annuities, and lottery winnings 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 and access to funding to people with pending personal injury claims. The Company engages in warehousing and subsequent resale or securitization of these various financial assets. 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 2014 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”). JGW LLC meets the definition of a VIE under ASC 810. Further, the Corporation is the primary beneficiary of JGW LLC as a result of its control over JGW LLC. As the primary beneficiary of JGW LLC, the Corporation consolidates the financial results of JGW LLC and records a non-controlling interest for the economic interest in JGW LLC not owned by the Corporation. The Corporation’s and the non-controlling interests' economic interest in JGW LLC was 51.3% and 48.7% , respectively, as of June 30, 2015 . The Corporation’s and the non-controlling interests' economic interest in JGW LLC was 50.2% and 49.8% , respectively, as of December 31, 2014. Net income (loss) attributable to the non-controlling interests in the unaudited condensed consolidated statements of operations represents the portion of earnings (loss) attributable to the economic interest in JGW LLC held by the non-controlling holders of JGW LLC common membership interests (the “Common Interestholders”). The allocation of net income (loss) to the non-controlling interests is based on the weighted average percentage of JGW LLC owned by the non-controlling interests during the reporting period. The non-controlling Common Interestholders’ weighted average economic interests in JGW LLC for the three months ended June 30, 2015 and 2014 were 49.6% and 57.4% , respectively. The non-controlling Common Interestholders’ weighted average economic interests in JGW LLC for the six months ended June 30, 2015 and 2014 were 49.8% and 59.0% , respectively. The net income (loss) attributable to The J.G. Wentworth Company in the condensed consolidated statement of operations for the three months and six months ended June 30, 2015 and 2014 does not necessarily reflect the Corporation’s weighted average economic interests in JGW LLC for the respective periods because the majority of the provision (benefit) for income taxes was specifically attributable to the legal entity The J.G. Wentworth Company, and thus was not allocated to the non-controlling interests. For the three months ended June 30, 2015 and 2014 , $(2.2) million and $5.6 million of the $(2.0) million and $6.1 million total tax provision (benefit), respectively, was specifically attributable to The J.G. Wentworth Company. For the six months ended June 30, 2015 and 2014 , $(5.3) million and $13.3 million of the $(5.2) million and $14.0 million total tax provision (benefit), respectively, was specifically attributable to The J.G. Wentworth Company. Refer to Note 12 for a description of the Company's income taxes. Non-controlling interests in the unaudited condensed consolidated balance sheets represents the portion of equity attributable to the non-controlling common membership interests in JGW LLC (the “Common Interests”). The allocation of equity to the non-controlling interests in JGW LLC is based on the percentage owned by the non-controlling Common Interests in the entity during the reporting period. Refer to Note 14. All material inter-company balances and transactions are eliminated in consolidation. Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to our current year presentation. |
Business Changes and Developmen
Business Changes and Developments | 6 Months Ended |
Jun. 30, 2015 | |
Business Changes and Developments | |
Business Changes and Developments | Business Changes and Developments On March 6, 2015, the Corporation entered into a stock purchase agreement to acquire WestStar Mortgage, Inc. (“WestStar”), a residential mortgage company specializing in conforming mortgage lending (“WestStar Acquisition”), for $54 million plus a dollar-for-dollar adjustment equal to the amount by which WestStar’s total equity (as defined) as of the acquisition’s close date is greater or less than $30 million . The purchase price will be paid through a combination of cash and the issuance of the Corporation's Class A common stock with a minimum of 75% of the consideration payable in cash. The WestStar Acquisition was completed on July 31, 2015. Refer to Note 18 for additional information. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Adopted Accounting Pronouncements | Recently Adopted 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP establishes a fair value reporting hierarchy to maximize the use of observable inputs when measuring fair value and defines the three levels of inputs as noted below: • 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 liability 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 or Level 3 or reclassified from 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 describes the methods used in estimating the fair values of certain financial statement items: For assets and liabilities measured at fair value in the unaudited condensed consolidated financial statements : Marketable securities — The 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 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. Refer to Note 9 for additional information. The remaining cash flows, net of those obligations, are considered a residual interest which is projected to be paid to the Company as the retained interest holder. 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 either: (i) market indices that are highly correlated with the spreads from the Company’s previous securitizations or (ii) the Company's most recent securitization if it occurs within close proximity to the reporting date. 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 which 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 and discounted using a separate yield based on an assumed rating of the residual tranche ( 6.80% and 5.97% as of June 30, 2015 and December 31, 2014 , 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, while also 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 of 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 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. VIE derivative liabilities, at fair market 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. Refer to Note 11 for additional information. 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 is 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 is 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, are estimated based on the present value of future expected cash flows using management’s best estimate of certain 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 length of the obligation. 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. Refer to Note 10 for additional information. 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: Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) June 30, 2015: Assets Marketable Securities: Equity securities US large cap $ 34,655 $ — $ — $ 34,655 US mid cap 5,867 — — 5,867 US small cap 7,016 — — 7,016 International 17,853 — — 17,853 Other equity 3,395 — — 3,395 Total equity securities 68,786 — — 68,786 Fixed income securities: US fixed income 19,824 — — 19,824 International fixed income 1,632 — — 1,632 Other fixed income — — — — Total fixed income securities 21,456 — — 21,456 Other securities: Cash & cash equivalents 2,785 — — 2,785 Alternative investments 1,320 — — 1,320 Annuities 2,302 — — 2,302 Total other securities 6,407 — — 6,407 Total marketable securities 96,649 — — 96,649 VIE and other finance receivables, at fair market value — — 4,469,640 4,469,640 Life settlements contracts, at fair market value (1) — — — — Total Assets $ 96,649 $ — $ 4,469,640 $ 4,566,289 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ — $ — $ 3,938,740 $ 3,938,740 VIE derivative liabilities, at fair market value — 68,251 — 68,251 Total Liabilities $ — $ 68,251 $ 3,938,740 $ 4,006,991 (1) Included in other assets on the Company’s unaudited condensed consolidated balance sheet. Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) December 31, 2014 Assets Marketable Securities: Equity securities US large cap $ 41,246 $ — $ — $ 41,246 US mid cap 8,192 — — 8,192 US small cap 7,586 — — 7,586 International 14,123 — — 14,123 Other equity 1,051 — — 1,051 Total equity securities 72,198 — — 72,198 Fixed income securities: US fixed income 16,699 — — 16,699 International fixed income 3,526 — — 3,526 Other fixed income 27 — — 27 Total fixed income securities 20,252 — — 20,252 Other securities: Cash & cash equivalents 6,629 — — 6,629 Alternative investments 1,829 — — 1,829 Annuities 2,511 — — 2,511 Total other securities 10,969 — — 10,969 Total marketable securities 103,419 — — 103,419 VIE and other finance receivables, at fair market value — — 4,523,835 4,523,835 Life settlements contracts, at fair market value (1) — — — — Total Assets $ 103,419 $ — $ 4,523,835 $ 4,627,254 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ — $ — $ 4,031,864 $ 4,031,864 VIE derivative liabilities, at fair market value — 75,706 — 75,706 Total Liabilities $ — $ 75,706 $ 4,031,864 $ 4,107,570 (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: Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) (Dollars in thousands) June 30, 2015 Assets VIE and other finance receivables, at fair market value $ 4,469,640 Discounted cash flow Discount rate 2.79% - 12.60% (4.00%) Life settlement contracts, at fair market value — Model actuarial pricing Life expectancy Discount rate 39 to 338 months (213) 18.00% (18.00%) Total Assets $ 4,469,640 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,938,740 Discounted cash flow Discount rate 0.95% - 12.60% (3.70%) Total Liabilities $ 3,938,740 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) (Dollars in thousands) December 31, 2014 Assets VIE and other finance receivables, at fair market value $ 4,523,835 Discounted cash flow Discount rate 2.55% - 12.60% (3.43%) Life settlement contracts, at fair market value — Model actuarial pricing Life expectancy Discount rate 45 to 344 months (219) 18.00% (18.00%) Total Assets $ 4,523,835 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 4,031,864 Discounted cash flow Discount rate 0.74% - 12.32% (3.16%) Total Liabilities $ 4,031,864 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 decreases in the life expectancy used to estimate the fair value of life settlement contracts in isolation would result in a significantly 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, 2015 and 2014 were as follows: VIE and other finance receivables, at fair market value Life settlement contracts, at fair market value Notes receivable, at fair market value Total (In thousands) Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ 4,523,835 Total gains (losses): Included in earnings / losses (87,526 ) (10 ) — (87,536 ) Included in other comprehensive gain — — — — Purchases of finance receivables 200,314 — — 200,314 Life insurance premiums paid — 10 — 10 Interest accreted 79,648 — — 79,648 Payments received (246,631 ) — — (246,631 ) Transfers in and/or out of Level 3 — — — — Balance as of June 30, 2015 $ 4,469,640 $ — $ — $ 4,469,640 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, 2015 $ (87,526 ) $ (10 ) $ — $ (87,536 ) 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 ) 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 The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2015 and 2014 were as follows: VIE long-term debt issued by securitizations and permanent financing trusts, at fair market value (In thousands) Balance as of December 31, 2014 $ 4,031,864 Net (gains) losses: Included in earnings / losses (135,559 ) Issuances 220,229 Interest accreted (25,627 ) Repayments (152,167 ) Transfers in and/or out of Level 3 — Balance as of June 30, 2015 $ 3,938,740 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, 2015 $ (134,966 ) 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 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 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, 2015 and 2014 are reported in the following revenue categories: VIE and other finance receivables and long- term debt Life settlement contracts income (In thousands) Net gains (losses) included in revenues in the three months ended June 30, 2015 $ 3,291 $ 2 Unrealized gains (losses) for the three months ended June 30, 2015 relating to assets and long-term debt still held as of June 30, 2015 $ 3,291 $ 2 Net gains (losses) included in revenues in the six months ended June 30, 2015 $ 48,033 $ (10 ) Unrealized gains (losses) for the six months ended June 30, 2015 relating to assets and long-term debt still held as of June 30, 2015 $ 47,440 $ (10 ) 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 and long-term debt 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 and long-term debt still held as of June 30, 2014 $ 162,100 $ (116 ) 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, 2015 December 31, 2014 (In thousands) Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Financial assets: Marketable securities $ 96,649 $ 96,649 $ 103,419 $ 103,419 VIE and other finance receivables, at fair market value 4,469,640 4,469,640 4,523,835 4,523,835 VIE and other finance receivables, net of allowance for losses (1) 117,782 125,693 123,765 131,292 Other receivables, net of allowance for losses (1) 13,979 13,979 14,165 14,165 Financial liabilities: VIE derivative liabilities, at fair market value 68,251 68,251 75,706 75,706 VIE borrowings under revolving credit facilities and other similar borrowings (1) 43,223 41,672 21,415 19,339 VIE long-term debt (1) 172,398 178,619 176,635 181,558 VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,938,740 3,938,740 4,031,864 4,031,864 Installment obligations payable (1) 96,649 96,649 103,419 103,419 Term loan payable (1) 426,696 438,682 433,904 437,183 (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 Receivabl
VIE and Other Finance Receivables, at Fair Market Value | 6 Months Ended |
Jun. 30, 2015 | |
VIE and Other Finance Receivables, at Fair Market Value | |
VIE and Other Finance Receivables, at Fair Market Value | 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 825. 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. VIE and other finance receivables for which the fair value option was elected consist of the following: June 30, 2015 December 31, 2014 (In thousands) Maturity value $ 6,746,602 $ 6,492,863 Unearned income (2,276,962 ) (1,969,028 ) Net carrying amount $ 4,469,640 $ 4,523,835 Encumbrances on VIE and other finance receivables, at fair market value are as follows: Encumbrance June 30, 2015 December 31, 2014 (In thousands) VIE securitization debt (2) $ 4,290,423 $ 4,357,456 $100 million credit facility (JGW-S III) (1) 10,502 2 $50 million credit facility (JGW IV) (1) — — $300 million credit facility (JGW V) (1) 8,284 — $300 million credit facility (JGW VII) (1) 20,011 — $100 million permanent financing related to 2011-A (2) 73,667 64,575 Encumbered VIE finance receivables, at fair market value 4,402,887 4,422,033 Not encumbered 66,753 101,802 Total VIE and other finance receivables, at fair market value $ 4,469,640 $ 4,523,835 (1) Refer to Note 7 (2) Refer to Note 9 As of June 30, 2015 and December 31, 2014 , the residual cash flows from the Company’s finance receivables, at fair market value, were pledged as collateral for the Residual Term Facility. Refer to Note 8 for additional information. 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 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Servicing fee income $ 203 $ 230 $ 415 $ 461 |
VIE and Other Finance Receiva13
VIE and Other Finance Receivables, net of Allowance for Losses | 6 Months Ended |
Jun. 30, 2015 | |
VIE and Other Finance Receivables, net of Allowance for Losses | |
VIE and Other Finance Receivables, net of Allowance for Losses | VIE and Other Finance Receivables, net of Allowance for Losses VIE and other finance receivables, net of allowance for losses consist of the following: June 30, 2015 December 31, 2014 (In thousands) Structured settlements and annuities $ 74,006 $ 76,253 Less: unearned income (47,516 ) (49,270 ) 26,490 26,983 Lottery winnings 77,803 81,169 Less: unearned income (22,482 ) (24,389 ) 55,321 56,780 Pre-settlement funding transactions 55,196 57,886 Less: deferred revenue (1,389 ) (1,563 ) 53,807 56,323 Attorney cost financing 1,043 1,334 Less: deferred revenue — — 1,043 1,334 VIE and other finance receivables, gross 136,661 141,420 Less: allowance for losses (10,968 ) (10,128 ) VIE and other finance receivables, net of allowances $ 125,693 $ 131,292 Encumbrances on VIE and other finance receivables, net of allowance for losses are as follows: Encumbrance June 30, 2015 December 31, 2014 (In thousands) VIE long-term debt (2) $ 73,517 $ 74,973 $35.0 million pre-settlement credit facility (1) 32,522 30,423 $45.1 million long-term pre-settlement facility (2) 4,691 6,453 $2.5 million long-term facility (2) 1,422 1,640 Encumbered VIE finance receivables, net of allowances 112,152 113,489 Not encumbered 13,541 17,803 Total VIE and other finance receivables, net of allowances $ 125,693 $ 131,292 (1) Refer to Note 7 (2) Refer to Note 8 Activity in the allowance for losses for VIE and other finance receivables are as follows : Structured settlements and annuities Lottery Pre-settlement funding transactions Attorney cost financing Total (In thousands) Three Months Ended June 30, 2015 Allowance for losses: Balance as of March 31, 2015 $ (54 ) $ (3 ) $ (10,063 ) $ (283 ) $ (10,403 ) Provision for loss (83 ) (69 ) (1,467 ) — (1,619 ) Charge-offs 88 69 898 — 1,055 Recoveries (1 ) — — — (1 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Six Months Ended June 30, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (108 ) (69 ) (2,780 ) — (2,957 ) Charge-offs 117 69 1,934 — 2,120 Recoveries (3 ) — — — (3 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Individually evaluated for impairment $ (50 ) $ (3 ) $ (2,692 ) $ — $ (2,745 ) Collectively evaluated for impairment — — (7,940 ) (283 ) (8,223 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,440 $ 55,318 $ 232 $ — $ 81,990 Collectively evaluated for impairment — — 42,943 760 43,703 Balance as of June 30, 2015 $ 26,440 $ 55,318 $ 43,175 $ 760 $ 125,693 Three Months Ended June 30, 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 30, 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 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 on which the Company has suspended recognizing revenue 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, 2015 , the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables totaling $13.8 million and $0.6 million , respectively. As of December 31, 2014 , the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables totaling $14.0 million and $0.6 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 finance receivables related to pre-settlement funding transactions based on their year of origination: Year of Origination June 30, 2015 December 31, 2014 (In thousands) 2009 $ 1,679 $ 2,618 2010 3,652 4,251 2011 6,222 6,938 2012 7,879 10,687 2013 8,546 11,335 2014 21,382 22,057 2015 5,836 — Total $ 55,196 $ 57,886 Based on historical portfolio experience, the Company reserved for pre-settlement funding transactions and attorney cost financing $10.6 million and $0.3 million as of June 30, 2015 , and $9.8 million and $0.3 million as of December 31, 2014 , respectively. The following table presents portfolio delinquency status excluding pre-settlement funding transactions and attorney cost financing as of: 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current VIE and Other Finance Receivables, net VIE and Other Finance Receivables, net > 90 days accruing (In thousands) June 30, 2015 Structured settlements and annuities $ 10 $ 5 $ 119 $ 134 $ 26,306 $ 26,440 $ — Lottery winnings 3 2 121 126 55,192 55,318 — Total $ 13 $ 7 $ 240 $ 260 $ 81,498 $ 81,758 $ — December 31, 2014 Structured settlements and annuities $ 6 $ 12 $ 208 $ 226 $ 26,701 $ 26,927 $ — Lottery winnings 2 6 120 128 56,649 56,777 — Total $ 8 $ 18 $ 328 $ 354 $ 83,350 $ 83,704 $ — 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, 2015 | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following: Entity June 30, 2015 December 31, 2014 (In thousands) $100 million variable funding note facility with interest payable monthly (6.5% as of June 30, 2015 and 9.0% as of December 31, 2014), collateralized by JGW-S III, LLC's (“JGW-S III”) 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 (0.75% as of June 30, 2015 and 1.0% as of December 31, 2014) per annum for the undrawn balance of its line of credit. JGW-S III $ 6,517 $ — $50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.43% as of June 30, 2015 and 3.42% as of December 31, 2014) maturing on October 2, 2016, collateralized by JGW IV, LLC's (“JGW IV”) structured settlements and annuity receivables. JGW IV is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. JGW IV — 6 $300 million multi-tranche and lender credit facility with interest payable monthly as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.18% and 3.31% as of June 30, 2015 and 3.17% and 3.26% at December 31, 2014). Tranche B rate is 5.5% plus LIBOR (5.68% as of June 30, 2015, 5.67% at December 31, 2014). The facility matures on July 24, 2016 and is collateralized by JGW V, LLC's (“JGW V”) structured settlements, annuity and lottery receivables. JGW V is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. JGW V 4,504 — $300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (3.02% as of June 30, 2015 and 2.92% at December 31, 2014), maturing on November 15, 2016, collateralized by JGW VII, LLC's (“JGW VII”) structured settlements, annuity and lottery receivables. JGW VII is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. JGW VII 12,727 — $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, 2015 and December 31, 2014). Class B rate comprises the Class A rate plus 1.00% (5.50% as of June 30, 2015 and December 31, 2014). The facility matures on December 31, 2015 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 17,924 19,333 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 41,672 $ 19,339 In June 2015, the Company amended its $100 million variable funding note facility to reduce the unused fee from 1.0% to 0.75% and to reduce the interest rate from 9.0% to 6.5% for outstanding borrowings less than $50.0 million . If outstanding borrowings under the facility exceed $50.0 million , the interest rate increases to 9.0% on the total outstanding balance. In June 2015, the counterparty to the $35.0 million Peach One credit facility notified the Company it would not extend the facility's revolving maturity date past December 31, 2015. As a result, the principal amount outstanding under the facility as of December 31, 2015 will convert into a "term advance" requiring minimum principal payments over the subsequent 24 month amortization period with interest payable monthly and calculated in the same manner as the original credit facility. Interest expense, including unused fees, for the three months ended June 30, 2015 and 2014 related to VIE borrowings under revolving credit facilities and other borrowings was $2.0 million and $2.4 million , respectively. Interest expense, including unused fees, for the six months ended June 30, 2015 and 2014 related to VIE borrowings under revolving credit facilities and other similar borrowings was $4.4 million and $4.6 million , respectively. The weighted average interest rate on outstanding VIE borrowings under revolving credit facilities and other similar borrowings as of June 30, 2015 and December 31, 2014 was 4.31% and 4.63% , respectively. |
VIE Long-Term Debt
VIE Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
VIE Long-Term Debt | |
VIE Long-Term Debt | VIE Long-Term Debt The VIE long-term debt consisted of the following: June 30, 2015 December 31, 2014 (In thousands) PLMT Permanent Facility $ 42,934 $ 44,277 Residual Term Facility 106,465 107,043 Long-Term Pre-settlement Facility 8,239 8,884 2012-A Facility 1,116 1,357 LCSS Facility (2010-C) 12,706 12,838 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 178,619 $ 181,558 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 October 30, 2040. 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 included within VIE derivative liabilities, at fair market value on the condensed consolidated balance sheets. Residual Term Facility The Company has a $110.0 million Residual Term Facility (the "Residual Term Facility") collateralized by the cash flows from residual interests related to certain securitizations. Interest accrues on the notes at a rate of 7.0% per annum with interest and principal payable monthly from cash flows from these collateralized residual interests. The Residual Term Facility matures on May 15, 2021. Long-Term Pre-settlement Facility In 2011, the Company issued three fixed rate notes totaling $45.1 million collateralized by pre-settlement funding transactions. 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 were $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 (“2010-C”) 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, LLC, which owns 100% of the membership interests of LCSS III, LLC (“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. Interest expense for the three months ended June 30, 2015 and 2014 related to VIE long-term debt was $4.1 million and $3.9 million , respectively. Interest expense for the six months ended June 30, 2015 and 2014 related to VIE long-term debt was $8.1 million and $7.5 million , respectively. |
VIE Long-Term Debt Issued by Se
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Market Value | 6 Months Ended |
Jun. 30, 2015 | |
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 | VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Market Value Securitization Debt The Company elected fair value option under ASC 825, Financial Instruments ("ASC 825") to measure the securitization issuer debt and related finance receivables. The Company has determined that measurement of the securitization debt issued by special purpose entities ("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 upon consolidation. In addition, the risk to the Company’s non-SPE subsidiaries from SPE losses is limited to cash reserves and residual interest amounts. During the six months ended June 30, 2015 , the Company completed one asset securitization transaction that was registered under Rule 144A. The following table summarizes this securitization SPE transaction: 2015-1 (Bond proceeds in $ millions) Issue date 3/31/2015 Bond proceeds $214.0 Receivables securitized 3,422 Deal discount rate 3.64% Retained interest % 5.50% Class allocation (Moody’s) Aaa 85.25% Baa2 9.25% Subsequent to the six months ended June 30, 2015, the Company completed its second asset securitization transaction under Rule 144A. Refer to Note 18 for for additional information. During the six months ended June 30, 2014 , the Company also completed one asset securitization transaction that was registered under Rule 144A. The following table summarizes this securitization SPE transaction: 2014-1 (Bond proceeds in $ millions) Issue date 2/18/2014 Bond proceeds $233.9 Receivables securitized 4,128 Deal discount rate 4.24% Retained interest % 6.00% Class allocation (Moody’s) Aaa 85.25% Baa2 8.75% The following table summarizes notes issued by securitization trusts and permanent financing trusts as of June 30, 2015 and December 31, 2014 for which the Company elected the fair value option and which 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 Principal as of December 31, 2014 Fair Value as of Fair Value as of December 31, 2014 (In thousands) Securitization trusts $ 3,535,216 $ 3,462,225 $ 3,694,160 $ 3,774,902 Permanent financing VIEs 249,166 253,955 244,580 256,962 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ 3,784,382 $ 3,716,180 $ 3,938,740 $ 4,031,864 Interest expense for the three months ended June 30, 2015 and 2014 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair market value, was $33.9 million and $34.5 million , respectively. Interest expense for the six months ended June 30, 2015 and 2014 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair market value, was $66.4 million and $69.9 million , respectively. |
Term Loan Payable
Term Loan Payable | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Term Loan Payable | Term Loan Payable The Company has a senior secured credit facility (the “Credit Facility”) that consists of a term loan (the “New Term Loan”) with an outstanding principal balance of $449.5 million as of June 30, 2015 and December 31, 2014, and a $20.0 million revolving commitment maturing in August 2017. Certain of the Company's subsidiaries are guarantors of the Credit Facility and 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 facility. There are no principal payments due on the New Term Loan until its maturity in February 2019. 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 1.00% (whichever is greater) plus a spread of 6.00% . If a Base Rate loan, interest accrues at prime or 2.00% (whichever is greater) plus a spread of 5.00% . As of June 30, 2015 , the interest rate on the New Term Loan was 7.00% . 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, 2015 and December 31, 2014, 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, the calculation of which is performed annually as of the end of each fiscal year. Interest expense relating to the New Term Loan for the three months ended June 30, 2015 and 2014 was approximately $10.0 million and $10.0 million , respectively. Interest expense relating to the New Term Loan for the six months ended June 30, 2015 and 2014 was approximately $20.0 million and $20.0 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 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, 2015 , the Company did not have any outstanding interest rate swaps related to its borrowings on revolving credit facilities. During the three months ended June 30, 2015 and 2014, the Company did not terminate any interest rate swaps. However, during the six months ended June 30, 2015 and 2014 , and in connection with its securitizations, the Company terminated interest rate swaps with notional values of $18.7 million and $35.0 million , respectively. The total loss on the termination of these interest rate swaps for the three months ended June 30, 2015 and 2014 was $0 . The total loss on the termination of these interest rate swaps for the six months ended June 30, 2015 and 2014 , was $0.3 million and $0.6 million , respectively. These losses were recorded in loss on swap terminations, net in the Company's unaudited condensed consolidated statements of operations. The unrealized loss for these swaps for the three and six months ended June 30, 2015 and 2014 was $0 and less than $0.1 million , respectively. These losses were recorded in unrealized gains (losses) 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 (Note 9). As of June 30, 2015 , the Company had 8 outstanding swaps with a total notional amount of approximately $216.8 million . The Company pays fixed rates ranging from 4.50% 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, 2015 , the term of these interest rate swaps range from approximately 7 to 21 years. For the three months ended June 30, 2015 and 2014, the amount of unrealized gain (loss) recognized was $4.9 million and less than $(0.1) million , respectively. For the six months ended June 30, 2015 and 2014 , the amount of unrealized gain recognized was $3.6 million and $0.3 million , respectively. These gains (losses) were recorded in unrealized gains (losses) 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 9), and PLMT (Note 8). As of June 30, 2015 , the Company had 151 outstanding swaps with a total notional value of approximately $220.0 million . The Company pays fixed rates ranging from 4.80% 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, 2015 , the term of the interest rate swaps for PSS and PLMT range from approximately less than 1 month to approximately 19 years. For the three months ended June 30, 2015 and 2014, the amount of unrealized gain (loss) recognized was $7.3 million and $(2.9) million , respectively. For the six months ended June 30, 2015 and 2014 , the amount of unrealized gain (loss) recognized was $4.0 million and $(4.7) million , respectively. These gains (losses) were included in unrealized gains (losses) 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 were as follows: Entity Securitization Notional as of Fair Market Value Notional as of December 31, 2014 Fair Market Value as of December 31, 2014 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 29,611 $ (2,725 ) $ 32,628 $ (3,019 ) 321 Henderson I, LLC 2005-1 A-1 53,629 (6,765 ) 58,735 (7,435 ) 321 Henderson II, LLC 2006-1 A-1 13,322 (1,307 ) 15,571 (1,509 ) 321 Henderson II, LLC 2006-2 A-1 17,204 (2,459 ) 18,859 (2,718 ) 321 Henderson II, LLC 2006-3 A-1 18,666 (2,187 ) 21,361 (2,475 ) 321 Henderson II, LLC 2006-4 A-1 17,660 (1,767 ) 19,719 (2,056 ) 321 Henderson II, LLC 2007-1 A-2 30,375 (5,006 ) 32,994 (5,624 ) 321 Henderson II, LLC 2007-2 A-3 36,322 (8,099 ) 37,592 (8,966 ) PSS — 169,116 (28,846 ) 176,943 (31,807 ) PLMT — 50,894 (9,090 ) 52,907 (10,097 ) Total $ 436,799 $ (68,251 ) $ 467,309 $ (75,706 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Corporation 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 JGW LLC’s pre-tax income. JGW 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 Company’s unaudited condensed consolidated financial statements do not reflect a provision or benefit for income taxes on the pre-tax income or loss attributable to the non-controlling interests in JGW LLC. The Company’s overall effective tax rate was 13.9% for the six months ended June 30, 2015 , as compared to an overall effective rate of 19.9% for the six months ended June 30, 2014 . The effective tax rate for the Corporation for the six months ended June 30, 2015 and 2014 was 29.0% and 45.1% , respectively. The effective tax rate for JGW LLC for the six months ended June 30, 2015 and 2014 was (1.7)% and 2.7% , respectively. The change in the Company's and the Corporation's effective tax rates was primarily the result of the following: (i) the Company reported a $37.3 million pre-tax loss for the six months ended June 30, 2015 compared to $70.2 million in pre-tax income for the six months ended June 30, 2014, (ii) the impact of permanent differences between book and taxable income, and (iii) a greater share of the Company’s pre-tax book income/(loss) is attributable to separate subsidiary entities that are taxed as corporations, of which most record a full valuation allowance. The variance in effective tax rates between the two legal entities is because JGW LLC is treated as a “flow-through” entity for income tax purposes and therefore is not subject to income taxes. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On November 14, 2013, the Corporation consummated an initial public offering ("IPO") and amended and restated its certificate of incorporation to provide for, among other things, the authorization of 500,000,000 shares of Class A common stock (the "Class A common stock"), par value $.00001 per share, 500,000,000 shares of Class B common stock (the "Class B common stock"), par value $.00001 per share, 500,000,000 shares of Class C "non-voting" common stock, par value $.00001 per share (the "Class C common stock"), and 100,000,000 shares of blank check preferred stock. Also concurrent with the consummation of the Corporation's IPO, JGW LLC merged with and into a newly formed subsidiary of the Corporation. As of June 30, 2015 , there were 15,928,585 shares of Class A common stock issued and 14,103,501 shares outstanding. Additionally, there were 9,042,349 shares of Class B common stock issued and outstanding, respectively, as of June 30, 2015 . 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 Class A common stock (the “Stock Repurchase Program”) under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. 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. Since the inception of the Stock Repurchase Program, the Company has repurchased 1,256,702 shares of Class A common stock for an aggregate purchase price of $12.3 million . During the six months ended June 30, 2015 , the Company repurchased 797,997 shares of Class A common stock under the Stock Repurchase Program for an aggregate purchase price of $7.9 million , or $9.87 per share. The repurchased shares are classified as treasury stock at cost on the Company’s condensed consolidated balance sheets. Class A Common Stock Privately Negotiated Transaction On May 26, 2015, the Company repurchased in a privately negotiated transaction 426,332 shares of its Class A common stock held by the former President and Chief Operating Officer of the Company for an aggregate purchase price of $3.9 million . The purchase price of $9.24 per share represented a 3.0% discount from the closing price of the Company's Class A common stock on May 22, 2015, the date the parties executed the associated agreement. 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 Company’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 JGW LLC, in which case the Company 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 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 JGW LLC, each Common Interest holder has the right to exchange their Common Interests in JGW 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 JGW LLC, cash equal to the market value of one share of 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 JGW LLC, Peach Group Holdings, Inc. (“PGHI Corp.”) and its permitted transferees have the right to exchange the non-voting Common Interests in JGW LLC they hold for shares of Class C common stock, or at the option of JGW LLC, cash equal to the market value of 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 The Company’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, 2015 . Warrants Issued to PGHI Corp. In connection with the IPO, the Class C profits interests of JGW LLC held by PGHI Corp. were canceled 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 of JGW LLC entitled 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 of JGW LLC 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 currently exercisable, terminate on January 8, 2022, and may not be transferred. JGW LLC Operating Agreement Pursuant to the operating agreement of JGW LLC, the holders of JGW 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 Class B common stock for an equivalent number of shares of Class A common stock, or in the case of PGHI Corp., an equivalent number of shares of Class C common stock. During the six months ended June 30, 2015 and 2014 , 903,128 and 1,661,599 Common Interests in JGW LLC, in addition to an equal number of shares of Class B common stock, were exchanged for 903,128 and 1,661,599 shares of the Class A common stock pursuant to the operating agreement, respectively. Amounts Reclassified Out of Accumulated Other Comprehensive Income ASU 2013-2, 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 six months ended June 30, 2015 and 2014 , the Company recorded the following reclassifications out of accumulated other comprehensive income: Period Details about accumulated Amount reclassified from Affected line item in the (In thousands) Three and Six Months Ended June 30, 2015 $ — Three and Six Months Ended June 30, 2014 Unrealized gains and losses on available-for-sale securities $ 2,098 Realized gain on notes receivable, at fair value |
Non-Controlling Interests
Non-Controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | Non-Controlling Interests The Corporation consolidates the financial results of JGW LLC whereby it records a non-controlling interest for the economic interest in JGW LLC held by the Common Interestholders (see Note 2). Pursuant to an agreement between the Corporation and JGW LLC, any time the Corporation cancels, issues or repurchases shares of Class A common stock, JGW 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 Class A common stock, JGW LLC is required to transfer an equal number of Common Interests to the Corporation. Changes in the non-controlling and the Corporation's interest in JGW LLC for the six months ended June 30, 2015 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Company Non-controlling Interests Total Balance as of December 31, 2014 14,420,392 14,324,373 28,744,765 Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock 4,310 — 4,310 Common interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock. 903,128 (903,128 ) — Common interests repurchased as a result of Class A common stock repurchased (1,224,329 ) — (1,224,329 ) Common interests forfeited — (18,273 ) (18,273 ) Balance as of June 30, 2015 14,103,501 13,402,972 27,506,473 The non-controlling interests include the Common Interestholders who were issued shares of Class B common stock in connection with the IPO as well as other Common Interestholders who may convert their Common Interests into 4,360,623 shares of Class C common stock. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Arrangements 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, 2015 and December 31, 2014, the amount owed from the counterparty pursuant to this Borrowing Agreement is approximately $9.9 million and $9.7 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 internal rate of return (“IRR”) of 3.5% above the original target IRR paid by the counterparty. Tax Receivable Agreement Common Interestholders may exchange their Common Interests for shares of Class A common stock or, in the case of PGHI Corp., shares of Class C common stock, on a one -for- one basis or, in each case, at the option of JGW LLC, cash. JGW 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 the Corporation’s share of the tax basis of the assets owned by JGW LLC at the time of such initial sale of and subsequent exchanges of Common Interests. The sale and exchanges may result in increases in the Corporation’s share of the tax basis of the tangible and intangible assets of JGW 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 the Corporation would otherwise be required to pay in the future. In connection with the IPO, the Corporation 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 the Company to pay those Common Interestholders 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes in any tax year 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 the Corporation 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 the Corporation’s actual income tax liability for a covered tax year to the amount of such taxes that the Corporation would have been required to pay for such covered tax year had there been no increase to the Corporation’s share of the tax basis of the tangible and intangible assets of JGW LLC as a result of such sale and any such exchanges and had the Corporation not entered into the tax receivable agreement. The tax receivable agreement continues until all such tax benefits have been utilized or expired, unless the Corporation 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. Loss on Contingencies 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. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Under the Company’s 2013 Omnibus Incentive Plan (the “Plan”), stock options, restricted stock, restricted stock units and stock appreciation rights units may be granted to officers, employees, non-employee directors and consultants of the Company. As of June 30, 2015 , 1.2 million shares of unissued Class A common stock were available for granting under this plan. As of June 30, 2015 , the Company had granted non-qualified stock options and performance-based restricted stock units to its employees and restricted stock shares to independent directors under the Plan. The Company recognizes compensation cost net of a forfeiture rate within the unaudited condensed consolidated statement of operations for only those awards expected to vest. The Company estimates the forfeiture rate based on its expectations about future forfeitures. Stock Options Options were granted to purchase Class A common stock at exercise prices equal to the fair market value on the date of grant, have a contractual term of ten years, and vest generally in equal annual installments over a five year period following the date of grant, subject to the holder's continued employment with the Company through the applicable vesting date. The fair value of stock options awarded during the six months ended June 30, 2015 was estimated using the Black-Scholes valuation model with the following assumptions and weighted average fair values: Six Months Ended June 30, 2015 Weighted average fair value of grant $ 4.80 Risk-free interest rate 1.63 % Expected volatility 47.1 % Expected life of options in years 6.5 Expected dividend yield — The Company recognizes share-based compensation expense for the fair value of the stock options on a straight-line basis over the requisite service period of the awards. During the six months ended June 30, 2015 and 2014 , the Company recognized $0.6 million and $0.2 million of share-based compensation expense in connection with the stock options issued under the Plan, respectively. A summary of stock option activity for the six months ended June 30, 2015 is as follows: Shares Weighted - Average Exercise Price Weighted - Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (Dollars in Millions) Outstanding as of December 31, 2014 1,376,932 $ 11.44 9.44 $ 0.1 Granted 254,000 9.98 Exercised — — Forfeited (106,437 ) 11.01 Expired (6,857 ) 13.34 Outstanding as of June 30, 2015 1,517,638 $ 11.22 9.09 $ — Outstanding, vested and expected to vest as of June 30, 2015 1,456,803 11.23 9.09 $ — Vested as of June 30, 2015 66,714 12.37 8.60 $ — The aggregate intrinsic value represents the total pre-tax value of the difference between the closing price of Class A common stock on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all the option holders exercised their options on June 30, 2015 . The intrinsic value of the Company’s stock options changes based on the closing price of the Company’s stock. As of June 30, 2015 , $6.3 million of total unrecognized compensation expense related to the outstanding stock options is expected to be recognized over a weighted average period of 4.1 years. Performance-Based Restricted Stock Units A summary of performance-based restricted stock units for the six months ended June 30, 2015 is as follows: Performance- Based Restricted Stock Units Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 130,250 $ 10.60 Granted 127,000 9.98 Vested — — Forfeited (42,500 ) 10.20 Outstanding as of June 30, 2015 214,750 10.31 Outstanding and expected to vest as of June 30, 2015 203,031 10.32 Each performance-based unit will vest into 0 to 1.5 shares of Class A common stock depending to the degree to which the performance goals are met. Compensation expense resulting from these awards is: (i) recognized ratably from the date of the grant until the date the restrictions lapse, (ii) based on the trading price of the Class A common stock on the date of grant and (iii) based on the probability of achievement of the specific performance-based goals. During the six months ended June 30, 2015 and 2014, the Company recognized $0.2 million and $0.1 million , respectively, of share-based compensation expense in connection with these performance-based units. The aggregate grant-date fair value of the performance-based restricted stock units granted during the six months ended June 30, 2015 was $1.3 million . As of June 30, 2015 , there was $1.7 million of total unrecognized compensation cost relating to outstanding performance-based units that is expected to be recognized over a weighted average period of 2.2 years. None of the performance-based restricted stock units were vested as of June 30, 2015 . Unvested Restricted Common Interests in JGW LLC The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the six months ended June 30, 2015 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 157,112 $ 9.86 Vested in period (12,781 ) 15.63 Forfeited (18,273 ) 2.67 Outstanding as of June 30, 2015 126,058 10.33 Outstanding, vested and expected to vest as of June 30, 2015 125,086 10.32 As of June 30, 2015 , there was $1.0 million of unrecognized compensation cost related to outstanding Restricted Common Interests that is expected to be recognized over a weighted average period of 2.8 years. Total share-based compensation expense recognized for the six months ended June 30, 2015 and 2014 related to the Restricted Common Interests was $0.2 million and $1.0 million , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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. In connection with the IPO and restructuring, Class C profit interests of JGW LLC held by PGHI Corp. were exchanged for a total of 966,434 warrants to purchase shares of Class A common stock (Note 13). For the three and six months ended June 30, 2015 and 2014 , these warrants were not included in the computation of diluted earnings (loss) per common share because they were antidilutive under the treasury stock method. During the six months ended June 30, 2015 and 2014 , 1,433,054 and 345,450 weighted-average stock options outstanding, respectively, were not included in the computation of diluted earnings (loss) per common share because they were antidilutive under the treasury stock method. During the six months ended June 30, 2015 and 2014 , 188,382 and 41,459 weighted-average performance-based restricted stock units were antidilutive under the treasury stock method. The operating agreement of JGW 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 Class A common stock on a one -for- one basis at fair value, 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 JGW 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 (loss) attributable 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, for the six months ended June 30, 2015 and 2014 , 13,976,734 and 16,659,035 weighted average Common Interests and vested Restricted Common Interests outstanding, respectively, and 142,440 and 768,121 weighted average unvested Restricted Common Interests outstanding, respectively, were antidilutive and excluded from the computation of diluted earnings (loss) per common share. The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations: Three Months Ended June 30, Six Months Ended 2015 2014 2015 2014 (In thousands, except share and per share data) Numerator: Numerator for basic EPS- Net income (loss) attributable to holders of The J.G. Wentworth Company Class A common stock $ (12,296 ) $ 6,268 $ (13,641 ) $ 15,290 Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Numerator for diluted EPS- Net income (loss) attributable to holders of The J.G. Wentworth Company Class A common stock $ (12,296 ) $ 6,268 $ (13,641 ) $ 15,290 Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 14,113,990 12,559,957 14,192,480 12,104,172 Effect of dilutive securities: Stock options — — — — Warrants — — — — Restricted common stock and performance-based restricted stock units — 2,085 — 1,376 JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW 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 14,113,990 12,562,042 14,192,480 12,105,548 Basic income (loss) per share of Class A common stock $ (0.87 ) $ 0.50 $ (0.96 ) $ 1.26 Diluted income (loss) per share of Class A common stock $ (0.87 ) $ 0.50 $ (0.96 ) $ 1.26 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Securitization On July 21, 2015, the Company priced its 2015-2 securitization. The 2015-2 securitization closed on July 28, 2015 with an aggregate issuance amount of $158.5 million and a discount rate of 4.18% . Business Combination On July 31, 2015, the Company acquired all of the issued and outstanding capital stock ( 100% of voting equity interests) of WestStar, a residential mortgage company specializing in conforming mortgage lending, for a preliminary purchase price of $66.7 million , of which $53.2 million was paid in cash and the remaining $13.5 million was paid through the issuance of 1,572,327 shares of the Company's Class A common stock. Under the terms of the Purchase Agreement, the purchase price is subject to certain post-close adjustments that will be assessed and recorded during the allocation period specified by ASC 805 as additional information becomes known. Upon consummation of the WestStar Acquisition, WestStar became an indirect, wholly-owned subsidiary of the Company, and will operate as a newly-branded subsidiary of the Company under J.G. Wentworth Home Lending, Inc. WestStar represents a major step in the strategy of the Company to become a more diversified financial services company. It is currently impracticable for the Company to disclose supplemental pro forma information as well as the amounts of revenue and earnings of WestStar since July 31, 2015 because the initial purchase price accounting has not yet been completed and other accounting information is not currently available. |
Background and Basis of Prese26
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 2014 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”). |
Recently Adopted 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities | 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: Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) June 30, 2015: Assets Marketable Securities: Equity securities US large cap $ 34,655 $ — $ — $ 34,655 US mid cap 5,867 — — 5,867 US small cap 7,016 — — 7,016 International 17,853 — — 17,853 Other equity 3,395 — — 3,395 Total equity securities 68,786 — — 68,786 Fixed income securities: US fixed income 19,824 — — 19,824 International fixed income 1,632 — — 1,632 Other fixed income — — — — Total fixed income securities 21,456 — — 21,456 Other securities: Cash & cash equivalents 2,785 — — 2,785 Alternative investments 1,320 — — 1,320 Annuities 2,302 — — 2,302 Total other securities 6,407 — — 6,407 Total marketable securities 96,649 — — 96,649 VIE and other finance receivables, at fair market value — — 4,469,640 4,469,640 Life settlements contracts, at fair market value (1) — — — — Total Assets $ 96,649 $ — $ 4,469,640 $ 4,566,289 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ — $ — $ 3,938,740 $ 3,938,740 VIE derivative liabilities, at fair market value — 68,251 — 68,251 Total Liabilities $ — $ 68,251 $ 3,938,740 $ 4,006,991 (1) Included in other assets on the Company’s unaudited condensed consolidated balance sheet. Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) December 31, 2014 Assets Marketable Securities: Equity securities US large cap $ 41,246 $ — $ — $ 41,246 US mid cap 8,192 — — 8,192 US small cap 7,586 — — 7,586 International 14,123 — — 14,123 Other equity 1,051 — — 1,051 Total equity securities 72,198 — — 72,198 Fixed income securities: US fixed income 16,699 — — 16,699 International fixed income 3,526 — — 3,526 Other fixed income 27 — — 27 Total fixed income securities 20,252 — — 20,252 Other securities: Cash & cash equivalents 6,629 — — 6,629 Alternative investments 1,829 — — 1,829 Annuities 2,511 — — 2,511 Total other securities 10,969 — — 10,969 Total marketable securities 103,419 — — 103,419 VIE and other finance receivables, at fair market value — — 4,523,835 4,523,835 Life settlements contracts, at fair market value (1) — — — — Total Assets $ 103,419 $ — $ 4,523,835 $ 4,627,254 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ — $ — $ 4,031,864 $ 4,031,864 VIE derivative liabilities, at fair market value — 75,706 — 75,706 Total Liabilities $ — $ 75,706 $ 4,031,864 $ 4,107,570 (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 | The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of: Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) (Dollars in thousands) June 30, 2015 Assets VIE and other finance receivables, at fair market value $ 4,469,640 Discounted cash flow Discount rate 2.79% - 12.60% (4.00%) Life settlement contracts, at fair market value — Model actuarial pricing Life expectancy Discount rate 39 to 338 months (213) 18.00% (18.00%) Total Assets $ 4,469,640 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,938,740 Discounted cash flow Discount rate 0.95% - 12.60% (3.70%) Total Liabilities $ 3,938,740 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) (Dollars in thousands) December 31, 2014 Assets VIE and other finance receivables, at fair market value $ 4,523,835 Discounted cash flow Discount rate 2.55% - 12.60% (3.43%) Life settlement contracts, at fair market value — Model actuarial pricing Life expectancy Discount rate 45 to 344 months (219) 18.00% (18.00%) Total Assets $ 4,523,835 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 4,031,864 Discounted cash flow Discount rate 0.74% - 12.32% (3.16%) Total Liabilities $ 4,031,864 |
Schedule of changes in assets measured at fair value using significant unobservable inputs (Level 3) | The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2015 and 2014 were as follows: VIE and other finance receivables, at fair market value Life settlement contracts, at fair market value Notes receivable, at fair market value Total (In thousands) Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ 4,523,835 Total gains (losses): Included in earnings / losses (87,526 ) (10 ) — (87,536 ) Included in other comprehensive gain — — — — Purchases of finance receivables 200,314 — — 200,314 Life insurance premiums paid — 10 — 10 Interest accreted 79,648 — — 79,648 Payments received (246,631 ) — — (246,631 ) Transfers in and/or out of Level 3 — — — — Balance as of June 30, 2015 $ 4,469,640 $ — $ — $ 4,469,640 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, 2015 $ (87,526 ) $ (10 ) $ — $ (87,536 ) 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 ) 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 |
Schedule of changes in liabilities measured at fair value using significant unobservable inputs (Level 3) | The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2015 and 2014 were as follows: VIE long-term debt issued by securitizations and permanent financing trusts, at fair market value (In thousands) Balance as of December 31, 2014 $ 4,031,864 Net (gains) losses: Included in earnings / losses (135,559 ) Issuances 220,229 Interest accreted (25,627 ) Repayments (152,167 ) Transfers in and/or out of Level 3 — Balance as of June 30, 2015 $ 3,938,740 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, 2015 $ (134,966 ) 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 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 |
Schedule of realized and unrealized gains and losses included in revenues in the accompanying consolidated statements of operations | 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, 2015 and 2014 are reported in the following revenue categories: VIE and other finance receivables and long- term debt Life settlement contracts income (In thousands) Net gains (losses) included in revenues in the three months ended June 30, 2015 $ 3,291 $ 2 Unrealized gains (losses) for the three months ended June 30, 2015 relating to assets and long-term debt still held as of June 30, 2015 $ 3,291 $ 2 Net gains (losses) included in revenues in the six months ended June 30, 2015 $ 48,033 $ (10 ) Unrealized gains (losses) for the six months ended June 30, 2015 relating to assets and long-term debt still held as of June 30, 2015 $ 47,440 $ (10 ) 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 and long-term debt 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 and long-term debt still held as of June 30, 2014 $ 162,100 $ (116 ) |
Schedule of estimated fair values of financial instruments | As such, the estimated fair values of the Company’s financial instruments are as follows: June 30, 2015 December 31, 2014 (In thousands) Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Financial assets: Marketable securities $ 96,649 $ 96,649 $ 103,419 $ 103,419 VIE and other finance receivables, at fair market value 4,469,640 4,469,640 4,523,835 4,523,835 VIE and other finance receivables, net of allowance for losses (1) 117,782 125,693 123,765 131,292 Other receivables, net of allowance for losses (1) 13,979 13,979 14,165 14,165 Financial liabilities: VIE derivative liabilities, at fair market value 68,251 68,251 75,706 75,706 VIE borrowings under revolving credit facilities and other similar borrowings (1) 43,223 41,672 21,415 19,339 VIE long-term debt (1) 172,398 178,619 176,635 181,558 VIE long-term debt issued by securitization and permanent financing trusts, at fair market value 3,938,740 3,938,740 4,031,864 4,031,864 Installment obligations payable (1) 96,649 96,649 103,419 103,419 Term loan payable (1) 426,696 438,682 433,904 437,183 (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 Receiva28
VIE and Other Finance Receivables, at Fair Market Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
VIE and Other Finance Receivables, at Fair Market Value | |
Schedule of VIE and other finance receivables for which the fair value option was elected | VIE and other finance receivables for which the fair value option was elected consist of the following: June 30, 2015 December 31, 2014 (In thousands) Maturity value $ 6,746,602 $ 6,492,863 Unearned income (2,276,962 ) (1,969,028 ) Net carrying amount $ 4,469,640 $ 4,523,835 |
Schedule of encumbrances on VIE and other finance receivables, at fair value | Encumbrances on VIE and other finance receivables, at fair market value are as follows: Encumbrance June 30, 2015 December 31, 2014 (In thousands) VIE securitization debt (2) $ 4,290,423 $ 4,357,456 $100 million credit facility (JGW-S III) (1) 10,502 2 $50 million credit facility (JGW IV) (1) — — $300 million credit facility (JGW V) (1) 8,284 — $300 million credit facility (JGW VII) (1) 20,011 — $100 million permanent financing related to 2011-A (2) 73,667 64,575 Encumbered VIE finance receivables, at fair market value 4,402,887 4,422,033 Not encumbered 66,753 101,802 Total VIE and other finance receivables, at fair market value $ 4,469,640 $ 4,523,835 (1) Refer to Note 7 (2) Refer to Note 9 |
Schedule of servicing fee | 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 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Servicing fee income $ 203 $ 230 $ 415 $ 461 |
VIE and Other Finance Receiva29
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
VIE and Other Finance Receivables, net of Allowance for Losses | |
Schedule of VIE and other finance receivables, net of allowance for losses | VIE and other finance receivables, net of allowance for losses consist of the following: June 30, 2015 December 31, 2014 (In thousands) Structured settlements and annuities $ 74,006 $ 76,253 Less: unearned income (47,516 ) (49,270 ) 26,490 26,983 Lottery winnings 77,803 81,169 Less: unearned income (22,482 ) (24,389 ) 55,321 56,780 Pre-settlement funding transactions 55,196 57,886 Less: deferred revenue (1,389 ) (1,563 ) 53,807 56,323 Attorney cost financing 1,043 1,334 Less: deferred revenue — — 1,043 1,334 VIE and other finance receivables, gross 136,661 141,420 Less: allowance for losses (10,968 ) (10,128 ) VIE and other finance receivables, net of allowances $ 125,693 $ 131,292 |
Schedule of encumbrances on VIE and other finance receivables, net of allowance for losses | Encumbrances on VIE and other finance receivables, net of allowance for losses are as follows: Encumbrance June 30, 2015 December 31, 2014 (In thousands) VIE long-term debt (2) $ 73,517 $ 74,973 $35.0 million pre-settlement credit facility (1) 32,522 30,423 $45.1 million long-term pre-settlement facility (2) 4,691 6,453 $2.5 million long-term facility (2) 1,422 1,640 Encumbered VIE finance receivables, net of allowances 112,152 113,489 Not encumbered 13,541 17,803 Total VIE and other finance receivables, net of allowances $ 125,693 $ 131,292 (1) Refer to Note 7 (2) Refer to Note 8 |
Schedule of activity in the allowance for losses for VIE and other finance receivables | Activity in the allowance for losses for VIE and other finance receivables are as follows : Structured settlements and annuities Lottery Pre-settlement funding transactions Attorney cost financing Total (In thousands) Three Months Ended June 30, 2015 Allowance for losses: Balance as of March 31, 2015 $ (54 ) $ (3 ) $ (10,063 ) $ (283 ) $ (10,403 ) Provision for loss (83 ) (69 ) (1,467 ) — (1,619 ) Charge-offs 88 69 898 — 1,055 Recoveries (1 ) — — — (1 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Six Months Ended June 30, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (108 ) (69 ) (2,780 ) — (2,957 ) Charge-offs 117 69 1,934 — 2,120 Recoveries (3 ) — — — (3 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Individually evaluated for impairment $ (50 ) $ (3 ) $ (2,692 ) $ — $ (2,745 ) Collectively evaluated for impairment — — (7,940 ) (283 ) (8,223 ) Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,440 $ 55,318 $ 232 $ — $ 81,990 Collectively evaluated for impairment — — 42,943 760 43,703 Balance as of June 30, 2015 $ 26,440 $ 55,318 $ 43,175 $ 760 $ 125,693 Three Months Ended June 30, 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 30, 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 |
Schedule of gross pre-settlement funding transactions based on their year of origination | The following table presents gross finance receivables related to pre-settlement funding transactions based on their year of origination: Year of Origination June 30, 2015 December 31, 2014 (In thousands) 2009 $ 1,679 $ 2,618 2010 3,652 4,251 2011 6,222 6,938 2012 7,879 10,687 2013 8,546 11,335 2014 21,382 22,057 2015 5,836 — Total $ 55,196 $ 57,886 |
Schedule of portfolio delinquency status excluding presettlement funding transactions and attorney cost financing | The following table presents portfolio delinquency status excluding pre-settlement funding transactions and attorney cost financing as of: 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current VIE and Other Finance Receivables, net VIE and Other Finance Receivables, net > 90 days accruing (In thousands) June 30, 2015 Structured settlements and annuities $ 10 $ 5 $ 119 $ 134 $ 26,306 $ 26,440 $ — Lottery winnings 3 2 121 126 55,192 55,318 — Total $ 13 $ 7 $ 240 $ 260 $ 81,498 $ 81,758 $ — December 31, 2014 Structured settlements and annuities $ 6 $ 12 $ 208 $ 226 $ 26,701 $ 26,927 $ — Lottery winnings 2 6 120 128 56,649 56,777 — Total $ 8 $ 18 $ 328 $ 354 $ 83,350 $ 83,704 $ — |
VIE Borrowings Under Revolvin30
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |
Schedule of VIE borrowings under revolving credit facilities and other similar borrowings | VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following: Entity June 30, 2015 December 31, 2014 (In thousands) $100 million variable funding note facility with interest payable monthly (6.5% as of June 30, 2015 and 9.0% as of December 31, 2014), collateralized by JGW-S III, LLC's (“JGW-S III”) 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 (0.75% as of June 30, 2015 and 1.0% as of December 31, 2014) per annum for the undrawn balance of its line of credit. JGW-S III $ 6,517 $ — $50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.43% as of June 30, 2015 and 3.42% as of December 31, 2014) maturing on October 2, 2016, collateralized by JGW IV, LLC's (“JGW IV”) structured settlements and annuity receivables. JGW IV is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. JGW IV — 6 $300 million multi-tranche and lender credit facility with interest payable monthly as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.18% and 3.31% as of June 30, 2015 and 3.17% and 3.26% at December 31, 2014). Tranche B rate is 5.5% plus LIBOR (5.68% as of June 30, 2015, 5.67% at December 31, 2014). The facility matures on July 24, 2016 and is collateralized by JGW V, LLC's (“JGW V”) structured settlements, annuity and lottery receivables. JGW V is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. JGW V 4,504 — $300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (3.02% as of June 30, 2015 and 2.92% at December 31, 2014), maturing on November 15, 2016, collateralized by JGW VII, LLC's (“JGW VII”) structured settlements, annuity and lottery receivables. JGW VII is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. JGW VII 12,727 — $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, 2015 and December 31, 2014). Class B rate comprises the Class A rate plus 1.00% (5.50% as of June 30, 2015 and December 31, 2014). The facility matures on December 31, 2015 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 17,924 19,333 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 41,672 $ 19,339 |
VIE Long-Term Debt (Tables)
VIE Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
VIE Long-Term Debt | |
Schedule of VIE long-term debt | The VIE long-term debt consisted of the following: June 30, 2015 December 31, 2014 (In thousands) PLMT Permanent Facility $ 42,934 $ 44,277 Residual Term Facility 106,465 107,043 Long-Term Pre-settlement Facility 8,239 8,884 2012-A Facility 1,116 1,357 LCSS Facility (2010-C) 12,706 12,838 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 178,619 $ 181,558 |
VIE Long-Term Debt Issued by 32
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Market Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | |
Summary of securitization SPE transaction | During the six months ended June 30, 2015 , the Company completed one asset securitization transaction that was registered under Rule 144A. The following table summarizes this securitization SPE transaction: 2015-1 (Bond proceeds in $ millions) Issue date 3/31/2015 Bond proceeds $214.0 Receivables securitized 3,422 Deal discount rate 3.64% Retained interest % 5.50% Class allocation (Moody’s) Aaa 85.25% Baa2 9.25% During the six months ended June 30, 2014 , the Company also completed one asset securitization transaction that was registered under Rule 144A. The following table summarizes this securitization SPE transaction: 2014-1 (Bond proceeds in $ millions) Issue date 2/18/2014 Bond proceeds $233.9 Receivables securitized 4,128 Deal discount rate 4.24% Retained interest % 6.00% Class allocation (Moody’s) Aaa 85.25% Baa2 8.75% |
Summary of notes issued by securitization trusts and permanent financing trusts for which the Company has elected the fair value option | The following table summarizes notes issued by securitization trusts and permanent financing trusts as of June 30, 2015 and December 31, 2014 for which the Company elected the fair value option and which 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 Principal as of December 31, 2014 Fair Value as of Fair Value as of December 31, 2014 (In thousands) Securitization trusts $ 3,535,216 $ 3,462,225 $ 3,694,160 $ 3,774,902 Permanent financing VIEs 249,166 253,955 244,580 256,962 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair market value $ 3,784,382 $ 3,716,180 $ 3,938,740 $ 4,031,864 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and fair values of the Company's interest rate swaps | The notional amounts and fair values of interest rate swaps were as follows: Entity Securitization Notional as of Fair Market Value Notional as of December 31, 2014 Fair Market Value as of December 31, 2014 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 29,611 $ (2,725 ) $ 32,628 $ (3,019 ) 321 Henderson I, LLC 2005-1 A-1 53,629 (6,765 ) 58,735 (7,435 ) 321 Henderson II, LLC 2006-1 A-1 13,322 (1,307 ) 15,571 (1,509 ) 321 Henderson II, LLC 2006-2 A-1 17,204 (2,459 ) 18,859 (2,718 ) 321 Henderson II, LLC 2006-3 A-1 18,666 (2,187 ) 21,361 (2,475 ) 321 Henderson II, LLC 2006-4 A-1 17,660 (1,767 ) 19,719 (2,056 ) 321 Henderson II, LLC 2007-1 A-2 30,375 (5,006 ) 32,994 (5,624 ) 321 Henderson II, LLC 2007-2 A-3 36,322 (8,099 ) 37,592 (8,966 ) PSS — 169,116 (28,846 ) 176,943 (31,807 ) PLMT — 50,894 (9,090 ) 52,907 (10,097 ) Total $ 436,799 $ (68,251 ) $ 467,309 $ (75,706 ) |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | During the six months ended June 30, 2015 and 2014 , the Company recorded the following reclassifications out of accumulated other comprehensive income: Period Details about accumulated Amount reclassified from Affected line item in the (In thousands) Three and Six Months Ended June 30, 2015 $ — Three and Six Months Ended June 30, 2014 Unrealized gains and losses on available-for-sale securities $ 2,098 Realized gain on notes receivable, at fair value |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule of changes in the non-controlling and JGWPT Holdings Inc.'s interests in Holdings LLC | Changes in the non-controlling and the Corporation's interest in JGW LLC for the six months ended June 30, 2015 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Company Non-controlling Interests Total Balance as of December 31, 2014 14,420,392 14,324,373 28,744,765 Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock 4,310 — 4,310 Common interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock. 903,128 (903,128 ) — Common interests repurchased as a result of Class A common stock repurchased (1,224,329 ) — (1,224,329 ) Common interests forfeited — (18,273 ) (18,273 ) Balance as of June 30, 2015 14,103,501 13,402,972 27,506,473 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used to estimate the fair value of stock option awards using the Black-Scholes valuation model | The fair value of stock options awarded during the six months ended June 30, 2015 was estimated using the Black-Scholes valuation model with the following assumptions and weighted average fair values: Six Months Ended June 30, 2015 Weighted average fair value of grant $ 4.80 Risk-free interest rate 1.63 % Expected volatility 47.1 % Expected life of options in years 6.5 Expected dividend yield — |
Summary of stock option activity | A summary of stock option activity for the six months ended June 30, 2015 is as follows: Shares Weighted - Average Exercise Price Weighted - Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (Dollars in Millions) Outstanding as of December 31, 2014 1,376,932 $ 11.44 9.44 $ 0.1 Granted 254,000 9.98 Exercised — — Forfeited (106,437 ) 11.01 Expired (6,857 ) 13.34 Outstanding as of June 30, 2015 1,517,638 $ 11.22 9.09 $ — Outstanding, vested and expected to vest as of June 30, 2015 1,456,803 11.23 9.09 $ — Vested as of June 30, 2015 66,714 12.37 8.60 $ — |
Summary of performance-based restricted stock units | A summary of performance-based restricted stock units for the six months ended June 30, 2015 is as follows: Performance- Based Restricted Stock Units Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 130,250 $ 10.60 Granted 127,000 9.98 Vested — — Forfeited (42,500 ) 10.20 Outstanding as of June 30, 2015 214,750 10.31 Outstanding and expected to vest as of June 30, 2015 203,031 10.32 |
Summary of Restricted Common Interests in JGW, LLC | The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the six months ended June 30, 2015 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 157,112 $ 9.86 Vested in period (12,781 ) 15.63 Forfeited (18,273 ) 2.67 Outstanding as of June 30, 2015 126,058 10.33 Outstanding, vested and expected to vest as of June 30, 2015 125,086 10.32 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator used in the basic and diluted EPS calculations | The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations: Three Months Ended June 30, Six Months Ended 2015 2014 2015 2014 (In thousands, except share and per share data) Numerator: Numerator for basic EPS- Net income (loss) attributable to holders of The J.G. Wentworth Company Class A common stock $ (12,296 ) $ 6,268 $ (13,641 ) $ 15,290 Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Numerator for diluted EPS- Net income (loss) attributable to holders of The J.G. Wentworth Company Class A common stock $ (12,296 ) $ 6,268 $ (13,641 ) $ 15,290 Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 14,113,990 12,559,957 14,192,480 12,104,172 Effect of dilutive securities: Stock options — — — — Warrants — — — — Restricted common stock and performance-based restricted stock units — 2,085 — 1,376 JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW 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 14,113,990 12,562,042 14,192,480 12,105,548 Basic income (loss) per share of Class A common stock $ (0.87 ) $ 0.50 $ (0.96 ) $ 1.26 Diluted income (loss) per share of Class A common stock $ (0.87 ) $ 0.50 $ (0.96 ) $ 1.26 |
Background and Basis of Prese38
Background and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Basis of Presentation [Line Items] | |||||
Tax provision attributable to The J.G. Wentworth Company | $ (2,200) | $ 5,600 | $ (5,300) | $ 13,300 | |
Total tax provision | $ (2,016) | $ 6,081 | $ (5,171) | $ 13,993 | |
Merger Sub | |||||
Basis of Presentation [Line Items] | |||||
Ownership interest (as a percent) | 51.30% | 51.30% | 50.20% | ||
Non-controlling interest (as a percent) | 48.70% | 48.70% | 49.80% | ||
Ownership Percentage Of Weighted Average Economic Interests | 49.60% | 49.80% | |||
Ownership Percentage of Weighted Average Economic Interests by Noncontrolling Owners | 57.40% | 59.00% |
Business Changes and Developm39
Business Changes and Developments (Details) - Mar. 06, 2015 - WestStar Mortgage - USD ($) $ in Millions | Total |
Business Changes and Developments. | |
Consideration to be paid | $ 54 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | $ 30 |
Minimum percentage of consideration to be paid in cash | 75.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Assets and liabilities that are carried at fair value | |||
Maximum recovery period of other receivables | 3 months | ||
Marketable securities: | |||
Total marketable securities | $ 96,649 | $ 103,419 | |
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 | |
Liabilities | |||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 | |
VIE derivative liabilities, at fair market value | 68,251 | 75,706 | |
Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 68,786 | 72,198 | |
Total fixed income securities | 21,456 | 20,252 | |
Total other securities | 6,407 | 10,969 | |
Total marketable securities | 96,649 | 103,419 | |
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 | |
Total Assets | 4,566,289 | 4,627,254 | |
Liabilities | |||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 | |
VIE derivative liabilities, at fair market value | 68,251 | 75,706 | |
Total Liabilities | 4,006,991 | 4,107,570 | |
US large cap | Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 34,655 | 41,246 | |
US mid cap | Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 5,867 | 8,192 | |
US small cap | Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 7,016 | 7,586 | |
International | Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 17,853 | 14,123 | |
Other equity | Total at Fair Value | |||
Marketable securities: | |||
Total equity securities | 3,395 | 1,051 | |
US fixed income | Total at Fair Value | |||
Marketable securities: | |||
Total fixed income securities | 19,824 | 16,699 | |
International fixed income | Total at Fair Value | |||
Marketable securities: | |||
Total fixed income securities | 1,632 | 3,526 | |
Other fixed income | Total at Fair Value | |||
Marketable securities: | |||
Total fixed income securities | 0 | 27 | |
Cash & cash equivalents | Total at Fair Value | |||
Marketable securities: | |||
Total other securities | 2,785 | 6,629 | |
Alternative investments | Total at Fair Value | |||
Marketable securities: | |||
Total other securities | 1,320 | 1,829 | |
Annuities | Total at Fair Value | |||
Marketable securities: | |||
Total other securities | $ 2,302 | $ 2,511 | |
VIE and other finance receivables, at fair market value | |||
Assets and liabilities that are carried at fair value | |||
Discount rate for discounting residual cash flows (as a percent) | 6.80% | 5.97% | |
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 | $ 68,786 | $ 72,198 | |
Total fixed income securities | 21,456 | 20,252 | |
Total other securities | 6,407 | 10,969 | |
Total marketable securities | 96,649 | 103,419 | |
Total Assets | 96,649 | 103,419 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US large cap | |||
Marketable securities: | |||
Total equity securities | 34,655 | 41,246 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US mid cap | |||
Marketable securities: | |||
Total equity securities | 5,867 | 8,192 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US small cap | |||
Marketable securities: | |||
Total equity securities | 7,016 | 7,586 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | International | |||
Marketable securities: | |||
Total equity securities | 17,853 | 14,123 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Other equity | |||
Marketable securities: | |||
Total equity securities | 3,395 | 1,051 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | US fixed income | |||
Marketable securities: | |||
Total fixed income securities | 19,824 | 16,699 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | International fixed income | |||
Marketable securities: | |||
Total fixed income securities | 1,632 | 3,526 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Other fixed income | |||
Marketable securities: | |||
Total fixed income securities | 0 | 27 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Cash & cash equivalents | |||
Marketable securities: | |||
Total other securities | 2,785 | 6,629 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Alternative investments | |||
Marketable securities: | |||
Total other securities | 1,320 | 1,829 | |
Quoted Prices in Active Markets for Identical Assets Level 1 | Annuities | |||
Marketable securities: | |||
Total other securities | 2,302 | 2,511 | |
Significant Other Observable Inputs Level 2 | |||
Liabilities | |||
VIE derivative liabilities, at fair market value | 68,251 | 75,706 | |
Total Liabilities | 68,251 | 75,706 | |
Significant Unobservable Inputs Level 3 | |||
Marketable securities: | |||
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 | |
Total Assets | 4,469,640 | 4,523,835 | |
Liabilities | |||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 | |
Total Liabilities | 3,938,740 | 4,031,864 | |
Significant Unobservable Inputs Level 3 | VIE and other finance receivables, at fair market value | |||
Marketable securities: | |||
Total Assets | $ 4,469,640 | $ 4,523,835 |
Fair Value Measurements (Deta41
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Life settlement contracts, at fair market value | Model actuarial pricing | Minimum | ||
Unobservable Input | ||
Life expectancy | 39 months | 45 months |
Life settlement contracts, at fair market value | Model actuarial pricing | Maximum | ||
Unobservable Input | ||
Life expectancy | 338 months | 344 months |
Life settlement contracts, at fair market value | Model actuarial pricing | Weighted Avg | ||
Unobservable Input | ||
Life expectancy | 213 months | 219 months |
Level 3 | ||
Quantitative information about fair value measurements | ||
Fair Value of Assets | $ 4,469,640 | $ 4,523,835 |
Fair Value of Liabilities | 3,938,740 | 4,031,864 |
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 | $ 3,938,740 | $ 4,031,864 |
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) | 0.95% | 0.74% |
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) | 12.60% | 12.32% |
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) | 3.70% | 3.16% |
Level 3 | VIE and other finance receivables, at fair market value | ||
Quantitative information about fair value measurements | ||
Fair Value of Assets | $ 4,469,640 | $ 4,523,835 |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 2.79% | 2.55% |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 12.60% | 12.60% |
Level 3 | VIE and other finance receivables, at fair market value | Discounted cash flow | Weighted Avg | ||
Unobservable Input | ||
Discount rate (as a percent) | 4.00% | 3.43% |
Level 3 | Life settlement contracts, at fair market value | Model actuarial pricing | ||
Unobservable Input | ||
Discount rate (as a percent) | 18.00% | 18.00% |
Level 3 | Life settlement contracts, at fair market value | Model actuarial pricing | Weighted Avg | ||
Unobservable Input | ||
Discount rate (as a percent) | 18.00% | 18.00% |
Fair Value Measurements (Deta42
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in assets | ||
Balance at the beginning of the period | $ 4,523,835 | $ 3,876,259 |
Total gains (losses) included in earnings / losses | (87,536) | 339,507 |
Total gains (losses) included in other comprehensive gain | 0 | (1,615) |
Purchases of finance receivables | 200,314 | 220,742 |
Life insurance premiums paid | 10 | 116 |
Interest accreted | 79,648 | 83,777 |
Payments received | (246,631) | (231,061) |
Balance at the end of the period | 4,469,640 | 4,287,725 |
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 | (87,536) | 337,409 |
VIE and other finance receivables, at fair market value | ||
Changes in assets | ||
Balance at the beginning of the period | 4,523,835 | 3,870,649 |
Total gains (losses) included in earnings / losses | (87,526) | 337,525 |
Purchases of finance receivables | 200,314 | 220,742 |
Interest accreted | 79,648 | 83,777 |
Payments received | (246,631) | (224,968) |
Balance at the end of the period | 4,469,640 | 4,287,725 |
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 | (87,526) | 337,525 |
Life settlement contracts, at fair market value | ||
Changes in assets | ||
Balance at the beginning of the period | 0 | |
Total gains (losses) included in earnings / losses | (10) | (116) |
Life insurance premiums paid | 10 | 116 |
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 | (10) | (116) |
Notes receivable, at fair market value | ||
Changes in assets | ||
Balance at the beginning of the period | 0 | 5,610 |
Total gains (losses) included in earnings / losses | 0 | 2,098 |
Total gains (losses) included in other comprehensive gain | 0 | (1,615) |
Payments received | $ 0 | (6,093) |
Balance at the end of the period | $ 0 |
Fair Value Measurements (Deta43
Fair Value Measurements (Details 4) - VIE long-term debt issued by securitization and permanent financing trusts, at fair market value - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in liabilities | ||
Balance at the beginning of the period | $ 4,031,864 | $ 3,431,283 |
Net (gains) losses included in earnings / losses | (135,559) | 175,425 |
Issuances | 220,229 | 242,593 |
Interest accreted | (25,627) | (17,145) |
Repayments | (152,167) | (133,656) |
Balance at the end of the period | 3,938,740 | 3,698,500 |
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 | $ (134,966) | $ 175,425 |
Fair Value Measurements (Deta44
Fair Value Measurements (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
VIE and other finance receivables and long-term debt | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net gains (losses) included in revenues | $ 3,291 | $ 73,326 | $ 48,033 | $ 162,100 |
Unrealized gains (losses) relating to assets still held | 3,291 | 73,326 | 47,440 | 162,100 |
Life settlement contracts income | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net gains (losses) included in revenues | 2 | (116) | (10) | (116) |
Unrealized gains (losses) relating to assets still held | $ 2 | $ (116) | $ (10) | $ (116) |
Fair Value Measurements (Deta45
Fair Value Measurements (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets | ||
Marketable securities | $ 96,649 | $ 103,419 |
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 |
Other receivables, net of allowance for losses | 13,979 | 14,165 |
Financial liabilities | ||
VIE derivative liabilities, at fair market value | 68,251 | 75,706 |
VIE borrowings under revolving credit facilities and other similar borrowings | 41,672 | 19,339 |
VIE long-term debt | 178,619 | 181,558 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 |
Installment obligations payable | 96,649 | 103,419 |
Estimated Fair Value | ||
Financial assets | ||
Marketable securities | 96,649 | 103,419 |
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 |
VIE and other finance receivables, net of allowance for losses | 117,782 | 123,765 |
Other receivables, net of allowance for losses | 13,979 | 14,165 |
Financial liabilities | ||
VIE derivative liabilities, at fair market value | 68,251 | 75,706 |
VIE borrowings under revolving credit facilities and other similar borrowings | 43,223 | 21,415 |
VIE long-term debt | 172,398 | 176,635 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 |
Installment obligations payable | 96,649 | 103,419 |
Term loan payable | 426,696 | 433,904 |
Carrying Amount | ||
Financial assets | ||
Marketable securities | 96,649 | 103,419 |
VIE and other finance receivables at fair market value | 4,469,640 | 4,523,835 |
VIE and other finance receivables, net of allowance for losses | 125,693 | 131,292 |
Other receivables, net of allowance for losses | 13,979 | 14,165 |
Financial liabilities | ||
VIE derivative liabilities, at fair market value | 68,251 | 75,706 |
VIE borrowings under revolving credit facilities and other similar borrowings | 41,672 | 19,339 |
VIE long-term debt | 178,619 | 181,558 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,938,740 | 4,031,864 |
Installment obligations payable | 96,649 | 103,419 |
Term loan payable | $ 438,682 | $ 437,183 |
VIE and Other Finance Receiva46
VIE and Other Finance Receivables, at Fair Market Value (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
VIE and other finance receivables, at fair market value | ||||||
Maturity value | $ 6,746,602,000 | $ 6,746,602,000 | $ 6,492,863,000 | |||
Unearned income | (2,276,962,000) | (2,276,962,000) | (1,969,028,000) | |||
Total VIE finance receivables at fair value | [1] | 4,402,887,000 | 4,402,887,000 | 4,422,033,000 | ||
Not encumbered | 66,753,000 | 66,753,000 | 101,802,000 | |||
Total VIE and other finance receivables at fair value | 4,469,640,000 | 4,469,640,000 | 4,523,835,000 | |||
Servicing fee income | 203,000 | $ 230,000 | 415,000 | $ 461,000 | ||
VIE securitization debt | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | 4,290,423,000 | 4,290,423,000 | 4,357,456,000 | |||
Variable funding note facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | 10,502,000 | 10,502,000 | 2,000 | |||
Multi-tranche and lender credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | 8,284,000 | 8,284,000 | 0 | |||
Credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | 0 | 0 | 0 | |||
Permanent financing related to 2011-A | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | 73,667,000 | 73,667,000 | 64,575,000 | |||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | 100,000,000 | |||
JGW-S III | Variable funding note facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | 100,000,000 | |||
JGW IV | Credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Maximum borrowing capacity | 50,000,000 | 50,000,000 | 50,000,000 | |||
JGW V | Credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | |||
JGW VII | Multi-tranche and lender credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | |||
JGW VII | Credit facility | ||||||
VIE and other finance receivables, at fair market value | ||||||
Total VIE finance receivables at fair value | $ 20,011,000 | $ 20,011,000 | $ 0 | |||
[1] | Pledged as collateral to VIE credit and long-term debt facilities. Refer to Note 5 “VIE and Other Finance Receivables, at Fair Market Value” and Note 6 “VIE and Other Finance Receivables, net of Allowance for Losses.” |
VIE and Other Finance Receiva47
VIE and Other Finance Receivables, net of Allowance for Losses (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables, gross | $ 136,661 | $ 141,420 | ||||
Less: allowance for losses | (10,968) | $ (10,403) | (10,128) | $ (8,984) | $ (8,516) | $ (8,342) |
Finance receivables, net | 125,693 | 131,292 | 135,039 | |||
Structured settlements and annuities | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 74,006 | 76,253 | ||||
Less: unearned income or deferred revenue | (47,516) | (49,270) | ||||
Finance receivables, gross | 26,490 | 26,983 | ||||
Less: allowance for losses | (50) | (54) | (56) | (55) | (53) | (48) |
Finance receivables, net | 26,440 | 27,213 | ||||
Lottery winnings | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 77,803 | 81,169 | ||||
Less: unearned income or deferred revenue | (22,482) | (24,389) | ||||
Finance receivables, gross | 55,321 | 56,780 | ||||
Less: allowance for losses | (3) | (3) | (3) | (4) | (4) | 0 |
Finance receivables, net | 55,318 | 58,345 | ||||
Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 55,196 | 57,886 | ||||
Less: unearned income or deferred revenue | (1,389) | (1,563) | ||||
Finance receivables, gross | 53,807 | 56,323 | ||||
Less: allowance for losses | (10,632) | (10,063) | (9,786) | (8,642) | (8,176) | (8,011) |
Finance receivables, net | 43,175 | 48,247 | ||||
Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 1,043 | 1,334 | ||||
Less: unearned income or deferred revenue | 0 | 0 | ||||
Finance receivables, gross | 1,043 | 1,334 | ||||
Less: allowance for losses | (283) | $ (283) | $ (283) | (283) | $ (283) | $ (283) |
Finance receivables, net | $ 760 | $ 1,234 |
VIE and Other Finance Receiva48
VIE and Other Finance Receivables, net of Allowance for Losses (Details 2) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Credit facility | Peach One | |||
Encumbrances on financing receivable | |||
Maximum borrowing capacity | $ 35,000,000 | $ 35,000,000 | |
VIE and Other Finance Receivables, net | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 112,152,000 | 113,489,000 | |
Not encumbered | 13,541,000 | 17,803,000 | |
Finance receivables, net | 125,693,000 | 131,292,000 | $ 135,039,000 |
VIE and Other Finance Receivables, net | VIE securitization debt | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 73,517,000 | 74,973,000 | |
VIE and Other Finance Receivables, net | Credit facility | Peach One | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 32,522,000 | 30,423,000 | |
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 | 4,691,000 | 6,453,000 | |
Maximum borrowing capacity | 45,100,000 | 45,100,000 | |
VIE and Other Finance Receivables, net | $2.5 Long-term facility | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 1,422,000 | 1,640,000 | |
Maximum borrowing capacity | $ 2,500,000 | $ 2,500,000 |
VIE and Other Finance Receiva49
VIE and Other Finance Receivables, net of Allowance for Losses (Details 3) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Activity in the allowance for losses | |||||
Balance at beginning of year | $ (10,403) | $ (8,516) | $ (10,128) | $ (8,342) | |
Provision for loss | (1,619) | (1,127) | (2,957) | (2,218) | |
Charge-offs | 1,055 | 709 | 2,120 | 1,704 | |
Recoveries | (1) | (50) | (3) | (128) | |
Balance at end of year | (10,968) | (8,984) | (10,968) | (8,984) | |
Individually evaluated for impairment | (2,745) | (3,314) | (2,745) | (3,314) | |
Collectively evaluated for impairment | (8,223) | (5,670) | (8,223) | (5,670) | |
Individually evaluated for impairment | 81,990 | 89,239 | 81,990 | 89,239 | |
Collectively evaluated for impairment | 43,703 | 45,800 | 43,703 | 45,800 | |
Finance receivables, net | 125,693 | 135,039 | 125,693 | 135,039 | $ 131,292 |
Structured settlements and annuities | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (54) | (53) | (56) | (48) | |
Provision for loss | (83) | (68) | (108) | (8) | |
Charge-offs | 88 | 91 | 117 | 104 | |
Recoveries | (1) | (25) | (3) | (103) | |
Balance at end of year | (50) | (55) | (50) | (55) | |
Individually evaluated for impairment | (50) | (55) | (50) | (55) | |
Individually evaluated for impairment | 26,440 | 27,213 | 26,440 | 27,213 | |
Finance receivables, net | 26,440 | 27,213 | 26,440 | 27,213 | |
Lottery | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (3) | (4) | (3) | 0 | |
Provision for loss | (69) | 3 | (69) | (8) | |
Charge-offs | 69 | 22 | 69 | 29 | |
Recoveries | 0 | (25) | 0 | (25) | |
Balance at end of year | (3) | (4) | (3) | (4) | |
Individually evaluated for impairment | (3) | (4) | (3) | (4) | |
Individually evaluated for impairment | 55,318 | 58,345 | 55,318 | 58,345 | |
Finance receivables, net | 55,318 | 58,345 | 55,318 | 58,345 | |
Pre-settlement funding transactions | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (10,063) | (8,176) | (9,786) | (8,011) | |
Provision for loss | (1,467) | (1,062) | (2,780) | (2,202) | |
Charge-offs | 898 | 596 | 1,934 | 1,571 | |
Recoveries | 0 | 0 | |||
Balance at end of year | (10,632) | (8,642) | (10,632) | (8,642) | |
Individually evaluated for impairment | (2,692) | (3,255) | (2,692) | (3,255) | |
Collectively evaluated for impairment | (7,940) | (5,387) | (7,940) | (5,387) | |
Individually evaluated for impairment | 232 | 3,681 | 232 | 3,681 | |
Collectively evaluated for impairment | 42,943 | 44,566 | 42,943 | 44,566 | |
Finance receivables, net | 43,175 | 48,247 | 43,175 | 48,247 | |
Attorney cost financing | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (283) | (283) | (283) | (283) | |
Provision for loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Balance at end of year | (283) | (283) | (283) | (283) | |
Collectively evaluated for impairment | (283) | (283) | (283) | (283) | |
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 760 | 1,234 | 760 | 1,234 | |
Finance receivables, net | $ 760 | $ 1,234 | $ 760 | $ 1,234 |
VIE and Other Finance Receiva50
VIE and Other Finance Receivables, net of Allowance for Losses (Details 4) - VIE and Other Finance Receivables, net - Pre-settlement funding transactions - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 55,196 | $ 57,886 |
2,009 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 1,679 | 2,618 |
2,010 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 3,652 | 4,251 |
2,011 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 6,222 | 6,938 |
2,012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 7,879 | 10,687 |
2,013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 8,546 | 11,335 |
2,014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 21,382 | 22,057 |
2,015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 5,836 | $ 0 |
VIE and Other Finance Receiva51
VIE and Other Finance Receivables, net of Allowance for Losses (Details 5) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Portfolio delinquency status | ||
30-59 Days Past Due | $ 13 | $ 8 |
60-89 Days Past Due | 7 | 18 |
Greater than 90 Days | 240 | 328 |
Total Past Due | 260 | 354 |
Current | 81,498 | 83,350 |
VIE and Other Finance Receivables, net | 81,758 | 83,704 |
Structured settlements and annuities | ||
Portfolio delinquency status | ||
30-59 Days Past Due | 10 | 6 |
60-89 Days Past Due | 5 | 12 |
Greater than 90 Days | 119 | 208 |
Total Past Due | 134 | 226 |
Current | 26,306 | 26,701 |
VIE and Other Finance Receivables, net | 26,440 | 26,927 |
Lottery winnings | ||
Portfolio delinquency status | ||
30-59 Days Past Due | 3 | 2 |
60-89 Days Past Due | 2 | 6 |
Greater than 90 Days | 121 | 120 |
Total Past Due | 126 | 128 |
Current | 55,192 | 56,649 |
VIE and Other Finance Receivables, net | $ 55,318 | $ 56,777 |
VIE and Other Finance Receiva52
VIE and Other Finance Receivables, net of Allowance for Losses - Narrative (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivable allowance | $ 10,968 | $ 10,403 | $ 10,128 | $ 8,984 | $ 8,516 | $ 8,342 |
Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 13,800 | 14,000 | ||||
Receivable allowance | 10,632 | 10,063 | 9,786 | 8,642 | 8,176 | 8,011 |
Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 600 | 600 | ||||
Receivable allowance | $ 283 | $ 283 | $ 283 | $ 283 | $ 283 | $ 283 |
Pre-settlement funding transactions and attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum receivable term | 1 year |
VIE Borrowings Under Revolvin53
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | May. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | $ 41,672,000 | $ 41,672,000 | $ 41,672,000 | $ 19,339,000 | |||
JGW-S III | Variable funding note facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 6,517,000 | 6,517,000 | 6,517,000 | 0 | |||
JGW IV | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 0 | 0 | 0 | 6,000 | |||
JGW V | Multi-tranche and lender credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 4,504,000 | 4,504,000 | 4,504,000 | 0 | |||
JGW VII | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 12,727,000 | 12,727,000 | 12,727,000 | 0 | |||
Peach One | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | $ 17,924,000 | 17,924,000 | 17,924,000 | $ 19,333,000 | |||
VIE | Revolving credit facilities and other similar borrowings | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Interest expense related to borrowings | $ 2,000,000 | $ 2,400,000 | $ 4,400,000 | $ 4,600,000 | |||
Weighted average interest rate on outstanding borrowings (as a percent) | 4.31% | 4.31% | 4.31% | 4.63% | |||
VIE | JGW-S III | Variable funding note facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||
Interest payable monthly (as a percent) | 6.50% | 6.50% | 9.00% | 6.50% | 9.00% | ||
Outstanding balance, threshold for interest rate trigger | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||
Conditional interest rate, stated percentage | 9.00% | ||||||
Revolving period | 2 years | 2 years | |||||
Amortization period | 18 months | 18 months | |||||
Monthly unused fee (as a percent) | 1.00% | 0.75% | 1.00% | ||||
VIE | JGW IV | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||
Monthly unused fee (as a percent) | 0.50% | 0.50% | |||||
VIE | JGW IV | Credit facility | LIBOR | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 3.43% | 3.42% | |||||
VIE | JGW V | Multi-tranche and lender credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Monthly unused fee (as a percent) | 0.625% | 0.625% | |||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | LIBOR | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.00% | |||||
Interest rate (as a percent) | 3.18% | 3.18% | 3.18% | 3.17% | |||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | Commercial Paper rate | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.00% | |||||
Interest rate (as a percent) | 3.31% | 3.31% | 3.31% | 3.26% | |||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche B | LIBOR | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 5.50% | 5.50% | |||||
Interest rate (as a percent) | 5.68% | 5.68% | 5.68% | 5.67% | |||
VIE | JGW VII | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Monthly unused fee (as a percent) | 0.50% | 0.50% | |||||
Variable interest rate payable monthly (as a percent) | 2.75% | 2.75% | 2.75% | 2.75% | |||
Interest rate (as a percent) | 3.02% | 3.02% | 3.02% | 2.92% | |||
VIE | Peach One | Credit facility | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Maximum borrowing capacity | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | |||
Monthly unused fee (as a percent) | 0.50% | 0.50% | |||||
VIE | Peach One | Credit facility | Class A rate | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% | |||||
Interest rate floor (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | |||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | |||
VIE | Peach One | Credit facility | Class B rate | |||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% | |||||
Interest rate (as a percent) | 5.50% | 5.50% | 5.50% | 5.50% |
VIE Long-Term Debt (Details)
VIE Long-Term Debt (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2011USD ($)note | Dec. 31, 2014USD ($) | Nov. 30, 2010USD ($) | |
VIE long-term debt | |||||||||
VIE long-term debt | $ 178,619,000 | $ 178,619,000 | $ 181,558,000 | ||||||
VIE long-term debt | |||||||||
VIE long-term debt | |||||||||
Interest expense related to borrowings | 4,100,000 | $ 3,900,000 | 8,100,000 | $ 7,500,000 | |||||
PLMT Permanent Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 42,934,000 | 42,934,000 | 44,277,000 | ||||||
Residual Term Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 106,465,000 | 106,465,000 | 107,043,000 | ||||||
Long-Term Pre-settlement Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 8,239,000 | 8,239,000 | 8,884,000 | ||||||
2012-A Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 1,116,000 | 1,116,000 | 1,357,000 | ||||||
LCSS Facility (2010-C) | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 12,706,000 | 12,706,000 | 12,838,000 | ||||||
LCSS Facility (2010-D) | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 7,159,000 | 7,159,000 | $ 7,159,000 | ||||||
VIE | LCSS II | LCSS, LLC | |||||||||
VIE long-term debt | |||||||||
Ownership percentage | 100.00% | ||||||||
VIE | LCSS III | LCSS II | |||||||||
VIE long-term debt | |||||||||
Ownership percentage | 100.00% | ||||||||
VIE | LCSS, LLC | |||||||||
VIE long-term debt | |||||||||
Payment to purchase membership interest | $ 200,000 | ||||||||
VIE | PLMT Permanent Facility | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | 75,000,000 | 75,000,000 | |||||||
VIE | Residual Term Facility | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 110,000,000 | $ 110,000,000 | |||||||
Interest rate (as a percent) | 7.00% | 7.00% | |||||||
VIE | Long-Term Pre-settlement Facility | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 45,100,000 | ||||||||
Interest rate (as a percent) | 9.25% | 9.25% | |||||||
Number of fixed rate notes issued | note | 3 | ||||||||
VIE | 2012-A Facility | |||||||||
VIE long-term debt | |||||||||
Interest rate (as a percent) | 9.25% | 9.25% | |||||||
Proceeds from issuance of notes | $ 2,500,000 | ||||||||
VIE | LCSS Facility (2010-C) | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 12,900,000 | ||||||||
Interest rate (as a percent) | 10.00% | 10.00% | |||||||
VIE | LCSS Facility (2010-D) | LCSS III | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 7,200,000 | ||||||||
Interest rate (as a percent) | 10.00% | 10.00% | |||||||
VIE | LIBOR | PLMT Permanent Facility | |||||||||
VIE long-term debt | |||||||||
Margin added to variable interest rate basis (as a percent) | 1.25% |
VIE Long-Term Debt Issued by 55
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Market Value (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)transaction | Jun. 30, 2014USD ($)transaction | Dec. 31, 2014USD ($) | |
Term loan payable | |||||
Fair Value | $ 3,938,740 | $ 3,938,740 | $ 4,031,864 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | |||||
Term loan payable | |||||
Interest expense related to borrowings | 33,900 | $ 34,500 | $ 66,400 | $ 69,900 | |
VIE | |||||
Term loan payable | |||||
Number of asset securitization transactions completed | transaction | 1 | 1 | |||
Outstanding Principal | 3,784,382 | $ 3,784,382 | 3,716,180 | ||
Fair Value | 3,938,740 | 3,938,740 | 4,031,864 | ||
VIE | 2015-1 | |||||
Term loan payable | |||||
Bond proceeds | 214,000 | ||||
Receivables securitized | 3,422 | $ 3,422 | |||
Deal discount rate (as a percent) | 3.64% | ||||
Retained interest % | 5.50% | ||||
VIE | 2015-1 | Aaa | |||||
Term loan payable | |||||
Class allocation (as a percent) | 85.25% | ||||
VIE | 2015-1 | Baa2 | |||||
Term loan payable | |||||
Class allocation (as a percent) | 9.25% | ||||
VIE | 2014-1 | |||||
Term loan payable | |||||
Bond proceeds | $ 233,900 | ||||
Receivables securitized | $ 4,128 | $ 4,128 | |||
Deal discount rate (as a percent) | 4.24% | ||||
Retained interest % | 6.00% | ||||
VIE | 2014-1 | Aaa | |||||
Term loan payable | |||||
Class allocation (as a percent) | 85.25% | ||||
VIE | 2014-1 | Baa2 | |||||
Term loan payable | |||||
Class allocation (as a percent) | 8.75% | ||||
VIE | Securitization trusts | |||||
Term loan payable | |||||
Outstanding Principal | 3,535,216 | $ 3,535,216 | 3,462,225 | ||
Fair Value | 3,694,160 | 3,694,160 | 3,774,902 | ||
VIE | Permanent financing VIEs | |||||
Term loan payable | |||||
Outstanding Principal | 249,166 | 249,166 | 253,955 | ||
Fair Value | $ 244,580 | $ 244,580 | $ 256,962 |
Term Loan Payable (Details)
Term Loan Payable (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Feb. 08, 2013 | |
New term loan | |||||||
Term loan payable | |||||||
Loan amount | $ 449,500,000 | $ 449,500,000 | $ 449,500,000 | ||||
Interest rate (as a percent) | 7.00% | 7.00% | |||||
Interest expense | $ 10,000,000 | $ 10,000,000 | $ 20,000,000 | $ 20,000,000 | |||
New term loan | LIBOR | |||||||
Term loan payable | |||||||
Interest rate floor (as a percent) | 1.00% | ||||||
Margin on variable rate (as a percent) | 6.00% | ||||||
New term loan | Base rate | |||||||
Term loan payable | |||||||
Interest rate floor (as a percent) | 2.00% | ||||||
Margin on variable rate (as a percent) | 5.00% | ||||||
Credit Facility | |||||||
Term loan payable | |||||||
Revolving commitment | $ 20,000,000 | ||||||
Unused fee (as a percent) | 0.50% | ||||||
Outstanding borrowings | 0 | $ 0 | $ 0 | ||||
Letters of credit | |||||||
Term loan payable | |||||||
Revolving commitment | $ 10,000,000 | $ 10,000,000 |
Derivative Financial Instrume57
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)swap | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)swap | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Derivative financial instruments | |||||
Total gain (loss) on termination of derivative | $ 0 | $ 0 | $ (275,000) | $ (574,000) | |
Unrealized gain (loss) | 7,562,000 | (4,472,000) | |||
Notional | 436,799,000 | 436,799,000 | $ 467,309,000 | ||
Fair Market Value | (68,251,000) | (68,251,000) | (75,706,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | |||||
Derivative financial instruments | |||||
Terminated notional value | 18,700,000 | 35,000,000 | |||
Total gain (loss) on termination of derivative | 0 | 0 | (300,000) | (600,000) | |
Unrealized gain (loss) | 0 | 100,000 | 0 | 100,000 | |
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | |||||
Derivative financial instruments | |||||
Unrealized gain (loss) | $ 4,900,000 | (100,000) | $ 3,600,000 | 300,000 | |
Number of outstanding derivatives | swap | 8 | 8 | |||
Notional | $ 216,800,000 | $ 216,800,000 | |||
Floating rate basis | 1-month LIBOR | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | Minimum | |||||
Derivative financial instruments | |||||
Fixed interest rate (as a percent) | 4.50% | 4.50% | |||
Term of contract | 7 years | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | Maximum | |||||
Derivative financial instruments | |||||
Fixed interest rate (as a percent) | 5.77% | 5.77% | |||
Term of contract | 21 years | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | |||||
Derivative financial instruments | |||||
Unrealized gain (loss) | $ 7,300,000 | $ (2,900,000) | $ 4,000,000 | $ (4,700,000) | |
Number of outstanding derivatives | swap | 151 | 151 | |||
Notional | $ 220,000,000 | $ 220,000,000 | |||
Floating rate basis | 1-month LIBOR | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | Minimum | |||||
Derivative financial instruments | |||||
Fixed interest rate (as a percent) | 4.80% | 4.80% | |||
Term of contract | 1 month | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | Maximum | |||||
Derivative financial instruments | |||||
Fixed interest rate (as a percent) | 8.70% | 8.70% | |||
Term of contract | 19 years | ||||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson I | 2004-A A-1 | |||||
Derivative financial instruments | |||||
Notional | $ 29,611,000 | $ 29,611,000 | 32,628,000 | ||
Fair Market Value | (2,725,000) | (2,725,000) | (3,019,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson I | 2005-1 A-1 | |||||
Derivative financial instruments | |||||
Notional | 53,629,000 | 53,629,000 | 58,735,000 | ||
Fair Market Value | (6,765,000) | (6,765,000) | (7,435,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2006-1 A-1 | |||||
Derivative financial instruments | |||||
Notional | 13,322,000 | 13,322,000 | 15,571,000 | ||
Fair Market Value | (1,307,000) | (1,307,000) | (1,509,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2006-2 A-1 | |||||
Derivative financial instruments | |||||
Notional | 17,204,000 | 17,204,000 | 18,859,000 | ||
Fair Market Value | (2,459,000) | (2,459,000) | (2,718,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2006-3 A-1 | |||||
Derivative financial instruments | |||||
Notional | 18,666,000 | 18,666,000 | 21,361,000 | ||
Fair Market Value | (2,187,000) | (2,187,000) | (2,475,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2006-4 A-1 | |||||
Derivative financial instruments | |||||
Notional | 17,660,000 | 17,660,000 | 19,719,000 | ||
Fair Market Value | (1,767,000) | (1,767,000) | (2,056,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2007-1 A-2 | |||||
Derivative financial instruments | |||||
Notional | 30,375,000 | 30,375,000 | 32,994,000 | ||
Fair Market Value | (5,006,000) | (5,006,000) | (5,624,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 321 Henderson II | 2007-2 A-3 | |||||
Derivative financial instruments | |||||
Notional | 36,322,000 | 36,322,000 | 37,592,000 | ||
Fair Market Value | (8,099,000) | (8,099,000) | (8,966,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | PSS | VIE | |||||
Derivative financial instruments | |||||
Notional | 169,116,000 | 169,116,000 | 176,943,000 | ||
Fair Market Value | (28,846,000) | (28,846,000) | (31,807,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | PLMT | |||||
Derivative financial instruments | |||||
Notional | 50,894,000 | 50,894,000 | 52,907,000 | ||
Fair Market Value | $ (9,090,000) | $ (9,090,000) | $ (10,097,000) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | 13.90% | 19.90% | ||
Effective income tax rate for parent (as a percent) | 29.00% | 45.10% | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ (28,649) | $ 27,789 | $ (37,264) | $ 70,234 |
The J.G. Wentworth Company, LLC | ||||
Income Taxes | ||||
Effective income tax rate (as a percent) | (1.70%) | 2.70% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | May. 26, 2015USD ($)$ / sharesshares | Jun. 30, 2015vote$ / sharesshares | Jun. 30, 2015USD ($)vote$ / sharesshares | Jun. 30, 2014shares | Jun. 30, 2015USD ($)vote$ / sharesshares | Dec. 31, 2014$ / sharesshares | May. 02, 2014USD ($) | Nov. 14, 2013$ / sharesshares |
The J.G. Wentworth Company, LLC | ||||||||
Stockholders' Equity | ||||||||
Common stock exchanged (in shares) | 903,128 | 1,661,599 | ||||||
PGHI Corp | Tranche C-1 profit interests | ||||||||
Stockholders' Equity | ||||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 35.78 | |||||||
PGHI Corp | Tranche C-1 profit interests | Maximum | ||||||||
Stockholders' Equity | ||||||||
Number of shares entitled by warrants (in shares) | 483,217 | |||||||
PGHI Corp | Tranche C-2 profits interests | ||||||||
Stockholders' Equity | ||||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 63.01 | |||||||
PGHI Corp | Tranche C-2 profits interests | Maximum | ||||||||
Stockholders' Equity | ||||||||
Number of shares entitled by warrants (in shares) | 483,217 | |||||||
Preferred Stock | ||||||||
Stockholders' Equity | ||||||||
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Common Stock - Class A | ||||||||
Stockholders' Equity | ||||||||
Common stock, authorized shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued | 15,928,585 | 15,928,585 | 15,928,585 | 15,021,147 | ||||
Common stock, shares outstanding | 14,103,501 | 14,103,501 | 14,103,501 | 14,420,392 | ||||
Aggregate value of shares repurchased | $ | $ 15,000,000 | |||||||
Number of votes per share of common stock held | vote | 1 | 1 | 1 | |||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | 903,128 | 1,661,599 | ||||||
Common Stock - Class A | Stock Repurchase Program 2014 | ||||||||
Stockholders' Equity | ||||||||
Treasury Stock, Shares, Acquired | 797,997 | 1,256,702 | ||||||
Aggregate purchase price of shares repurchased under Stock Repurchase Program | $ | $ 7,900,000 | $ 12,300,000 | ||||||
Shares repurchase price (in dollars per share) | $ / shares | $ 9.87 | |||||||
Common Stock - Class A | Private Repurchase | ||||||||
Stockholders' Equity | ||||||||
Treasury Stock, Shares, Acquired | 426,332 | |||||||
Aggregate purchase price of shares repurchased under Stock Repurchase Program | $ | $ 3,900,000 | |||||||
Shares repurchase price (in dollars per share) | $ / shares | $ 9.24 | |||||||
Treasury Stock, Discount On Repurchase, Percent | 3.00% | |||||||
Common Stock - Class B | ||||||||
Stockholders' Equity | ||||||||
Common stock, authorized shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued | 9,042,349 | 9,042,349 | 9,042,349 | 9,963,750 | ||||
Common stock, shares outstanding | 9,042,349 | 9,042,349 | 9,042,349 | 9,963,750 | ||||
Number of votes per share of common stock held | vote | 10 | 10 | 10 | |||||
Number of shares of Class A common stock whose market value is given as cash on optional exchange of common interests | 1 | 1 | 1 | |||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | (903,128) | |||||||
Common Stock - Class B | The J.G. Wentworth Company, LLC | ||||||||
Stockholders' Equity | ||||||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | 0 | |||||||
Common Stock - Class C | ||||||||
Stockholders' Equity | ||||||||
Common stock, authorized shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued | 0 | 0 | 0 | 0 | ||||
Common stock, shares outstanding | 0 | 0 | 0 | 0 | ||||
Conversion ratio of common stock | 1 | |||||||
Number of shares entitled by warrants (in shares) | 4,360,623 | 4,360,623 | 4,360,623 |
Stockholders' Equity - Accumu60
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0 | $ 2,098 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - Jun. 30, 2015 - shares | Total |
Common Stock - Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Share-based compensation (in shares) | 1,224,329 |
Common Stock - Class C | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Number of shares entitled by warrants (in shares) | 4,360,623 |
The J.G. Wentworth Company, LLC | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 28,744,765 |
Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock | 4,310 |
Share-based compensation (in shares) | (1,224,329) |
Common interests forfeited | (18,273) |
Balance at the end of period | 27,506,473 |
The J.G. Wentworth Company, LLC | Common Stock - Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock | (903,128) |
The J.G. Wentworth Company, LLC | The J.G. Wentworth Company | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 14,420,392 |
Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock | 4,310 |
Share-based compensation (in shares) | (1,224,329) |
Balance at the end of period | 14,103,501 |
The J.G. Wentworth Company, LLC | The J.G. Wentworth Company | Common Stock - Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock | 903,128 |
The J.G. Wentworth Company, LLC | Non-controlling Interests | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 14,324,373 |
Common interests forfeited | (18,273) |
Balance at the end of period | 13,402,972 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Nov. 14, 2013 | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Common Stock | |||
Commitments and contingencies | |||
Conversion ratio of common stock | 1 | ||
Borrowing Agreement | Counterparty under agreement to purchase LCSS assets | |||
Commitments and contingencies | |||
Amount owed by counterparty | $ 9.9 | $ 9.7 | |
Annual rate of interest for counterparty borrowing (as a percent) | 5.35% | ||
Arrangement | Counterparty under agreement to purchase LCSS assets | |||
Commitments and contingencies | |||
Percentage of target IRR above original target IRR paid by counterparty | 3.50% | ||
Tax Receivable Agreement | |||
Commitments and contingencies | |||
Income tax, cash savings percentage to be paid to common interestholders | 85.00% | ||
Tax Receivable Agreement | Minimum | The J.G. Wentworth Company, LLC | |||
Commitments and contingencies | |||
Common interestholders, ownership percentage | 1.00% |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Shares | |||
Outstanding at the beginning of the period (in shares) | 1,376,932 | ||
Granted (in shares) | 254,000 | ||
Forfeited (in shares) | (106,437) | ||
Expired | (6,857) | ||
Outstanding at the end of the period (in shares) | 1,517,638 | 1,376,932 | |
Outstanding, vested and expected to vest (in shares) | 1,456,803 | ||
Vested (in shares) | 66,714 | ||
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 11.44 | ||
Granted (in dollars per share) | 9.98 | ||
Forfeited (in dollars per share) | 11.01 | ||
Expired (in dollars per share) | 13.34 | ||
Outstanding at the end of the period (in dollars per share) | 11.22 | $ 11.44 | |
Outstanding, vested and expected to vest (in dollars per share) | 11.23 | ||
Vested (in dollars per share) | $ 12.37 | ||
Weighted-Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term Outstanding at the beginning of the period | 9 years 1 month 3 days | 9 years 5 months 10 days | |
Weighted average remaining contractual term outstanding, vested and expected to vest | 9 years 1 month 3 days | ||
Weighted average remaining contractual term, granted | 8 years 7 months 5 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value outstanding at the beginning of the period | $ 0.1 | ||
Aggregate intrinsic value outstanding at the end of the period | 0 | $ 0.1 | |
Outstanding, vested and expected to vest | 0 | ||
Granted | 0 | ||
Additional disclosure | |||
Total unrecognized compensation expense | $ 6.3 | ||
Weighted average period for recognizing unrecognized compensation expense | 4 years 1 month 6 days | ||
Common Stock - Class A | |||
Share-based compensation | |||
Number of awards available for grant (in shares) | 1,200,000 | ||
Stock options | |||
Assumptions used in the Black-Scholes valuation model for options granted | |||
Weighted average fair value of grant (in dollars per share) | $ 4.80 | ||
Risk-free interest rate (as a percent) | 1.63% | ||
Expected volatility (as a percent) | 47.10% | ||
Expected life of options in years | 6 years 6 months | ||
Expected dividend yield | 0.00% | ||
Share-based compensation expense | $ 0.6 | $ 0.2 | |
Stock options | Common Stock - Class A | |||
Share-based compensation | |||
Award expiration period | 10 years | ||
Award vesting period | 5 years | ||
Performance-based restricted stock units | |||
Assumptions used in the Black-Scholes valuation model for options granted | |||
Share-based compensation expense | $ 0.2 | 0.1 | |
Additional disclosure | |||
Weighted average period for recognizing unrecognized compensation expense | 2 years 2 months 12 days | ||
Awards granted, Converted, forfeited, and outstanding | |||
Outstanding as of December 31, 2014 | 130,250 | ||
Granted (in shares) | 127,000 | ||
Awards vested (in shares) | 0 | ||
Forfeited (in shares) | (42,500) | ||
Outstanding as of March 31, 2015 | 214,750 | 130,250 | |
Vested as of March 31, 2015 | 203,031 | ||
Weighted-Average Grant-Date Fair Value | |||
Outstanding as of December 31, 2014 | $ 10.60 | ||
Granted (in dollars per share) | 9.98 | ||
Awards vested (in Shares) | 0 | ||
Forfeited | 10.20 | ||
Outstanding, vested and expected to vest as of March 31, 2015 | 10.31 | $ 10.60 | |
Vested as of March 31, 2015 | $ 10.32 | ||
Additional disclosure | |||
Aggregate grant date fair value of awards granted | $ 1.3 | ||
Share-based compensation expense expected to recognize | $ 1.7 | ||
Performance-based restricted stock units | Minimum | |||
Additional disclosure | |||
Number of share in to which award will vest | 0 | ||
Performance-based restricted stock units | Maximum | |||
Additional disclosure | |||
Number of share in to which award will vest | 1.5 | ||
Restricted Common Interests | |||
Assumptions used in the Black-Scholes valuation model for options granted | |||
Share-based compensation expense | $ 0.2 | $ 1 | |
Additional disclosure | |||
Weighted average period for recognizing unrecognized compensation expense | 2 years 9 months 18 days | ||
Awards granted, Converted, forfeited, and outstanding | |||
Outstanding as of December 31, 2014 | 157,112 | ||
Awards vested (in shares) | (12,781) | ||
Forfeited (in shares) | (18,273) | ||
Outstanding as of March 31, 2015 | 126,058 | 157,112 | |
Vested as of March 31, 2015 | 125,086 | ||
Weighted-Average Grant-Date Fair Value | |||
Outstanding as of December 31, 2014 | $ 9.86 | ||
Granted (in dollars per share) | 15.63 | ||
Forfeited | 2.67 | ||
Outstanding, vested and expected to vest as of March 31, 2015 | 10.33 | $ 9.86 | |
Vested as of March 31, 2015 | $ 10.32 | ||
Additional disclosure | |||
Share-based compensation expense expected to recognize | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) | 6 Months Ended | ||
Jun. 30, 2015shares | Jun. 30, 2014shares | Nov. 14, 2013shares | |
PGHI Corp | Class C Profits Interests | Common Stock - Class A | |||
Earnings per share | |||
Number of shares entitled by warrants (in shares) | 966,434 | ||
The J.G. Wentworth Company, LLC | Common Stock - Class A | |||
Earnings per share | |||
Conversion ratio of common stock | 1 | ||
Stock options | Common Stock - Class A | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share | 1,433,054 | 345,450 | |
Performance-based restricted stock units | Common Stock - Class A | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share | 188,382 | 41,459 | |
Common interest and vested restricted common interests | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share | 13,976,734 | 16,659,035 | |
Unvested restricted common interests | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share | 142,440 | 768,121 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Numerator for basic EPS- Net income attributable to holders of The J.G. Wentworth Company | $ (12,296) | $ 6,268 | $ (13,641) | $ 15,290 |
Common Stock - Class A | ||||
Numerator: | ||||
Numerator for basic EPS- Net income attributable to holders of The J.G. Wentworth Company | (12,296) | 6,268 | (13,641) | 15,290 |
Numerator for diluted EPS- Net income attributable to holders of The J.G. Wentworth Company | $ (12,296) | $ 6,268 | $ (13,641) | $ 15,290 |
Denominator: | ||||
Denominator for basic EPS - Weighted average shares | 14,113,990 | 12,559,957 | 14,192,480 | 12,104,172 |
Effect of dilutive securities: | ||||
Restricted common stock and performance-based restricted stock units | 0 | 2,085 | 0 | 1,376 |
Dilutive potential common shares (in shares) | 0 | 2,085 | 0 | 1,376 |
Denominator for diluted EPS - Adjusted weighted average shares | 14,113,990 | 12,562,042 | 14,192,480 | 12,105,548 |
Basic income per share computation: | ||||
Basic income per share of Class A common stock (in dollars per share) | $ (0.87) | $ 0.50 | $ (0.96) | $ 1.26 |
Diluted income per share computation: | ||||
Diluted income per share of Class A common stock (in dollars per share) | $ (0.87) | $ 0.50 | $ (0.96) | $ 1.26 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Jul. 31, 2015 | Jul. 28, 2015 |
WestStar Mortgage | ||
Subsequent Event [Line Items] | ||
Ownership interest (as a percent) | 100.00% | |
Total consideration transferred | $ 66,700,000 | |
Payment to purchase membership interest | 53,200,000 | |
Shares issued as consideration, value | $ 13,500,000 | |
WestStar Mortgage | Common Stock - Class A | ||
Subsequent Event [Line Items] | ||
Shares issued as consideration | 1,572,327 | |
VIE | Securitization Debt 2015 Transaction Two | ||
Subsequent Event [Line Items] | ||
Bond proceeds | $ 158,500,000 | |
Deal discount rate (as a percent) | 4.18% |