Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | J.G. Wentworth Co | ||
Entity Central Index Key | 1,580,185 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Period End Date | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 123.6 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Common Stock- Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (A) | 15,728,041 | ||
Entity Common Stock, Shares Outstanding (B) | 15,728,041 | ||
Common Stock- Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (A) | 8,715,024 | ||
Entity Common Stock, Shares Outstanding (B) | 8,715,024 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | $ 57,322 | $ 41,648 | |
Restricted cash and investments | 136,780 | 198,206 | |
VIE finance receivables, at fair market value | [1] | 4,376,458 | 4,422,033 |
Other finance receivables, at fair value | 9,689 | 101,802 | |
VIE finance receivables, net of allowances for losses of $7,674 and $6,443, respectively | [1] | 99,874 | 113,489 |
Other finance receivables, net of allowances for losses of $1,707 and $2,454, respectively | 10,468 | 17,803 | |
Other receivables, net of allowances for losses of $273 and $204, respectively | 16,285 | 14,165 | |
Mortgage loans held for sale, at fair value | [2] | 124,508 | 0 |
Mortgage service rights, at fair value | [2] | 29,287 | 0 |
Premises and equipment, net of accumulated depreciation of $7,961 and $5,976, respectively | 5,674 | 3,758 | |
Intangible assets, net of accumulated amortization of $22,521 and $20,273, respectively | 30,429 | 45,436 | |
Goodwill | 8,369 | 84,993 | |
Marketable securities | 84,994 | 103,419 | |
Deferred tax assets, net | 2,250 | 2,170 | |
Other assets | 82,577 | 33,787 | |
Total Assets | 5,074,964 | 5,182,709 | |
Liabilities | |||
Accrued expenses and accounts payable | 21,548 | 19,256 | |
Accrued interest | 22,380 | 17,416 | |
Term loan payable | 440,181 | 437,183 | |
VIE derivative liabilities, at fair value | 66,519 | 75,706 | |
VIE borrowings under revolving credit facilities and other similar borrowings | 48,828 | 19,339 | |
Other borrowings under revolving credit facilities and other similar borrowings | 122,243 | 0 | |
VIE long-term debt | 199,363 | 181,558 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | |
Other liabilities | 65,106 | 6,677 | |
Deferred tax liabilities, net | 18,825 | 36,656 | |
Installment obligations payable | 84,994 | 103,419 | |
Total Liabilities | $ 5,018,805 | $ 4,929,074 | |
Commitments and contingencies | |||
Stockholders' Equity And Members' Capital [Abstract] | |||
Additional paid-in-capital | $ 104,713 | $ 95,453 | |
(Accumulated deficit) retained earnings | (70,765) | 25,634 | |
Stockholders Equity And Members Capital Including Treasury Stock | 33,948 | 121,087 | |
Less: treasury stock at cost, 542,072 and 600,755 shares as of December 31, 2015 and 2014, respectively | (2,138) | (2,443) | |
Total stockholders' equity, The J.G. Wentworth Company | 31,810 | 118,644 | |
Non-controlling interests | 24,349 | 134,991 | |
Total Stockholders' Equity | 56,159 | 253,635 | |
Total Liabilities and Stockholders’ Equity | 5,074,964 | 5,182,709 | |
Common Stock- Class A | |||
Stockholders' Equity And Members' Capital [Abstract] | |||
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 16,076,444 and 15,534,372 issued and outstanding as of December 31, 2015, respectively, 15,021,147 and 14,420,392 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 8,908,698 issued and outstanding as of December 31, 2015, 9,963,750 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | 0 | 0 | |
Common Stock- Class B | |||
Stockholders' Equity And Members' Capital [Abstract] | |||
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 16,076,444 and 15,534,372 issued and outstanding as of December 31, 2015, respectively, 15,021,147 and 14,420,392 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 8,908,698 issued and outstanding as of December 31, 2015, 9,963,750 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | 0 | 0 | |
Common Stock - Class C | |||
Stockholders' Equity And Members' Capital [Abstract] | |||
Class A common stock, par value $0.00001 per share; 500,000,000 shares authorized, 16,076,444 and 15,534,372 issued and outstanding as of December 31, 2015, respectively, 15,021,147 and 14,420,392 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class B common stock, par value $0.00001 per share; 500,000,000 shares authorized, 8,908,698 issued and outstanding as of December 31, 2015, 9,963,750 issued and outstanding as of December 31, 2014, respectively | 0 | 0 | |
Class C common stock, par value $0.00001 per share; 500,000,000 shares authorized, 0 issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | $ 0 | $ 0 | |
[1] | Pledged as collateral to VIE credit and long-term debt facilities. Refer to Note 8 “VIE and Other Finance Receivables, at Fair Value” and Note 9 “VIE and Other Finance Receivables, net of Allowance for Losses”. | ||
[2] | Pledged as collateral to Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings. Refer to Note 11 “Mortgage Loans Held for Sale, at Fair Value” and Note 12 “Mortgage Servicing Rights, at Fair Value.” |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
VIE finance receivables, allowances for losses | $ 8,659 | $ 7,674 |
Other finance receivables, allowances for losses | 1,707 | 2,454 |
Other receivables, allowances for losses | 273 | 204 |
Fixed assets, accumulated depreciation | 7,961 | 5,976 |
Intangible assets, accumulated amortization | $ 22,521 | $ 20,273 |
Treasury stock, shares | 542,072 | 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 | 16,076,444 | 15,021,147 |
Common stock, shares outstanding | 15,534,372 | 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 | 8,908,698 | 9,963,750 |
Common stock, shares outstanding | 8,908,698 | 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | |||
Interest income | $ 190,203 | $ 186,958 | $ 172,423 |
Realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 79,620 | 300,702 | 252,801 |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 18,590 | 0 | 0 |
Changes in mortgage servicing rights, net | 1,649 | 0 | 0 |
(Loss) gain on swap terminations, net | (190) | (628) | 200 |
Servicing, broker, and other fees | 8,016 | 4,149 | 5,276 |
Loan origination fees | 2,543 | 0 | 0 |
Realized and unrealized (losses) gains on marketable securities, net | (4,641) | 888 | 15,299 |
Realized gain (loss) on notes receivable, at fair value | 0 | 2,098 | (1,862) |
Gain on extinguishment of debt, net | 593 | 270 | 14,217 |
Other | (16) | (61) | 1,209 |
Total Revenues | 296,367 | 494,376 | 459,563 |
EXPENSES | |||
Advertising | 63,820 | 68,489 | 70,304 |
Interest expense | 208,545 | 200,798 | 193,035 |
Compensation and benefits | 52,656 | 41,108 | 42,595 |
General and administrative | 21,057 | 18,567 | 20,179 |
Professional and consulting | 21,486 | 18,452 | 18,820 |
Debt issuance | 6,741 | 8,683 | 8,930 |
Securitization debt maintenance | 5,912 | 6,161 | 6,091 |
Provision for losses | 5,576 | 4,806 | 5,695 |
Direct subservicing costs | 948 | 0 | 0 |
Depreciation and amortization | 4,613 | 4,168 | 5,703 |
Installment obligations (income) expense, net | (1,225) | 5,322 | 19,647 |
Impairment charges and loss on disposal of assets | 121,594 | 69 | 4,200 |
Total Expenses | 511,723 | 376,623 | 395,199 |
(Loss) income before income taxes | (215,356) | 117,753 | 64,364 |
(Benefit) provision for income taxes | (18,216) | 21,140 | 2,546 |
Net (loss) income | (197,140) | 96,613 | 61,818 |
Less net (loss) income attributable to non-controlling interests | (101,828) | 65,402 | 67,395 |
Net (loss) income attributable to The J.G. Wentworth Company | $ (95,312) | $ 31,211 | $ (5,577) |
Common Stock- Class A | |||
Weighted average shares of Class A common stock outstanding: | |||
Basic (in shares) | 14,690,746 | 12,986,058 | |
Diluted (in shares) | 14,690,746 | 12,988,781 | |
Net (loss) income per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | |||
Basic (in dollars per share) | $ (6.49) | $ 2.40 | |
Diluted (in dollars per share) | $ (6.49) | $ 2.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (197,140) | $ 96,613 | $ 61,818 |
Other comprehensive (loss) gain: | |||
Reclassification adjustment for (gain) loss in net income | 0 | (2,098) | 1,862 |
Unrealized gains on notes receivable arising during the year | 0 | 480 | 29 |
Total other comprehensive (loss) gain | 0 | (1,618) | 1,891 |
Total comprehensive (loss) income | (197,140) | 94,995 | 63,709 |
Less: comprehensive (loss) income allocated to non-controlling interests | (101,828) | 64,396 | 69,275 |
Comprehensive (loss) income attributable to The J.G. Wentworth Company | $ (95,312) | $ 30,599 | $ (5,566) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity/Member's Capital - USD ($) $ in Thousands | Total | Common Stock- Class A | Common Stock- Class B | Member’s Capital | Accumulated Other Comprehensive Income | Non-controlling Interest | (Accumulated Deficit) Retained Earnings | Additional Paid-In- Capital | Treasury Stock | Common StockCommon Stock- Class A | Common StockCommon Stock- Class B |
Member's capital beginning balance at Dec. 31, 2012 | $ 443,095 | ||||||||||
Beginning Balance at Dec. 31, 2012 | $ 442,818 | $ (277) | $ 0 | $ 0 | $ 0 | ||||||
Beginning Balance (in shares) at Dec. 31, 2012 | 0 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Capital distributions | (475,877) | (475,877) | |||||||||
Amounts reclassified from accumulated other comprehensive income | 1,862 | 1,862 | |||||||||
Net (loss) income | 75,368 | 75,368 | |||||||||
Share-based compensation | 1,168 | 1,168 | |||||||||
Member's capital ending balance at Nov. 13, 2013 | 43,754 | ||||||||||
Ending Balance at Nov. 13, 2013 | 45,339 | 1,585 | 0 | 0 | 0 | ||||||
Member's capital beginning balance at Dec. 31, 2012 | 443,095 | ||||||||||
Beginning Balance at Dec. 31, 2012 | 442,818 | (277) | 0 | 0 | 0 | ||||||
Beginning Balance (in shares) at Dec. 31, 2012 | 0 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 1,862 | ||||||||||
Net (loss) income | 61,818 | ||||||||||
Unrealized gains on notes receivable arising during the period | 29 | ||||||||||
Re-issuance of treasury stock in connection with the Home Lending Acquisition | 0 | ||||||||||
Member's capital ending balance at Dec. 31, 2013 | 0 | ||||||||||
Ending Balance at Dec. 31, 2013 | 173,382 | 612 | 108,111 | (5,577) | 70,236 | $ 0 | |||||
Ending Balance (in shares) at Dec. 31, 2013 | 3,929 | 11,216,429 | 13,984,065 | ||||||||
Member's capital beginning balance at Nov. 13, 2013 | 43,754 | ||||||||||
Beginning Balance at Nov. 13, 2013 | 45,339 | 1,585 | 0 | 0 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Effect of Reorganization on member’s capital | 0 | (43,754) | 43,754 | ||||||||
Stock issued during period, value | 121,982 | (984) | 60,152 | 62,814 | |||||||
Stock issued during period (in shares) | 11,212,500 | 9,757,858 | 14,001,583 | ||||||||
Member's capital ending balance at Nov. 14, 2013 | 0 | ||||||||||
Ending Balance at Nov. 14, 2013 | 167,321 | 601 | 103,906 | 0 | 62,814 | ||||||
Ending Balance (in shares) at Nov. 14, 2013 | 9,757,858 | 14,001,583 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net (loss) income | (13,550) | 0 | (7,973) | (5,577) | |||||||
Share-based compensation | 284 | 176 | 108 | ||||||||
Share-based compensation (in shares) | 3,929 | (3,929) | (17,518) | ||||||||
Issuance of additional shares in connection with exercise of over-allotment | 19,298 | 11,984 | 7,314 | ||||||||
Issuance of additional shares in connection with exercise of over-allotment (in shares) | 1,462,500 | ||||||||||
Unrealized gains on notes receivable arising during the period | 29 | 11 | 18 | ||||||||
Member's capital ending balance at Dec. 31, 2013 | 0 | ||||||||||
Ending Balance at Dec. 31, 2013 | 173,382 | 612 | 108,111 | (5,577) | 70,236 | $ 0 | |||||
Ending Balance (in shares) at Dec. 31, 2013 | 3,929 | 11,216,429 | 13,984,065 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (2,098) | (803) | (1,295) | ||||||||
Net (loss) income | 96,613 | 65,402 | 31,211 | ||||||||
Share-based compensation | 2,384 | 1,324 | 1,060 | ||||||||
Share-based compensation (in shares) | 8,796 | (180,882) | |||||||||
Stock issued during period, value | (11,463) | (12,215) | 1,270 | $ (518) | |||||||
Stock issued during period (in shares) | 138,121 | 530,355 | (715,916) | ||||||||
Unrealized gains on notes receivable arising during the period | 480 | 191 | 289 | ||||||||
Exchange of JGW LLC common interests into Class A common stock | (23,418) | 23,418 | |||||||||
Exchange of JGW LLC common interests into Class A common stock (in shares) | 3,123,517 | 3,123,517 | (3,123,517) | ||||||||
Equity financing costs | (1,197) | (666) | (531) | ||||||||
Repurchases of Class A common stock | (4,466) | (2,541) | $ (1,925) | ||||||||
Repurchases of Class A common stock (in shares) | 458,705 | (458,705) | |||||||||
Re-issuance of treasury stock in connection with the Home Lending Acquisition | 0 | ||||||||||
Member's capital ending balance at Dec. 31, 2014 | 0 | ||||||||||
Ending Balance at Dec. 31, 2014 | 253,635 | 0 | 134,991 | 25,634 | 95,453 | $ (2,443) | |||||
Ending Balance (in shares) at Dec. 31, 2014 | 14,420,392 | 9,963,750 | 600,755 | 14,420,392 | 9,963,750 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | ||||||||||
Net (loss) income | (197,140) | (101,828) | (95,312) | ||||||||
Share-based compensation | 1,291 | 638 | 653 | ||||||||
Share-based compensation (in shares) | 70,348 | (70,103) | |||||||||
Stock issued during period (in shares) | 0 | ||||||||||
Unrealized gains on notes receivable arising during the period | 0 | ||||||||||
Exchange of JGW LLC common interests into Class A common stock | (8,666) | 8,666 | |||||||||
Exchange of JGW LLC common interests into Class A common stock (in shares) | 984,949 | 984,949 | (984,949) | ||||||||
Equity financing costs | (112) | (53) | (59) | ||||||||
Repurchases of Class A common stock | (14,471) | $ (10,500) | (7,113) | $ (7,358) | |||||||
Repurchases of Class A common stock (in shares) | 1,087,312 | 1,513,644 | (1,513,644) | ||||||||
Re-issuance of treasury stock in connection with the Home Lending Acquisition | 12,956 | 6,380 | (1,087) | $ 7,663 | |||||||
Re-issuance of treasury stock in connection with the Home Lending Acquisition (in shares) | (1,572,327) | 1,572,327 | |||||||||
Member's capital ending balance at Dec. 31, 2015 | $ 0 | ||||||||||
Ending Balance at Dec. 31, 2015 | $ 56,159 | $ 0 | $ 24,349 | $ (70,765) | $ 104,713 | $ (2,138) | $ 0 | $ 0 | |||
Ending Balance (in shares) at Dec. 31, 2015 | 15,534,372 | 8,908,698 | 542,072 | 15,534,372 | 8,908,698 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (197,140) | $ 96,613 | $ 61,818 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||
Provision for losses | 5,576 | 4,806 | 5,695 |
Depreciation | 2,365 | 1,676 | 2,179 |
Impairment charges and loss on disposal of assets | 121,594 | 69 | 4,200 |
Changes in mortgage service rights, net | (1,649) | 0 | 0 |
Amortization of finance receivables acquisition costs | 622 | 518 | 11 |
Amortization of intangibles | 2,248 | 2,492 | 3,524 |
Amortization of debt issuance costs | 7,949 | 7,901 | 5,740 |
Proceeds from sale and principal payments on mortgage loans held for sale | 872,526 | 0 | 0 |
Originations and purchases of mortgage loans held for sale | (847,917) | 0 | 0 |
Change in realized and unrealized gains/losses on finance receivables | 164,311 | (551,676) | (164,786) |
Change in unrealized gains/losses on long-term debt | (229,635) | 245,355 | (36,858) |
Change in unrealized gains/losses on derivatives | (9,346) | 5,619 | (51,157) |
Net proceeds from sale of finance receivables | 21,949 | 0 | 473 |
(Gain) loss on notes receivable, at fair value | 0 | (2,098) | 1,862 |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | (18,590) | 0 | 0 |
Purchases of finance receivables | (395,986) | (450,106) | (410,121) |
Collections on finance receivables | 554,464 | 527,487 | 482,928 |
Gain on sale of finance receivables | (4,950) | 0 | (20) |
Recoveries of finance receivables | 1 | 69 | 16 |
Accretion of interest income | (189,736) | (186,861) | (171,926) |
Accretion of interest expense | (40,074) | (35,924) | (42,393) |
Gain on extinguishment of debt | (593) | (270) | (22,109) |
Share-based compensation expense | 1,291 | 2,384 | 1,452 |
Change in marketable securities | 4,641 | (888) | (15,299) |
Installment obligations (income) expense, net | (1,225) | 5,322 | 19,647 |
Decrease in fair value of life settlement contracts | 16 | 116 | 33 |
Premiums and other costs paid, and proceeds from sale of life settlement contracts | (16) | (116) | (200) |
Deferred income taxes | (17,911) | 21,023 | 2,332 |
(Increase) decrease in operating assets: | |||
Restricted cash and investments | 66,182 | (88,868) | 3,540 |
Other assets | 919 | 219 | (723) |
Other receivables | 1,683 | (793) | 375 |
Increase (decrease) in operating liabilities: | |||
Accrued expenses and accounts payable | (1,021) | (5,828) | 4,014 |
Accrued interest | 4,658 | 2,931 | 2,798 |
Other liabilities | (2,902) | (969) | 192 |
Net cash used in operating activities | (125,696) | (399,797) | (312,763) |
Cash flows from investing activities: | |||
Purchase of Home Lending, net of cash acquired | (47,408) | 0 | 0 |
Receipts from notes receivable | 0 | 6,093 | 2,493 |
Purchases of intangible assets | 0 | (50) | (125) |
Collections on notes receivable from affiliate | 0 | 0 | 5,243 |
Purchases of premises and equipment, net of sales proceeds | (3,092) | (2,391) | (3,126) |
Cash received in connection with the Blocker Merger | 0 | 2,136 | 0 |
Net cash (used in) provided by investing activities | (50,500) | 5,788 | 4,485 |
Cash flows from financing activities: | |||
Distributions of member’s capital | 0 | 0 | (459,612) |
Proceeds from Initial Public Offering, net | 0 | 0 | 141,280 |
Payments of equity financing costs | (112) | (1,197) | 0 |
Purchases of treasury stock | (14,471) | (4,466) | 0 |
Issuance of VIE long-term debt | 514,699 | 795,436 | 624,252 |
Payments for debt issuance costs | (742) | (2,438) | (33,518) |
Payments on lease obligations | (4) | 0 | (745) |
Repayments of long-term debt and derivatives | (330,745) | (368,804) | (330,551) |
Gross proceeds from revolving credit facility | 1,140,012 | 270,294 | 369,195 |
Repayments of revolving credit facilities | (1,116,767) | (292,229) | (355,333) |
Issuance of installment obligations payable | 1,419 | 100 | 2,782 |
Purchase of marketable securities | (1,419) | (100) | (2,782) |
Repayments of installment obligations payable | (18,620) | (23,957) | (31,589) |
Proceeds from sale of marketable securities | 18,620 | 23,957 | 31,589 |
Repayments under term loan | 0 | 0 | (267,941) |
Net proceeds from term loan | 0 | 0 | 557,175 |
Net cash provided by financing activities | 191,870 | 396,596 | 244,202 |
Net increase (decrease) in cash and cash equivalents | 15,674 | 2,587 | (64,076) |
Cash and cash equivalents at beginning of the period | 41,648 | 39,061 | 103,137 |
Cash and cash equivalents at the end of the period | 57,322 | 41,648 | 39,061 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 236,075 | 225,803 | 228,683 |
Cash paid for income taxes | 128 | 4 | 0 |
Capital distributions | 0 | 0 | 459,612 |
Supplemental disclosure of noncash items: | |||
Retained mortgage servicing rights in connection with sale of mortgage loans | 3,752 | 0 | 0 |
Mortgage loans subject to repurchase rights from Ginnie Mae | 23,121 | 0 | 0 |
Exchange of LLC Common Interests for shares of Class A common stock | 8,666 | 23,418 | 0 |
Re-issuance of Treasury stock in connection with acquisition | 12,956 | 0 | 0 |
Amount due to sellers in connection with acquisition | 8,443 | 0 | 0 |
Non-cash asset distribution of members’ capital | 0 | 0 | 16,265 |
Net deferred tax liability assumed in connection with the Blocker Merger | 0 | 13,599 | 0 |
Capital lease obligation assumed | $ 281 | $ 0 | $ 0 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 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 offices in Radnor, Pennsylvania and Woodbridge, Virginia. We are a diversified financial services company that specializes in providing solutions to consumers in need of cash. Our direct-to-consumer businesses use the internet, television, direct mailing, and other channels to offer a variety of solutions including structured settlement payment purchasing, mortgage origination (both purchase and refinancing), prepaid cards and access to personal lending. We warehouse, securitize, sell or otherwise finance the financial assets that we purchase in transactions that are structured to ultimately generate cash proceeds to us that exceed the purchase price we paid for those assets. The Company has identified the following two reportable segments: (i) Structured Settlements and Annuity Purchasing ("Structured Settlements") - Structured Settlements 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. We engage in warehousing and subsequent resale or securitization of these various financial assets. Structured Settlements also includes prepaid card solutions and providing access to personal lending and funding for pre-settled legal claims as well as our corporate activities. (ii) Home Lending - Home Lending is primarily engaged in retail lending, originating primarily Federal Housing Administration (“FHA”), Veterans Administration ("VA") and conventional loans and is approved as a Title II, non-supervised direct endorsement mortgagee with the United States Department of Housing and Urban Development. In addition, Home Lending is an approved issuer with the Government National Mortgage Association (“Ginnie Mae”), Federal Home Loan Mortgage Corporation ("Freddie Mac"), U.S. Department of Agriculture ("USDA") as well as an approved seller and servicer with the Federal National Mortgage Association (“Fannie Mae”). Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, the consolidated financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal and recurring nature. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the 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 value; mortgage loans held for sale, at fair value; mortgage servicing rights, at fair value; intangible assets, net of accumulated amortization; goodwill; VIE derivative liabilities, at fair value; and VIE long-term debt issued by securitization and permanent financing trusts, at fair value. Actual results could differ from those estimates and such differences could be material. The accompanying consolidated financial statements include the accounts of the Corporation, its wholly-owned subsidiaries, including those entities that are considered VIEs, and where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). Excluded from the consolidated financial statements of the Company are those entities that are considered VIEs and where the Company has been deemed not to be the primary beneficiary according to ASC 810. 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 53.9% and 46.1% , respectively, as of December 31, 2015 . The Corporation's and the non-controlling interests' economic interest in JGW LLC as of December 31, 2014 was 50.2% and 49.8% , respectively. Net (loss) income attributable to the non-controlling interests in the consolidated statements of operations represents the portion of (loss) earnings attributable to the economic interest in JGW LLC held by entities other than the Corporation. The allocation of net (loss) income 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 interests' weighted average economic interests in JGW LLC for the years ended December 31, 2015 , 2014 and 2013 was 48.3% , 55.7% and 62.1% , respectively. The net (loss) income attributable to The J.G. Wentworth Company in the consolidated statement of operations for the years ended December 31, 2015 , 2014 and 2013 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 year ended December 31, 2015 , $19.0 million of the $18.2 million total tax benefit was specifically attributable to The J.G. Wentworth Company. For the year ended December 31, 2014 , $20.0 million of the $21.1 million total tax provision was specifically attributable to The J.G. Wentworth Company. For the year ended December 31, 2013 , $0.7 million of the $2.5 million total tax provision was specifically attributable to The J.G. Wentworth Company. Refer to Note 22 for a description of the Company’s income taxes. Non-controlling interests in the consolidated balance sheets represent the portion of equity attributable to the non-controlling interests of JGW LLC. The allocation of equity to the non-controlling interests in JGW LLC is based on the percentage owned by the non-controlling interests in the entity. All material inter-company balances and transactions are eliminated in consolidation. Refer to Note 3 for a summary of significant accounting policies. Certain prior-period amounts have been reclassified to conform to current-period presentation. |
Business Changes and Developmen
Business Changes and Developments | 12 Months Ended |
Dec. 31, 2015 | |
Business Changes and Developments | |
Business Changes and Developments | Business Changes and Developments Initial Public Offering & Reorganization On November 14, 2013, the Corporation consummated an initial public offering ("IPO") whereby 11,212,500 Class A shares of common stock (the "Class A common stock") were sold to the public for net proceeds of $141.3 million , after payment of underwriting discounts and offering expenses. The 11,212,500 shares sold were inclusive of 1,462,500 shares of Class A common stock sold pursuant to the full exercise of an overallotment option granted to the underwriters which was consummated on December 11, 2013. The net proceeds from the IPO were used to purchase 11,212,500 newly issued common membership interests (the "Common Interests" and the holders of such Common Interests the "Common Interestholders") directly from JGW LLC representing 37.9% of the then outstanding Common Interests. Concurrent with the consummation of the Corporation's IPO, the Corporation amended and restated its certificate of incorporation to provide for, among other things, the authorization of shares of Class A common stock, shares of “vote only” Class B common stock, par value $0.00001 per share (the “Class B common stock”), and shares of Class C “non-voting” common stock, par value $0.00001 per share (the “Class C common stock”). Also concurrent with the consummation of the Corporation's IPO, JGW LLC merged with and into a newly formed subsidiary of the Corporation. Pursuant to this merger, the operating agreement of JGW LLC was amended and restated such that, among other things, (i) the Corporation became the sole managing member of JGW LLC, (ii) JGW LLC Common Interests became exchangeable for one share of Class A common stock, or in the case of Peach Group Holdings, Inc. ("PGHI Corp."), one share of Class C common stock. Additionally, in connection with the merger, each holder of JGW LLC common interests, other than PGHI Corp., was issued an equivalent number of shares of Class B common stock. JLL Blocker Merger On October 7, 2014, the Company executed a merger ("the Blocker Merger") pursuant to which a subsidiary of the Company merged with and into JGW Holdings, Inc., a wholly owned subsidiary of JLL Fund V AIF II, L.P (“JLL”), a related party, with JGW Holdings, Inc. surviving the merger and becoming a wholly-owned subsidiary of the Corporation. In connection with the merger, JLL received 715,916 newly issued shares of Class A common stock in the merger and subsequently transferred to the Company 715,916 shares of Class B common stock and an equal number of Common Interests in JGW LLC. The Company also received from JLL $2.1 million in cash, 185,561 shares of Class A common stock, of which 47,440 were cancelled by the Company, in consideration for the assumption of approximately $13.6 million of JGW Holdings, Inc.'s contingent future tax obligation the parties agreed had a present value of approximately $4.4 million . The Company accounted for the Blocker Merger as a common control transaction and recorded the assets and liabilities received at their carrying values within the accounts of JLL as of the date of the merger. Home Lending Acquisition On July 31, 2015 (the "acquisition date"), the Company acquired (the "Home Lending Acquisition") all of the issued and outstanding capital stock of WestStar Mortgage Inc. (“WestStar”), a company primarily engaged in originating, selling and servicing residential mortgage loans, for a purchase price of $74.6 million . Immediately following the acquisition date, WestStar began to operate as the newly-branded subsidiary J.G. Wentworth Home Lending, Inc. ("Home Lending"). Refer to Note 4 for a discussion of the Company’s consolidation and accounting for its acquisition of Home Lending in accordance with ASC 805, Business Combinations ("ASC 805"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements | Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements Summary of Significant Accounting Policies Business Combinations The Company records the identifiable assets acquired, the liabilities assumed, and any non-controlling interests of companies that are acquired at their estimated fair value as of the date of acquisition, and includes the results of operations from the date of the acquisition in the consolidated statement of operations. The Company recognizes, as goodwill, the excess of the acquisition price over the estimated fair value of the net assets acquired. Fair Value Measurements Under ASC 820 Fair Value Measurements and Disclosure , ("ASC 820"), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the orderly transaction between market participants at the measurement date. Fair value measurement establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. These three levels of fair value hierarchy are defined as follows: • Level 1 - inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. • Level 2 - inputs to the valuation methodology include quoted prices in markets that are not active or quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - inputs to the valuation methodology are unobservable, reflecting the entity’s own assumptions about assumptions market participants would use in pricing the asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair value is a market based measure considered from the perspective of a market participant who holds the assets or owes the liabilities rather than an entity specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that market participants would use in pricing the assets or liabilities at the measurement date. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We also evaluate 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. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the following conditions have been satisfied: (1) the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; (2) the transferee obtains the right to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets or through an agreement that permits the transferee to require the transferor to repurchase the transferred financial assets that is so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them. Transfers that do not meet the criteria to be accounted for as sales are accounted for as secured borrowings. The amendments to ASC 860, Transfers and Servicing (“ASC 860”), eliminated the concept of a qualified special purpose entity, changed the requirements for derecognizing financial assets, and required additional disclosures about transfers of financial assets, including securitization transactions and continuing involvement with transferred financial assets. Cash and Cash Equivalents The Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with an initial maturity of three-months or less to be cash equivalents. Restricted Cash and Investments Restricted cash balances represent the use of trust or escrow accounts to secure the cash assets managed by the Company, certificates of deposit supporting letters of credit and warehouse lines of credit, customer purchase holdbacks, collateral collections and split payment collections, and collateral for broker dealer margin calls. The Structured Settlements and Annuity Purchasing business segment acts as the master servicer and/or the subservicer for structured settlements and annuities, lottery winnings, life settlements, and pre-settlements. The Home Lending business segment acts as master servicer for its mortgage loan servicing portfolio. Trust accounts are established for collections with payments being made from the restricted cash accounts to the lenders and other appropriate parties on a monthly basis in accordance with the applicable loan agreements or indentures. At certain times, the Company has cash balances in excess of FDIC insurance limits of $250,000 for interest-bearing accounts, which potentially subject the Company to market and credit risks. The Company has not experienced any losses to date as a result of these risks. Restricted investments in the amounts of $ 3.2 million and $1.1 million as of December 31, 2015 and 2014 , respectively, include certificates of deposit which are pledged to meet certain state requirements in order to conduct business in certain states. The certificates of deposit are carried at face value inclusive of interest, which approximates fair value as such instruments are renewed annually. Consolidation The consolidated financial statements include the accounts of The J.G. Wentworth Company, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities where the Company's wholly-owned subsidiaries are the primary beneficiaries. All material intercompany balances and transactions are eliminated in consolidation. In the normal course of business, we are involved with various entities that are considered to be VIEs. A VIE is an entity that has either a total investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest under the voting interest model of consolidation. We are required to consolidate any VIE if we are determined to be the primary beneficiary. The primary beneficiary is the entity that has the power to direct those activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses from or the right to receive benefits from the VIE that could potentially be significant to the VIE. We review all significant interests in the VIEs we are involved with including consideration of the activities of the VIEs that most significantly impact the VIEs’ economic performance and whether we have control over those activities. On an ongoing basis, we assess whether or not we are the primary beneficiary of a VIE. As a result of adopting ASC 810, Consolidations, we determined we were and continue to be the primary beneficiary of the VIEs used to securitize our finance receivables (“VIE finance receivables”). We elected the fair value option with respect to assets and liabilities in our securitization VIEs as part of their initial consolidation on January 1, 2010. The debt issued by our securitization VIEs is reported on our consolidated balance sheets as VIE long-term debt issued by securitization and permanent financing trusts, at fair value (“VIE securitization debt”). The VIE securitization debt is recourse solely to the VIE finance receivables held by such special purpose entities (“SPEs”) and thus is non-recourse to us and other consolidated subsidiaries. The VIEs will continue in operation until all securitization debt is paid and all residual cash flows are collected. Most consolidated VIEs have expected lives in excess of 20 years. We acquire receivables associated with structured settlement payments from individuals in exchange for cash, and these receivables are carried at fair value. Unearned income is calculated as the amount the fair value exceeds the cost basis of the receivables. Unearned income on structured settlements is recognized as interest income using the effective interest method over the life of the related structured settlement. Changes in fair value are recorded in realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives in our consolidated statements of operations. We, through our subsidiaries, sell finance receivables to SPEs. An SPE issues notes secured by undivided interests in the receivables. Payments due on these notes generally correspond to receipts from the receivables in terms of the timing of payments due. We retain an interest in the SPEs and are deemed to have control over these SPEs due to our servicing or subservicing role and therefore consolidate these SPEs. Allowance for Losses on Receivables On an ongoing basis the Company reviews the ability to collect all amounts owed on VIE and other finance receivables carried at amortized cost. The Company maintains an allowance for losses on receivables which represents management’s estimate for losses inherent in the portfolio. The Company determines the adequacy of its allowance based upon an evaluation of the finance receivables’ collateral, the financial strength of the related insurance company that issued the structured settlement, current economic conditions, historical loss experience, known and inherent risks in the portfolios and other relevant factors. Defaulted payment balances that are deemed uncollectible are charged against the allowance for losses on receivables, and subsequent recoveries, if any, are credited to the allowance. Mortgage Loans Held for Sale, at Fair Value Mortgage loans held for sale are carried at fair value with changes in the fair value recognized in current period earnings and included within realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs on the consolidated statement of operations. At the date of funding of the mortgage loan held for sale, the funded amount of the loan plus the related derivative asset or liability of the associated interest rate lock commitment (“IRLC”) becomes the initial recorded investment in the mortgage loan held for sale. Such amount is expected to approximate the fair value of the loan. The fair value of mortgage loans held for sale is calculated using observable market information including pricing from actual market transactions, investor commitment prices, or broker quotations. Gains and losses from the sale of mortgages are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, and are recorded in realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs in the consolidated statements of operations. Origination fees and costs are recognized into earnings at the time of funding. Mortgage Servicing Rights, at Fair Value Mortgage servicing rights ("MSRs") are contractual arrangements where the rights to service existing mortgages are sold by the original lender to other parties who specialize in the various functions of servicing mortgages. MSRs are initially recorded at fair value at the time the underlying loans are sold. The Company records the changes in fair value in changes in mortgage servicing rights. To determine the fair value of the servicing right, the Company uses a discounted cash flow approach incorporating assumptions that management believes market participants would use in estimating future net servicing income, including estimates of the contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, float value, the inflation rate, prepayment speeds and default rates. The Company elected to subsequently measure our existing MSRs portfolio using the fair value method, in which MSRs are measured at fair value each reporting period and changes in fair value are recorded in earnings in the period in which changes in value occur. Changes in the fair value of MSRs are included in the changes in mortgage servicing rights, net line item in the consolidated statement of operations. Premises and equipment Premises and equipment are stated at cost, net of accumulated depreciation or amortization and are comprised primarily of computer equipment, office furniture and software licensed from third parties. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the individual assets. For leasehold improvements, amortization is computed over the lesser of the estimated useful lives of the improvements or the lease term. The estimated useful lives of the assets range from 3 to 10 years. Intangible Assets The Company has intangible assets which have indefinite and definite lives, which are accounted for under ASC 350, Intangibles - Goodwill and Other , ("ASC 350"). Indefinite lived intangible assets are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable, and are tested at least annually. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. Our indefinite lived intangible assets include a trade name and licenses and approvals. Definite lived intangible assets consist primarily of databases, customer relationships, trade names and affinity relationships. Our databases are amortized over their estimated useful lives of 10 years. Customer relationships are amortized over useful lives of 3 to 15 years. Amortizable trade names are amortized over the useful life of 3 years. Affinity relationships are amortized over their useful life of 10 years. As of December 31, 2015, the weighted average remaining useful lives of the databases, customer relationships, trade names, and affinity relationships are 5 , 5 , 3 and 10 years, respectively. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in the business combination, and is accounted for under ASC 350. Goodwill has an indefinite useful life and is evaluated for impairment at the reporting-unit level on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. The Company has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The initial qualitative approach assesses whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value is less than carrying value, the two step quantitative impairment test is performed. A step 1 analysis involves calculating the fair value of the associated reporting unit and comparing it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying value, step 2 of the impairment test must be performed. Step 2 involves calculating and comparing the implied fair value of the reporting unit's goodwill with its carrying value. Impairment is recognized if the estimated fair value of the reporting unit is less than its net book value. Such loss is calculated as the difference between the estimated implied fair value of goodwill and its carrying amount. As a result of our annual impairment analysis (Note 5), the Company determined the goodwill recorded in connection with the 2011 acquisition of Orchard Acquisition Company ("OAC") was impaired and recorded an impairment charge of $85.0 million in its consolidated statements of operations for the year ended December 31, 2015 . No impairment was recognized for goodwill for the years ended December 31, 2014 and 2013 . Marketable Securities Assets acquired through the Company’s installment sale transaction structure are invested in a diverse portfolio of marketable debt and equity securities. Marketable securities are considered trading securities and are carried using the fair value method in accordance with ASC 820 with realized and unrealized gains and losses included in realized and unrealized gains (losses) on marketable securities, net in the Company’s consolidated statements of operations and classified as Level 1 assets in the valuation hierarchy of fair value measurements. Marketable securities are held for resale in anticipation of fluctuations in market prices. Interest on debt securities is recognized in interest income as earned and dividend income on marketable equity securities is recognized in interest income on the ex-dividend date. For the years ended December 31, 2015, 2014 and 2013, the Company earned $3.4 million , $4.4 million and $4.4 million , respectively, related to interest and dividends on marketable securities. Derivative Instruments and Hedging Activities The Company holds derivative instruments that do not qualify for hedge accounting treatment as defined by ASC 815, Derivatives and Hedging ("ASC 815"). The objective for holding these instruments is to economically offset variability in forecasted cash flows associated with interest rate fluctuations. Interest rate swaps are recorded at fair value in VIE derivative liabilities, at fair value on the consolidated balance sheet with changes in fair value recorded in unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s consolidated statements of operations. The Company also enters into commitments to originate and purchase mortgage loans at interest rates that are determined prior to the funding or purchase of the loan. IRLCs are considered freestanding derivatives and are recorded at fair value at inception. Changes in fair value subsequent to inception are based on the change in fair value of the underlying loan and changes in the probability that the loan will fund within the terms of the commitment. The Company uses derivative financial instruments, primarily forward sales commitments, to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale. The Company may also enter into commitments to sell mortgage backed securities ("MBSs") as part of its overall hedging strategy. The Company has elected not to apply hedge accounting to these freestanding derivatives. The fair value of freestanding derivatives is recorded in other assets or other liabilities on the consolidated balance sheets with changes in fair value included in net gains on sales of mortgage loans on the consolidated statements of operations. Notes Receivable, at Fair Value Notes receivable represented fixed rate obligations of a third party collateralized by retained interests from certain securitizations sponsored by the Company. Under the agreements, the obligor had the right to redeem the notes at fair value. The notes receivable were treated as debt securities, classified as available-for-sale, and carried at fair value in accordance with ASC 320, Investments – Debt and Equity Securities . Unrealized gains and losses on notes receivable arising during the period were reflected within accumulated other comprehensive gain (loss) in the Company’s consolidated statements of comprehensive income (loss) and consolidated statements of changes in stockholders’ equity. The notes receivable were fully repaid in June of 2014. The notes receivable were analyzed on an annual basis for other than temporary impairment. No impairment expense was recognized during the years ended December 31, 2014 and 2013. Loans Eligible for Repurchase from Ginnie Mae For certain loans that the Company securitized with Ginnie Mae, the Company has the unilateral right to repurchase any individual loan if that loan meets certain criteria, including being delinquent greater than 90 days. As a result of this unilateral right, the Company must recognize the delinquent loan on its consolidated balance sheets and establish a corresponding liability regardless of the Company’s intention to repurchase the loan. As of December 31, 2015 , delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has the unilateral right to repurchase totaled $45.8 million . The amount of loans eligible for repurchase from Ginnie Mae and the liability for loans eligible for repurchase from Ginnie Mae are included in other assets and other liabilities on the Company’s consolidated balance sheet, respectively. Income Taxes JGW LLC and the majority of its subsidiaries operate in the U.S. as non-tax paying entities, and are treated as disregarded entities for U.S. federal and state income tax purposes and generally as corporate entities in non-U.S. jurisdictions. In addition, certain of JGW LLC's wholly owned subsidiaries are operating as corporations within the U.S. and subject to U.S. federal and state tax. As non-tax paying entities, the majority of JGW LLC's net income or loss is attributable to its members and included in their tax returns. The current and deferred income tax provision (benefit) relates to both the income (loss) attributable to the Corporation from JGW LLC and to the tax-paying subsidiaries of JGW LLC. Income taxes are accounted for using the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of the differences between the carrying amounts of assets and liabilities and their respective tax basis, using currently enacted tax rates. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We analyze its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, we determine that uncertainties in tax positions exist, a reserve will be established. We will recognize accrued interest and penalties related to uncertain tax positions in the consolidated statements of operations. Tax laws are complex and subject to different interpretations by the taxpayer and respective taxing authorities. Significant judgment is required in determining tax expense and evaluating tax positions, including evaluating uncertainties under U.S. GAAP. Management reviews its tax positions periodically and adjusts its tax balances as new information becomes available. Segment Reporting The Company reports operating segments in accordance with ASC 280, Segment Reporting ("ASC 280"). Operating segments are components of an entity for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. ASC 280 requires that a public entity report a measure of segment profit or loss, certain specific revenue and expense items, segment assets, and information on the way that the Company identified its operating segments. The Company's business segments are determined based on products and services offered, as well as the nature of the related business activities and they reflect the manner in which financial information is currently evaluated by management. The Company has identified the following two reportable segments: (i) Structured Settlements and Annuity Purchasing and (ii) Home Lending. The Company's Structured Settlements and Annuity Purchasing segment also includes prepaid card solutions, providing access to personal lending and funding for pre-settled legal claims as well as our corporate activities. Interest Income Interest income on mortgage loans held for sale is accrued and is based upon the principal amount outstanding and contractual interest rates. Income recognition is discontinued when loans become 90 days delinquent or when in management’s opinion, the collectability of principal and interest becomes doubtful and the mortgage loans held for sale are put on a non-accrual basis. When the loan is placed on non-accrual status, the related interest receivable is reversed against interest income of the current period. If a non-accrual loan is returned to accruing status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria. The Company suspends recognizing interest income when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreements. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Payments received on past due receivables and finance receivables the Company has suspended recognizing interest income on are applied first to principal and then to accrued interest. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. Loan Servicing Fees Loan servicing fees associated with mortgage loan operations represent revenue earned for servicing loans for various investors and are included in servicing, broker, and other fees in the consolidated statements of operations. The loan servicing fees are based on a contractual percentage of the outstanding principal balance and are recognized into income when earned. Loan servicing expenses are charged to operations as incurred, and included in direct subservicing costs in the consolidated statement of operations. Share-Based Compensation The Company applies ASC 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires that the compensation cost relating to share-based payment transactions, based on the fair value of the equity or liability instruments issued, be included in the Company’s consolidated statements of operations. The Company has determined that these share-based payment transactions represent equity awards under ASC 718 and therefore measures the cost of employee services received in exchange for share based compensation on the grant-date fair value of the award, and recognizes the cost over the period the employee is required to provide services for the award. For all grants of stock options, the fair value at the grant date is calculated using option pricing models based on the value of the entity's shares at the award date. Compensation expense for performance-based restricted stock units is recognized ratably from the date of the grant until the date the restrictions lapse and is based on the trading price of the Class A common stock on the date of grant and the probability of achievement of the specific performance-based goals. Share-based compensation expense is included in compensation and benefits expense within the Company’s consolidated statements of operations. Debt Issuance Costs Debt issuance costs related to liabilities for which the Company has elected the fair value option are expensed when incurred. Debt issuance costs related to liabilities for which the Company has not elected the fair value option are capitalized and amortized over the expected term of the borrowing or debt issuance. Capitalized amounts are included in other assets or netted against the Company's long-term debt in the Company’s consolidated balance sheets and amortization of such costs is included in interest expense in the Company’s consolidated statements of operations over the life of the debt facility. Advertising Expenses The Company expenses advertising costs as incurred. The costs are included in advertising expense in the Company’s consolidated statements of operations. Recently Adopted Accounting Pronouncements Effective January 1, 2014, the Company adopted ASU No. 2013-11, 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. The adoption of ASU 2013-11 did not materially impact the Company’s financial statements. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations In accordance with ASC 805, the Company accounts for acquisitions by applying the acquisition method of accounting. The acquisition method of accounting requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at their fair values as of the closing date of the acquisition. On July 31, 2015, the Company completed its acquisition of Home Lending. The results of Home Lending are included in the Company's consolidated statement of operations from the date of acquisition and are reported as a separate reportable segment. Home Lending is primarily engaged in originating, selling and servicing residential mortgage loans, and its acquisition represented a major step in the Company's strategy to become a more diversified financial services company. The final acquisition-date fair value of the consideration was $74.6 million , which consisted of $53.2 million that was paid in cash and $13.0 million that was paid through the issuance of 1,572,327 shares of the Company's Class A common stock. The fair value of the 1,572,327 Class A common shares issued was calculated using the closing trading price of the Company’s common shares as of the acquisition date. An additional $8.4 million of consideration was accrued to reflect the estimated outcome of certain post close-adjustments included in the stock purchase agreement and was paid after December 31, 2015. The following table sets forth the final acquisition-date fair value of the consideration and the identified net assets acquired and liabilities assumed as of July 31, 2015. As of July 31, 2015 (In thousands) Consideration: Cash $ 53,205 Equity instruments issued (1,572,327 shares of Class A common stock) 12,956 Post close adjustment liabilities 8,443 Fair value of total consideration $ 74,604 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 6,610 Restricted cash 4,756 Mortgage loans held for sale 131,325 Mortgage servicing rights 27,638 Premises and equipment 908 Intangible assets 23,842 Other assets 31,701 Other borrowings under revolving credit facilities and other similar borrowings (128,487 ) Other liabilities (32,058 ) Total identifiable net assets 66,235 Goodwill $ 8,369 Of the $23.8 million of acquired intangible assets, $13.2 million was assigned to licenses and approvals that are not subject to amortization. The remaining $10.6 million of acquired intangible assets are subject to a weighted-average useful life of approximately 9.3 years. These finite-lived assets include affinity relationships of $9.5 million ( 10 -year useful life) and a trade name of $1.1 million ( 3 -year useful life). The $8.4 million of goodwill was assigned to the Home Lending reporting segment and is expected to be deductible for income tax purposes. The goodwill recognized is attributable to the expected synergies from applying the Company's brand name to the acquired entity's mortgage business as well as from Home Lending's assembled workforce. Acquisition related costs of $3.1 million were included in professional and consulting fees in the Company's consolidated statements of operations for the year ending December 31, 2015 . The following table summarizes the actual amounts of Home Lending's revenues and earnings included in the Company's consolidated statement of operations from July 31, 2015: Home Lending amounts included in the results of operations for Year Ended December 31, 2015 (In thousands) Total revenue $ 26,732 Net income before income taxes $ 1,992 The following table summarizes the supplemental unaudited pro forma information of the combined Company for the years ended December 31, 2015 and 2014 , respectively, as if the Home Lending Acquisition occurred on January 1, 2014. Years Ended December 31, 2015 2014 (In thousands, unaudited) Pro forma total revenues $ 343,238 $ 554,247 Pro forma net (loss) income before income taxes (1) $ (202,745 ) $ 129,877 (1) Includes adjustments for acquisition related costs of $3.9 million for the year ended December 31, 2014. These unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual consolidated results of operations of the Company that would have been achieved had the acquisition been consummated on January 1, 2014, nor are they intended to represent or be indicative of future results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill by business segment includes the following as of: December 31, 2015 December 31, 2014 (In thousands) Structured Settlements and Annuity Purchasing $ — $ 84,993 Home Lending 8,369 — Total Goodwill $ 8,369 $ 84,993 Intangible assets subject to amortization include the following as of: Structured Settlements and Annuity Purchasing Home Lending Cost Accumulated Amortization Cost Accumulated Amortization (In thousands) December 31, 2015 Database $ 4,609 $ (4,250 ) $ — $ — Customer relationships 18,844 (15,375 ) — — Domain names 486 (450 ) — — Non-compete agreements 1,821 (1,821 ) — — Trade Name — — 1,095 (228 ) Affinity relationship — — 9,547 (397 ) Intangible assets subject to amortization $ 25,760 $ (21,896 ) $ 10,642 $ (625 ) December 31, 2014 Database $ 4,609 $ (4,011 ) $ — $ — Customer relationships 18,844 (14,114 ) — — Domain names 1,635 (327 ) — — Non-compete agreements 1,821 (1,821 ) — — Intangible assets subject to amortization $ 26,909 $ (20,273 ) $ — $ — As of December 31, 2015 , estimated future amortization expense for amortizable intangible assets for the next five years and thereafter are as follows: Year Ending December 31, Amortization Expense (In thousands) 2016 $ 2,527 2017 2,213 2018 2,030 2019 1,442 2020 1,257 Thereafter 4,412 Total $ 13,881 Amortization of intangible assets is included in depreciation and amortization in the Company’s consolidated statements of operations. Amortization expense for the years ended December 31, 2015 , 2014 and 2013 , was $2.2 million , $2.5 million and $3.5 million , respectively. As of December 31, 2015 and 2014 , the carrying value of the Company's indefinite-lived trade name acquired in connection with the Company's 2011 acquisition of Orchard Acquisition Company ("OAC"), was $3.3 million and $38.8 million , respectively. As of December 31, 2015 , the carrying value of Home Lending's indefinite-lived licenses and approvals intangible asset was $13.2 million . During the three months ended September 30, 2015, the Company re-evaluated its internal projections for its Structured Settlements and Annuity Purchasing reporting unit (which is the same as the Structured Settlements reportable segment for segment reporting) based on lower than anticipated results, a significant decline in the stock price of the Company's Class A common stock, and a re-assessment of the reporting unit's brand strategy. Accordingly, we determined these events constituted a triggering event requiring the Company to: (i) test the related indefinite-lived trade name for potential impairment, and (ii) perform a step-1 impairment analysis of the goodwill reporting units. As a result of the analysis, the Company determined the trade name within the Structured Settlements and Annuity Purchasing reporting unit was impaired and recorded an impairment charge of $29.9 million in its consolidated statements of operations. Goodwill was determined not to be impaired at that time. During the three months ended December 31, 2015, the Company performed its annual goodwill and indefinite-lived impairment review as of October 1, 2015. Step-1 of the goodwill impairment test involves calculating the fair value of the reporting units and comparing them to their respective carrying values. If the fair value of a reporting unit is less than its carrying value, step-2 of the impairment test must be performed. Step-2 involves calculating and comparing the implied fair value of the reporting unit's goodwill with its carrying value. If the implied fair value of the goodwill is less than its carrying value, an impairment loss is recognized in an amount equal to the difference. To estimate the fair value of the Company's Structured Settlements and Annuity Purchasing reporting unit, we used a combination of income (i.e. discounted cash flow) and market approaches. The income approach utilized multi-year cash flow projections that incorporated projected long-term growth rates and a discount rate based on a cost of equity analysis which (i) reflected a reconciliation of the fair value of the individual reporting units to the Company's total market capitalization and (ii) took into consideration the decline in the stock's price after the measurement date through December 31, 2015. The market approach estimated the reporting unit's fair value based on various prices and financial ratios from similar publicly traded companies and market transactions. Based on the Company's goodwill assessment, the implied fair value of the Structured Settlements and Annuity Purchasing reporting unit was less than its carrying value, and, as a result, a step-2 goodwill impairment test was performed to measure the impairment charge. Consequently, we recorded a goodwill impairment charge of $85.0 million in the consolidated statements of operations, representing all goodwill associated with the Structured Settlements and Annuity Purchasing reporting unit. To estimate the fair value of the Company's Home Lending reporting unit as of October 1, 2015, we also used a combination of income and market approaches. The income approach utilized multi-year cash flow projections that incorporated projected long-term growth rates and a discount rate based on a cost of equity analysis. The market approach estimated the reporting unit's fair value based on various prices and financial ratios from similar publicly traded companies and market transactions. As a result of this analysis, the fair value of the Home Lending reporting unit exceeded its carrying value by $1.3 million , or 1.7% . The fair value of the Structured Settlements and Annuity Purchasing reporting unit's indefinite lived trade-name was determined primarily using a discounted cash flow approach that required considerable management judgment and long-term assumptions, and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy. Specifically, the "relief from royalty" method was used that incorporated multi-year revenue projections. Key assumptions utilized in the fair value analysis included the following: (i) projected long-term growth rates in revenues directly attributable to the trade name; (ii) a discount rate developed using a weighted average cost of capital analysis; and (iii) a royalty rate based on an analysis of royalty licensing data. As a result of this analysis, the Company determined the indefinite-lived trade name within the Structured Settlements and Annuity Purchasing reporting unit was impaired and recorded an additional impairment charge of $5.6 million in our consolidated statements of operations. In addition, the Company determined that other definite-lived intangible assets were also impaired and recorded an impairment charge of $1.1 million in the consolidated statements of operations during the three months ended December 31, 2015. As a result of the above actions, the Company recorded in the aggregate a goodwill and intangible asset impairment charge of $121.6 million during the year ended December 31, 2015. The Company believes the assumptions used in our annual impairment assessment are reasonable; however, there can be no assurance that the estimates and assumptions made will prove to be accurate predictions of the future. Less than anticipated cash flows generated by the respective intangible asset or reporting unit, an increase in discount rates, and/or a decrease in our internal projected growth rates used in the discounted cash flow models, among other items, could result in future impairment charges. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under 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. U.S. 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: VIE and other finance receivables and VIE long-term debt issued by securitization and permanent financing trusts, at fair value – The estimated fair value of VIE finance receivables, at fair value, other finance receivables, at fair value and VIE long-term debt issued by securitization and permanent financing trusts, at fair value is determined based on a discounted cash flow model using expected future collections discounted at a calculated rate as described below. For guaranteed structured settlements and annuities, the Company allocates the projected cash flows based on the waterfall of the securitization and permanent financing trusts (collectivity the “Trusts”). The waterfall includes fees to operate the Trusts (servicing fees, admin fees, etc.), note holder principal and note holder interest. Many of the Trusts have various tranches of debt that have varying subordinations in the waterfall calculation. Refer to Note 20 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 are discounted using a separate yield based on an assumed rating of the residual tranche ( 8.30% and 5.97% at December 31, 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 value in the Company’s 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 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 to the residual tranche reflecting the life contingent feature of these receivables. Mortgage loans held for sale, at fair value - The fair value of mortgage loans held for sale is calculated using observable market information including pricing from actual market transactions, investor commitment prices, or broker quotations. Mortgage servicing rights, at fair value - The Company uses a discounted cash flow approach to estimate the fair value of MSRs incorporating assumptions management believes market participants would use in their determination of value. The assumptions used in the estimation of the fair value of MSRs include the contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, float rate, the inflation rate, prepayment speeds and default rates. Marketable securities – The estimated fair value of investments in marketable securities is based on quoted market prices. Interest rate lock commitments, at fair value - The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and estimates of the fair value of the MSRs and the probability that the mortgage loan will close within the terms of the IRLCs. These “pull-through” rates are based on the Company’s historical data and reflect the Company’s best estimate of the likelihood that a commitment will ultimately result in a closed loan. The Company estimates fair value of forward sales commitments based on quoted prices. VIE derivative liabilities, at fair value – The fair value of interest rate swaps is based on pricing models which consider current interest rates, and the amount and timing of cash flows. Forward Sale Commitments, at fair value – The fair value of forward sale commitments is based on pricing models which consider current interest rates, and the amount and timing of cash flows. Assets and liabilities for which fair value is only disclosed in the notes to consolidated financial statements: VIE and other finance receivables, net of allowances 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 allowances 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 the key assumptions, including discount rates commensurate with the risks involved. 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. 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. Other borrowings under revolving credit facilities and other similar borrowings – The estimated fair value of borrowings under revolving credit facilities and 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. 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 obligations. The fair value of installment obligations payable is estimated to be equal to carrying value. The following table sets forth the Company’s assets and liabilities that are carried at fair value on the Company’s 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) December 31, 2015 Assets Marketable Securities: Equity securities US large cap $ 28,670 $ — $ — $ 28,670 US mid cap 5,213 — — 5,213 US small cap 5,477 — — 5,477 International 14,068 — — 14,068 Other equity 3,308 — — 3,308 Total equity securities 56,736 — — 56,736 Fixed income securities: US fixed income 16,945 — — 16,945 International fixed income 1,217 — — 1,217 Other fixed income — — — — Total fixed income securities 18,162 — — 18,162 Other securities: Cash & cash equivalents 7,634 — — 7,634 Alternative investments 161 — — 161 Annuities 2,301 — — 2,301 Total other securities 10,096 — — 10,096 Total marketable securities 84,994 — — 84,994 VIE and other finance receivables, at fair value — — 4,386,147 4,386,147 Mortgage loans held for sale, at fair value — 124,508 — 124,508 Mortgage service rights, at fair value — — 29,287 29,287 Interest rate lock commitments, at fair value (1) — — 4,934 4,934 Total Assets $ 84,994 $ 124,508 $ 4,420,368 $ 4,629,870 Liabilities VIE derivative liabilities, at fair value — 66,519 — 66,519 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 3,928,818 3,928,818 Forward sale commitments, at fair value (2) — 147 — 147 Total Liabilities $ — $ 66,666 $ 3,928,818 $ 3,995,484 (1) Included in other assets on the Company’s consolidated balance sheet. (2) Included in other liabilities on the Company’s 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 value — — 4,523,835 4,523,835 Total Assets $ 103,419 $ — $ 4,523,835 $ 4,627,254 Liabilities VIE derivative liabilities, at fair value — 75,706 — 75,706 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,031,864 4,031,864 Total Liabilities $ — $ 75,706 $ 4,031,864 $ 4,107,570 The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of : Fair Value (In thousands) Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 Assets VIE and other finance receivables, at fair value $ 4,386,147 Discounted cash flow Discount rate 3.33% - 12.30% (4.47%) Mortgage servicing rights, at fair value 29,287 Discounted cash flow Discount rate 9.54% - 14.06% (10.27%) Prepayment speed 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($75) Interest rate lock commitments, at fair value 4,934 Internal model Pull-through rate 37.44% - 100.00% (74.91%) Total Assets $ 4,420,368 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value 3,928,818 Discounted cash flow Discount rate 1.69% - 12.30% (4.13%) Total Liabilities $ 3,928,818 Fair Value (In thousands) Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 Assets VIE and other finance receivables, at fair value $ 4,523,835 Discounted cash flow Discount rate 2.55% - 12.60% (3.43%) Total Assets $ 4,523,835 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair 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 most 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 mortgage servicing rights, at fair value, is prepayment speed. Significant increases (decreases) in the prepayment speed used to estimate the fair value of mortgage servicing rights in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the cost of servicing used to estimate the fair value of mortgage servicing rights in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the pull-through rate used to estimate the fair value of interest rate lock commitments in isolation would result in a significantly higher (lower) fair value measurement. The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 were as follows: VIE and other finance receivables, at fair value Mortgage Servicing Rights Interest Rate Lock Commitments Notes receivable, at fair value Total Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ — $ 4,523,835 Total gains (losses): 0 Included in earnings / losses (164,311 ) 1,649 4,934 — (157,728 ) Included in other comprehensive gain — — — — — Realized gain on sale of finance receivable 5,013 — — — 5,013 Purchases of finance receivables 385,288 — — — 385,288 Interest accreted 168,998 — — — 168,998 Payments received (511,867 ) — — — (511,867 ) Sale of finance receivables (20,809 ) — — — (20,809 ) Assets acquired in connection with the Home Lending Acquisition — 27,638 7,051 — 34,689 Transfers to/from other balance sheet line items — — (7,051 ) — (7,051 ) Transfers in and/or out of Level 3 — — — — — Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ — $ 4,420,368 The amount of net (losses) gains for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: December 31, 2015 $ (164,311 ) $ 1,649 $ 4,934 $ — $ (157,728 ) Balance as of December 31, 2013 $ 3,870,649 $ — $ — $ 5,610 $ 3,876,259 Total gains (losses): Included in earnings / losses 551,756 — — 2,098 553,854 Included in other comprehensive gain — — — (1,615 ) (1,615 ) Purchases of finance receivables 420,886 — — — 420,886 Interest accreted 163,758 — — — 163,758 Payments received (483,214 ) — — (6,093 ) (489,307 ) Transfers in and/or out of Level 3 — — — — — Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ — $ 4,523,835 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: December 31, 2014 $ 551,756 $ — $ — $ — $ 551,756 The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2014 $ 4,031,864 Net (gains) losses: Included in earnings / losses (230,228 ) Issuances 489,699 Interest accreted (44,425 ) Repayments (318,092 ) Transfers in and/or out of Level 3 — Balance as of December 31, 2015 $ 3,928,818 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: December 31, 2015 $ (229,635 ) Balance as of December 31, 2013 3,431,283 Net (gains) losses: Included in earnings / losses 245,085 Issuances 685,436 Interest accreted (40,000 ) Repayments (289,940 ) Transfers in and/or out of Level 3 — Balance as of December 31, 2014 $ 4,031,864 The amount of net (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long-term debt still held as of: December 31, 2014 $ 245,332 Realized and unrealized gains and losses included in revenues in the accompanying consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 are reported in the following revenue categories: VIE and other finance receivables and long- term debt Mortgage serving rights Interest Rate Lock Commitments (In thousands) Net gains (losses) in revenues for the year ended December 31, 2015 $ 70,930 $ 1,649 $ 4,934 Unrealized gains (losses) for the year ended December 31, 2015 relating to assets still held as of December 31, 2015 $ 65,324 $ 1,649 $ 4,934 Net gains (losses) in revenues for the year ended December 31, 2014 $ 306,671 $ — $ — Unrealized gains (losses) for the year ended December 31, 2014 relating to assets still held as of December 31, 2014 $ 306,424 $ — $ — Net gains (losses) in revenues for the year ended December 31, 2013 $ 223,791 $ — $ — Unrealized gains (losses) for the year ended December 31, 2013 relating to assets still held as of December 31, 2013 $ 199,298 $ — $ — The Company discloses fair value information about financial instruments, whether or not recognized at fair value in the Company’s 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: December 31, 2015 December 31, 2014 (In thousands) Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Financial assets VIE and other finance receivables, at fair value $ 4,386,147 $ 4,386,147 $ 4,523,835 $ 4,523,835 VIE and other finance receivables, net of allowance for losses (1) 103,609 110,342 123,765 131,292 Other receivables, net of allowances for losses (1) 16,285 16,285 14,165 14,165 Mortgage loans held for sale, at fair value 124,508 124,508 — — Mortgage servicing rights, at fair value 29,287 29,287 — — Marketable securities 84,994 84,994 103,419 103,419 Interest rate lock commitments, at fair value (2) 4,934 4,934 — — Financial liabilities Term loan payable (1) 325,558 440,181 433,904 437,183 VIE derivative liabilities, at fair value 66,519 66,519 75,706 75,706 VIE borrowings under revolving credit facilities and other similar borrowings (1) 53,737 48,828 21,415 19,339 Other borrowings under revolving credit facilities and other similar borrowings (1) 122,243 122,243 — — VIE long-term debt (1) 194,211 199,363 176,635 181,558 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 3,928,818 3,928,818 4,031,864 4,031,864 Forward sale commitments (3) 147 147 — — Installment obligations payable (1) 84,994 84,994 103,419 103,419 (1)These represent financial instruments not recorded in the consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. (2) Included in the other assets on the Company's consolidated balance sheet. (3) Included in the other liabilities on the Company's consolidated balance sheet. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company is involved with various entities that are considered to be VIEs. A VIE is an entity that has either a total investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest under the voting interest model of consolidation. The Company is required to consolidate any VIE for which it is determined to be the primary beneficiary. The primary beneficiary is the entity that has the power to direct those activities of the VIE that most significantly impact the VIEs’ economic performance and has the obligation to absorb losses from or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company reviews all significant interests in the VIEs it is involved with including consideration of the activities of the VIEs that most significantly impact the VIEs’ economic performance and whether the Company has control over those activities. On an ongoing basis, the Company assesses whether or not it is the primary beneficiary of a VIE. As a result of adopting ASC 810, the Company determined it was and continues to be the primary beneficiary of the VIEs used to securitize its finance receivables (“VIE finance receivables”). The Company elected the fair value option with respect to assets and liabilities in its securitization VIEs as part of their initial consolidation on January 1, 2010. The debt issued by the Company’s securitization VIEs is reported on the Company’s consolidated balance sheets as VIE long-term debt issued by securitization and permanent financing trusts, at fair value (“VIE securitization debt”). The VIE securitization debt is recourse solely to the VIE finance receivables held by such special purpose entities (Note 20 and 21) and thus is non-recourse to the other consolidated subsidiaries. The VIEs will continue in operation until all securitization debt is paid and all residual cash flows are collected. As a result of the long lives of many finance receivables purchased and securitized by the Company, most consolidated VIEs have expected lives in excess of 20 years. |
VIE and Other Finance Receivabl
VIE and Other Finance Receivables, at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
VIE and Other Finance Receivables, at Fair Value [Abstract] | |
VIE and Other Finance Receivables, at Fair Value | VIE and Other Finance Receivables, at Fair Value The Company has elected to fair value newly originated guaranteed structured settlements in accordance with ASC 825, Financial Instruments ("ASC 825"). Additionally, as a result of the Company including lottery winning finance receivables starting with 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: December 31, 2015 December 31, 2014 (In thousands) Maturity value $ 6,876,687 $ 6,492,863 Unearned income (2,490,540 ) (1,969,028 ) Net carrying amount $ 4,386,147 $ 4,523,835 Encumbrances on VIE and other finance receivables, at fair value are as follows: Encumbrance December 31, 2015 December 31, 2014 (In thousands) VIE securitization debt (2) $ 4,236,520 $ 4,357,456 $100 million credit facility (JGW-S III) (1) 1,664 2 $50 million credit facility (JGW IV) (1) — — $300 million credit facility (JGW V) (1) 54,306 — $300 million credit facility (JGW VII) (1) — — $100 million permanent financing related to 2011-A (2) 83,968 64,575 Encumbered VIE finance receivables, at fair value 4,376,458 4,422,033 Not encumbered 9,689 101,802 Total VIE and other finance receivables, at fair value $ 4,386,147 $ 4,523,835 (1) See Note 17. (2) See Note 20. As of December 31, 2015 and 2014, the residual cash flows from the Company’s finance receivables, at fair value, were pledged as collateral for the Residual Term Facility. Refer to Note 19 for additional information. As of December 31, 2015, the expected cash flows of VIE and other finance receivables, at fair value based on maturity value for the next five years and thereafter were as follows: Year ended December 31, Expected cash flows (In thousands) 2016 $ 508,236 2017 497,866 2018 465,198 2019 449,394 2020 416,924 Thereafter 4,539,069 Total $ 6,876,687 In December 2015, The Company completed a private placement sale in which $47.2 million of TRB was sold for $20.8 million . The Company recognized a $5.0 million gain, which is included on the realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company's consolidated statement of operations. In addition the Company recorded a $0.1 million servicing asset which will be amortized over the weighted average life of the asset. The Company is engaged to service certain finance receivables it sold to third parties. Servicing fee revenue related to those receivables are included in servicing, broker, and other fees in the Company’s consolidated statements of operations, and for the years ended December 31, were as follows: 2015 2014 2013 (In thousands) Servicing fees $ 811 $ 914 $ 948 |
VIE and Other Finance Receiva16
VIE and Other Finance Receivables, net of Allowance for Losses | 12 Months Ended |
Dec. 31, 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: December 31, 2015 December 31, 2014 (In thousands) Structured settlements and annuities $ 72,121 $ 76,253 Less: unearned income (45,825 ) (49,270 ) 26,296 26,983 Lottery winnings 70,589 81,169 Less: unearned income (20,153 ) (24,389 ) 50,436 56,780 Pre-settlement funding transactions 44,299 57,886 Less: deferred revenue (1,144 ) (1,563 ) 43,155 56,323 Attorney cost financing 821 1,334 Less: deferred revenue — — 821 1,334 VIE and other finance receivables, gross 120,708 141,420 Less: allowance for losses (10,366 ) (10,128 ) VIE and other finance receivables, net of allowances $ 110,342 $ 131,292 Encumbrances on VIE and other finance receivables, net of allowance for losses are as follows: Encumbrance December 31, 2015 December 31, 2014 (In thousands) VIE long-term debt (2) $ 69,691 $ 74,973 $35 million pre-settlement credit facility (1) 25,401 30,423 $45.1 million long-term pre-settlement facility (2) 3,533 6,453 $2.5 million long-term facility (2) 1,249 1,640 Encumbered VIE finance receivables, net of allowances 99,874 113,489 Not encumbered 10,468 17,803 Total VIE and other finance receivables, net of allowances $ 110,342 $ 131,292 (1) See Note 17. (2) See Note 19. As of December 31, 2015 , the expected cash flows of structured settlements, annuities and lottery winnings based on maturity value for the next five years and thereafter are as follows: Year Ended December 31, Expected cash flows (In thousands) 2016 $ 14,153 2017 10,605 2018 10,227 2019 10,183 2020 10,399 Thereafter 87,143 Total $ 142,710 Excluded from the above table are pre-settlement funding transactions and attorney cost financing receivable balances of $45.1 million and $59.2 million as of December 31, 2015 and 2014 , which do not have specified maturity dates. Activity in the allowance for losses for VIE and other finance receivables are as follows : Structured settlements and annuities Lottery winnings Pre-settlement funding transactions Attorney cost financing Total (In thousands) For the year ended December 31, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (192 ) (66 ) (4,288 ) — (4,546 ) Charge-offs 195 69 4,064 — 4,328 Recoveries (16 ) — (3 ) (1 ) (20 ) Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) Individually evaluated for impairment $ (69 ) $ — $ (2,243 ) $ (284 ) $ (2,596 ) Collectively evaluated for impairment — — (7,770 ) — (7,770 ) Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,227 $ 50,436 $ 125 $ 537 $ 77,325 Collectively evaluated for impairment — — 33,017 — 33,017 Balance as of December 31, 2015 $ 26,227 $ 50,436 $ 33,142 $ 537 $ 110,342 For the year ended December 31, 2014 Allowance for losses: Balance as of December 31, 2013 $ (48 ) $ — $ (8,011 ) $ (283 ) $ (8,342 ) Provision for loss (31 ) (3 ) (4,772 ) — (4,806 ) Charge-offs 128 — 2,997 — 3,125 Recoveries (105 ) — — — (105 ) Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Individually evaluated for impairment $ (56 ) $ (3 ) $ (2,886 ) $ — $ (2,945 ) Collectively evaluated for impairment — — (6,900 ) (283 ) (7,183 ) Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,927 $ 56,777 $ 3,204 $ 1,051 $ 87,959 Collectively evaluated for impairment — — 43,333 — 43,333 Balance as of December 31, 2014 $ 26,927 $ 56,777 $ 46,537 $ 1,051 $ 131,292 Management makes 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 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 December 31, 2015 , the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables in the amount of $12.2 million and $0.4 million , respectively. As of December 31, 2014 , the Company had discontinued recognition of income on pre-settlement funding transactions and attorney cost financing receivables in the amount of $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 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 as of: Year of Origination December 31, 2015 December 31, 2014 (Dollars in thousands ) 2009 $ 1,229 $ 2,618 2010 2,759 4,251 2011 5,597 6,938 2012 6,212 10,687 2013 6,772 11,335 2014 17,773 22,057 2015 3,957 — Total $ 44,299 $ 57,886 Based on historical portfolio experience, the Company reserved $10.0 million and $0.3 million as of December 31, 2015 , respectively, and $9.8 million and $0.3 million as of December 31, 2014 , respectively, for pre-settlement 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) December 31, 2015 Structured settlements and annuities $ 9 $ 8 $ 481 $ 498 $ 25,729 $ 26,227 $ — Lottery winnings 3 3 206 212 50,224 $ 50,436 — Total $ 12 $ 11 $ 687 $ 710 $ 75,953 $ 76,663 $ — 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. |
Other Receivables, net of Allow
Other Receivables, net of Allowance for Losses | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Other Receivables, net of Allowance for Losses | Other Receivables, net of Allowances for Losses Other receivables include the following as of: December 31, 2015 December 31, 2014 (In thousands) Advances receivable $ 2,312 $ 2,406 Notes receivable 8,811 8,038 Tax withholding receivables on lottery winnings 1,157 1,209 Due from affiliates 24 376 Other 4,254 2,340 Other receivables, gross 16,558 14,369 Less: allowance for losses (273 ) (204 ) Other receivables, net of allowances for losses $ 16,285 $ 14,165 The Company’s lottery and structured settlements businesses in some cases will advance a portion of the purchase price to a customer prior to the closing of the transaction, which are included in advances receivable above. Notes receivable represents receivables from a third party for the sale of LCSS assets. Tax withholding receivables on lottery winnings represents the portion of lottery collections withheld for state and federal agencies. The Company obtains the withholding refund once appropriate tax filings are completed for the respective jurisdictions. Activity in the allowance for doubtful accounts for other receivables for the following years ended was as follows: December 31, 2015 December 31, 2014 (In thousands) Beginning balance $ (204 ) $ (243 ) (Provision) credit for losses (69 ) 39 Ending balance $ (273 ) $ (204 ) |
Mortgage Loans Held for Sale, a
Mortgage Loans Held for Sale, at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Mortgage Loans Held for Sale, at Fair Value | Mortgage Loans Held for Sale, at Fair Value Mortgage loans held for sale, at fair value were as follows: December 31, 2015 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 120,253 Fair value adjustment 4,255 Mortgage loans held for sale, at fair value $ 124,508 A reconciliation of the changes in mortgage loans held for sale, at fair value is presented in the following table: Mortgage Loans Held for Sale (In thousands) Acquired through Home Lending Acquisition $ 131,325 Mortgage loans originated, net of fees 842,926 Repurchase of Ginnie Mae loans 4,991 Proceeds from sale of and principal payments on mortgage loans held for sale (872,526 ) Net change in fair value of mortgage loans held for sale 17,792 Balance as of December 31, 2015 $ 124,508 Included in mortgage loans held for sale, at fair value are loans repurchased out of Ginnie Mae pools where we are the named servicer. As the named servicer, the Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to repool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. Since the acquisition date, the Company has repurchased $5.0 million of mortgage loans from Ginnie Mae securitization pools. The Company did not have any mortgage loans held for sale on non-accrual status as of December 31, 2015 . Loan Servicing and Repurchase Reserve Mortgage loans sold to investors by the Company and which met investor and agency underwriting guidelines at the time of sale may be subject to repurchase in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, indemnify the investor against future losses on such loans. The Company has established a reserve for potential losses related to these representations and warranties. The Company has also established a reserve for potential losses related to impaired loans within its servicing portfolio. In assessing the adequacy of the reserve, the Company evaluates various factors including actual write-offs during the period, historical loss experience, known delinquent loans and GSE guidelines. Actual losses incurred are reflected as write-offs against the reserve liability. The loan servicing and repurchase reserve is included in other liabilities on the Company’s consolidated balance sheets. The associated expense is included in the provision for losses in the consolidated statements of operations. The activity in the loan loss reserve was as follows: Loan Loss Reserve (In thousands) Acquired through Home Lending Acquisition $ 2,331 Provision for loan servicing and repurchases 1,030 Write-offs (786 ) Balance as of December 31, 2015 $ 2,575 Due to the uncertainty in the various estimates underlying the loan servicing and repurchase reserve, there is a range of losses in excess of the recorded loan loss reserve that is reasonably possible. The estimate of the range of possible loss does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change. |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | Mortgage Servicing Rights, at Fair Value The activity of MSRs were as follows: MSRs (In thousands) Acquired through Home Lending Acquisition $ 27,638 Additions due to loans sold, servicing retained 3,752 Reductions due to loan payoffs and foreclosures (1,637 ) Fair value adjustment (466 ) Balance as of December 31, 2015 $ 29,287 The unpaid principal balance of mortgage loans serviced was $3.0 billion as of December 31, 2015 . Conforming conventional loans serviced by the Company are sold to Fannie Mae on a non-recourse basis, whereby foreclosure losses are generally the responsibility of Fannie Mae, and not the Company. Similarly, the government loans serviced by the Company are secured through Ginnie Mae, whereby the Company is insured against loss by the FHA or partially guaranteed against loss by the VA. The key assumptions used in determining the fair value of the Company's MSRs were as follows: December 31, 2015 Discount rates 9.54% - 14.06% Prepayment speed 8.24% - 20.56% Cost of servicing $65 - $90 The hypothetical effect of an adverse change in these key assumptions that would result in a decrease in fair values are as follows: December 31, 2015 Discount rate: Effect on value - 100 basis points adverse change $ (1,082 ) Effect on value - 200 basis points adverse change $ (2,088 ) Prepayment speed: Effect on value - 5% adverse change $ (542 ) Effect on value - 10% adverse change $ (1,085 ) Cost of servicing: Effect on value - 5% adverse change $ (232 ) Effect on value - 10% adverse change $ (463 ) These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Company's methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSRs fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the table, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; however, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may indicate higher prepayments; however, this may be partially offset by lower prepayment due to other factors such as a borrower's diminished opportunity to refinance), which may magnify or counteract the sensitivities. Thus, any measurement of MSRs fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment includes the following as of: December 31, 2015 December 31, 2014 (In thousands) Computer software and equipment $ 8,096 $ 5,378 Furniture, fixtures and equipment 4,424 3,323 Leasehold improvements 1,115 1,033 Total fixed assets at cost 13,635 9,734 Less accumulated depreciation (7,961 ) (5,976 ) Premises and equipment, net of accumulated depreciation $ 5,674 $ 3,758 During the fourth quarter of 2013, the Company completed an evaluation of an internal use software application project that had been undertaken to develop a new software application related to its structured settlement business. Based on its decision to discontinue the project, the Company determined that the $4.0 million of costs that had been capitalized in conjunction with the software development project were no longer recoverable and wrote them down to their fair value of zero . The $4.0 million is included in impairment charges and loss on disposal of assets within the Company’s consolidated statement of operations. Depreciation of premises and equipment is included in depreciation and amortization in the Company’s consolidated statements of operations. Depreciation expense for the years ended December 31, 2015 , 2014 and 2013 , which includes amortization of assets recorded under capital leases, was $2.4 million , $1.7 million and $2.2 million , respectively. |
Debt Issuance Costs
Debt Issuance Costs | 12 Months Ended |
Dec. 31, 2015 | |
Debt Issuance Costs | |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs capitalized and included in other assets in the Company’s consolidated balance sheets consist of the following as of: December 31, 2015 December 31, 2014 (In thousands) Debt issuance costs $ 45,678 $ 44,023 Less: accumulated amortization (21,812 ) (14,139 ) Unamortized debt issuance costs $ 23,866 $ 29,884 Amortization expense for debt issuance costs capitalized and recorded in other assets for the years ended December 31, 2015 , 2014 and 2013 was $7.7 million , $7.7 million and $5.7 million , respectively, and is included in interest expense in the Company’s consolidated statements of operations. Debt issuance costs related to VIE long-term debt issued by securitization and permanent financing trusts, at fair value are expensed as incurred and included in debt issuance expense in the Company’s consolidated statements of operations, and were as follows: 2015 2014 2013 (In thousands) Debt issuance costs related to securitizations $ 6,741 $ 8,683 $ 8,930 |
Operating and Capital Leases
Operating and Capital Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating and Capital Leases | Operating and Capital Leases The Company has commitments under operating leases, principally for office space, with various expiration dates through 2022. As of December 31, 2015 , the following summarizes future minimum lease payments due under non-cancelable operating leases for the next five years and thereafter are as follows: Year Ended December 31, Operating Leases (In thousands) 2016 $ 2,816 2017 2,352 2018 1,902 2019 1,911 2020 1,961 Thereafter 3,438 Total $ 14,380 Lease expense for office and equipment is included in general and administrative expense in the Company’s consolidated statements of operations and was as follows for the years ended December 31: 2015 2014 2013 (In thousands) Lease expense $ 2,387 $ 1,695 $ 3,152 As of December 31, 2015, the following summarizes future minimum lease payments due under capital leases for the next five years and thereafter are as follows: Year Ended December, 31 Capitals Leases (In thousands) 2016 $ 50 2017 53 2018 56 2019 60 2020 58 Thereafter — Total $ 277 |
Term Loan Payable
Term Loan Payable | 12 Months Ended |
Dec. 31, 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 “Term Loan”) with an outstanding principal balance of $449.5 million as of December 31, 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 Credit Facility. There are no principal payments due on the Term Loan until its maturity in February 2019. At each interest reset date, the Company has the option to elect that the Term Loan be either a Eurodollar loan or a Base Rate loan. If a Eurodollar loan, interest on the 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 December 31, 2015 , the interest rate on the Term Loan was 7.00% . The revolving commitment has the same interest rate terms as the 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 there are outstanding balances on the revolving commitment that exceed specific thresholds (i.e., generally 15% of the $20.0 million borrowing capacity, or $3.0 million ), to comply with a maximum total leverage ratio. As of December 31, 2015 and 2014 , there were no outstanding borrowings under the revolving commitment and, as a result, the maximum total leverage ratio requirement pertaining to the $20.0 million revolving commitment was not applicable. Had the leverage ratio requirement been applicable as of December 31, 2015, the Company would not have satisfied the maximum total leverage ratio requirement and would have been required to repay the outstanding borrowings in excess of the specified threshold. The Credit Facility also limits the Company and certain of its subsidiaries from engaging in certain activities, including 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 paying cash dividends and making loans to the Company, the calculation of which is performed annually as of the end of each fiscal year. As a result, $56.2 million of the Company’s $56.2 million and $79.9 million of the Company's $253.6 million in stockholders’ equity as of December 31, 2015 and 2014 , respectively, was free of limitations on the payment of dividends. Interest expense relating to the Term loan for the years ended December 31, 2015 , 2014 and 2013 was approximately $40.4 million , $40.4 million and $46.6 million , respectively. On July 15, 2015, the Credit Facility was amended to permit mortgage financing indebtedness in connection with the Home Lending Acquisition. The Company accounted for this amendment as a debt modification. In connection with the amendment, the Company incurred $0.7 million in consent fees which will be deferred and amortized as an adjustment to interest expense over the remaining life of the modified debt. In addition, the Company paid $0.2 million in fees which were included in professional and consulting fees in the Company's consolidated statement of operations. |
VIE Borrowings Under Revolving
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets consist of the following as of: Entity December 31, 2015 December 31, 2014 (In thousands) $100 million variable funding note facility with interest payable monthly (6.5% as of December 31, 2015 and 9.0% as of December 31, 2014), collateralized by JGW-S III, LLC ("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 December 31, 2015 and 1.0% as of December 31, 2014) per annum for the undrawn balance of its line of credit. JGW-S III $ 1,024 $ — $50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.49% at December 31, 2015 and 3.42% as of December 31, 2014) maturing on October 2, 2016, collateralized by JGW IV, LLC ("JGW IV") structured settlement 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 (3.24% and 3.52% at December 31, 2015 and 3.17% and 3.26% at December 31, 2014). Tranche B rate is 5.5% plus LIBOR (5.74% at December 31, 2015 and 5.67% at December 31, 2014). The facility matures on July 24, 2016 and is collateralized by JGW V, LLC ("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 38,153 — $300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (3.22% at December 31, 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 — — $35 million multi class credit facility with interest payable monthly ("Peach One") 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 December 31, 2015 and 2014). Class B rate comprises the Class A rate plus 1.00% (5.50% as of December 31, 2015 and 2014). The facility matured December 31, 2015 and converted into a single class "term advance." The facility is collateralized by certain pre-settlement receivables. Peach One was charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. Peach One 9,651 19,333 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 48,828 $ 19,339 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 converted into a single class "term advance" requiring minimum principal payments over the subsequent 24 month amortization period with interest payable monthly at 4.5%. As of December 31, 2015, the Peach One Facility has estimated principal payments as follows: Years Ended December 31, Estimated Principal Payments (In thousands) 2016 $ 5,591 2017 4,060 Total 9,651 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. Interest expense, including unused fees, for the years ended December 31, 2015 , 2014 and 2013 related to borrowings under revolving credit facilities and other similar borrowings was $9.0 million , $9.0 million and $9.9 million , respectively. The weighted average interest rate on outstanding VIE borrowings under revolving credit facilities and other similar borrowings as of December 31, 2015 and 2014 was 4.15% and 4.63% , respectively. |
Other Borrowings Under Revolvin
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings Lines of Credit The Company had the following lines of credit with various financial institutions, which are primarily used for funding of mortgage loans held for sale: December 31, 2015 (In thousands) $50 million warehouse line of credit maturing on February 1, 2016 with an interest rate of 2.50% as of December 31, 2015 and a non-usage fee of 0.25%. (1) $ 33,530 $50 million warehouse line of credit maturing April 11, 2016 with an interest rate of 2.50% as of December 31, 2015 and a non-usage fee of 0.25%. 32,611 $20 million warehouse line of credit maturing on July 6, 2016 with an interest rate of 2.50% as of December 31, 2015. (3) 9,414 $35 million warehouse line of credit maturing on July 31, 2016 with an interest rate of 3.50% as of December 31, 2015 and a non-usage fee of 0.25%. (2) 16,031 $45 million warehouse line of credit maturing on September 1, 2016 with an interest rate of 2.25% as of December 31, 2015. (3) 26,657 $6 million operating line of credit maturing July 6, 2016 with an interest rate of 5.00% as of December 31, 2015 and a non-usage fee of 0.50%. 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 122,243 (1) Under the terms of the facility agreement, the availability increased to $95 million and maturity extended through February 10, 2017 as of February 12, 2016. (2) Under the terms of the facility agreement, the availability was automatically reduced to $25.0 million as of January 9, 2016. (3) These facilities do not incur non-usage fees. Interest expense, including unused fees, for the year ended December 31, 2015 related to other borrowings under revolving credit facilities was $1.4 million . The weighted average interest rate on outstanding other borrowings under revolving credit facilities as of December 31, 2015 was 2.84% . As of December 31, 2015 , the Company had pledged mortgage loans held for sale as collateral under the above warehouse lines of credit. The above agreements also contain covenants which include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum liquidity, minimum current ratio, minimum unencumbered cash, positive net income, and limitations on additional indebtedness and sale of assets, as defined in the agreements. The Company was in compliance with its debt covenants as of December 31, 2015 . Additionally, as of December 31, 2015 , the Company had pledged MSRs as collateral under the above operating line of credit. |
VIE Long-Term Debt
VIE Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
VIE Long-Term Debt | |
VIE Long-Term Debt | VIE Long-Term Debt The VIE long-term debt consisted of the following as of: December 31, 2015 December 31, 2014 (In thousands) PLMT Permanent Facility $ 41,265 $ 44,277 Residual Term Facility 130,832 107,043 Long-Term Pre-settlement Facility 6,590 8,884 2012-A Facility 944 1,357 LCSS Facility (2010-C) 12,573 12,838 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 199,363 $ 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 value on the consolidated balance sheets. Residual Term Facility On August 13, 2015, the Company amended its Residual Term Facility (the "Residual Term Facility") to increase the term debt by $25.0 million to $133.0 million . The amendment was treated as a debt modification. In connection with the modification, the Company paid $0.6 million in fees that were included in professional and consulting fees in the Company's consolidated statement of operations. The Residual Term Facility is collateralized by the cash flows from residual interests related to certain securitizations. Interest accrues on the notes at a rate of 7.25% per annum with interest and principal payable monthly from cash flows from these collateralized residual interests. Prior to this amendment, interest accrued on the notes at a rate of 7.00% per annum. 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, of which, $6.6 million and $8.9 million principal amount remains outstanding as of December 31, 2015 and 2014 , respectively. Interest accrues on the notes at a rate of 9.25% per annum with interest and principal payable monthly from the cash receipts of collateralized pre-settlement funding transactions. The notes mature on June 6, 2016. 2012-A Facility In December 2012, the Company issued a series of notes collateralized by structured settlements. The proceeds to the Company from the issuance of the notes 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") registered 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. In November 2010, LCSS III issued $7.2 million long-term debt ("2010-D") collateralized by life contingent structured settlements. 2010-D accrues interest at 10% per annum and matures on July 15, 2040. The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life contingent structured settlements receivables. VIE Long-term Debt As of December 31, 2015 , estimated principal payments on VIE long-term debt for the next five years and thereafter are as follows: Year Ending December 31, Estimated Principal Payments (In thousands) 2016 $ 13,627 2017 7,041 2018 7,005 2019 7,518 2020 10,717 Thereafter 161,108 Total $ 207,016 Interest expense for the years ended December 31, 2015 , 2014 and 2013 related to VIE long-term debt were $16.8 million , $14.9 million and $14.7 million , respectively. |
VIE Long-term Debt Issued by Se
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Value | 12 Months Ended |
Dec. 31, 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 Value | VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Value Securitization Debt The Company elected fair value treatment under ASC 825 to measure the securitization issuer debt and related finance receivables. The Company has determined that measurement of the securitization debt issued by 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 year ended December 31, 2015, the Company completed three asset securitization transactions that were registered under Rule 144A. The following table summarizes the securitization SPE transactions: 2015-3 2015-2 2015-1 (Bond proceeds in millions) Issue date 11/30/2015 7/28/2015 3/31/2015 Bond proceeds $103.3 $158.5 $214.0 Receivables securitized 1,751 2,489 3,422 Deal discount rate 4.46% 4.18% 3.64% Retained interest % 5.50% 5.50% 5.50% Class allocation (Moody’s) Aaa 85.00% 84.75% 85.25% Baa2 9.50% 9.75% 9.25% During the year ended December 31, 2014, the Company completed three asset securitization transactions that were registered according to Rule 144A. The following table summarizes these securitization SPE transactions: 2014-3 2014-2 2014-1 (Bond proceeds in millions) Issue date 11/25/2014 7/23/2014 2/18/2014 Bond proceeds $207.4 $227.4 $233.9 Receivables securitized 2,169 3,744 4,128 Deal discount rate 3.86% 3.95% 4.24% Retained interest % 5.50% 5.50% 6.00% Class allocation (Moody’s) Aaa 84.75% 84.00% 85.25% Baa2 9.75% 10.50% 8.75% The following table summarizes notes issued by securitization trusts as of December 31, 2015 and 2014 for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value in the Company’s consolidated balance sheets: Securitization VIE Issuer Note(s) Maturity Date Outstanding Principal as of December 31, 2015 Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2015 Fair Value as of December 31, 2014 (In thousands) (In thousands) 321 Henderson Receivables I, LLC 2003-A 11/15/2033 13,650 18,144 4.86% 14,406 19,642 321 Henderson Receivables I, LLC 2004-A A-1 9/15/2045 25,859 32,628 Libor+0.35% 26,018 33,783 321 Henderson Receivables I, LLC 2004-A A-2 9/15/2045 18,777 19,286 5.54% 19,248 21,023 321 Henderson Receivables I, LLC 2005-1 A-1 11/15/2040 47,963 58,735 Libor+0.23% 47,559 60,895 321 Henderson Receivables I, LLC 2005-1 A-2 11/15/2046 36,146 36,794 5.58% 35,066 39,374 321 Henderson Receivables I, LLC 2005-1 B 10/15/2055 2,203 2,242 5.24% 2,088 2,343 321 Henderson Receivables II, LLC 2006-1 A-1 3/15/2041 10,694 15,571 Libor+0.20% 10,971 16,376 321 Henderson Receivables II, LLC 2006-1 A-2 3/15/2047 17,154 18,074 5.56% 17,452 19,847 321 Henderson Receivables II, LLC 2006-2 A-1 6/15/2041 15,058 18,859 Libor+0.20% 15,304 20,009 321 Henderson Receivables II, LLC 2006-2 A-2 6/15/2047 20,066 20,395 5.93% 19,967 22,484 321 Henderson Receivables II, LLC 2006-3 A-1 9/15/2041 15,798 21,361 Libor+0.20% 16,131 22,604 321 Henderson Receivables II, LLC 2006-3 A-2 9/15/2047 25,755 26,343 5.60% 25,703 28,861 321 Henderson Receivables II, LLC 2006-4 A-1 12/15/2041 15,166 19,719 Libor+0.20% 15,419 20,608 321 Henderson Receivables II, LLC 2006-4 A-2 12/15/2047 20,797 21,133 5.43% 20,315 22,907 321 Henderson Receivables II, LLC 2007-1 A-1 3/15/2042 26,887 32,994 Libor+0.20% 25,201 33,431 321 Henderson Receivables II, LLC 2007-1 A-2 3/15/2048 16,841 17,220 5.59% 14,866 17,681 321 Henderson Receivables II, LLC 2007-2 A-1 6/15/2035 33,461 37,592 Libor+0.21% 29,351 36,730 321 Henderson Receivables II, LLC 2007-2 A-2 7/16/2040 16,725 17,041 6.21% 13,759 16,806 321 Henderson Receivables II, LLC 2007-3 A-1 10/15/2048 54,273 59,378 6.15% 58,821 70,026 321 Henderson Receivables III, LLC 2008-1 A 1/15/2044 48,550 56,186 6.19% 55,515 66,265 321 Henderson Receivables III, LLC 2008-1 B 1/15/2046 3,235 3,235 8.37% 4,325 4,790 321 Henderson Receivables III, LLC 2008-1 C 1/15/2048 3,235 3,235 9.36% 4,274 4,971 321 Henderson Receivables III, LLC 2008-1 D 1/15/2050 3,529 3,529 10.81% 4,802 5,828 321 Henderson Receivables IV, LLC 2008-2 A 11/15/2037 63,166 70,210 6.27% 72,306 84,357 321 Henderson Receivables IV, LLC 2008-2 B 3/15/2040 6,194 6,194 8.63% 7,647 9,296 321 Henderson Receivables V, LLC 2008-3 A-1 6/15/2045 44,521 49,385 8.00% 56,574 66,074 321 Henderson Receivables V, LLC 2008-3 A-2 6/15/2045 5,503 6,104 8.00% 6,777 8,045 321 Henderson Receivables V, LLC 2008-3 B 3/15/2051 4,695 4,695 10.00% 5,132 6,642 321 Henderson Receivables VI, LLC 2010-1 A-1 7/15/2059 124,266 138,254 5.56% 138,936 159,918 321 Henderson Receivables VI, LLC 2010-1 B 7/15/2061 22,166 24,661 9.31% 27,223 32,595 Securitization VIE Issuer Note(s) Maturity Date Outstanding Principal as of December 31, 2015 Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2015 Fair Value as of December 31, 2014 (In thousands) (In thousands) JG Wentworth XXI, LLC 2010-2 A 1/15/2048 52,416 59,582 4.07% 55,186 64,313 JG Wentworth XXI, LLC 2010-2 B 1/15/2050 7,483 8,506 7.45% 8,611 10,368 JG Wentworth XXII, LLC 2010-3 A 10/15/2048 101,526 115,400 3.82% 105,888 123,222 JG Wentworth XXII, LLC 2010-3 B 10/15/2050 14,754 16,770 6.85% 16,449 19,893 JG Wentworth XXIII, LLC 2011-1 A 10/15/2056 161,050 176,119 4.89% 171,059 196,934 JG Wentworth XXIII, LLC 2011-1 B 10/15/2058 20,246 21,212 7.68% 23,517 26,981 JGWPT XXIV, LLC 2011-2 A 1/15/2063 137,179 147,406 5.13% 146,205 167,703 JGWPT XXIV, LLC 2011-2 B 1/15/2065 15,580 15,580 8.54% 18,974 21,286 JGWPT XXV, LLC 2012-1 A 2/16/2065 167,818 182,576 4.21% 170,557 197,497 JGWPT XXV, LLC 2012-1 B 2/15/2067 20,564 20,564 7.14% 23,385 26,088 JGWPT XXVI, LLC 2012-2 A 10/15/2059 119,044 128,310 3.84% 117,345 134,860 JGWPT XXVI, LLC 2012-2 B 10/17/2061 13,985 13,985 6.77% 15,489 17,391 JGWPT XXVII, LLC 2012-3 A 9/15/2065 151,464 164,533 3.22% 144,129 166,033 JGWPT XXVII, LLC 2012-3 B 9/15/2067 17,181 17,181 6.17% 18,384 20,500 JGWPT XXVIII, LLC 2013-1 A 4/15/2067 167,734 180,695 3.22% 158,769 181,767 JGWPT XXVIII, LLC 2013-1 B 4/15/2069 18,589 18,589 4.94% 18,154 20,280 JGWPT XXIX, LLC 2013-2 A 3/15/2062 141,592 150,541 4.21% 142,820 162,561 JGWPT XXIX, LLC 2013-2 B 3/17/2064 14,985 14,985 5.68% 15,298 17,277 JGWPT XXX, LLC 2013-3 A 1/17/2073 172,138 183,987 4.08% 172,184 196,867 JGWPT XXX, LLC 2013-3 B 1/15/2075 18,248 18,248 5.54% 18,437 20,832 JGWPT XXXI, LLC 2014-1 A 3/15/2063 195,613 208,739 3.96% 194,775 221,453 JGWPT XXXI, LLC 2014-1 B 3/15/2065 21,776 21,776 4.94% 21,003 23,679 JGWPT XXXII, LLC 2014-2 A 1/17/2073 194,302 201,649 3.61% 186,756 207,410 JGWPT XXXII, LLC 2014-2 B 1/15/2075 25,284 25,284 4.48% 23,041 26,221 JGWPT XXXIII, LLC 2014-3 A 6/15/2077 177,753 185,884 3.50% 168,797 187,783 JGWPT XXXIII, LLC 2014-3 B 6/15/2079 21,408 21,408 4.40% 19,210 21,684 JGWPT XXXIV, LLC 2015-1 A 9/15/2072 188,121 — 3.26% 175,468 — JGWPT XXXIV, LLC 2015-1 B 9/17/2074 20,957 — 4.25% 18,518 — JGWPT XXXV, LLC 2015-2 A 3/15/2058 141,984 — 3.87% 136,709 — JGWPT XXXV, LLC 2015-2 B 3/15/2060 16,350 — 4.83% 14,992 — JGWPT XXXVI, LLC 2015-3 A 3/17/2070 92,878 — 4.08% 90,413 — JGWPT XXXVI, LLC 2015-3 B 3/15/2072 10,383 — 5.68% 10,033 — Structured Receivables Finance #1, LLC 2004-A B 5/15/2028 — 7,196 7.50% — 7,846 Structured Receivables Finance #2, LLC 2005-A A 5/15/2025 8,981 13,108 5.05% 9,363 14,031 Structured Receivables Finance #2, LLC 2005-A B 5/15/2025 8,413 9,141 6.95% 9,545 10,764 Peachtree Finance Company #2, LLC 2005-B A 4/15/2048 10,195 15,979 4.71% 10,537 16,912 Peachtree Finance Company #2, LLC 2005-B B 4/15/2048 5,039 5,471 6.21% 5,422 6,161 Structured Receivables Finance #3, LLC 2006-A A 1/15/2030 24,354 30,496 5.55% 26,585 34,037 Structured Receivables Finance #3, LLC 2006-A B 1/15/2030 8,397 9,294 6.82% 9,464 11,118 Structured Receivables Finance 2006-B, LLC 2006-B A 3/15/2038 36,406 41,959 5.19% 40,082 47,413 Structured Receivables Finance 2006-B, LLC 2006-B B 3/15/2038 7,305 7,922 6.30% 7,759 9,245 Structured Receivables Finance 2010-A, LLC 2010-A A 1/16/2046 56,516 65,773 5.22% 62,295 74,239 Structured Receivables Finance 2010-A, LLC 2010-A B 1/16/2046 10,709 11,567 7.61% 13,201 14,714 Structured Receivables Finance 2010-B, LLC 2010-B A 8/15/2036 45,150 51,681 3.73% 46,981 54,968 Structured Receivables Finance 2010-B, LLC 2010-B B 8/15/2036 13,048 13,932 7.97% 15,694 18,360 Total $ 3,637,231 $ 3,462,225 $ 3,688,639 $ 3,774,902 In connection with its 2015-1 securitization, the Company repaid in February 2015 approximately $6.9 million of long term debt issued by Structured Receivables Finance # 1, LLC and recorded a gain on debt extinguishment of approximately $0.6 million . In connection with its 2014-2 securitization, the Company repaid in September 2014 approximately $6.1 million of long term debt issued by 2002-A and recorded a gain on debt extinguishment of approximately $0.3 million . Permanent financing facilities The following table summarizes notes issued by permanent financing facilities as of December 31, 2015 and 2014 , respectively, for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value on the consolidated balance sheets: Securitization VIE Issuer Maturity Date Note(s) Outstanding Principal as of December 31, 2015 Stated Rate Fair Value as of December 31, 2015 (In thousands) (In thousands) JGW-S LC II 8/15/2040 2011-A $ 70,235 12.54% $ 70,235 PSS 7/14/2033 — 153,077 Libor + 1% 134,970 Crescit 6/15/2039 — 27,583 8.10% 34,974 Total $ 250,895 $ 240,179 Securitization VIE Issuer Maturity Date Note(s) Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2014 (In thousands) (In thousands) JGW-S LC II 8/15/2040 2011-A $ 56,114 12.63% $ 56,114 PSS 7/14/2033 — 168,018 Libor + 1% 161,004 Crescit 6/15/2039 — 29,823 8.10% 39,844 Total $ 253,955 $ 256,962 In connection with its 2013-3 securitization, the Company repaid in October 2013 approximately $64.0 million of long term debt issued by Structured Receivables Finance #6, LLC and recorded a gain on debt extinguishment of approximately $22.1 million . As a result of the repayment of debt, the Company was required to pay approximately $3.4 million in various prepayment fees and approximately $4.5 million for hedge breakage costs that were included in gain on extinguishment of debt, net in the Company’s consolidated statements of operations. On March 18, 2014, the Company amended the terms of its $50.0 million permanent financing facility related to the 2011-A note issued by JGW-S LC II, LLC to increase the maximum borrowing capacity to $100.0 million . Future repayment of VIE long-term debt issued by securitization trusts and permanent financing facilities is dependent on the receipt of cash flows from the corresponding encumbered VIE finance receivables, at fair value. As of December 31, 2015 , estimated maturities for VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, for the next five years and thereafter are as follows: Year Ending December 31, Estimated Maturities (In thousands) 2016 $ 307,178 2017 304,534 2018 287,248 2019 279,428 2020 260,031 Thereafter 2,449,707 Total $ 3,888,126 Interest expense for the years ended December 31, 2015 , 2014 and 2013 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, was $140.9 million , $136.6 million and $120.4 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps 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. The Company has interest-rate swaps to manage its exposure to changes in interest rates related to its VIE borrowings under revolving credit facilities and other similar borrowings. As of December 31, 2015 , the Company had two outstanding interest rate swaps with a total notional value of $31.9 million. The Company pays fixed rates ranging from 1.75% to 1.77% and receives floating rates equal to 1-month LIBOR rate. During the years ended December 31, 2015 , 2014 and 2013 and in connection with its securitizations, the Company terminated interest rate swaps with notional values of $61.1 million , $46.5 million , and $112.9 million , respectively. The total (loss) gain on the termination of these interest rate swaps for the years ended December 31, 2015 , 2014 and 2013 was $(0.2) million , $(0.6) million , and $0.2 million , respectively. These (losses) gains were recorded in (loss) gain on swap terminations, net in the Company’s consolidated statements of operations. The unrealized gain for these swaps for all three of the years ended December 31, 2015 , 2014 and 2013 was $0 . The Company also has interest-rate swaps to manage its exposure to changes in interest rates related to its VIE long-term debt issued by securitization and permanent financing trusts. As of December 31, 2015 , the Company had eight outstanding swaps with total notional amounts of $190.9 million . The Company pays fixed rates ranging from 4.50% to 5.77% and receives floating rates equal to 1-month LIBOR rate 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 December 31, 2015 , the term of these interest rate swaps range from approximately 7 to approximately 20 years. For the years ended December 31, 2015 , 2014 and 2013 , the amount of unrealized gain recognized was $5.6 million , $2.4 million and $24.5 million , respectively. These gains were recorded in realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s 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, and PLMT. As of December 31, 2015 , the Company had 144 outstanding swaps with total notional amount of $211.1 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 December 31, 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 years ended December 31, 2015 , 2014 and 2013 the amount of unrealized gain (loss) recognized was $3.8 million , $(8.1) million and $26.6 million , respectively. These gains (losses) were recorded in realized and unrealized gains on VIE and other finance receivables, long term debt and derivatives in the Company’s consolidated statements of operations. The notional amounts and fair values of interest rate swaps are as follows: Entity Securitization Notional as of December 31, 2015 Fair Value as of December 31, 2015 Notional as of December 31, 2014 Fair Value as of December 31, 2014 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 25,859 $ (2,382 ) $ 32,628 $ (3,019 ) 321 Henderson I, LLC 2005-1 A-1 47,963 (6,186 ) 58,735 (7,435 ) 321 Henderson II, LLC 2006-1 A-1 10,694 (1,091 ) 15,571 (1,509 ) 322 Henderson II, LLC 2006-2 A-1 15,058 (2,239 ) 18,859 (2,718 ) 323 Henderson II, LLC 2006-3 A-1 15,798 (1,951 ) 21,361 (2,475 ) 324 Henderson II, LLC 2006-4 A-1 15,166 (1,489 ) 19,719 (2,056 ) 325 Henderson II, LLC 2007-1 A-2 26,887 (4,949 ) 32,994 (5,624 ) 326 Henderson II, LLC 2007-2 A-3 33,461 (8,085 ) 37,592 (8,966 ) JGW V, LLC — 31,857 59 — — PSS — 162,546 (29,486 ) 176,943 (31,807 ) PLMT — 48,587 (8,720 ) 52,907 (10,097 ) Total $ 433,876 $ (66,519 ) $ 467,309 $ (75,706 ) Interest Rate Lock Commitments and Forward Sale Commitments The Company enters into IRLCs to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 90 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. These IRLCs meet the definition of a derivative and are reflected in the consolidated balance sheets at fair value with changes in fair value recognized in the realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs in the consolidated statements of operations. The fair value of the IRLCs are measured based on the value of the underlying mortgage loan, quoted GSE MBS prices, estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The Company manages the interest rate price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative loan instruments such as forward loan sales commitments and mandatory delivery commitments. Management expects these derivatives will experience changes in fair value opposite to changes in fair value of the derivative loan commitments and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline (derivative loan commitments) and mortgage loans held for sale it wants to economically hedge. The notional amounts and fair values associated with IRLCs and forward sale commitments were as follows: December 31, 2015 Fair Value Notional Amount (In thousands) Derivative Assets: Interest rate lock commitments $ 4,934 $ 222,512 Total $ 4,934 $ 222,512 Derivative Liabilities: Forward sale commitments $ 147 $ 248,500 Total $ 147 $ 248,500 The Company has exposure to credit loss in the event of contractual non-performance by its trading counterparties in derivative financial instruments that the Company uses in its interest rate risk management activities. The Company manages this credit risk by selecting only counterparties that the Company believes to be financially strong, spreading the risk among multiple counterparties, by placing contractual limits on the amount of unsecured credit extended to any single counterparty and by entering into netting agreements with counterparties, as appropriate. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 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 consolidated financial statements do not reflect a benefit or provision for income taxes for JGW LLC for the periods prior to the IPO or any benefit or provision for income taxes on the pre-tax income or loss attributable to the non-controlling interest in JGW LLC. The Company's (benefit) provision for income taxes for the years ended December 31, 2015 , 2014 and 2013 , respectively, consists of the following: For the year ended December 31, 2015 2014 2013 (In thousands) Current: Federal $ (234 ) $ 107 $ 177 State (71 ) 10 35 (305 ) 117 212 Deferred: Federal (15,062 ) 15,313 1,990 State (2,849 ) 5,710 344 (17,911 ) 21,023 2,334 Income tax (benefit) provision $ (18,216 ) $ 21,140 $ 2,546 The difference between the Company's effective income tax rate and the United States statutory rate is reconciled below: For the year ended December 31, 2015 2014 2013 Federal 35.0 % 35.0 % 35.0 % Income passed through to non-corporate members (15.9 )% (18.9 )% (35.1 )% Permanent items (11.1 )% 0.7 % 0.2 % State income tax 1.4 % 3.4 % (0.1 )% Valuation allowance (1.9 )% (2.0 )% 3.9 % Other 1.0 % (0.3 )% — Effective tax rate 8.5 % 17.9 % 3.9 % The Company’s overall effective tax rate is less than the statutory rate due primarily to: (i) a portion of JGW LLC’s income is allocated to the non-controlling interests and accordingly, a portion of the Company’s earnings attributable to the non-controlling interests are not subject to corporate-level taxes, and (ii) for the year ended December 31, 2015, the impact of permanent differences between book and tax losses. The decrease in the Company’s overall effective tax rate for the year ended December 31, 2015 compared to the year ended December 31, 2014 was predominantly the result of the following: (i) the Company reported a $215.4 million pre-tax loss for the year ended December 31, 2015 compared to $117.8 million in pre-tax income for the year ended December 31, 2014, and (ii) the impact of permanent differences between book and taxable losses, including a $121.6 million impairment charge related to goodwill and intangible assets during the year ended December 31, 2015. The increase in the Company’s overall effective tax rate for the year ended December 31, 2014 compared to the year ended December 31, 2013 was predominantly the result of the allocation of income from JGW LLC to the Corporation for all of 2014. For the year ended December 31, 2013, the Corporation was only allocated taxable income for the period after the IPO. The Company’s share of JGW LLC’s income also increased as a result of Common Interestholders having exchanged their Common Interests for shares of Class A common stock during the years ended December 31, 2014 and 2013. The Company’s effective rate increases as additional exchanges occur because the portion of JGW LLC’s income or loss attributable to the Corporation increases which consequently increases taxable income or loss. The effect of JGW LLC’s Common Interest exchanges is partially offset by the Corporation’s repurchases of its Class A Common stock. Anytime the Corporation repurchases shares of its Class A common stock, JGW LLC enters into an equivalent Common Interests transaction with the Corporation. The effect of these repurchases decreases the Corporation’s ownership in JGW LLC which accordingly, decreases the portion of JGW LLC’s income or loss attributable to the Corporation. Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates for the year in which the differences are expected to reverse. A summary of the components of deferred tax assets and deferred tax liabilities follows: December 31, 2015 December 31, 2014 (In thousands) Deferred tax assets: Swap liability $ 1,047 $ 974 Net operating loss carryforwards 63,999 46,856 Total deferred tax assets 65,046 47,830 Valuation allowance (4,531 ) (216 ) Total deferred tax assets, net 60,515 47,614 Deferred tax liabilities: Basis difference in partnership 72,096 78,842 Lottery winnings 2,922 1,940 Lottery winnings fair value adjustments 1,868 1,140 Other 204 178 Total deferred tax liabilities 77,090 82,100 Deferred tax liabilities, net $ (16,575 ) $ (34,486 ) As of December 31, 2015 , the Company has federal and state income tax net operating loss carry forwards of $154.1 million and $110.8 million , respectively, which will expire at various dates from 2033 through 2035. Future realization of tax benefits depends on the expectation of taxable income within a period of time that the tax benefits will reverse. The Company assesses available positive and negative evidence to determine if it is more likely than not that it will be able to realize its deferred tax assets prior to expiration. As of December 31, 2015 and 2014 , the Company recorded valuation allowances in the amount of $4.5 million and $0.2 million , respectively, against the portion of its federal and state net operating losses associated with the Company that it has determined are not more likely than not of being realized. During the year ended December 31, 2014, the Company reduced the valuation allowance applied against its net operating loss carryforwards by $2.6 million based on future taxable income resulting from the Blocker Merger (Note 2). As of December 31, 2015 and 2014 , the Company had no gross unrecognized tax benefits. The Company does not expect any material increase or decrease in its gross unrecognized tax benefits during the next twelve months. If and when the Company does record unrecognized tax benefits in the future, any interest and penalties related to these unrecognized tax benefits will be recorded in the income tax expense line in the applicable statement of operations. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company may be subject to examination by federal and certain state and local tax authorities. As of December 31, 2015 , the Company and its subsidiaries’ U.S. federal income tax returns for the years 2012 through 2014 are open under the normal three-year statute of limitations and therefore subject to examination. State and local tax returns are generally subject to audit from 2012 through 2014 . Currently, no tax authorities are auditing the Company on any income tax matters. |
Installment Obligations Payable
Installment Obligations Payable | 12 Months Ended |
Dec. 31, 2015 | |
Installment Obligations Payable | |
Installment Obligations Payable | Installment Obligations Payable The Company’s Asset Advantage® program generates income and losses from both the related trust accounts and the corresponding installment obligation for each trust account. Income or loss from the trust accounts will be offset in equal amount with income or loss from the installment obligations. Each obligation has an installment payment schedule agreed to by the obligee prior to the time of issuance of the obligation. An obligee may request an unscheduled installment payment, which must be agreed to by the Company, and if so agreed, the Company may generally charge a penalty of up to 20% of the unscheduled installment amount. Virtually all of the obligations are guaranteed by corporate guarantees issued by third party financial institutions to the extent of assets held in related trust accounts. The actual maturities of the obligations depend on, among other things, the obligees’ designated payment schedules, the performance of the obligees’ index choices and the extent to which the obligees have taken any unscheduled installment payments. As of December 31, 2015 , estimated maturities for the next five years and thereafter are as follows: Year Ended December 31, Estimated Maturities (In thousands) 2016 $ 14,401 2017 13,820 2018 11,048 2019 7,810 2020 5,628 Thereafter 32,287 Total $ 84,994 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 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 December 31, 2015 , there were 16,076,444 shares of Class A common stock issued and 15,534,372 shares outstanding. Additionally, there were 8,908,698 shares of Class B common stock issued and outstanding as of December 31, 2015 . There were no shares of Class C common stock issued or outstanding as of December 31, 2015. Repurchases of Class A Common Stock 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. During the year ended December 31, 2015 , the Company repurchased 1,087,312 shares of Class A common stock under the Stock Repurchase Program for an aggregate purchase price of $10.5 million , or $9.69 per share. The repurchased shares are classified as treasury stock at cost on the Company’s consolidated balance sheets. Since the inception of the Stock Repurchase Program, the Company has repurchased 1,546,017 shares of Class A common stock for an aggregate purchase price of $15.0 million . 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. On July 31, 2015, the Company issued 1,572,327 shares of Treasury stock as partial consideration for the Home Lending Acquisition. 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 and will only be entitled to receive an amount per share equal to the $0.00001 par value. Holders of Class B common stock do not have preemptive rights to purchase additional shares of Class B common stock. Subject to the terms and conditions of the operating agreement of 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 December 31, 2015 and 2014 . Warrants Issued to PGHI Corp. In connection with the IPO and restructuring, 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 entitle the holders thereof to purchase up to 483,217 shares of Class A common stock and have an exercise price of $35.78 per share. The warrants issued in respect of the Tranche C-2 profits interests 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. None of the warrants were exercised during the years ended December 31, 2015 and 2014 . 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 years ended December 31, 2015 and 2014 , 984,949 and 3,123,517 Common Interests in JGW LLC, in addition to an equal number of shares of Class B common stock, were exchanged for 984,949 and 3,123,517 shares of the Class A common stock pursuant to the operating agreement, respectively. An additional 715,916 Common Interests in JGW LLC and an equal number of shares of Class B common stock were exchanged for 715,916 shares of Class A common stock during the year ended December 31, 2014 in connection with the Blocker Merger. Amounts Reclassified Out of Accumulated Other Comprehensive Income During the years ended December 31, 2015 , 2014 and 2013 , the Company recorded reclassifications out of accumulated other comprehensive income that are included in the table below: For the year ended December 31, Details about accumulated other comprehensive income components Amounts reclassified from accumulated other comprehensive income Affected line item in the consolidated statement of operations (In thousands) 2015 _ $ — _ 2014 Unrealized gains and losses on available-for-sale securities $ 2,098 Realized gain (loss) on notes receivable, at fair value 2013 Unrealized gains and losses on available-for-sale securities $ (1,862 ) Realized gain (loss) on notes receivable, at fair value In June 2014, a third party repaid its fixed rate note receivable held by the Company. As a result, the Company reclassified $ 2.1 million out of accumulated other comprehensive income during the year ended December 31, 2014. During the year ended December 31, 2013 as a result of a note receivable maturing during the year, $1.9 million was reclassified out of accumulated other comprehensive income. Both notes receivables had been treated as debt securities, classified as available-for-sale, and carried at fair value in accordance with ASC 320. As a result of this classification, unrealized gains (losses) on the notes receivables that arose were reflected within accumulated other comprehensive gain (loss) in the Company’s consolidated statements of comprehensive income (loss) and consolidated statements of changes in stockholders’ equity. |
Non-controlling Interests
Non-controlling Interests | 12 Months Ended |
Dec. 31, 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. 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 year ending December 31, 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 granted to independent directors 70,348 — 70,348 Common interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 984,949 (984,949 ) — Common interests repurchased as a result of Class A common stock repurchased (1,513,644 ) — (1,513,644 ) Common interest re-issued as a result of the Home Lending Acquisition 1,572,327 — 1,572,327 Common interests forfeited — (70,103 ) (70,103 ) Balance as of December 31, 2015 15,534,372 13,269,321 28,803,693 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. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties The Company’s finance receivables are primarily obligations of insurance companies. The exposure to credit risk with respect to these finance receivables is generally limited due to the large number of insurance companies of generally high credit quality comprising the receivable base, their dispersion across geographical areas, and possible availability of state insurance guarantee funds. As of December 31, 2015 and 2014 , three insurance companies and related subsidiaries comprised approximately 34% and 34% , respectively, of the Company's gross finance receivables balance. The Company is also subject to numerous risks associated with structured settlements. These risks include, but are not limited to, restrictions on assignability of structured settlements, potential changes in the U.S. tax law related to taxation of structured settlements, diversion by a seller of scheduled payments to the Company, and other potential risks of regulation and/or legislation. A majority of states have regulated the business by passing statutes that govern the sale of structured settlement payments. Generally, the laws require a court approval to consummate a sale. The Company’s earnings are dependent upon the fair value of the finance receivables it purchases relative to the value it can obtain by financing these assets in securitization or other transactions. Accordingly, earnings are subject to risks and uncertainties surrounding exposure to changes in the interest rate environment, competitive pressures affecting the ability to maintain sufficient effective purchase yields, and the ability to sell or securitize finance receivables at profitable levels in the future. For the years ended December 31, 2015 , 2014 and 2013 , the Company’s structured settlement business accounted for 83% , 94% and 88% of total revenue, respectively. In the normal course of business, companies in the mortgage banking industry encounter certain economic and regulatory risks. Economic risks include interest rate and credit risk. The Company is subject to interest rate risk to the extent that in a rising interest rate environment, the Company may experience a decrease in loan production, as well as decreases in the value of mortgage loans held for sale and in commitments to originate loans, which may negatively impact the Company's operations. Credit risk is the risk of default that may result from the borrowers' inability or unwillingness to make contractually required payments during the period in which loans are being held for sale. The Company sells loans to investors without recourse. As such, the investors have assumed the risk of loss or default by the borrower. However, the Company is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that the Company does not comply with such representations, or there are early payment defaults, the Company may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay-off within a specified time frame, the Company may be required to refund a portion of the sales proceeds to the investors. As of December 31, 2015 , approximately 25.5% and 15.9% of the loans we serviced as measured by unpaid principal balances were concentrated in Virginia and California, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 , the amount owed from the counterparty pursuant to this Borrowing Agreement is approximately $10.2 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 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. For income tax purposes, such exchanges are treated as sales of Common Interests in JGW LLC to the Corporation. JGW LLC made 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, upon each exchange, effectively treats the Corporation as having purchased an undivided interest in each of the assets owned by JGW LLC. As such, each exchange may result in increases (or decreases) in the Corporation’s tax basis in the tangible and intangible assets of JGW LLC that otherwise would not have been available. Any such increases (decreases) in tax basis are, in turn, anticipated to create incremental tax deductions (income) that would reduce (increase) the amount of income tax the Corporation would otherwise be required to pay in the future. In connection with the IPO, the Corporation entered into a tax receivable agreement ("TRA") with Common Interestholders who held in excess of approximately 1% of the Common Interests outstanding immediately prior to the IPO. The TRA 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 TRA, 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 TRA. The TRA continues until all such tax benefits have been utilized or expired, unless the Corporation exercises its right to terminate the TRA upon a change of control for an amount based on the remaining payments expected to be made under the TRA. The exchange of Common Interests for shares of Class A common stock in 2014 resulted in a $207.0 million increase in the Corporation’s share of the tax basis of JGW LLC’s assets, which created current and future income tax deductions for the Corporation. The increase in tax basis, however, did not result in an income tax cash savings for the year ended December 31, 2014, because the Corporation would not have been a tax payer in the absence of such tax basis increase. Consequently, there is no liability associated with the 2014 exchanges pursuant to the TRA. 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. Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change, and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the mortgagor does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor's residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans approximated $222.5 million as of December 31, 2015 . |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 2014 , 1.3 million shares and 1.4 million shares of unissued Class A common stock were available for granting under this plan, respectively. As of December 31, 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 in compensation and benefits expense in the consolidated statement of operations for only those awards expected to vest. The Company estimates the forfeiture rate based on historical experience taking into account its expectations about future forfeitures. Stock Options Options were granted to purchase Class A common stock at exercise prices equal to the fair 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 option awards was estimated using the Black-Scholes valuation model with the following assumptions and weighted average fair values: Year Ended December 31, 2015 Year Ended December 31, 2014 Weighted average fair value of grant $ 4.53 $ 4.81 Risk-free interest rate 1.62 % 1.91 % Expected volatility 47.1 % 41.6 % Expected life of options in years 6.5 6.5 Expected dividend yield — — The Company recognizes 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 years ended December 31, 2015 , 2014 and 2013 , the Company recognized $1.2 million , $0.8 million and less than $0.1 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 year ended December 31, 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 293,500 9.44 Exercised — — Forfeited (299,977 ) 11.47 Expired (7,077 ) 13.36 Outstanding as of December 31, 2015 1,363,378 $ 11.00 8.45 $ — Outstanding, vested and expected to vest as of December 31, 2015 1,317,089 11.01 8.44 — Vested as of December 31, 2015 270,407 11.64 7.46 — During the years ended December 31, 2015 , 2014 and 2013 , 233,713 , 43,771 and 0 shares of stock options vested with an aggregate grant date fair value of $1.2 million , $0.3 million and $0 , respectively. 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 December 31, 2015. The intrinsic value of the Company’s stock options changes based on the closing price of the Company's stock. As of December 31, 2015 , $4.8 million of total unrecognized compensation expense related to the outstanding stock options is expected to be recognized over a weighted average period of 3.65 years. Performance-Based Restricted Stock Units A summary of performance-based restricted stock units for the years ended December 31, 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 165,000 9.01 Vested — — Forfeited (104,000 ) 10.13 Outstanding as of December 31, 2015 191,250 $ 9.48 Outstanding, vested and expected to vest as of December 31, 2015 — — 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 twelve months ended December 31, 2015 , 2014 and 2013 the Company recognized share-based compensation expense of $(0.3) million , $0.3 million and $0 , respectively, in connection with these performance-based units. The income recognized during the twelve months ended December 31, 2015 was the result of management concluding in the third and fourth quarters of 2015 that it was no longer probable that the performance goals associated with performance-based units granted in 2014 and 2015 would vest. Consequently, the Company reversed the expense previously recognized in connection with the 87,750 units granted in 2014 and outstanding as of September 30, 2015 and the 133,500 units granted in 2015 and outstanding as of December 31, 2015 . The aggregate grant-date fair value of the performance-based restricted stock units granted during the years ended December 31, 2015 , 2014 and 2013 was $1.5 million , $1.9 million and $0 , respectively. As of December 31, 2015 , there was $1.2 million of total unrecognized compensation cost relating to outstanding performance-based units that is not expected to be recognized given management's conclusion in 2015 that it was no longer probable the associated performance goals would be met. None of the performance-based restricted stock units had vested as of December 31, 2015 . Restricted Stock A summary of restricted stock activity for the year ended December 31, 2015 is as follows: Restricted Stock Shares Weighted-Average Grant-Date Fair Value Outstanding as of December 31, 2014 8,796 $ 12.40 Granted 70,348 2.60 Vested (13,106 ) 11.59 Outstanding as of December 31, 2015 66,038 $ 2.12 Restricted stock granted to independent directors under the 2013 Incentive Plan cliff vest on the first anniversary after the grant date. The fair value of restricted stock is determined based on the trading price of the Class A common stock on the date of grant. The aggregate grant date fair value of the restricted stock granted was $0.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , there was $0.1 million of total unrecognized compensation cost relating to outstanding restricted stock that is expected to be recognized over a weighted average period of 0.9 years. The Company recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the one -year cliff vesting period. During the years ended December 31, 2015 , 2014 and 2013 , the Company recognized $0.1 million , $0.1 million and less than $0.1 million of share based compensation expense in connection with the restricted stock, respectively. Unvested Restricted Common Interests in JGW LLC The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the year ended December 31, 2015 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 157,112 $ 9.86 Vested in period (58,428 ) 8.97 Forfeited (70,907 ) 12.00 Outstanding as of December 31, 2015 27,777 $ 6.30 Outstanding and expected to vest as of December 31, 2015 27,703 6.29 The aggregate grant-date fair value of the Restricted Common Interests in JGW LLC granted during the years ended December 31, 2015 , 2014 and 2013 was $0 , $0 , and $1.5 million , respectively. The aggregate grant-date fair value of the Restricted Common Interests that vested during the years ended December 31, 2015 , 2014 and 2013 was $0.5 million , $1.5 million , and $1.4 million , respectively. As of December 31, 2015 , there was $0.1 million of unrecognized compensation cost related to outstanding unvested Restricted Common Interests that is expected to be recognized over a weighted average period of 1.9 years. Total share-based compensation expense recognized for the years ended December 31, 2015 , 2014 and 2013 related to the Restricted Common Interests was $0.3 million , $1.2 million , and $1.3 million , respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains two savings plans under Section 401(k) of the Internal Revenue Code that cover all employees who have attained 21 years of age and achieved the applicable and requisite service period. Under the first plan, matching contributions are at the discretion of the Board of Directors. During the years ended December 31, 2015 , 2014 , and 2013 , the matching contributions by the Company were 50% on the first 8% of compensation contributed each pay period. Under the second plan, matching contributions by the Company were 15% of the employee's contributed amount on a per pay basis. Employee benefit plan expense was included in compensation and benefits expense in the Company’s consolidated statements of operations and for the years ended December 31, was as follows: 2015 2014 2013 (In thousands) Employee benefit plan expense $ 668 $ 520 $ 505 |
Restructure Expense
Restructure Expense | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructure Expense | Restructure Expense In April 2013, the Company announced its intention to close its Boynton Beach office. In connection with the announcement, the Company recorded a restructure charge of $3.6 million for primarily severance and related expense. The $3.6 million charge for the year ended December 31, 2013 was recorded in the following statement of operations line items: compensation and benefits, $2.9 million ; and general and administrative, $0.7 million . The associated workforce reductions were substantially complete as of December 31, 2013. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 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. Furthermore, EPS for the full year ended December 31, 2013 is not presented because the Company was not a public company until November 13, 2013. In connection with the IPO, 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. For the years ended December 31, 2015 and 2014 and the period November 13, 2013 through December 31, 2013, 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 year ended December 31, 2015 and 2014 and the period November 14, 2013 through December 31, 2013, 1,455,645 , 796,413 and 264,047 of 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 years ended December 31, 2015 and 2014, 188,218 and 86,904 of weighted-average performance-based restricted stock units were antidilutive and, therefore excluded, from the computation of diluted earnings (loss) per common share. None of the performance-based restricted stock units were outstanding in 2013. 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) available to holders of Class A common stock would increase due to the elimination of non-controlling interests (including any tax impact). Based on these calculations, the 13,623,240 and 15,790,111 weighted average Common Interests and vested Restricted Common Interests outstanding and the 102,562 and 568,606 weighted average unvested Restricted Common Interests outstanding for the years ended December 31, 2015 and 2014 were antidilutive, respectively. For the period November 13, 2013 to December 31, 2013, 870,206 weighted average Common Interests and vested Restricted Common Interests outstanding and 807,993 weighted average unvested Restricted Common Interests were also antidilutive and excluded from the computation of diluted earnings per common share. The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations for the years ended December 31, 2015 and 2014 and for the period of November 13, 2013 through December 31, 2013 : For the year ended December 31, 2015 For the year ended December 31, 2014 November 14, 2013 through December 31, 2013 (Dollars in thousands, except per share data) Numerator: Numerator for basic EPS - Net (loss) income attributable to holders of The J.G. Wentworth Company Class A common stock $ (95,312 ) $ 31,211 $ (5,577 ) Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — JGW LLC unvested Restricted Common Interests — — — Numerator for diluted EPS - Net (loss) income attributable to holders of The J.G. Wentworth Company Class A common stock $ (95,312 ) $ 31,211 $ (5,577 ) Denominator: Denominator for basic EPS -Weighted average shares of Class A common stock 14,690,746 12,986,058 10,395,574 Effect of dilutive securities: Stock options — — — Warrants — — — Restricted common stock and performance-based restricted stock units — 2,723 — JGW LLC Common Interests and vested Restricted Common Interests — — — JGW LLC unvested Restricted Common Interests — — — Dilutive potential common shares — 2,723 — Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock 14,690,746 12,988,781 10,395,574 Basic (loss) income per share of Class A common stock $ (6.49 ) $ 2.40 $ (0.54 ) Diluted (loss) income per share of Class A common stock $ (6.49 ) $ 2.40 $ (0.54 ) |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's business segments are determined based on products and services offered, as well as the nature of the related business activities and they reflect the manner in which financial information is currently evaluated by management. The Company has identified the following two reportable segments: (i) Structured Settlements and Annuity Purchasing and (ii) Home Lending. The Company's Chief Operating Decision Maker evaluates our reportable segments using two metrics for purposes of making decisions about allocating resources to the segments of the Company and assessing their performance. The Company uses both GAAP and Adjusted Net Income (“ANI”) as measures of results from operations, which the Company defines as its net income (loss) under GAAP before non-cash compensation expenses, certain other expenses, provision for or benefit from income taxes and for the Structured Settlements and Annuity Purchasing segment, the amounts related to the consolidation of the securitization and permanent financing trusts the Company uses to finance its business. The Company uses ANI to measure its segments performance because it believes it represents a better measure of its core operating performance, as the operations of these variable interest entities do not impact business performance. In addition, the add-backs described above are consistent with adjustments permitted under the Company's Term Loan agreement. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, prior period information is reclassified whenever practicable. Selected financial data for each reportable segment of the Company was as follows: Structured Settlements and Annuity Purchasing Home Lending Consolidated (In thousands) Year Ended December 31, 2015 Total revenues $ 269,635 $ 26,732 $ 296,367 Net (loss) income before income taxes (217,348 ) 1,992 (215,356 ) Total assets 4,825,831 249,133 5,074,964 Year Ended December 31, 2014 Total revenues $ 494,376 $ — $ 494,376 Net income before income taxes 117,753 — 117,753 Total assets 5,182,709 — 5,182,709 Year Ended December 31,2013 Total revenues $ 459,563 $ — $ 459,563 Net income before income taxes 64,364 — 64,364 Total assets 4,472,097 — 4,472,097 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, the consolidated financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal and recurring nature. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the 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 value; mortgage loans held for sale, at fair value; mortgage servicing rights, at fair value; intangible assets, net of accumulated amortization; goodwill; VIE derivative liabilities, at fair value; and VIE long-term debt issued by securitization and permanent financing trusts, at fair value. Actual results could differ from those estimates and such differences could be material. The accompanying consolidated financial statements include the accounts of the Corporation, its wholly-owned subsidiaries, including those entities that are considered VIEs, and where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). Excluded from the consolidated financial statements of the Company are those entities that are considered VIEs and where the Company has been deemed not to be the primary beneficiary according to ASC 810. |
Business Combinations | The Company records the identifiable assets acquired, the liabilities assumed, and any non-controlling interests of companies that are acquired at their estimated fair value as of the date of acquisition, and includes the results of operations from the date of the acquisition in the consolidated statement of operations. The Company recognizes, as goodwill, the excess of the acquisition price over the estimated fair value of the net assets acquired. |
Fair Value Measurements | Under ASC 820 Fair Value Measurements and Disclosure , ("ASC 820"), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the orderly transaction between market participants at the measurement date. Fair value measurement establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. These three levels of fair value hierarchy are defined as follows: • Level 1 - inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. • Level 2 - inputs to the valuation methodology include quoted prices in markets that are not active or quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - inputs to the valuation methodology are unobservable, reflecting the entity’s own assumptions about assumptions market participants would use in pricing the asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair value is a market based measure considered from the perspective of a market participant who holds the assets or owes the liabilities rather than an entity specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that market participants would use in pricing the assets or liabilities at the measurement date. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We also evaluate 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. |
Transfers of Financial Assets | Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the following conditions have been satisfied: (1) the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; (2) the transferee obtains the right to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets or through an agreement that permits the transferee to require the transferor to repurchase the transferred financial assets that is so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them. Transfers that do not meet the criteria to be accounted for as sales are accounted for as secured borrowings. The amendments to ASC 860, Transfers and Servicing (“ASC 860”), eliminated the concept of a qualified special purpose entity, changed the requirements for derecognizing financial assets, and required additional disclosures about transfers of financial assets, including securitization transactions and continuing involvement with transferred financial assets. |
Cash and Cash Equivalents | The Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with an initial maturity of three-months or less to be cash equivalents. |
Restricted Cash and Investments | Restricted cash balances represent the use of trust or escrow accounts to secure the cash assets managed by the Company, certificates of deposit supporting letters of credit and warehouse lines of credit, customer purchase holdbacks, collateral collections and split payment collections, and collateral for broker dealer margin calls. The Structured Settlements and Annuity Purchasing business segment acts as the master servicer and/or the subservicer for structured settlements and annuities, lottery winnings, life settlements, and pre-settlements. The Home Lending business segment acts as master servicer for its mortgage loan servicing portfolio. Trust accounts are established for collections with payments being made from the restricted cash accounts to the lenders and other appropriate parties on a monthly basis in accordance with the applicable loan agreements or indentures. At certain times, the Company has cash balances in excess of FDIC insurance limits of $250,000 for interest-bearing accounts, which potentially subject the Company to market and credit risks. The Company has not experienced any losses to date as a result of these risks. Restricted investments in the amounts of $ 3.2 million and $1.1 million as of December 31, 2015 and 2014 , respectively, include certificates of deposit which are pledged to meet certain state requirements in order to conduct business in certain states. The certificates of deposit are carried at face value inclusive of interest, which approximates fair value as such instruments are renewed annually. |
Variable Interest Entities | The consolidated financial statements include the accounts of The J.G. Wentworth Company, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities where the Company's wholly-owned subsidiaries are the primary beneficiaries. All material intercompany balances and transactions are eliminated in consolidation. In the normal course of business, we are involved with various entities that are considered to be VIEs. A VIE is an entity that has either a total investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest under the voting interest model of consolidation. We are required to consolidate any VIE if we are determined to be the primary beneficiary. The primary beneficiary is the entity that has the power to direct those activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses from or the right to receive benefits from the VIE that could potentially be significant to the VIE. We review all significant interests in the VIEs we are involved with including consideration of the activities of the VIEs that most significantly impact the VIEs’ economic performance and whether we have control over those activities. On an ongoing basis, we assess whether or not we are the primary beneficiary of a VIE. As a result of adopting ASC 810, Consolidations, we determined we were and continue to be the primary beneficiary of the VIEs used to securitize our finance receivables (“VIE finance receivables”). We elected the fair value option with respect to assets and liabilities in our securitization VIEs as part of their initial consolidation on January 1, 2010. The debt issued by our securitization VIEs is reported on our consolidated balance sheets as VIE long-term debt issued by securitization and permanent financing trusts, at fair value (“VIE securitization debt”). The VIE securitization debt is recourse solely to the VIE finance receivables held by such special purpose entities (“SPEs”) and thus is non-recourse to us and other consolidated subsidiaries. The VIEs will continue in operation until all securitization debt is paid and all residual cash flows are collected. Most consolidated VIEs have expected lives in excess of 20 years. |
VIE and Other Finance Receivables, at Fair Market Value | We acquire receivables associated with structured settlement payments from individuals in exchange for cash, and these receivables are carried at fair value. Unearned income is calculated as the amount the fair value exceeds the cost basis of the receivables. Unearned income on structured settlements is recognized as interest income using the effective interest method over the life of the related structured settlement. Changes in fair value are recorded in realized and unrealized gains on VIE and other finance receivables, long-term debt and derivatives in our consolidated statements of operations. |
Allowance for Losses on Receivables | On an ongoing basis the Company reviews the ability to collect all amounts owed on VIE and other finance receivables carried at amortized cost. The Company maintains an allowance for losses on receivables which represents management’s estimate for losses inherent in the portfolio. The Company determines the adequacy of its allowance based upon an evaluation of the finance receivables’ collateral, the financial strength of the related insurance company that issued the structured settlement, current economic conditions, historical loss experience, known and inherent risks in the portfolios and other relevant factors. Defaulted payment balances that are deemed uncollectible are charged against the allowance for losses on receivables, and subsequent recoveries, if any, are credited to the allowance. |
Mortgage Loans Held for Sale, at Fair Value | Mortgage loans held for sale are carried at fair value with changes in the fair value recognized in current period earnings and included within realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs on the consolidated statement of operations. At the date of funding of the mortgage loan held for sale, the funded amount of the loan plus the related derivative asset or liability of the associated interest rate lock commitment (“IRLC”) becomes the initial recorded investment in the mortgage loan held for sale. Such amount is expected to approximate the fair value of the loan. The fair value of mortgage loans held for sale is calculated using observable market information including pricing from actual market transactions, investor commitment prices, or broker quotations. Gains and losses from the sale of mortgages are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, and are recorded in realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs in the consolidated statements of operations. Origination fees and costs are recognized into earnings at the time of funding. |
Mortgage Servicing Rights, at Fair Value | Mortgage servicing rights ("MSRs") are contractual arrangements where the rights to service existing mortgages are sold by the original lender to other parties who specialize in the various functions of servicing mortgages. MSRs are initially recorded at fair value at the time the underlying loans are sold. The Company records the changes in fair value in changes in mortgage servicing rights. To determine the fair value of the servicing right, the Company uses a discounted cash flow approach incorporating assumptions that management believes market participants would use in estimating future net servicing income, including estimates of the contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, float value, the inflation rate, prepayment speeds and default rates. The Company elected to subsequently measure our existing MSRs portfolio using the fair value method, in which MSRs are measured at fair value each reporting period and changes in fair value are recorded in earnings in the period in which changes in value occur. |
Premises and equipment | Premises and equipment are stated at cost, net of accumulated depreciation or amortization and are comprised primarily of computer equipment, office furniture and software licensed from third parties. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the individual assets. For leasehold improvements, amortization is computed over the lesser of the estimated useful lives of the improvements or the lease term. |
Intangible Assets | The Company has intangible assets which have indefinite and definite lives, which are accounted for under ASC 350, Intangibles - Goodwill and Other , ("ASC 350"). Indefinite lived intangible assets are tested for impairment whenever events or changes in circumstances suggest that an asset’s carrying value may not be fully recoverable, and are tested at least annually. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset, is recognized if the sum of the estimated undiscounted cash flows relating to the asset is less than the corresponding carrying value. Our indefinite lived intangible assets include a trade name and licenses and approvals. |
Goodwill | Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in the business combination, and is accounted for under ASC 350. Goodwill has an indefinite useful life and is evaluated for impairment at the reporting-unit level on an annual basis, or more frequently if events or changes in circumstances indicate potential impairment between annual measurement dates. The Company has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The initial qualitative approach assesses whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value is less than carrying value, the two step quantitative impairment test is performed. A step 1 analysis involves calculating the fair value of the associated reporting unit and comparing it to the reporting unit's carrying value. If the fair value of the reporting unit is less than its carrying value, step 2 of the impairment test must be performed. Step 2 involves calculating and comparing the implied fair value of the reporting unit's goodwill with its carrying value. Impairment is recognized if the estimated fair value of the reporting unit is less than its net book value. Such loss is calculated as the difference between the estimated implied fair value of goodwill and its carrying amount. |
Marketable Securities | Assets acquired through the Company’s installment sale transaction structure are invested in a diverse portfolio of marketable debt and equity securities. Marketable securities are considered trading securities and are carried using the fair value method in accordance with ASC 820 with realized and unrealized gains and losses included in realized and unrealized gains (losses) on marketable securities, net in the Company’s consolidated statements of operations and classified as Level 1 assets in the valuation hierarchy of fair value measurements. Marketable securities are held for resale in anticipation of fluctuations in market prices. Interest on debt securities is recognized in interest income as earned and dividend income on marketable equity securities is recognized in interest income on the ex-dividend date. |
Derivative Instruments and Hedging Activities | The Company holds derivative instruments that do not qualify for hedge accounting treatment as defined by ASC 815, Derivatives and Hedging ("ASC 815"). The objective for holding these instruments is to economically offset variability in forecasted cash flows associated with interest rate fluctuations. Interest rate swaps are recorded at fair value in VIE derivative liabilities, at fair value on the consolidated balance sheet with changes in fair value recorded in unrealized gains on VIE and other finance receivables, long-term debt and derivatives in the Company’s consolidated statements of operations. The Company also enters into commitments to originate and purchase mortgage loans at interest rates that are determined prior to the funding or purchase of the loan. IRLCs are considered freestanding derivatives and are recorded at fair value at inception. Changes in fair value subsequent to inception are based on the change in fair value of the underlying loan and changes in the probability that the loan will fund within the terms of the commitment. The Company uses derivative financial instruments, primarily forward sales commitments, to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale. The Company may also enter into commitments to sell mortgage backed securities ("MBSs") as part of its overall hedging strategy. The Company has elected not to apply hedge accounting to these freestanding derivatives. The fair value of freestanding derivatives is recorded in other assets or other liabilities on the consolidated balance sheets with changes in fair value included in net gains on sales of mortgage loans on the consolidated statements of operations. |
Notes Receivable, at Fair Market Value | Notes receivable represented fixed rate obligations of a third party collateralized by retained interests from certain securitizations sponsored by the Company. Under the agreements, the obligor had the right to redeem the notes at fair value. The notes receivable were treated as debt securities, classified as available-for-sale, and carried at fair value in accordance with ASC 320, Investments – Debt and Equity Securities . Unrealized gains and losses on notes receivable arising during the period were reflected within accumulated other comprehensive gain (loss) in the Company’s consolidated statements of comprehensive income (loss) and consolidated statements of changes in stockholders’ equity. The notes receivable were fully repaid in June of 2014. |
Income Taxes | JGW LLC and the majority of its subsidiaries operate in the U.S. as non-tax paying entities, and are treated as disregarded entities for U.S. federal and state income tax purposes and generally as corporate entities in non-U.S. jurisdictions. In addition, certain of JGW LLC's wholly owned subsidiaries are operating as corporations within the U.S. and subject to U.S. federal and state tax. As non-tax paying entities, the majority of JGW LLC's net income or loss is attributable to its members and included in their tax returns. The current and deferred income tax provision (benefit) relates to both the income (loss) attributable to the Corporation from JGW LLC and to the tax-paying subsidiaries of JGW LLC. Income taxes are accounted for using the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of the differences between the carrying amounts of assets and liabilities and their respective tax basis, using currently enacted tax rates. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We analyze its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, we determine that uncertainties in tax positions exist, a reserve will be established. We will recognize accrued interest and penalties related to uncertain tax positions in the consolidated statements of operations. Tax laws are complex and subject to different interpretations by the taxpayer and respective taxing authorities. Significant judgment is required in determining tax expense and evaluating tax positions, including evaluating uncertainties under U.S. GAAP. Management reviews its tax positions periodically and adjusts its tax balances as new information becomes available. |
Segment Reporting | The Company reports operating segments in accordance with ASC 280, Segment Reporting ("ASC 280"). Operating segments are components of an entity for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. ASC 280 requires that a public entity report a measure of segment profit or loss, certain specific revenue and expense items, segment assets, and information on the way that the Company identified its operating segments. The Company's business segments are determined based on products and services offered, as well as the nature of the related business activities and they reflect the manner in which financial information is currently evaluated by management. |
Revenue Recognition | Interest income on mortgage loans held for sale is accrued and is based upon the principal amount outstanding and contractual interest rates. Income recognition is discontinued when loans become 90 days delinquent or when in management’s opinion, the collectability of principal and interest becomes doubtful and the mortgage loans held for sale are put on a non-accrual basis. When the loan is placed on non-accrual status, the related interest receivable is reversed against interest income of the current period. If a non-accrual loan is returned to accruing status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria. The Company suspends recognizing interest income when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreements. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Payments received on past due receivables and finance receivables the Company has suspended recognizing interest income on are applied first to principal and then to accrued interest. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. Loan Servicing Fees Loan servicing fees associated with mortgage loan operations represent revenue earned for servicing loans for various investors and are included in servicing, broker, and other fees in the consolidated statements of operations. The loan servicing fees are based on a contractual percentage of the outstanding principal balance and are recognized into income when earned. Loan servicing expenses are charged to operations as incurred, and included in direct subservicing costs in the consolidated statement of operations. |
Share-Based Compensation | The Company applies ASC 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires that the compensation cost relating to share-based payment transactions, based on the fair value of the equity or liability instruments issued, be included in the Company’s consolidated statements of operations. The Company has determined that these share-based payment transactions represent equity awards under ASC 718 and therefore measures the cost of employee services received in exchange for share based compensation on the grant-date fair value of the award, and recognizes the cost over the period the employee is required to provide services for the award. For all grants of stock options, the fair value at the grant date is calculated using option pricing models based on the value of the entity's shares at the award date. Compensation expense for performance-based restricted stock units is recognized ratably from the date of the grant until the date the restrictions lapse and is based on the trading price of the Class A common stock on the date of grant and the probability of achievement of the specific performance-based goals. Share-based compensation expense is included in compensation and benefits expense within the Company’s consolidated statements of operations. |
Debt Issuance Costs | Debt issuance costs related to liabilities for which the Company has elected the fair value option are expensed when incurred. Debt issuance costs related to liabilities for which the Company has not elected the fair value option are capitalized and amortized over the expected term of the borrowing or debt issuance. Capitalized amounts are included in other assets or netted against the Company's long-term debt in the Company’s consolidated balance sheets and amortization of such costs is included in interest expense in the Company’s consolidated statements of operations over the life of the debt facility. |
Advertising Expenses | The Company expenses advertising costs as incurred. The costs are included in advertising expense in the Company’s consolidated statements of operations. |
Recently Adopted Accounting Pronouncements | Effective January 1, 2014, the Company adopted ASU No. 2013-11, 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. The adoption of ASU 2013-11 did not materially impact the Company’s financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of business combination information | The following table sets forth the final acquisition-date fair value of the consideration and the identified net assets acquired and liabilities assumed as of July 31, 2015. As of July 31, 2015 (In thousands) Consideration: Cash $ 53,205 Equity instruments issued (1,572,327 shares of Class A common stock) 12,956 Post close adjustment liabilities 8,443 Fair value of total consideration $ 74,604 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 6,610 Restricted cash 4,756 Mortgage loans held for sale 131,325 Mortgage servicing rights 27,638 Premises and equipment 908 Intangible assets 23,842 Other assets 31,701 Other borrowings under revolving credit facilities and other similar borrowings (128,487 ) Other liabilities (32,058 ) Total identifiable net assets 66,235 Goodwill $ 8,369 |
Schedule of pro forma information | The following table summarizes the actual amounts of Home Lending's revenues and earnings included in the Company's consolidated statement of operations from July 31, 2015: Home Lending amounts included in the results of operations for Year Ended December 31, 2015 (In thousands) Total revenue $ 26,732 Net income before income taxes $ 1,992 The following table summarizes the supplemental unaudited pro forma information of the combined Company for the years ended December 31, 2015 and 2014 , respectively, as if the Home Lending Acquisition occurred on January 1, 2014. Years Ended December 31, 2015 2014 (In thousands, unaudited) Pro forma total revenues $ 343,238 $ 554,247 Pro forma net (loss) income before income taxes (1) $ (202,745 ) $ 129,877 (1) Includes adjustments for acquisition related costs of $3.9 million for the year ended December 31, 2014. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Business Segment | Goodwill by business segment includes the following as of: December 31, 2015 December 31, 2014 (In thousands) Structured Settlements and Annuity Purchasing $ — $ 84,993 Home Lending 8,369 — Total Goodwill $ 8,369 $ 84,993 |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization include the following as of: Structured Settlements and Annuity Purchasing Home Lending Cost Accumulated Amortization Cost Accumulated Amortization (In thousands) December 31, 2015 Database $ 4,609 $ (4,250 ) $ — $ — Customer relationships 18,844 (15,375 ) — — Domain names 486 (450 ) — — Non-compete agreements 1,821 (1,821 ) — — Trade Name — — 1,095 (228 ) Affinity relationship — — 9,547 (397 ) Intangible assets subject to amortization $ 25,760 $ (21,896 ) $ 10,642 $ (625 ) December 31, 2014 Database $ 4,609 $ (4,011 ) $ — $ — Customer relationships 18,844 (14,114 ) — — Domain names 1,635 (327 ) — — Non-compete agreements 1,821 (1,821 ) — — Intangible assets subject to amortization $ 26,909 $ (20,273 ) $ — $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2015 , estimated future amortization expense for amortizable intangible assets for the next five years and thereafter are as follows: Year Ending December 31, Amortization Expense (In thousands) 2016 $ 2,527 2017 2,213 2018 2,030 2019 1,442 2020 1,257 Thereafter 4,412 Total $ 13,881 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 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) December 31, 2015 Assets Marketable Securities: Equity securities US large cap $ 28,670 $ — $ — $ 28,670 US mid cap 5,213 — — 5,213 US small cap 5,477 — — 5,477 International 14,068 — — 14,068 Other equity 3,308 — — 3,308 Total equity securities 56,736 — — 56,736 Fixed income securities: US fixed income 16,945 — — 16,945 International fixed income 1,217 — — 1,217 Other fixed income — — — — Total fixed income securities 18,162 — — 18,162 Other securities: Cash & cash equivalents 7,634 — — 7,634 Alternative investments 161 — — 161 Annuities 2,301 — — 2,301 Total other securities 10,096 — — 10,096 Total marketable securities 84,994 — — 84,994 VIE and other finance receivables, at fair value — — 4,386,147 4,386,147 Mortgage loans held for sale, at fair value — 124,508 — 124,508 Mortgage service rights, at fair value — — 29,287 29,287 Interest rate lock commitments, at fair value (1) — — 4,934 4,934 Total Assets $ 84,994 $ 124,508 $ 4,420,368 $ 4,629,870 Liabilities VIE derivative liabilities, at fair value — 66,519 — 66,519 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 3,928,818 3,928,818 Forward sale commitments, at fair value (2) — 147 — 147 Total Liabilities $ — $ 66,666 $ 3,928,818 $ 3,995,484 (1) Included in other assets on the Company’s consolidated balance sheet. (2) Included in other liabilities on the Company’s 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 value — — 4,523,835 4,523,835 Total Assets $ 103,419 $ — $ 4,523,835 $ 4,627,254 Liabilities VIE derivative liabilities, at fair value — 75,706 — 75,706 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,031,864 4,031,864 Total Liabilities $ — $ 75,706 $ 4,031,864 $ 4,107,570 |
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 (In thousands) Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2015 Assets VIE and other finance receivables, at fair value $ 4,386,147 Discounted cash flow Discount rate 3.33% - 12.30% (4.47%) Mortgage servicing rights, at fair value 29,287 Discounted cash flow Discount rate 9.54% - 14.06% (10.27%) Prepayment speed 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($75) Interest rate lock commitments, at fair value 4,934 Internal model Pull-through rate 37.44% - 100.00% (74.91%) Total Assets $ 4,420,368 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value 3,928,818 Discounted cash flow Discount rate 1.69% - 12.30% (4.13%) Total Liabilities $ 3,928,818 Fair Value (In thousands) Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2014 Assets VIE and other finance receivables, at fair value $ 4,523,835 Discounted cash flow Discount rate 2.55% - 12.60% (3.43%) Total Assets $ 4,523,835 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair 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 years ended December 31, 2015 and 2014 were as follows: VIE and other finance receivables, at fair value Mortgage Servicing Rights Interest Rate Lock Commitments Notes receivable, at fair value Total Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ — $ 4,523,835 Total gains (losses): 0 Included in earnings / losses (164,311 ) 1,649 4,934 — (157,728 ) Included in other comprehensive gain — — — — — Realized gain on sale of finance receivable 5,013 — — — 5,013 Purchases of finance receivables 385,288 — — — 385,288 Interest accreted 168,998 — — — 168,998 Payments received (511,867 ) — — — (511,867 ) Sale of finance receivables (20,809 ) — — — (20,809 ) Assets acquired in connection with the Home Lending Acquisition — 27,638 7,051 — 34,689 Transfers to/from other balance sheet line items — — (7,051 ) — (7,051 ) Transfers in and/or out of Level 3 — — — — — Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ — $ 4,420,368 The amount of net (losses) gains for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: December 31, 2015 $ (164,311 ) $ 1,649 $ 4,934 $ — $ (157,728 ) Balance as of December 31, 2013 $ 3,870,649 $ — $ — $ 5,610 $ 3,876,259 Total gains (losses): Included in earnings / losses 551,756 — — 2,098 553,854 Included in other comprehensive gain — — — (1,615 ) (1,615 ) Purchases of finance receivables 420,886 — — — 420,886 Interest accreted 163,758 — — — 163,758 Payments received (483,214 ) — — (6,093 ) (489,307 ) Transfers in and/or out of Level 3 — — — — — Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ — $ 4,523,835 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: December 31, 2014 $ 551,756 $ — $ — $ — $ 551,756 |
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 years ended December 31, 2015 and 2014 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2014 $ 4,031,864 Net (gains) losses: Included in earnings / losses (230,228 ) Issuances 489,699 Interest accreted (44,425 ) Repayments (318,092 ) Transfers in and/or out of Level 3 — Balance as of December 31, 2015 $ 3,928,818 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: December 31, 2015 $ (229,635 ) Balance as of December 31, 2013 3,431,283 Net (gains) losses: Included in earnings / losses 245,085 Issuances 685,436 Interest accreted (40,000 ) Repayments (289,940 ) Transfers in and/or out of Level 3 — Balance as of December 31, 2014 $ 4,031,864 The amount of net (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long-term debt still held as of: December 31, 2014 $ 245,332 |
Schedule of realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of operations | Realized and unrealized gains and losses included in revenues in the accompanying consolidated statements of operations for the years ended December 31, 2015 , 2014 , and 2013 are reported in the following revenue categories: VIE and other finance receivables and long- term debt Mortgage serving rights Interest Rate Lock Commitments (In thousands) Net gains (losses) in revenues for the year ended December 31, 2015 $ 70,930 $ 1,649 $ 4,934 Unrealized gains (losses) for the year ended December 31, 2015 relating to assets still held as of December 31, 2015 $ 65,324 $ 1,649 $ 4,934 Net gains (losses) in revenues for the year ended December 31, 2014 $ 306,671 $ — $ — Unrealized gains (losses) for the year ended December 31, 2014 relating to assets still held as of December 31, 2014 $ 306,424 $ — $ — Net gains (losses) in revenues for the year ended December 31, 2013 $ 223,791 $ — $ — Unrealized gains (losses) for the year ended December 31, 2013 relating to assets still held as of December 31, 2013 $ 199,298 $ — $ — |
Schedule of estimated fair values of financial instruments | The Company discloses fair value information about financial instruments, whether or not recognized at fair value in the Company’s 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: December 31, 2015 December 31, 2014 (In thousands) Estimated Fair Value Carrying Amount Estimated Fair Value Carrying Amount Financial assets VIE and other finance receivables, at fair value $ 4,386,147 $ 4,386,147 $ 4,523,835 $ 4,523,835 VIE and other finance receivables, net of allowance for losses (1) 103,609 110,342 123,765 131,292 Other receivables, net of allowances for losses (1) 16,285 16,285 14,165 14,165 Mortgage loans held for sale, at fair value 124,508 124,508 — — Mortgage servicing rights, at fair value 29,287 29,287 — — Marketable securities 84,994 84,994 103,419 103,419 Interest rate lock commitments, at fair value (2) 4,934 4,934 — — Financial liabilities Term loan payable (1) 325,558 440,181 433,904 437,183 VIE derivative liabilities, at fair value 66,519 66,519 75,706 75,706 VIE borrowings under revolving credit facilities and other similar borrowings (1) 53,737 48,828 21,415 19,339 Other borrowings under revolving credit facilities and other similar borrowings (1) 122,243 122,243 — — VIE long-term debt (1) 194,211 199,363 176,635 181,558 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 3,928,818 3,928,818 4,031,864 4,031,864 Forward sale commitments (3) 147 147 — — Installment obligations payable (1) 84,994 84,994 103,419 103,419 (1)These represent financial instruments not recorded in the consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. (2) Included in the other assets on the Company's consolidated balance sheet. (3) Included in the other liabilities on the Company's consolidated balance sheet. |
VIE and Other Finance Receiva44
VIE and Other Finance Receivables, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |
Schedule of VIE and other finance receivables for which the fair value option was elected | Additionally, as a result of the Company including lottery winning finance receivables starting with 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: December 31, 2015 December 31, 2014 (In thousands) Maturity value $ 6,876,687 $ 6,492,863 Unearned income (2,490,540 ) (1,969,028 ) Net carrying amount $ 4,386,147 $ 4,523,835 |
Schedule of encumbrances on VIE and other finance receivables, at fair value | Encumbrances on VIE and other finance receivables, at fair value are as follows: Encumbrance December 31, 2015 December 31, 2014 (In thousands) VIE securitization debt (2) $ 4,236,520 $ 4,357,456 $100 million credit facility (JGW-S III) (1) 1,664 2 $50 million credit facility (JGW IV) (1) — — $300 million credit facility (JGW V) (1) 54,306 — $300 million credit facility (JGW VII) (1) — — $100 million permanent financing related to 2011-A (2) 83,968 64,575 Encumbered VIE finance receivables, at fair value 4,376,458 4,422,033 Not encumbered 9,689 101,802 Total VIE and other finance receivables, at fair value $ 4,386,147 $ 4,523,835 (1) See Note 17. (2) See Note 20. |
Schedule of servicing fee | Servicing fee revenue related to those receivables are included in servicing, broker, and other fees in the Company’s consolidated statements of operations, and for the years ended December 31, were as follows: 2015 2014 2013 (In thousands) Servicing fees $ 811 $ 914 $ 948 |
VIE and other finance receivables, at fair market value | |
Variable Interest Entity [Line Items] | |
Schedule of expected cash flows of receivables based on maturity value | As of December 31, 2015, the expected cash flows of VIE and other finance receivables, at fair value based on maturity value for the next five years and thereafter were as follows: Year ended December 31, Expected cash flows (In thousands) 2016 $ 508,236 2017 497,866 2018 465,198 2019 449,394 2020 416,924 Thereafter 4,539,069 Total $ 6,876,687 |
VIE and Other Finance Receiva45
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
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: December 31, 2015 December 31, 2014 (In thousands) Structured settlements and annuities $ 72,121 $ 76,253 Less: unearned income (45,825 ) (49,270 ) 26,296 26,983 Lottery winnings 70,589 81,169 Less: unearned income (20,153 ) (24,389 ) 50,436 56,780 Pre-settlement funding transactions 44,299 57,886 Less: deferred revenue (1,144 ) (1,563 ) 43,155 56,323 Attorney cost financing 821 1,334 Less: deferred revenue — — 821 1,334 VIE and other finance receivables, gross 120,708 141,420 Less: allowance for losses (10,366 ) (10,128 ) VIE and other finance receivables, net of allowances $ 110,342 $ 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 December 31, 2015 December 31, 2014 (In thousands) VIE long-term debt (2) $ 69,691 $ 74,973 $35 million pre-settlement credit facility (1) 25,401 30,423 $45.1 million long-term pre-settlement facility (2) 3,533 6,453 $2.5 million long-term facility (2) 1,249 1,640 Encumbered VIE finance receivables, net of allowances 99,874 113,489 Not encumbered 10,468 17,803 Total VIE and other finance receivables, net of allowances $ 110,342 $ 131,292 (1) See Note 17. (2) See Note 19. |
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 winnings Pre-settlement funding transactions Attorney cost financing Total (In thousands) For the year ended December 31, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (192 ) (66 ) (4,288 ) — (4,546 ) Charge-offs 195 69 4,064 — 4,328 Recoveries (16 ) — (3 ) (1 ) (20 ) Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) Individually evaluated for impairment $ (69 ) $ — $ (2,243 ) $ (284 ) $ (2,596 ) Collectively evaluated for impairment — — (7,770 ) — (7,770 ) Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,227 $ 50,436 $ 125 $ 537 $ 77,325 Collectively evaluated for impairment — — 33,017 — 33,017 Balance as of December 31, 2015 $ 26,227 $ 50,436 $ 33,142 $ 537 $ 110,342 For the year ended December 31, 2014 Allowance for losses: Balance as of December 31, 2013 $ (48 ) $ — $ (8,011 ) $ (283 ) $ (8,342 ) Provision for loss (31 ) (3 ) (4,772 ) — (4,806 ) Charge-offs 128 — 2,997 — 3,125 Recoveries (105 ) — — — (105 ) Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Individually evaluated for impairment $ (56 ) $ (3 ) $ (2,886 ) $ — $ (2,945 ) Collectively evaluated for impairment — — (6,900 ) (283 ) (7,183 ) Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,927 $ 56,777 $ 3,204 $ 1,051 $ 87,959 Collectively evaluated for impairment — — 43,333 — 43,333 Balance as of December 31, 2014 $ 26,927 $ 56,777 $ 46,537 $ 1,051 $ 131,292 |
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 as of: Year of Origination December 31, 2015 December 31, 2014 (Dollars in thousands ) 2009 $ 1,229 $ 2,618 2010 2,759 4,251 2011 5,597 6,938 2012 6,212 10,687 2013 6,772 11,335 2014 17,773 22,057 2015 3,957 — Total $ 44,299 $ 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) December 31, 2015 Structured settlements and annuities $ 9 $ 8 $ 481 $ 498 $ 25,729 $ 26,227 $ — Lottery winnings 3 3 206 212 50,224 $ 50,436 — Total $ 12 $ 11 $ 687 $ 710 $ 75,953 $ 76,663 $ — 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 and Other Finance Receivables, net | Structured settlements, annuities and lottery winnings | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Schedule of expected cash flows of receivables based on maturity value | As of December 31, 2015 , the expected cash flows of structured settlements, annuities and lottery winnings based on maturity value for the next five years and thereafter are as follows: Year Ended December 31, Expected cash flows (In thousands) 2016 $ 14,153 2017 10,605 2018 10,227 2019 10,183 2020 10,399 Thereafter 87,143 Total $ 142,710 |
Other Receivables, net of All46
Other Receivables, net of Allowance for Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of other receivables | Other receivables include the following as of: December 31, 2015 December 31, 2014 (In thousands) Advances receivable $ 2,312 $ 2,406 Notes receivable 8,811 8,038 Tax withholding receivables on lottery winnings 1,157 1,209 Due from affiliates 24 376 Other 4,254 2,340 Other receivables, gross 16,558 14,369 Less: allowance for losses (273 ) (204 ) Other receivables, net of allowances for losses $ 16,285 $ 14,165 |
Schedule of activity in the allowance for doubtful accounts for other receivables | Activity in the allowance for doubtful accounts for other receivables for the following years ended was as follows: December 31, 2015 December 31, 2014 (In thousands) Beginning balance $ (204 ) $ (243 ) (Provision) credit for losses (69 ) 39 Ending balance $ (273 ) $ (204 ) |
Mortgage Loans Held for Sale,47
Mortgage Loans Held for Sale, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Mortgage Loans Held For Sale | Mortgage loans held for sale, at fair value were as follows: December 31, 2015 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 120,253 Fair value adjustment 4,255 Mortgage loans held for sale, at fair value $ 124,508 A reconciliation of the changes in mortgage loans held for sale, at fair value is presented in the following table: Mortgage Loans Held for Sale (In thousands) Acquired through Home Lending Acquisition $ 131,325 Mortgage loans originated, net of fees 842,926 Repurchase of Ginnie Mae loans 4,991 Proceeds from sale of and principal payments on mortgage loans held for sale (872,526 ) Net change in fair value of mortgage loans held for sale 17,792 Balance as of December 31, 2015 $ 124,508 |
Schedule of Activity in the Loan Indemnification Reserve | The activity in the loan loss reserve was as follows: Loan Loss Reserve (In thousands) Acquired through Home Lending Acquisition $ 2,331 Provision for loan servicing and repurchases 1,030 Write-offs (786 ) Balance as of December 31, 2015 $ 2,575 |
Mortgage Servicing Rights, at48
Mortgage Servicing Rights, at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Summary of Activity of Mortgage Servicing Rights | The activity of MSRs were as follows: MSRs (In thousands) Acquired through Home Lending Acquisition $ 27,638 Additions due to loans sold, servicing retained 3,752 Reductions due to loan payoffs and foreclosures (1,637 ) Fair value adjustment (466 ) Balance as of December 31, 2015 $ 29,287 |
Schedule of Assumptions for Fair Value of Mortgage Servicing Rights | The key assumptions used in determining the fair value of the Company's MSRs were as follows: December 31, 2015 Discount rates 9.54% - 14.06% Prepayment speed 8.24% - 20.56% Cost of servicing $65 - $90 |
Schedule of Sensitivity Analysis of Fair Value of Mortgage Servicing Rights | The hypothetical effect of an adverse change in these key assumptions that would result in a decrease in fair values are as follows: December 31, 2015 Discount rate: Effect on value - 100 basis points adverse change $ (1,082 ) Effect on value - 200 basis points adverse change $ (2,088 ) Prepayment speed: Effect on value - 5% adverse change $ (542 ) Effect on value - 10% adverse change $ (1,085 ) Cost of servicing: Effect on value - 5% adverse change $ (232 ) Effect on value - 10% adverse change $ (463 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Premises and equipment includes the following as of: December 31, 2015 December 31, 2014 (In thousands) Computer software and equipment $ 8,096 $ 5,378 Furniture, fixtures and equipment 4,424 3,323 Leasehold improvements 1,115 1,033 Total fixed assets at cost 13,635 9,734 Less accumulated depreciation (7,961 ) (5,976 ) Premises and equipment, net of accumulated depreciation $ 5,674 $ 3,758 |
Debt Issuance Costs (Tables)
Debt Issuance Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Issuance Costs | |
Schedule of debt issuance costs included in other assets | Debt issuance costs capitalized and included in other assets in the Company’s consolidated balance sheets consist of the following as of: December 31, 2015 December 31, 2014 (In thousands) Debt issuance costs $ 45,678 $ 44,023 Less: accumulated amortization (21,812 ) (14,139 ) Unamortized debt issuance costs $ 23,866 $ 29,884 |
Schedule of debt issuance costs included in debt issuance expense | Debt issuance costs related to VIE long-term debt issued by securitization and permanent financing trusts, at fair value are expensed as incurred and included in debt issuance expense in the Company’s consolidated statements of operations, and were as follows: 2015 2014 2013 (In thousands) Debt issuance costs related to securitizations $ 6,741 $ 8,683 $ 8,930 |
Operating and Capital Leases (T
Operating and Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Summary of future minimum lease payments due under non-cancellable operating leases | As of December 31, 2015 , the following summarizes future minimum lease payments due under non-cancelable operating leases for the next five years and thereafter are as follows: Year Ended December 31, Operating Leases (In thousands) 2016 $ 2,816 2017 2,352 2018 1,902 2019 1,911 2020 1,961 Thereafter 3,438 Total $ 14,380 |
Schedule of rent expense for office and equipment | Lease expense for office and equipment is included in general and administrative expense in the Company’s consolidated statements of operations and was as follows for the years ended December 31: 2015 2014 2013 (In thousands) Lease expense $ 2,387 $ 1,695 $ 3,152 |
Schedule of future minimum lease payments for capital leases | As of December 31, 2015, the following summarizes future minimum lease payments due under capital leases for the next five years and thereafter are as follows: Year Ended December, 31 Capitals Leases (In thousands) 2016 $ 50 2017 53 2018 56 2019 60 2020 58 Thereafter — Total $ 277 |
VIE Borrowings Under Revolvin52
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Credit facility | VIE | Peach One | |
Variable Interest Entity [Line Items] | |
Schedule of estimated principal payments of borrowings | As of December 31, 2015, the Peach One Facility has estimated principal payments as follows: Years Ended December 31, Estimated Principal Payments (In thousands) 2016 $ 5,591 2017 4,060 Total 9,651 |
Structured Settlements and Annuity Purchasing | |
Variable Interest Entity [Line Items] | |
Schedule of VIE borrowings under revolving credit facilities and other similar borrowings | VIE borrowings under revolving credit facilities and other similar borrowings on the consolidated balance sheets consist of the following as of: Entity December 31, 2015 December 31, 2014 (In thousands) $100 million variable funding note facility with interest payable monthly (6.5% as of December 31, 2015 and 9.0% as of December 31, 2014), collateralized by JGW-S III, LLC ("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 December 31, 2015 and 1.0% as of December 31, 2014) per annum for the undrawn balance of its line of credit. JGW-S III $ 1,024 $ — $50 million credit facility, interest payable monthly at the rate of LIBOR plus an applicable margin (3.49% at December 31, 2015 and 3.42% as of December 31, 2014) maturing on October 2, 2016, collateralized by JGW IV, LLC ("JGW IV") structured settlement 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 (3.24% and 3.52% at December 31, 2015 and 3.17% and 3.26% at December 31, 2014). Tranche B rate is 5.5% plus LIBOR (5.74% at December 31, 2015 and 5.67% at December 31, 2014). The facility matures on July 24, 2016 and is collateralized by JGW V, LLC ("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 38,153 — $300 million credit facility, interest payable monthly at 2.75% plus an applicable margin (3.22% at December 31, 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 — — $35 million multi class credit facility with interest payable monthly ("Peach One") 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 December 31, 2015 and 2014). Class B rate comprises the Class A rate plus 1.00% (5.50% as of December 31, 2015 and 2014). The facility matured December 31, 2015 and converted into a single class "term advance." The facility is collateralized by certain pre-settlement receivables. Peach One was charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. Peach One 9,651 19,333 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 48,828 $ 19,339 |
Other Borrowings Under Revolv53
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Home Lending | |
Debt Instrument [Line Items] | |
Schedule of warehouse lines of credit | The Company had the following lines of credit with various financial institutions, which are primarily used for funding of mortgage loans held for sale: December 31, 2015 (In thousands) $50 million warehouse line of credit maturing on February 1, 2016 with an interest rate of 2.50% as of December 31, 2015 and a non-usage fee of 0.25%. (1) $ 33,530 $50 million warehouse line of credit maturing April 11, 2016 with an interest rate of 2.50% as of December 31, 2015 and a non-usage fee of 0.25%. 32,611 $20 million warehouse line of credit maturing on July 6, 2016 with an interest rate of 2.50% as of December 31, 2015. (3) 9,414 $35 million warehouse line of credit maturing on July 31, 2016 with an interest rate of 3.50% as of December 31, 2015 and a non-usage fee of 0.25%. (2) 16,031 $45 million warehouse line of credit maturing on September 1, 2016 with an interest rate of 2.25% as of December 31, 2015. (3) 26,657 $6 million operating line of credit maturing July 6, 2016 with an interest rate of 5.00% as of December 31, 2015 and a non-usage fee of 0.50%. 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 122,243 (1) Under the terms of the facility agreement, the availability increased to $95 million and maturity extended through February 10, 2017 as of February 12, 2016. (2) Under the terms of the facility agreement, the availability was automatically reduced to $25.0 million as of January 9, 2016. (3) These facilities do not incur non-usage fees. |
VIE Long-Term Debt (Tables)
VIE Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Schedule of VIE long-term debt | The VIE long-term debt consisted of the following as of: December 31, 2015 December 31, 2014 (In thousands) PLMT Permanent Facility $ 41,265 $ 44,277 Residual Term Facility 130,832 107,043 Long-Term Pre-settlement Facility 6,590 8,884 2012-A Facility 944 1,357 LCSS Facility (2010-C) 12,573 12,838 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 199,363 $ 181,558 |
VIE long-term debt | |
Debt Instrument [Line Items] | |
Schedule of estimated principal payments of borrowings | As of December 31, 2015 , estimated principal payments on VIE long-term debt for the next five years and thereafter are as follows: Year Ending December 31, Estimated Principal Payments (In thousands) 2016 $ 13,627 2017 7,041 2018 7,005 2019 7,518 2020 10,717 Thereafter 161,108 Total $ 207,016 |
VIE Long-term Debt Issued by 55
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |
Summary of securitization SPE transactions | During the year ended December 31, 2014, the Company completed three asset securitization transactions that were registered according to Rule 144A. The following table summarizes these securitization SPE transactions: 2014-3 2014-2 2014-1 (Bond proceeds in millions) Issue date 11/25/2014 7/23/2014 2/18/2014 Bond proceeds $207.4 $227.4 $233.9 Receivables securitized 2,169 3,744 4,128 Deal discount rate 3.86% 3.95% 4.24% Retained interest % 5.50% 5.50% 6.00% Class allocation (Moody’s) Aaa 84.75% 84.00% 85.25% Baa2 9.75% 10.50% 8.75% During the year ended December 31, 2015, the Company completed three asset securitization transactions that were registered under Rule 144A. The following table summarizes the securitization SPE transactions: 2015-3 2015-2 2015-1 (Bond proceeds in millions) Issue date 11/30/2015 7/28/2015 3/31/2015 Bond proceeds $103.3 $158.5 $214.0 Receivables securitized 1,751 2,489 3,422 Deal discount rate 4.46% 4.18% 3.64% Retained interest % 5.50% 5.50% 5.50% Class allocation (Moody’s) Aaa 85.00% 84.75% 85.25% Baa2 9.50% 9.75% 9.25% |
VIE long-term debt issued by securitizations and permanent financing trusts | |
Variable Interest Entity [Line Items] | |
Schedule of estimated maturities of borrowings | As of December 31, 2015 , estimated maturities for VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, for the next five years and thereafter are as follows: Year Ending December 31, Estimated Maturities (In thousands) 2016 $ 307,178 2017 304,534 2018 287,248 2019 279,428 2020 260,031 Thereafter 2,449,707 Total $ 3,888,126 |
Securitization trusts | |
Variable Interest Entity [Line Items] | |
Summary of notes issued | The following table summarizes notes issued by securitization trusts as of December 31, 2015 and 2014 for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value in the Company’s consolidated balance sheets: Securitization VIE Issuer Note(s) Maturity Date Outstanding Principal as of December 31, 2015 Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2015 Fair Value as of December 31, 2014 (In thousands) (In thousands) 321 Henderson Receivables I, LLC 2003-A 11/15/2033 13,650 18,144 4.86% 14,406 19,642 321 Henderson Receivables I, LLC 2004-A A-1 9/15/2045 25,859 32,628 Libor+0.35% 26,018 33,783 321 Henderson Receivables I, LLC 2004-A A-2 9/15/2045 18,777 19,286 5.54% 19,248 21,023 321 Henderson Receivables I, LLC 2005-1 A-1 11/15/2040 47,963 58,735 Libor+0.23% 47,559 60,895 321 Henderson Receivables I, LLC 2005-1 A-2 11/15/2046 36,146 36,794 5.58% 35,066 39,374 321 Henderson Receivables I, LLC 2005-1 B 10/15/2055 2,203 2,242 5.24% 2,088 2,343 321 Henderson Receivables II, LLC 2006-1 A-1 3/15/2041 10,694 15,571 Libor+0.20% 10,971 16,376 321 Henderson Receivables II, LLC 2006-1 A-2 3/15/2047 17,154 18,074 5.56% 17,452 19,847 321 Henderson Receivables II, LLC 2006-2 A-1 6/15/2041 15,058 18,859 Libor+0.20% 15,304 20,009 321 Henderson Receivables II, LLC 2006-2 A-2 6/15/2047 20,066 20,395 5.93% 19,967 22,484 321 Henderson Receivables II, LLC 2006-3 A-1 9/15/2041 15,798 21,361 Libor+0.20% 16,131 22,604 321 Henderson Receivables II, LLC 2006-3 A-2 9/15/2047 25,755 26,343 5.60% 25,703 28,861 321 Henderson Receivables II, LLC 2006-4 A-1 12/15/2041 15,166 19,719 Libor+0.20% 15,419 20,608 321 Henderson Receivables II, LLC 2006-4 A-2 12/15/2047 20,797 21,133 5.43% 20,315 22,907 321 Henderson Receivables II, LLC 2007-1 A-1 3/15/2042 26,887 32,994 Libor+0.20% 25,201 33,431 321 Henderson Receivables II, LLC 2007-1 A-2 3/15/2048 16,841 17,220 5.59% 14,866 17,681 321 Henderson Receivables II, LLC 2007-2 A-1 6/15/2035 33,461 37,592 Libor+0.21% 29,351 36,730 321 Henderson Receivables II, LLC 2007-2 A-2 7/16/2040 16,725 17,041 6.21% 13,759 16,806 321 Henderson Receivables II, LLC 2007-3 A-1 10/15/2048 54,273 59,378 6.15% 58,821 70,026 321 Henderson Receivables III, LLC 2008-1 A 1/15/2044 48,550 56,186 6.19% 55,515 66,265 321 Henderson Receivables III, LLC 2008-1 B 1/15/2046 3,235 3,235 8.37% 4,325 4,790 321 Henderson Receivables III, LLC 2008-1 C 1/15/2048 3,235 3,235 9.36% 4,274 4,971 321 Henderson Receivables III, LLC 2008-1 D 1/15/2050 3,529 3,529 10.81% 4,802 5,828 321 Henderson Receivables IV, LLC 2008-2 A 11/15/2037 63,166 70,210 6.27% 72,306 84,357 321 Henderson Receivables IV, LLC 2008-2 B 3/15/2040 6,194 6,194 8.63% 7,647 9,296 321 Henderson Receivables V, LLC 2008-3 A-1 6/15/2045 44,521 49,385 8.00% 56,574 66,074 321 Henderson Receivables V, LLC 2008-3 A-2 6/15/2045 5,503 6,104 8.00% 6,777 8,045 321 Henderson Receivables V, LLC 2008-3 B 3/15/2051 4,695 4,695 10.00% 5,132 6,642 321 Henderson Receivables VI, LLC 2010-1 A-1 7/15/2059 124,266 138,254 5.56% 138,936 159,918 321 Henderson Receivables VI, LLC 2010-1 B 7/15/2061 22,166 24,661 9.31% 27,223 32,595 Securitization VIE Issuer Note(s) Maturity Date Outstanding Principal as of December 31, 2015 Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2015 Fair Value as of December 31, 2014 (In thousands) (In thousands) JG Wentworth XXI, LLC 2010-2 A 1/15/2048 52,416 59,582 4.07% 55,186 64,313 JG Wentworth XXI, LLC 2010-2 B 1/15/2050 7,483 8,506 7.45% 8,611 10,368 JG Wentworth XXII, LLC 2010-3 A 10/15/2048 101,526 115,400 3.82% 105,888 123,222 JG Wentworth XXII, LLC 2010-3 B 10/15/2050 14,754 16,770 6.85% 16,449 19,893 JG Wentworth XXIII, LLC 2011-1 A 10/15/2056 161,050 176,119 4.89% 171,059 196,934 JG Wentworth XXIII, LLC 2011-1 B 10/15/2058 20,246 21,212 7.68% 23,517 26,981 JGWPT XXIV, LLC 2011-2 A 1/15/2063 137,179 147,406 5.13% 146,205 167,703 JGWPT XXIV, LLC 2011-2 B 1/15/2065 15,580 15,580 8.54% 18,974 21,286 JGWPT XXV, LLC 2012-1 A 2/16/2065 167,818 182,576 4.21% 170,557 197,497 JGWPT XXV, LLC 2012-1 B 2/15/2067 20,564 20,564 7.14% 23,385 26,088 JGWPT XXVI, LLC 2012-2 A 10/15/2059 119,044 128,310 3.84% 117,345 134,860 JGWPT XXVI, LLC 2012-2 B 10/17/2061 13,985 13,985 6.77% 15,489 17,391 JGWPT XXVII, LLC 2012-3 A 9/15/2065 151,464 164,533 3.22% 144,129 166,033 JGWPT XXVII, LLC 2012-3 B 9/15/2067 17,181 17,181 6.17% 18,384 20,500 JGWPT XXVIII, LLC 2013-1 A 4/15/2067 167,734 180,695 3.22% 158,769 181,767 JGWPT XXVIII, LLC 2013-1 B 4/15/2069 18,589 18,589 4.94% 18,154 20,280 JGWPT XXIX, LLC 2013-2 A 3/15/2062 141,592 150,541 4.21% 142,820 162,561 JGWPT XXIX, LLC 2013-2 B 3/17/2064 14,985 14,985 5.68% 15,298 17,277 JGWPT XXX, LLC 2013-3 A 1/17/2073 172,138 183,987 4.08% 172,184 196,867 JGWPT XXX, LLC 2013-3 B 1/15/2075 18,248 18,248 5.54% 18,437 20,832 JGWPT XXXI, LLC 2014-1 A 3/15/2063 195,613 208,739 3.96% 194,775 221,453 JGWPT XXXI, LLC 2014-1 B 3/15/2065 21,776 21,776 4.94% 21,003 23,679 JGWPT XXXII, LLC 2014-2 A 1/17/2073 194,302 201,649 3.61% 186,756 207,410 JGWPT XXXII, LLC 2014-2 B 1/15/2075 25,284 25,284 4.48% 23,041 26,221 JGWPT XXXIII, LLC 2014-3 A 6/15/2077 177,753 185,884 3.50% 168,797 187,783 JGWPT XXXIII, LLC 2014-3 B 6/15/2079 21,408 21,408 4.40% 19,210 21,684 JGWPT XXXIV, LLC 2015-1 A 9/15/2072 188,121 — 3.26% 175,468 — JGWPT XXXIV, LLC 2015-1 B 9/17/2074 20,957 — 4.25% 18,518 — JGWPT XXXV, LLC 2015-2 A 3/15/2058 141,984 — 3.87% 136,709 — JGWPT XXXV, LLC 2015-2 B 3/15/2060 16,350 — 4.83% 14,992 — JGWPT XXXVI, LLC 2015-3 A 3/17/2070 92,878 — 4.08% 90,413 — JGWPT XXXVI, LLC 2015-3 B 3/15/2072 10,383 — 5.68% 10,033 — Structured Receivables Finance #1, LLC 2004-A B 5/15/2028 — 7,196 7.50% — 7,846 Structured Receivables Finance #2, LLC 2005-A A 5/15/2025 8,981 13,108 5.05% 9,363 14,031 Structured Receivables Finance #2, LLC 2005-A B 5/15/2025 8,413 9,141 6.95% 9,545 10,764 Peachtree Finance Company #2, LLC 2005-B A 4/15/2048 10,195 15,979 4.71% 10,537 16,912 Peachtree Finance Company #2, LLC 2005-B B 4/15/2048 5,039 5,471 6.21% 5,422 6,161 Structured Receivables Finance #3, LLC 2006-A A 1/15/2030 24,354 30,496 5.55% 26,585 34,037 Structured Receivables Finance #3, LLC 2006-A B 1/15/2030 8,397 9,294 6.82% 9,464 11,118 Structured Receivables Finance 2006-B, LLC 2006-B A 3/15/2038 36,406 41,959 5.19% 40,082 47,413 Structured Receivables Finance 2006-B, LLC 2006-B B 3/15/2038 7,305 7,922 6.30% 7,759 9,245 Structured Receivables Finance 2010-A, LLC 2010-A A 1/16/2046 56,516 65,773 5.22% 62,295 74,239 Structured Receivables Finance 2010-A, LLC 2010-A B 1/16/2046 10,709 11,567 7.61% 13,201 14,714 Structured Receivables Finance 2010-B, LLC 2010-B A 8/15/2036 45,150 51,681 3.73% 46,981 54,968 Structured Receivables Finance 2010-B, LLC 2010-B B 8/15/2036 13,048 13,932 7.97% 15,694 18,360 Total $ 3,637,231 $ 3,462,225 $ 3,688,639 $ 3,774,902 |
Permanent financing VIEs | |
Variable Interest Entity [Line Items] | |
Summary of notes issued | The following table summarizes notes issued by permanent financing facilities as of December 31, 2015 and 2014 , respectively, for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value on the consolidated balance sheets: Securitization VIE Issuer Maturity Date Note(s) Outstanding Principal as of December 31, 2015 Stated Rate Fair Value as of December 31, 2015 (In thousands) (In thousands) JGW-S LC II 8/15/2040 2011-A $ 70,235 12.54% $ 70,235 PSS 7/14/2033 — 153,077 Libor + 1% 134,970 Crescit 6/15/2039 — 27,583 8.10% 34,974 Total $ 250,895 $ 240,179 Securitization VIE Issuer Maturity Date Note(s) Outstanding Principal as of December 31, 2014 Stated Rate Fair Value as of December 31, 2014 (In thousands) (In thousands) JGW-S LC II 8/15/2040 2011-A $ 56,114 12.63% $ 56,114 PSS 7/14/2033 — 168,018 Libor + 1% 161,004 Crescit 6/15/2039 — 29,823 8.10% 39,844 Total $ 253,955 $ 256,962 |
Derivative Financial Instrume56
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 are as follows: Entity Securitization Notional as of December 31, 2015 Fair Value as of December 31, 2015 Notional as of December 31, 2014 Fair Value as of December 31, 2014 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 25,859 $ (2,382 ) $ 32,628 $ (3,019 ) 321 Henderson I, LLC 2005-1 A-1 47,963 (6,186 ) 58,735 (7,435 ) 321 Henderson II, LLC 2006-1 A-1 10,694 (1,091 ) 15,571 (1,509 ) 322 Henderson II, LLC 2006-2 A-1 15,058 (2,239 ) 18,859 (2,718 ) 323 Henderson II, LLC 2006-3 A-1 15,798 (1,951 ) 21,361 (2,475 ) 324 Henderson II, LLC 2006-4 A-1 15,166 (1,489 ) 19,719 (2,056 ) 325 Henderson II, LLC 2007-1 A-2 26,887 (4,949 ) 32,994 (5,624 ) 326 Henderson II, LLC 2007-2 A-3 33,461 (8,085 ) 37,592 (8,966 ) JGW V, LLC — 31,857 59 — — PSS — 162,546 (29,486 ) 176,943 (31,807 ) PLMT — 48,587 (8,720 ) 52,907 (10,097 ) Total $ 433,876 $ (66,519 ) $ 467,309 $ (75,706 ) |
Schedule of notional amounts and fair value associated with derivatives | The notional amounts and fair values associated with IRLCs and forward sale commitments were as follows: December 31, 2015 Fair Value Notional Amount (In thousands) Derivative Assets: Interest rate lock commitments $ 4,934 $ 222,512 Total $ 4,934 $ 222,512 Derivative Liabilities: Forward sale commitments $ 147 $ 248,500 Total $ 147 $ 248,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision (benefit) for income taxes | The Company's (benefit) provision for income taxes for the years ended December 31, 2015 , 2014 and 2013 , respectively, consists of the following: For the year ended December 31, 2015 2014 2013 (In thousands) Current: Federal $ (234 ) $ 107 $ 177 State (71 ) 10 35 (305 ) 117 212 Deferred: Federal (15,062 ) 15,313 1,990 State (2,849 ) 5,710 344 (17,911 ) 21,023 2,334 Income tax (benefit) provision $ (18,216 ) $ 21,140 $ 2,546 |
Schedule of reconciliation of difference between effective income tax rate and the United States statutory rate | The difference between the Company's effective income tax rate and the United States statutory rate is reconciled below: For the year ended December 31, 2015 2014 2013 Federal 35.0 % 35.0 % 35.0 % Income passed through to non-corporate members (15.9 )% (18.9 )% (35.1 )% Permanent items (11.1 )% 0.7 % 0.2 % State income tax 1.4 % 3.4 % (0.1 )% Valuation allowance (1.9 )% (2.0 )% 3.9 % Other 1.0 % (0.3 )% — Effective tax rate 8.5 % 17.9 % 3.9 % |
Summary of the components of deferred tax assets and deferred tax liabilities | A summary of the components of deferred tax assets and deferred tax liabilities follows: December 31, 2015 December 31, 2014 (In thousands) Deferred tax assets: Swap liability $ 1,047 $ 974 Net operating loss carryforwards 63,999 46,856 Total deferred tax assets 65,046 47,830 Valuation allowance (4,531 ) (216 ) Total deferred tax assets, net 60,515 47,614 Deferred tax liabilities: Basis difference in partnership 72,096 78,842 Lottery winnings 2,922 1,940 Lottery winnings fair value adjustments 1,868 1,140 Other 204 178 Total deferred tax liabilities 77,090 82,100 Deferred tax liabilities, net $ (16,575 ) $ (34,486 ) |
Installment Obligations Payab58
Installment Obligations Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Installment Obligations Payable | |
Schedule of estimated maturities for the next five years and thereafter | As of December 31, 2015 , estimated maturities for the next five years and thereafter are as follows: Year Ended December 31, Estimated Maturities (In thousands) 2016 $ 14,401 2017 13,820 2018 11,048 2019 7,810 2020 5,628 Thereafter 32,287 Total $ 84,994 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | During the years ended December 31, 2015 , 2014 and 2013 , the Company recorded reclassifications out of accumulated other comprehensive income that are included in the table below: For the year ended December 31, Details about accumulated other comprehensive income components Amounts reclassified from accumulated other comprehensive income Affected line item in the consolidated statement of operations (In thousands) 2015 _ $ — _ 2014 Unrealized gains and losses on available-for-sale securities $ 2,098 Realized gain (loss) on notes receivable, at fair value 2013 Unrealized gains and losses on available-for-sale securities $ (1,862 ) Realized gain (loss) on notes receivable, at fair value |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 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 year ending December 31, 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 granted to independent directors 70,348 — 70,348 Common interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 984,949 (984,949 ) — Common interests repurchased as a result of Class A common stock repurchased (1,513,644 ) — (1,513,644 ) Common interest re-issued as a result of the Home Lending Acquisition 1,572,327 — 1,572,327 Common interests forfeited — (70,103 ) (70,103 ) Balance as of December 31, 2015 15,534,372 13,269,321 28,803,693 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based compensation | |
Schedule of assumptions used in the Black-Scholes valuation model for options granted | The fair value of stock option awards was estimated using the Black-Scholes valuation model with the following assumptions and weighted average fair values: Year Ended December 31, 2015 Year Ended December 31, 2014 Weighted average fair value of grant $ 4.53 $ 4.81 Risk-free interest rate 1.62 % 1.91 % Expected volatility 47.1 % 41.6 % Expected life of options in years 6.5 6.5 Expected dividend yield — — |
Summary of stock option activity | A summary of stock option activity for the year ended December 31, 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 293,500 9.44 Exercised — — Forfeited (299,977 ) 11.47 Expired (7,077 ) 13.36 Outstanding as of December 31, 2015 1,363,378 $ 11.00 8.45 $ — Outstanding, vested and expected to vest as of December 31, 2015 1,317,089 11.01 8.44 — Vested as of December 31, 2015 270,407 11.64 7.46 — |
Summary of restricted stock activity | A summary of restricted stock activity for the year ended December 31, 2015 is as follows: Restricted Stock Shares Weighted-Average Grant-Date Fair Value Outstanding as of December 31, 2014 8,796 $ 12.40 Granted 70,348 2.60 Vested (13,106 ) 11.59 Outstanding as of December 31, 2015 66,038 $ 2.12 The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the year ended December 31, 2015 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2014 157,112 $ 9.86 Vested in period (58,428 ) 8.97 Forfeited (70,907 ) 12.00 Outstanding as of December 31, 2015 27,777 $ 6.30 Outstanding and expected to vest as of December 31, 2015 27,703 6.29 |
Performance Shares | |
Share-based compensation | |
Summary of stock option activity | A summary of performance-based restricted stock units for the years ended December 31, 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 165,000 9.01 Vested — — Forfeited (104,000 ) 10.13 Outstanding as of December 31, 2015 191,250 $ 9.48 Outstanding, vested and expected to vest as of December 31, 2015 — — |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of employee benefit plan expense | Employee benefit plan expense was included in compensation and benefits expense in the Company’s consolidated statements of operations and for the years ended December 31, was as follows: 2015 2014 2013 (In thousands) Employee benefit plan expense $ 668 $ 520 $ 505 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of computation of loss per common share attributable to JGWPT Holdings Inc. | The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations for the years ended December 31, 2015 and 2014 and for the period of November 13, 2013 through December 31, 2013 : For the year ended December 31, 2015 For the year ended December 31, 2014 November 14, 2013 through December 31, 2013 (Dollars in thousands, except per share data) Numerator: Numerator for basic EPS - Net (loss) income attributable to holders of The J.G. Wentworth Company Class A common stock $ (95,312 ) $ 31,211 $ (5,577 ) Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — JGW LLC unvested Restricted Common Interests — — — Numerator for diluted EPS - Net (loss) income attributable to holders of The J.G. Wentworth Company Class A common stock $ (95,312 ) $ 31,211 $ (5,577 ) Denominator: Denominator for basic EPS -Weighted average shares of Class A common stock 14,690,746 12,986,058 10,395,574 Effect of dilutive securities: Stock options — — — Warrants — — — Restricted common stock and performance-based restricted stock units — 2,723 — JGW LLC Common Interests and vested Restricted Common Interests — — — JGW LLC unvested Restricted Common Interests — — — Dilutive potential common shares — 2,723 — Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock 14,690,746 12,988,781 10,395,574 Basic (loss) income per share of Class A common stock $ (6.49 ) $ 2.40 $ (0.54 ) Diluted (loss) income per share of Class A common stock $ (6.49 ) $ 2.40 $ (0.54 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Operating data by reportable segment | Selected financial data for each reportable segment of the Company was as follows: Structured Settlements and Annuity Purchasing Home Lending Consolidated (In thousands) Year Ended December 31, 2015 Total revenues $ 269,635 $ 26,732 $ 296,367 Net (loss) income before income taxes (217,348 ) 1,992 (215,356 ) Total assets 4,825,831 249,133 5,074,964 Year Ended December 31, 2014 Total revenues $ 494,376 $ — $ 494,376 Net income before income taxes 117,753 — 117,753 Total assets 5,182,709 — 5,182,709 Year Ended December 31,2013 Total revenues $ 459,563 $ — $ 459,563 Net income before income taxes 64,364 — 64,364 Total assets 4,472,097 — 4,472,097 |
Background and Basis of Prese65
Background and Basis of Presentation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Basis of Presentation [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Tax provision attributable to parent | $ 19,000 | $ 20,000 | $ 700 |
Total tax provision | $ 18,216 | $ (21,140) | $ (2,546) |
Merger Sub | |||
Basis of Presentation [Line Items] | |||
Ownership interest (as a percent) | 53.90% | 50.20% | |
Noncontrolling interest ownership (as a percent) | 46.10% | 49.80% | |
Ownership percent of weighted average economic interests, noncontrolling (as a percent) | 48.30% | 55.70% | 62.10% |
Business Changes and Developm66
Business Changes and Developments (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2015 | Oct. 07, 2014 | Nov. 14, 2013 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Changes and Developments. | |||||||
Net proceeds from initial public offering | $ 0 | $ 0 | $ 141,280 | ||||
Business combination, consideration received | 0 | (2,136) | 0 | ||||
Transactions under common control, assumption of contingent future tax obligation | $ 0 | $ 13,599 | $ 0 | ||||
The J.G. Wentworth Company, LLC | |||||||
Business Changes and Developments. | |||||||
Number of common interests acquired | 11,212,500 | ||||||
Ownership interest (as a percent) | 37.90% | ||||||
Merger Sub | |||||||
Business Changes and Developments. | |||||||
Ownership interest (as a percent) | 50.20% | 53.90% | 50.20% | ||||
Business combination, consideration received | $ 2,100 | ||||||
Merger Sub | Future Tax Obligation | |||||||
Business Changes and Developments. | |||||||
Transactions under common control, assumption of contingent future tax obligation | 13,600 | ||||||
Transactions under common control, present value of future obligation assumed | $ 4,400 | ||||||
Home Lending | |||||||
Business Changes and Developments. | |||||||
Fair value of total consideration | $ 74,604 | ||||||
Common Stock- Class A | |||||||
Business Changes and Developments. | |||||||
Shares issued in initial public offering | 11,212,500 | ||||||
Net proceeds from initial public offering | $ 141,300 | ||||||
Par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Common Stock- Class A | The J.G. Wentworth Company, LLC | |||||||
Business Changes and Developments. | |||||||
Shares issued pursuant to merger | 1 | ||||||
Common Stock- Class A | Merger Sub | |||||||
Business Changes and Developments. | |||||||
Equity interests received | 185,561 | ||||||
Common Stock- Class A | Merger Sub | JLL Fund V AIF II, L.P | |||||||
Business Changes and Developments. | |||||||
Transactions under common control, equity interest issued or issuable, number of shares | 715,916 | ||||||
Transactions under common control, equity interests canceled | 47,440 | ||||||
Common Stock- Class A | Underwriter's overallotment option | |||||||
Business Changes and Developments. | |||||||
Shares issued in initial public offering | 1,462,500 | ||||||
Common Stock- Class B | |||||||
Business Changes and Developments. | |||||||
Par value per share | $ 0.00001 | $ 0.00001 | 0.00001 | 0.00001 | |||
Common Stock- Class B | Merger Sub | JLLJGW Distribution LLC | |||||||
Business Changes and Developments. | |||||||
Transactions under control, number of equity interests received | 715,916 | ||||||
Common Stock - Class C | |||||||
Business Changes and Developments. | |||||||
Par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Common Stock - Class C | PGHI Corp | |||||||
Business Changes and Developments. | |||||||
Shares issued pursuant to merger | 1 | ||||||
Common Stock | Merger Sub | JLLJGW Distribution LLC | |||||||
Business Changes and Developments. | |||||||
Transactions under control, number of equity interests received | 715,916 |
Summary of Significant Accoun67
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements - Summary of Restricted Cash (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Investments | ||
FDIC insured amount | $ 250,000 | |
Restricted investments | $ 3,200,000 | $ 1,100,000 |
Summary of Significant Accoun68
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements - Summary of Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Fixed Assets and Leasehold Improvements | |
Estimated useful lives | 3 years |
Maximum | |
Fixed Assets and Leasehold Improvements | |
Estimated useful lives | 10 years |
Summary of Significant Accoun69
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements - Summary of Intangible Assets and Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | |||
Impairment of goodwill | $ 85,000,000 | $ 0 | $ 0 |
Database | |||
Intangible assets | |||
Estimated useful life | 10 years | ||
Database | Weighted average | |||
Intangible assets | |||
Estimated useful life | 5 years | ||
Customer relationships | Minimum | |||
Intangible assets | |||
Estimated useful life | 3 years | ||
Customer relationships | Maximum | |||
Intangible assets | |||
Estimated useful life | 15 years | ||
Customer relationships | Weighted average | |||
Intangible assets | |||
Estimated useful life | 5 years | ||
Trade Name | |||
Intangible assets | |||
Estimated useful life | 3 years | ||
Trade Name | Weighted average | |||
Intangible assets | |||
Estimated useful life | 3 years | ||
Affinity relationship | |||
Intangible assets | |||
Estimated useful life | 10 years | ||
Affinity relationship | Weighted average | |||
Intangible assets | |||
Estimated useful life | 10 years |
Summary of Significant Accoun70
Summary of Significant Accounting Policies and Recently Adopted Accounting Pronouncements - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Impairment expense recognized | $ 0 | ||
Participating Mortgage Loans [Line Items] | |||
Interest and dividend income | $ 3,400,000 | $ 4,400,000 | $ 4,400,000 |
Number of reportable segments | segment | 2 | ||
Interest income, uncollectible designation, period | 90 days | ||
Government National Mortgage Association (GNMA) Insured Loans | Real Estate Loan | |||
Participating Mortgage Loans [Line Items] | |||
Duration for delinquency consideration for Ginnie Mae pools | 90 days | ||
Mortgage loans, defaulted or delinquent | $ 45,800,000 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 8,369 | $ 84,993 | |
Home Lending | |||
Business Acquisition [Line Items] | |||
Fair value of total consideration | $ 74,604 | ||
Cash | 53,205 | ||
Equity instruments issued (1,572,327 shares of Class A common stock) | 12,956 | ||
Post close adjustment liabilities | 8,400 | ||
Intangible assets | 23,842 | ||
Intangible assets acquired - finite lived | $ 10,600 | ||
Weighted average useful life | 9 years 3 months 18 days | ||
Goodwill | $ 8,369 | ||
Transaction costs | $ 3,900 | ||
Home Lending | Professional and Consulting Fees | |||
Business Acquisition [Line Items] | |||
Transaction costs | $ 3,100 | ||
Home Lending | Affinity relationship | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 10 years | ||
Finite-lived intangible assets | $ 9,500 | ||
Home Lending | Trade Name | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 3 years | ||
Finite-lived intangible assets | $ 1,100 | ||
Home Lending | Licensing Agreements | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired - indefinite lived | $ 13,200 | ||
Home Lending | Common Stock- Class A | |||
Business Acquisition [Line Items] | |||
Shares issued as consideration | 1,572,327 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 8,369 | $ 84,993 | |
Home Lending | |||
Business Combination, Consideration Transferred [Abstract] | |||
Cash | $ 53,205 | ||
Equity instruments issued (1,572,327 shares of Class A common stock) | 12,956 | ||
Post close adjustment liabilities | 8,443 | ||
Fair value of total consideration | 74,604 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Cash and cash equivalents | 6,610 | ||
Restricted cash | 4,756 | ||
Mortgage loans held for sale | 131,325 | ||
Mortgage servicing rights | 27,638 | ||
Premises and equipment | 908 | ||
Intangible assets | 23,842 | ||
Other assets | 31,701 | ||
Other borrowings under revolving credit facilities and other similar borrowings | (128,487) | ||
Other liabilities | (32,058) | ||
Total identifiable net assets | 66,235 | ||
Goodwill | $ 8,369 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Home Lending - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Total revenue | $ 26,732 | ||
Net income before income taxes | $ 1,992 | ||
Pro forma total revenues | $ 343,238 | $ 554,247 | |
Pro forma net (loss) income before income taxes | $ (202,745) | $ 129,877 |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $ 8,369 | $ 84,993 |
Structured Settlements and Annuity Purchasing | ||
Goodwill [Line Items] | ||
Goodwill | 0 | 84,993 |
Home Lending | ||
Goodwill [Line Items] | ||
Goodwill | $ 8,369 | $ 0 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets - Intangible assets subject to amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ (22,521) | $ (20,273) |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | |
Intangible assets, accumulated amortization | 0 | |
Structured Settlements and Annuity Purchasing | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 25,760 | 26,909 |
Intangible assets, accumulated amortization | (21,896) | (20,273) |
Structured Settlements and Annuity Purchasing | Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 4,609 | 4,609 |
Intangible assets, accumulated amortization | (4,250) | (4,011) |
Structured Settlements and Annuity Purchasing | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 18,844 | 18,844 |
Intangible assets, accumulated amortization | (15,375) | (14,114) |
Structured Settlements and Annuity Purchasing | Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 486 | 1,635 |
Intangible assets, accumulated amortization | (450) | (327) |
Structured Settlements and Annuity Purchasing | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 1,821 | 1,821 |
Intangible assets, accumulated amortization | (1,821) | (1,821) |
Structured Settlements and Annuity Purchasing | Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | |
Intangible assets, accumulated amortization | 0 | |
Structured Settlements and Annuity Purchasing | Affinity relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | |
Intangible assets, accumulated amortization | 0 | |
Home Lending | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 10,642 | 0 |
Intangible assets, accumulated amortization | (625) | 0 |
Home Lending | Database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | 0 |
Intangible assets, accumulated amortization | 0 | 0 |
Home Lending | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | 0 |
Intangible assets, accumulated amortization | 0 | 0 |
Home Lending | Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | 0 |
Intangible assets, accumulated amortization | 0 | 0 |
Home Lending | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 0 | |
Intangible assets, accumulated amortization | $ 0 | |
Home Lending | Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 1,100 | |
Intangible assets, accumulated amortization | (228) | |
Home Lending | Affinity relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 9,500 | |
Intangible assets, accumulated amortization | $ (397) |
Goodwill and Intangible Asset76
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 2,527 |
2,017 | 2,213 |
2,018 | 2,030 |
2,019 | 1,442 |
2,020 | 1,257 |
Thereafter | 4,412 |
Total | $ 13,881 |
Goodwill and Intangible Asset77
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of intangibles | $ 2,248,000 | $ 2,492,000 | $ 3,524,000 | |||
Impairment of goodwill | 85,000,000 | 0 | 0 | |||
Impairment of finite-lived intangible assets | $ 1,100,000 | |||||
Impairment charges and loss on disposal of assets | 121,594,000 | 69,000 | $ 4,200,000 | |||
Structured Settlements and Annuity Purchasing | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of goodwill | 85,000,000 | |||||
Home Lending | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Fair value, fair value in excess of carrying value | $ 1,300,000 | |||||
Percentage of fair value in excess of carrying value | 1.70% | |||||
Trade Name | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of indefinite-lived intangible assets | 5,600,000 | $ 29,900,000 | ||||
Orchard Acquisition Company | Trade Name | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | 3,300,000 | 3,300,000 | $ 38,800,000 | |||
Home Lending | Licensing Agreements | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | $ 13,200,000 | $ 13,200,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities At Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2015 | ||||
Assets and liabilities that are carried at fair value | ||||||
Maximum recovery period of other receivables | 3 months | |||||
Marketable securities: | ||||||
Total marketable securities | $ 84,994 | $ 103,419 | ||||
VIE and other finance receivables at fair market value | 4,386,147 | 4,523,835 | ||||
Mortgage loans held for sale, at fair value | 124,508 | [1] | 0 | [1] | $ 131,325 | |
Mortgage service rights, at fair value | [1] | 29,287 | 0 | |||
Liabilities | ||||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | 56,736 | 72,198 | ||||
Total fixed income securities | 18,162 | 20,252 | ||||
Total other securities | 10,096 | 10,969 | ||||
Total marketable securities | 84,994 | 103,419 | ||||
VIE and other finance receivables at fair market value | 4,386,147 | 4,523,835 | ||||
Mortgage loans held for sale, at fair value | 124,508 | 0 | ||||
Mortgage service rights, at fair value | 29,287 | 0 | ||||
Interest rate lock commitments, at fair value | 4,934 | 0 | ||||
Total Assets | 4,629,870 | 4,627,254 | ||||
Liabilities | ||||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Forward sale commitments, at fair value | 147 | 0 | ||||
Total Liabilities | $ 3,995,484 | $ 4,107,570 | ||||
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) | 8.30% | 5.97% | ||||
Weighted average life | 20 years | 20 years | ||||
Loss assumption (as a percent) | 0.25% | |||||
US large cap | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | $ 28,670 | $ 41,246 | ||||
US mid cap | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | 5,213 | 8,192 | ||||
US small cap | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | 5,477 | 7,586 | ||||
International | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | 14,068 | 14,123 | ||||
Other equity | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total equity securities | 3,308 | 1,051 | ||||
US fixed income | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total fixed income securities | 16,945 | 16,699 | ||||
International fixed income | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total fixed income securities | 1,217 | 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 | 7,634 | 6,629 | ||||
Alternative investments | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total other securities | 161 | 1,829 | ||||
Annuities | Total at Fair Value | ||||||
Marketable securities: | ||||||
Total other securities | 2,301 | 2,511 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||
Marketable securities: | ||||||
Total equity securities | 56,736 | 72,198 | ||||
Total fixed income securities | 18,162 | 20,252 | ||||
Total other securities | 10,096 | 10,969 | ||||
Total marketable securities | 84,994 | 103,419 | ||||
Total Assets | 84,994 | 103,419 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | US large cap | ||||||
Marketable securities: | ||||||
Total equity securities | 28,670 | 41,246 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | US mid cap | ||||||
Marketable securities: | ||||||
Total equity securities | 5,213 | 8,192 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | US small cap | ||||||
Marketable securities: | ||||||
Total equity securities | 5,477 | 7,586 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | International | ||||||
Marketable securities: | ||||||
Total equity securities | 14,068 | 14,123 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Other equity | ||||||
Marketable securities: | ||||||
Total equity securities | 3,308 | 1,051 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | US fixed income | ||||||
Marketable securities: | ||||||
Total fixed income securities | 16,945 | 16,699 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | International fixed income | ||||||
Marketable securities: | ||||||
Total fixed income securities | 1,217 | 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 | 7,634 | 6,629 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Alternative investments | ||||||
Marketable securities: | ||||||
Total other securities | 161 | 1,829 | ||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Annuities | ||||||
Marketable securities: | ||||||
Total other securities | 2,301 | 2,511 | ||||
Significant Other Observable Inputs Level 2 | ||||||
Marketable securities: | ||||||
Mortgage loans held for sale, at fair value | 124,508 | |||||
Total Assets | 124,508 | |||||
Liabilities | ||||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
Forward sale commitments, at fair value | 147 | |||||
Total Liabilities | 66,666 | 75,706 | ||||
Significant Other Observable Inputs Level 2 | US large cap | ||||||
Marketable securities: | ||||||
Total equity securities | 0 | |||||
Significant Unobservable Inputs Level 3 | ||||||
Marketable securities: | ||||||
VIE and other finance receivables at fair market value | 4,386,147 | 4,523,835 | ||||
Mortgage service rights, at fair value | 29,287 | |||||
Interest rate lock commitments, at fair value | 4,934 | |||||
Total Assets | 4,420,368 | 4,523,835 | ||||
Liabilities | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Total Liabilities | 3,928,818 | 4,031,864 | ||||
Significant Unobservable Inputs Level 3 | VIE and other finance receivables, at fair market value | ||||||
Marketable securities: | ||||||
Total Assets | $ 4,386,147 | $ 4,523,835 | ||||
[1] | Pledged as collateral to Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings. Refer to Note 11 “Mortgage Loans Held for Sale, at Fair Value” and Note 12 “Mortgage Servicing Rights, at Fair Value.” |
Fair Value Measurements - Sum79
Fair Value Measurements - Summary of Level 3 Measurements (Details) - Level 3 - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,420,368,000 | $ 4,523,835,000 |
Fair value of liabilities | 3,928,818,000 | 4,031,864,000 |
VIE long-term debt issued by securitizations and permanent financing trusts | ||
Quantitative information about fair value measurements | ||
Fair value of liabilities | $ 3,928,818,000 | $ 4,031,864,000 |
VIE long-term debt issued by securitizations and permanent financing trusts | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 1.69% | 0.74% |
VIE long-term debt issued by securitizations and permanent financing trusts | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 12.30% | 12.32% |
VIE long-term debt issued by securitizations and permanent financing trusts | Discounted cash flow | Weighted average | ||
Unobservable Input | ||
Discount rate (as a percent) | 4.13% | 3.16% |
VIE and other finance receivables, at fair market value | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,386,147,000 | $ 4,523,835,000 |
VIE and other finance receivables, at fair market value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 3.33% | 2.55% |
VIE and other finance receivables, at fair market value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 12.30% | 12.60% |
VIE and other finance receivables, at fair market value | Discounted cash flow | Weighted average | ||
Unobservable Input | ||
Discount rate (as a percent) | 4.47% | 3.43% |
Mortgage servicing rights | ||
Quantitative information about fair value measurements | ||
Fair value of assets excluding derivatives | $ 29,287,000 | |
Mortgage servicing rights | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 9.54% | |
Prepayment speed (as a percent) | 8.24% | |
Servicing costs | $ 65 | |
Mortgage servicing rights | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 14.06% | |
Prepayment speed (as a percent) | 20.56% | |
Servicing costs | $ 90 | |
Mortgage servicing rights | Discounted cash flow | Weighted average | ||
Unobservable Input | ||
Discount rate (as a percent) | 10.27% | |
Prepayment speed (as a percent) | 9.06% | |
Servicing costs | $ 75 | |
Interest Rate Lock Commitments | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,934,000 | |
Interest Rate Lock Commitments | Internal Model Valuation Technique | Minimum | ||
Unobservable Input | ||
Pull-through rate | 37.44% | |
Interest Rate Lock Commitments | Internal Model Valuation Technique | Maximum | ||
Unobservable Input | ||
Pull-through rate | 100.00% | |
Interest Rate Lock Commitments | Internal Model Valuation Technique | Weighted average | ||
Unobservable Input | ||
Pull-through rate | 74.91% |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Assets Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in assets | ||
Balance at the beginning of the period | $ 4,523,835 | $ 3,876,259 |
Total gains (losses) included in earnings/losses | (157,728) | |
Total gains (losses) included in earnings / losses | 553,854 | |
Total gains (losses) included in other comprehensive gain | 0 | (1,615) |
Total gains (losses) realized on sale of finance receivable | 5,013 | |
Purchases | 385,288 | 420,886 |
Interest accreted | 168,998 | 163,758 |
Payments received | (511,867) | (489,307) |
Sale of finance receivables | (20,809) | |
Assets acquired in connection with the Home Lending Acquisition | 34,689 | |
Transfers to/from other balance sheet line items | (7,051) | |
Balance at the end of the period | 4,420,368 | 4,523,835 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | (157,728) | 551,756 |
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 | (164,311) | |
Total gains (losses) included in earnings / losses | 551,756 | |
Total gains (losses) realized on sale of finance receivable | 5,013 | |
Purchases | 385,288 | 420,886 |
Interest accreted | 168,998 | 163,758 |
Payments received | (511,867) | (483,214) |
Sale of finance receivables | (20,809) | |
Balance at the end of the period | 4,386,147 | 4,523,835 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | (164,311) | 551,756 |
Mortgage servicing rights | ||
Changes in assets | ||
Total gains (losses) included in earnings/losses | 1,649 | |
Assets acquired in connection with the Home Lending Acquisition | 27,638 | |
Balance at the end of the period | 29,287 | |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 1,649 | |
Interest Rate Lock Commitments | ||
Changes in assets | ||
Total gains (losses) included in earnings/losses | 4,934 | |
Assets acquired in connection with the Home Lending Acquisition | 7,051 | |
Transfers to/from other balance sheet line items | (7,051) | |
Balance at the end of the period | 4,934 | |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 4,934 | |
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 | |
Total gains (losses) included in earnings / losses | 2,098 | |
Total gains (losses) included in other comprehensive gain | 0 | (1,615) |
Payments received | (6,093) | |
Balance at the end of the period | 0 | 0 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | $ 0 | $ 0 |
Fair Value Measurements - Cha81
Fair Value Measurements - Changes in Liabilities Using Significant Unobservable Inputs (Details) - VIE long-term debt issued by securitizations and permanent financing trusts - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in liabilities | ||
Balance at the beginning of the period | $ 4,031,864 | $ 3,431,283 |
Total (gains) losses included in earnings / losses | (230,228) | 245,085 |
Issuances | 489,699 | 685,436 |
Interest accreted | (44,425) | (40,000) |
Repayments | (318,092) | (289,940) |
Balance at the end of the period | 3,928,818 | 4,031,864 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to long-term debt still held at the end of the period | $ (229,635) | $ 245,332 |
Fair Value Measurements - Sum82
Fair Value Measurements - Summary of Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
VIE and other finance receivables and long-term debt | |||
Realized and unrealized gains and losses included in earnings | |||
Gains (losses) included in earnings | $ 70,930 | $ 306,671 | $ 223,791 |
Change in unrealized gains (losses) relating to assets still held | 65,324 | $ 306,424 | $ 199,298 |
Mortgage servicing rights | |||
Realized and unrealized gains and losses included in earnings | |||
Gains (losses) included in earnings | 1,649 | ||
Change in unrealized gains (losses) relating to assets still held | 1,649 | ||
Interest Rate Lock Commitments | |||
Realized and unrealized gains and losses included in earnings | |||
Gains (losses) included in earnings | 4,934 | ||
Change in unrealized gains (losses) relating to assets still held | $ 4,934 |
Fair Value Measurements - Sum83
Fair Value Measurements - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | |||
Financial assets | ||||||
VIE and other finance receivables at fair market value | $ 4,386,147 | $ 4,523,835 | ||||
Other receivables, net of allowance for losses | 16,285 | 14,165 | ||||
Mortgage loans held for sale, at fair value | 124,508 | [1] | $ 131,325 | 0 | [1] | |
Mortgage service rights, at fair value | [1] | 29,287 | 0 | |||
Marketable securities | 84,994 | 103,419 | ||||
Financial liabilities | ||||||
Term loan payable | 440,181 | 437,183 | ||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
VIE borrowings under revolving credit facilities and other similar borrowings | 48,828 | 19,339 | ||||
Other borrowings under revolving credit facilities and other similar borrowings | 122,243 | 0 | ||||
VIE long-term debt | 199,363 | 181,558 | ||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Installment obligations payable | 84,994 | 103,419 | ||||
Estimated Fair Value | ||||||
Financial assets | ||||||
VIE and other finance receivables at fair market value | 4,386,147 | 4,523,835 | ||||
VIE and other finance receivables, net of allowance for losses | 103,609 | 123,765 | ||||
Other receivables, net of allowance for losses | 16,285 | 14,165 | ||||
Mortgage loans held for sale, at fair value | 124,508 | 0 | ||||
Mortgage service rights, at fair value | 29,287 | 0 | ||||
Marketable securities | 84,994 | 103,419 | ||||
Interest rate lock commitments, at fair value | 4,934 | 0 | ||||
Financial liabilities | ||||||
Term loan payable | 325,558 | 433,904 | ||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
VIE borrowings under revolving credit facilities and other similar borrowings | 53,737 | 21,415 | ||||
Other borrowings under revolving credit facilities and other similar borrowings | 122,243 | 0 | ||||
VIE long-term debt | 194,211 | 176,635 | ||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Forward sale commitments, at fair value | 147 | 0 | ||||
Installment obligations payable | 84,994 | 103,419 | ||||
Carrying Amount | ||||||
Financial assets | ||||||
VIE and other finance receivables at fair market value | 4,386,147 | 4,523,835 | ||||
VIE and other finance receivables, net of allowance for losses | 110,342 | 131,292 | ||||
Other receivables, net of allowance for losses | 16,285 | 14,165 | ||||
Mortgage loans held for sale, at fair value | 124,508 | 0 | ||||
Mortgage service rights, at fair value | 29,287 | 0 | ||||
Marketable securities | 84,994 | 103,419 | ||||
Interest rate lock commitments, at fair value | 4,934 | 0 | ||||
Financial liabilities | ||||||
Term loan payable | 440,181 | 437,183 | ||||
VIE derivative liabilities, at fair value | 66,519 | 75,706 | ||||
VIE borrowings under revolving credit facilities and other similar borrowings | 48,828 | 19,339 | ||||
Other borrowings under revolving credit facilities and other similar borrowings | 122,243 | 0 | ||||
VIE long-term debt | 199,363 | 181,558 | ||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,928,818 | 4,031,864 | ||||
Forward sale commitments, at fair value | 147 | 0 | ||||
Installment obligations payable | $ 84,994 | $ 103,419 | ||||
[1] | Pledged as collateral to Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings. Refer to Note 11 “Mortgage Loans Held for Sale, at Fair Value” and Note 12 “Mortgage Servicing Rights, at Fair Value.” |
Variable Interest Entities (Det
Variable Interest Entities (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Minimum expected life of consolidated VIEs | 20 years |
VIE and Other Finance Receiva85
VIE and Other Finance Receivables, at Fair Value (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Variable Interest Entity [Line Items] | |||||
Maturity value | $ 6,876,687,000 | $ 6,876,687,000 | $ 6,492,863,000 | ||
Unearned income | (2,490,540,000) | (2,490,540,000) | (1,969,028,000) | ||
Total VIE and other finance receivables at fair value | 4,386,147,000 | 4,386,147,000 | 4,523,835,000 | ||
Total VIE finance receivables at fair value | [1] | 4,376,458,000 | 4,376,458,000 | 4,422,033,000 | |
Not encumbered | 9,689,000 | 9,689,000 | 101,802,000 | ||
Expected cash flows | |||||
Total | 6,876,687,000 | 6,876,687,000 | 6,492,863,000 | ||
Net proceeds from private placement sale | 21,949,000 | 0 | $ 473,000 | ||
Gain on private placement sale | 79,620,000 | 300,702,000 | 252,801,000 | ||
Servicing fees | 811,000 | 914,000 | $ 948,000 | ||
VIE and other finance receivables, at fair market value | |||||
Variable Interest Entity [Line Items] | |||||
Maturity value | 6,876,687,000 | 6,876,687,000 | |||
Expected cash flows | |||||
2,016 | 508,236,000 | 508,236,000 | |||
2,017 | 497,866,000 | 497,866,000 | |||
2,018 | 465,198,000 | 465,198,000 | |||
2,019 | 449,394,000 | 449,394,000 | |||
2,020 | 416,924,000 | 416,924,000 | |||
Thereafter | 4,539,069,000 | 4,539,069,000 | |||
Total | 6,876,687,000 | 6,876,687,000 | |||
Total receivable balance sold | 47,200,000 | ||||
Net proceeds from private placement sale | 20,800,000 | ||||
Gain on private placement sale | 5,000,000 | ||||
Servicing asset recorded during period | 100,000 | ||||
VIE securitization debt | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 4,236,520,000 | 4,236,520,000 | 4,357,456,000 | ||
Variable funding note facility | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 1,664,000 | 1,664,000 | 2,000 | ||
Multi-tranche and lender credit facility | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 54,306,000 | 54,306,000 | 0 | ||
Permanent financing related to 2011-A | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 83,968,000 | 83,968,000 | 64,575,000 | ||
Expected cash flows | |||||
Face amount of debt | 100,000,000 | 100,000,000 | 100,000,000 | ||
JGW-S III | Variable funding note facility | |||||
Expected cash flows | |||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | 100,000,000 | ||
JGW IV | Credit facility | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 0 | 0 | 0 | ||
JGW V, LLC | Multi-tranche and lender credit facility | |||||
Expected cash flows | |||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | ||
JGW VII, LLC | Credit facility | |||||
Variable Interest Entity [Line Items] | |||||
Total VIE finance receivables at fair value | 0 | 0 | 0 | ||
VIE | Multi-tranche and lender credit facility | JGW V, LLC | |||||
Expected cash flows | |||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | ||
VIE | Multi-tranche and lender credit facility | JGW VII, LLC | |||||
Expected cash flows | |||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | ||
VIE | Credit facility | JGW IV | |||||
Expected cash flows | |||||
Maximum borrowing capacity | 50,000,000 | 50,000,000 | 50,000,000 | ||
VIE | Credit facility | JGW VII, LLC | |||||
Expected cash flows | |||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||
[1] | Pledged as collateral to VIE credit and long-term debt facilities. Refer to Note 8 “VIE and Other Finance Receivables, at Fair Value” and Note 9 “VIE and Other Finance Receivables, net of Allowance for Losses”. |
VIE and Other Finance Receiva86
VIE and Other Finance Receivables, net of Allowance for Losses (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other receivables, net of allowance for losses | |||
Finance receivables, gross | $ 120,708 | $ 141,420 | |
Less: allowance for losses | (10,366) | (10,128) | $ (8,342) |
Finance receivables, net | 110,342 | 131,292 | |
Structured settlements and annuities | |||
Other receivables, net of allowance for losses | |||
Finance receivable before unearned income or deferred revenue | 72,121 | 76,253 | |
Less: unearned income or deferred revenue | (45,825) | (49,270) | |
Finance receivables, gross | 26,296 | 26,983 | |
Less: allowance for losses | (69) | (56) | (48) |
Finance receivables, net | 26,227 | 26,927 | |
Lottery winnings | |||
Other receivables, net of allowance for losses | |||
Finance receivable before unearned income or deferred revenue | 70,589 | 81,169 | |
Less: unearned income or deferred revenue | (20,153) | (24,389) | |
Finance receivables, gross | 50,436 | 56,780 | |
Less: allowance for losses | 0 | (3) | |
Finance receivables, net | 50,436 | 56,777 | |
Pre-settlement funding transactions | |||
Other receivables, net of allowance for losses | |||
Finance receivable before unearned income or deferred revenue | 44,299 | 57,886 | |
Less: unearned income or deferred revenue | (1,144) | (1,563) | |
Finance receivables, gross | 43,155 | 56,323 | |
Less: allowance for losses | (10,013) | (9,786) | (8,011) |
Finance receivables, net | 33,142 | 46,537 | |
Attorney cost financing | |||
Other receivables, net of allowance for losses | |||
Finance receivable before unearned income or deferred revenue | 821 | 1,334 | |
Less: unearned income or deferred revenue | 0 | 0 | |
Finance receivables, gross | 821 | 1,334 | |
Less: allowance for losses | (284) | (283) | $ (283) |
Finance receivables, net | $ 537 | $ 1,051 |
VIE and Other Finance Receiva87
VIE and Other Finance Receivables, net of Allowance for Losses (Details 2) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Expected cash flows | ||
Total | $ 6,876,687,000 | $ 6,492,863,000 |
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 | 99,874,000 | 113,489,000 |
Not encumbered | 10,468,000 | 17,803,000 |
Finance receivables, net | 110,342,000 | 131,292,000 |
VIE and Other Finance Receivables, net | Structured settlements, annuities and lottery winnings | ||
Expected cash flows | ||
2,016 | 14,153,000 | |
2,017 | 10,605,000 | |
2,018 | 10,227,000 | |
2,019 | 10,183,000 | |
2,020 | 10,399,000 | |
Thereafter | 87,143,000 | |
Total | 142,710,000 | |
VIE and Other Finance Receivables, net | VIE securitization debt | ||
Encumbrances on financing receivable | ||
Total VIE finance receivables, net of allowances | 69,691,000 | 74,973,000 |
VIE and Other Finance Receivables, net | Credit facility | Peach One | ||
Encumbrances on financing receivable | ||
Total VIE finance receivables, net of allowances | 25,401,000 | 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 | 3,533,000 | 6,453,000 |
Maximum borrowing capacity | 45,100,000 | 45,100,000 |
VIE and Other Finance Receivables, net | $2.4 Long-term facility | ||
Encumbrances on financing receivable | ||
Total VIE finance receivables, net of allowances | 1,249,000 | 1,640,000 |
Maximum borrowing capacity | 2,500,000 | 2,500,000 |
Pre-settlement funding transactions and attorney cost financing | Structured settlements, annuities and lottery winnings | ||
Expected cash flows | ||
Receivable which do not have specified maturity dates | $ 45,100,000 | $ 59,200,000 |
VIE and Other Finance Receiva88
VIE and Other Finance Receivables, net of Allowance for Losses (Details 3) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the allowance for losses | ||
Balance at beginning of year | $ (10,128) | $ (8,342) |
Provision for loss | (4,546) | (4,806) |
Charge-offs | 4,328 | 3,125 |
Recoveries | (20) | (105) |
Balance at end of year | (10,366) | (10,128) |
Individually evaluated for impairment | (2,596) | (2,945) |
Collectively evaluated for impairment | (7,770) | (7,183) |
Individually evaluated for impairment | 77,325 | 87,959 |
Collectively evaluated for impairment | 33,017 | 43,333 |
Finance receivables, net | 110,342 | 131,292 |
Structured settlements and annuities | ||
Activity in the allowance for losses | ||
Balance at beginning of year | (56) | (48) |
Provision for loss | (192) | (31) |
Charge-offs | 195 | 128 |
Recoveries | (16) | (105) |
Balance at end of year | (69) | (56) |
Individually evaluated for impairment | (69) | (56) |
Individually evaluated for impairment | 26,227 | 26,927 |
Finance receivables, net | 26,227 | 26,927 |
Lottery | ||
Activity in the allowance for losses | ||
Balance at beginning of year | (3) | |
Provision for loss | (66) | (3) |
Charge-offs | 69 | |
Balance at end of year | 0 | (3) |
Individually evaluated for impairment | (3) | |
Individually evaluated for impairment | 50,436 | 56,777 |
Finance receivables, net | 50,436 | 56,777 |
Pre-settlement funding transactions | ||
Activity in the allowance for losses | ||
Balance at beginning of year | (9,786) | (8,011) |
Provision for loss | (4,288) | (4,772) |
Charge-offs | 4,064 | 2,997 |
Recoveries | (3) | |
Balance at end of year | (10,013) | (9,786) |
Individually evaluated for impairment | (2,243) | (2,886) |
Collectively evaluated for impairment | (7,770) | (6,900) |
Individually evaluated for impairment | 125 | 3,204 |
Collectively evaluated for impairment | 33,017 | 43,333 |
Finance receivables, net | 33,142 | 46,537 |
Impaired financing receivable | 12,200 | 14,000 |
Attorney cost financing | ||
Activity in the allowance for losses | ||
Balance at beginning of year | (283) | (283) |
Recoveries | (1) | |
Balance at end of year | (284) | (283) |
Individually evaluated for impairment | (284) | |
Collectively evaluated for impairment | (283) | |
Individually evaluated for impairment | 537 | 1,051 |
Finance receivables, net | 537 | 1,051 |
Impaired financing receivable | $ 400 | $ 600 |
Pre-settlement funding transactions and attorney cost financing | ||
Activity in the allowance for losses | ||
Minimum term of receivable | 1 year |
VIE and Other Finance Receiva89
VIE and Other Finance Receivables, net of Allowance for Losses (Details 4) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Other receivables, net of allowance for losses | |||
Reserve for financing receivable | $ 10,366 | $ 10,128 | $ 8,342 |
Pre-settlement funding transactions | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 44,299 | 57,886 | |
Reserve for financing receivable | 10,013 | 9,786 | 8,011 |
Pre-settlement funding transactions | 2009 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 1,229 | 2,618 | |
Pre-settlement funding transactions | 2010 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 2,759 | 4,251 | |
Pre-settlement funding transactions | 2011 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 5,597 | 6,938 | |
Pre-settlement funding transactions | 2012 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 6,212 | 10,687 | |
Pre-settlement funding transactions | 2013 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 6,772 | 11,335 | |
Pre-settlement funding transactions | 2014 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 17,773 | 22,057 | |
Pre-settlement funding transactions | 2015 | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 3,957 | 0 | |
Attorney cost financing | |||
Other receivables, net of allowance for losses | |||
Gross financing receivable | 821 | 1,334 | |
Reserve for financing receivable | $ 284 | $ 283 | $ 283 |
VIE and Other Finance Receiva90
VIE and Other Finance Receivables, net of Allowance for Losses (Details 5) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 710 | $ 354 |
Current | 75,953 | 83,350 |
VIE and Other Finance Receivables, net | 76,663 | 83,704 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 12 | 8 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11 | 18 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 687 | 328 |
Structured settlements and annuities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 498 | 226 |
Current | 25,729 | 26,701 |
VIE and Other Finance Receivables, net | 26,227 | 26,927 |
Structured settlements and annuities | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9 | 6 |
Structured settlements and annuities | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8 | 12 |
Structured settlements and annuities | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 481 | 208 |
Lottery winnings | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 212 | 128 |
Current | 50,224 | 56,649 |
VIE and Other Finance Receivables, net | 50,436 | 56,777 |
Lottery winnings | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 2 |
Lottery winnings | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 6 |
Lottery winnings | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 206 | $ 120 |
Other Receivables, net of All91
Other Receivables, net of Allowance for Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other receivables, net of allowance for losses | |||
Advances receivable | $ 2,312 | $ 2,406 | |
Notes receivable | 8,811 | 8,038 | |
Tax withholding receivables on lottery winnings | 1,157 | 1,209 | |
Due from affiliates | 24 | 376 | |
Other | 4,254 | 2,340 | |
Other receivables, gross | 16,558 | 14,369 | |
Less allowance for losses | (273) | (204) | |
Other receivables, net of allowance | 16,285 | 14,165 | |
Activity in the allowance for doubtful accounts | |||
Provision for losses | 5,576 | 4,806 | $ 5,695 |
Other receivables | |||
Activity in the allowance for doubtful accounts | |||
Beginning balance | (204) | (243) | |
Provision for losses | (69) | 39 | |
Ending balance | $ (273) | $ (204) | $ (243) |
Mortgage Loans Held for Sale,92
Mortgage Loans Held for Sale, at Fair Value (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |||
Receivables [Abstract] | |||||||
Unpaid principal balance of mortgage loans held for sale | $ 120,253 | ||||||
Fair value adjustment | $ 4,255 | ||||||
Mortgage loans held for sale, at fair value | [1] | $ 124,508 | 0 | $ 0 | $ 124,508 | ||
Increase (Decrease) in Mortgage Loans Held-for-sale [Roll Forward] | |||||||
Acquired through Home Lending acquisition | 131,325 | 0 | [1] | ||||
Mortgage loans originated, net of fees | 842,926 | ||||||
Repurchase of Ginnie Mae loans | 4,991 | ||||||
Proceeds from sale of and principal payments on mortgage loans held for sale | (872,526) | ||||||
Net change in fair value of mortgage loans held for sale | 17,792 | 18,590 | 0 | $ 0 | |||
Balance as of December 31, 2015 | [1] | 124,508 | $ 124,508 | $ 0 | |||
Real Estate Loan | Government National Mortgage Association (GNMA) Insured Loans | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Duration for delinquency consideration for Ginnie Mae pools | 90 days | ||||||
Mortgage loans considered delinquent or defaulted | $ 5,000 | ||||||
[1] | Pledged as collateral to Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings. Refer to Note 11 “Mortgage Loans Held for Sale, at Fair Value” and Note 12 “Mortgage Servicing Rights, at Fair Value.” |
Mortgage Loans Held for Sale,93
Mortgage Loans Held for Sale, at Fair Value - Loan Indemnification Activity (Details) - Indemnification Agreement - Other Liabilities $ in Thousands | 5 Months Ended |
Dec. 31, 2015USD ($) | |
Indemnification Asset [Roll Forward] | |
Acquired through Home Lending acquisition | $ 2,331 |
Provision for loan servicing and repurchases | 1,030 |
Write-offs | (786) |
Balance as of September 30, 2015 | $ 2,575 |
Mortgage Servicing Rights, at94
Mortgage Servicing Rights, at Fair Value (Details) - USD ($) | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Acquired through Home Lending acquisition | [1] | $ 0 | |
Balance as of September 30, 2015 | [1] | $ 29,287,000 | 29,287,000 |
Unpaid principal balance of mortgage loans serviced | 3,000,000,000 | $ 3,000,000,000 | |
Minimum | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Discount rates (in percent) | 9.54% | ||
Annual prepayment speeds (in percent) | 8.24% | ||
Cost of servicing | $ 65 | ||
Maximum | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Discount rates (in percent) | 14.06% | ||
Annual prepayment speeds (in percent) | 20.56% | ||
Cost of servicing | $ 90 | ||
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Acquired through Home Lending acquisition | 27,638,000 | ||
Additions due to loans sold, servicing retained | 3,752,000 | ||
Reductions due to loan payoffs and foreclosures | (1,637,000) | ||
Fair value adjustment | (466,000) | ||
Balance as of September 30, 2015 | $ 29,287,000 | $ 29,287,000 | |
[1] | Pledged as collateral to Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings. Refer to Note 11 “Mortgage Loans Held for Sale, at Fair Value” and Note 12 “Mortgage Servicing Rights, at Fair Value.” |
Mortgage Servicing Rights, at95
Mortgage Servicing Rights, at Fair Value - Sensitivity Analysis (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Transfers and Servicing [Abstract] | |
Discount Rate: Effect on value - 100 basis points adverse change | $ (1,082) |
Discount Rate: Effect on value - 100 basis points adverse change, percent | 1.00% |
Discount Rate: Effect on value - 200 basis points adverse change | $ (2,088) |
Prepayment Speeds: Effect on value - 5% adverse change | $ (542) |
Prepayment Speeds: Effect on value - 5% adverse change, percent | 5.00% |
Prepayment Speeds: Effect on value - 10% adverse change | $ (1,085) |
Cost of Servicing: Effect on value - 5% adverse change | $ (232) |
Cost of Servicing: Effect on value - 5% adverse change, percent | 5.00% |
Cost of Servicing: Effect on value - 10% adverse change | $ (463) |
Cost of Servicing: Effect on value - 10% adverse change, percent | 10.00% |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed assets and leasehold improvements | ||||
Premises and equipment, gross | $ 13,635,000 | $ 9,734,000 | ||
Less accumulated depreciation | (7,961,000) | (5,976,000) | ||
Premises and equipment, net of accumulated depreciation | 5,674,000 | 3,758,000 | ||
Loss on disposal/impairment of fixed assets | (121,594,000) | (69,000) | $ (4,200,000) | |
Depreciation expense including amortization of assets under capital lease | 2,365,000 | 1,676,000 | $ 2,179,000 | |
Computer software and equipment | ||||
Fixed assets and leasehold improvements | ||||
Premises and equipment, gross | 8,096,000 | 5,378,000 | ||
Furniture, fixtures and equipment | ||||
Fixed assets and leasehold improvements | ||||
Premises and equipment, gross | 4,424,000 | 3,323,000 | ||
Leasehold improvements | ||||
Fixed assets and leasehold improvements | ||||
Premises and equipment, gross | $ 1,115,000 | 1,033,000 | ||
Software development costs and assets not put in service | ||||
Fixed assets and leasehold improvements | ||||
Capitalized cost of software development project | $ 4,000,000 | |||
Fair value of software development project | $ 0 | |||
Loss on disposal/impairment of fixed assets | $ 4,000,000 |
Debt Issuance Costs (Details)
Debt Issuance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt issuance costs included in other assets | |||
Debt issuance costs | $ 45,678 | $ 44,023 | |
Less: accumulated amortization | (21,812) | (14,139) | |
Unamortized debt issuance costs | 23,866 | 29,884 | |
Debt Instrument [Line Items] | |||
Amortization expense for capitalized debt issuance cost | 7,949 | 7,901 | $ 5,740 |
Debt issuance costs related to securitizations | 6,741 | 8,683 | 8,930 |
Securitization trusts | |||
Debt Instrument [Line Items] | |||
Debt issuance costs related to securitizations | 6,741 | 8,683 | 8,930 |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Amortization expense for capitalized debt issuance cost | $ 7,700 | $ 7,700 | $ 5,700 |
Operating and Capital Leases (D
Operating and Capital Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Future minimum lease payments due under non-cancellable operating leases | |||
2,016 | $ 2,816 | ||
2,017 | 2,352 | ||
2,018 | 1,902 | ||
2,019 | 1,911 | ||
2,020 | 1,961 | ||
Thereafter | 3,438 | ||
Total | 14,380 | ||
Rent expense | 2,387 | $ 1,695 | $ 3,152 |
Future minimum lease payments under capital leases | |||
2,016 | 50 | ||
2,017 | 53 | ||
2,018 | 56 | ||
2,019 | 60 | ||
2,020 | 58 | ||
Thereafter | 0 | ||
Total | $ 277 |
Term Loan Payable (Details)
Term Loan Payable (Details) - USD ($) | Jul. 15, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 14, 2013 | Nov. 13, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 122,243,000 | $ 0 | |||||
Member's capital free of limitations on payment of dividends | 56,200,000 | 79,900,000 | |||||
Stockholders equity and members capital | 56,159,000 | 253,635,000 | $ 173,382,000 | $ 167,321,000 | $ 45,339,000 | $ 442,818,000 | |
Professional and consulting | 21,486,000 | 18,452,000 | 18,820,000 | ||||
New term loan | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt | $ 449,500,000 | 449,500,000 | |||||
Interest rate (as a percent) | 7.00% | ||||||
Interest expense | $ 40,400,000 | 40,400,000 | $ 46,600,000 | ||||
New term loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate floor (as a percent) | 1.00% | ||||||
Margin on variable rate (as a percent) | 6.00% | ||||||
New term loan | Base rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate floor (as a percent) | 2.00% | ||||||
Margin on variable rate (as a percent) | 5.00% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 20,000,000 | 20,000,000 | |||||
Unused fee (as a percent) | 0.50% | ||||||
Percent of borrowing capacity threshold for maximum total leverage ratio | 15.00% | ||||||
Maximum total leverage ratio, borrowing capacity threshold, amount | $ 3,000,000 | ||||||
Other borrowings under revolving credit facilities and other similar borrowings | 0 | $ 0 | |||||
Deferred finance costs | $ 700,000 | ||||||
Professional and consulting | $ 200,000 | ||||||
Letters of credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 |
VIE Borrowings Under Revolvi100
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 1 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | $ 48,828,000 | $ 48,828,000 | $ 19,339,000 | |||
Revolving credit facilities and other similar borrowings | VIE | ||||||
Maturities of Long-term Debt [Abstract] | ||||||
Interest expense related to borrowings | $ 9,000,000 | $ 9,000,000 | $ 9,900,000 | |||
Weighted average interest rate on outstanding borrowings (as a percent) | 4.15% | 4.15% | 4.63% | |||
JGW-S III | Variable funding note facility | ||||||
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | $ 1,024,000 | $ 1,024,000 | $ 0 | |||
JGW-S III | Variable funding note facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||
Revolving period | 2 years | 2 years | ||||
Amortization period | 18 months | 18 months | ||||
Maturities of Long-term Debt [Abstract] | ||||||
Monthly unused fee (as a percent) | 1.00% | 0.75% | 0.75% | 1.00% | ||
Interest payable monthly (as a percent) | 6.50% | 9.00% | 6.50% | 6.50% | 9.00% | |
Outstanding balance threshold for interest rate trigger | $ 50,000,000 | |||||
Conditional interest rate, stated percentage | 9.00% | |||||
JGW IV | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | $ 0 | $ 0 | $ 6,000 | |||
JGW IV | Credit facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||
Variable interest rate basis | LIBOR | LIBOR | ||||
Margin added to variable interest rate basis (as a percent) | 3.49% | 3.42% | ||||
Maturities of Long-term Debt [Abstract] | ||||||
Monthly unused fee (as a percent) | 0.50% | 0.50% | ||||
JGW V, LLC | Multi-tranche and lender credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | 38,153,000 | $ 38,153,000 | $ 0 | |||
JGW V, LLC | Multi-tranche and lender credit facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Maturities of Long-term Debt [Abstract] | ||||||
Monthly unused fee (as a percent) | 0.625% | 0.625% | ||||
JGW V, LLC | Multi-tranche and lender credit facility | VIE | Tranche A | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate basis | LIBOR | LIBOR | ||||
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.00% | ||||
Interest rate (as a percent) | 3.24% | 3.24% | 3.17% | |||
JGW V, LLC | Multi-tranche and lender credit facility | VIE | Tranche A | Commercial Paper rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate basis | Commercial Paper rate | Commercial Paper rate | ||||
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.00% | ||||
Interest rate (as a percent) | 3.52% | 3.52% | 3.26% | |||
JGW V, LLC | Multi-tranche and lender credit facility | VIE | Tranche B | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate basis | LIBOR | LIBOR | ||||
Margin added to variable interest rate basis (as a percent) | 5.50% | 5.50% | ||||
Interest rate (as a percent) | 5.74% | 5.74% | 5.67% | |||
JGW VII, LLC | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | $ 0 | $ 0 | $ 0 | |||
JGW VII, LLC | Credit facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Interest rate (as a percent) | 3.22% | 3.22% | 2.92% | |||
Variable interest rate payable monthly (as a percent) | 2.75% | 2.75% | 2.75% | |||
Maturities of Long-term Debt [Abstract] | ||||||
Monthly unused fee (as a percent) | 0.50% | 0.50% | ||||
JGW VII, LLC | Multi-tranche and lender credit facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||
Peach One | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
VIE borrowings under revolving credit facilities and other similar borrowings | 9,651,000 | 9,651,000 | 19,333,000 | |||
Peach One | Credit facility | VIE | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 35,000,000 | 35,000,000 | $ 35,000,000 | $ 35,000,000 | ||
Variable interest rate basis | prime rate | prime rate | ||||
Maturities of Long-term Debt [Abstract] | ||||||
2,016 | 5,591,000 | $ 5,591,000 | ||||
2,017 | 4,060,000 | 4,060,000 | ||||
Outstanding Principal | $ 9,651,000 | $ 9,651,000 | ||||
Monthly unused fee (as a percent) | 0.50% | 0.50% | ||||
Peach One | Credit facility | VIE | Prime Rate | Class A Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% | ||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | |||
Interest rate floor (as a percent) | 4.50% | 4.50% | 4.50% | |||
Peach One | Credit facility | VIE | Prime Rate | Class B Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate (as a percent) | 5.50% | 5.50% | 5.50% | |||
Interest rate floor (as a percent) | 1.00% | 1.00% | 1.00% |
Other Borrowings Under Revol101
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Feb. 12, 2016 | Jan. 09, 2016 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 122,243,000 | $ 0 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate (as a percent) | 2.84% | |||
Interest expense | $ 1,400,000 | |||
Warehouse Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | 122,243,000 | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 1, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | 33,530,000 | |||
Maximum borrowing capacity | $ 50,000,000 | |||
Interest rate (as a percent) | 2.50% | |||
Non-usage fee | 0.25% | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 1, 2016 | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 95,000,000 | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring April 11, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 32,611,000 | |||
Maximum borrowing capacity | $ 50,000,000 | |||
Interest rate (as a percent) | 2.50% | |||
Non-usage fee | 0.25% | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring July 6, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 9,414,000 | |||
Maximum borrowing capacity | $ 20,000,000 | |||
Interest rate (as a percent) | 2.50% | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring July 31, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 16,031,000 | |||
Maximum borrowing capacity | $ 35,000,000 | |||
Interest rate (as a percent) | 3.50% | |||
Non-usage fee | 0.25% | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring July 31, 2016 | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 1, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 26,657,000 | |||
Maximum borrowing capacity | $ 45,000,000 | |||
Interest rate (as a percent) | 2.25% | |||
Non-usage fee | ||||
Operating Line Of Credit | Credit facility | Line Of Credit Agreement Expiring July 6, 2016 | ||||
Line of Credit Facility [Line Items] | ||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 4,000,000 | |||
Maximum borrowing capacity | $ 6,000,000 | |||
Interest rate (as a percent) | 5.00% | |||
Non-usage fee | 0.50% |
VIE Long-Term Debt (Details)
VIE Long-Term Debt (Details) | Aug. 13, 2015USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($)note | Aug. 12, 2015 | Nov. 30, 2010USD ($) |
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 199,363,000 | $ 181,558,000 | |||||||
Professional and consulting | 21,486,000 | 18,452,000 | $ 18,820,000 | ||||||
VIE | LCSS II | LCSS, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Ownership percentage | 100.00% | ||||||||
VIE | LCSS III | LCSS II | |||||||||
Debt Instrument [Line Items] | |||||||||
Ownership percentage | 100.00% | ||||||||
VIE | LCSS, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Cash | $ 200,000 | ||||||||
VIE long-term debt | |||||||||
Estimated principal payments on borrowings | |||||||||
2,016 | 13,627,000 | ||||||||
2,017 | 7,041,000 | ||||||||
2,018 | 7,005,000 | ||||||||
2,019 | 7,518,000 | ||||||||
2,020 | 10,717,000 | ||||||||
Thereafter | 161,108,000 | ||||||||
Outstanding Principal | 207,016,000 | ||||||||
Interest expense related to borrowings | 16,800,000 | 14,900,000 | $ 14,700,000 | ||||||
PLMT Permanent Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | 41,265,000 | 44,277,000 | |||||||
PLMT Permanent Facility | VIE | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 75,000,000 | ||||||||
Variable interest rate basis | one-month LIBOR | ||||||||
Margin added to variable interest rate basis (as a percent) | 1.25% | ||||||||
Residual Term Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 130,832,000 | 107,043,000 | |||||||
Residual Term Facility | VIE | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 133,000,000 | ||||||||
Increase in term debt | 25,000,000 | ||||||||
Professional and consulting | $ 600,000 | ||||||||
Interest rate (as a percent) | 7.25% | 7.00% | |||||||
Long-Term Presettlement Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 6,600,000 | 8,884,000 | |||||||
Long-Term Presettlement Facility | VIE | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 45,100,000 | ||||||||
Interest rate (as a percent) | 9.25% | ||||||||
Number of fixed rate notes issued | note | 3 | ||||||||
2012-A Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 944,000 | 1,357,000 | |||||||
2012-A Facility | VIE | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate (as a percent) | 9.25% | ||||||||
Proceeds from notes | $ 2,500,000 | ||||||||
LCSS Facility (2010-C) | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 12,573,000 | 12,838,000 | |||||||
LCSS Facility (2010-C) | VIE | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 12,900,000 | ||||||||
Interest rate (as a percent) | 10.00% | ||||||||
LCSS Facility (2010-D) | |||||||||
Debt Instrument [Line Items] | |||||||||
VIE long-term debt | $ 7,159,000 | $ 7,159,000 | |||||||
LCSS Facility (2010-D) | VIE | LCSS III | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 7,200,000 | ||||||||
Interest rate (as a percent) | 10.00% |
VIE Long-term Debt Issued by103
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Details) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 31, 2013USD ($) | Dec. 31, 2015USD ($)transaction | Dec. 31, 2014USD ($)transaction | Dec. 31, 2013USD ($) | Mar. 18, 2014USD ($) | Mar. 17, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 3,928,818,000 | $ 4,031,864,000 | ||||||
Gain on debt extinguishment | $ 593,000 | $ 270,000 | $ 14,217,000 | |||||
VIE | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of asset securitization transactions completed | transaction | 3 | 3 | ||||||
VIE | Securitization trusts | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 3,637,231,000 | $ 3,462,225,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 3,688,639,000 | 3,774,902,000 | ||||||
VIE | Permanent financing VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 250,895,000 | 253,955,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 240,179,000 | $ 256,962,000 | ||||||
VIE | PSS | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 153,077,000 | 168,018,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 134,970,000 | $ 161,004,000 | ||||||
VIE | PSS | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% | ||||||
VIE | Crescit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 27,583,000 | $ 29,823,000 | ||||||
Stated Rate (as a percent) | 8.10% | 8.10% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 34,974,000 | $ 39,844,000 | ||||||
VIE | SRF6 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of long term debt | $ 64,000,000 | |||||||
Gain on debt extinguishment | 22,100,000 | |||||||
Prepayment fees | 3,400,000 | |||||||
Hedge breakage costs | $ 4,500,000 | |||||||
VIE | 2015-3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | 103,300,000 | |||||||
Receivables securitized | $ 1,751,000 | |||||||
Deal discount rate (as a percent) | 4.46% | |||||||
Retained interest % | 5.50% | |||||||
VIE | 2015-3 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 85.00% | |||||||
VIE | 2015-3 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 9.50% | |||||||
VIE | 2015-2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | $ 158,500,000 | |||||||
Receivables securitized | $ 2,489,000 | |||||||
Deal discount rate (as a percent) | 4.18% | |||||||
Retained interest % | 5.50% | |||||||
VIE | 2015-2 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 84.75% | |||||||
VIE | 2015-2 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 9.75% | |||||||
VIE | 2015-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | $ 214,000,000 | |||||||
Receivables securitized | $ 3,422,000 | |||||||
Deal discount rate (as a percent) | 3.64% | |||||||
Retained interest % | 5.50% | |||||||
VIE | 2015-1 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 85.25% | |||||||
VIE | 2015-1 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 9.25% | |||||||
VIE | 2014-3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | 207,400,000 | |||||||
Receivables securitized | $ 2,169,000 | |||||||
Deal discount rate (as a percent) | 3.86% | |||||||
Retained interest % | 5.50% | |||||||
VIE | 2014-3 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 84.75% | |||||||
VIE | 2014-3 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 9.75% | |||||||
VIE | 2014-2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | $ 227,400,000 | |||||||
Receivables securitized | $ 3,744,000 | |||||||
Deal discount rate (as a percent) | 3.95% | |||||||
Retained interest % | 5.50% | |||||||
VIE | 2014-2 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 84.00% | |||||||
VIE | 2014-2 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 10.50% | |||||||
VIE | 2014-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Bond proceeds | $ 233,900,000 | |||||||
Receivables securitized | $ 4,128,000 | |||||||
Deal discount rate (as a percent) | 4.24% | |||||||
Retained interest % | 6.00% | |||||||
VIE | 2014-1 | Aaa | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 85.25% | |||||||
VIE | 2014-1 | Baa2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Class allocation (as a percent) | 8.75% | |||||||
VIE | 2003-A | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 13,650,000 | $ 18,144,000 | ||||||
Stated Rate (as a percent) | 4.86% | 4.86% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 14,406,000 | $ 19,642,000 | ||||||
VIE | 2004-A A-1 | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 25,859,000 | 32,628,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 26,018,000 | $ 33,783,000 | ||||||
VIE | 2004-A A-1 | 321 Henderson Receivables I, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.35% | 0.35% | ||||||
VIE | 2004-A A-2 | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 18,777,000 | $ 19,286,000 | ||||||
Stated Rate (as a percent) | 5.54% | 5.54% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 19,248,000 | $ 21,023,000 | ||||||
VIE | 2005-1 A-1 | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 47,963,000 | 58,735,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 47,559,000 | $ 60,895,000 | ||||||
VIE | 2005-1 A-1 | 321 Henderson Receivables I, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.23% | 0.23% | ||||||
VIE | 2005-1 A-2 | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 36,146,000 | $ 36,794,000 | ||||||
Stated Rate (as a percent) | 5.58% | 5.58% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 35,066,000 | $ 39,374,000 | ||||||
VIE | 2005-1 B | 321 Henderson Receivables I, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 2,203,000 | $ 2,242,000 | ||||||
Stated Rate (as a percent) | 5.24% | 5.24% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 2,088,000 | $ 2,343,000 | ||||||
VIE | 2006-1 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 10,694,000 | 15,571,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 10,971,000 | $ 16,376,000 | ||||||
VIE | 2006-1 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.20% | 0.20% | ||||||
VIE | 2006-1 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 17,154,000 | $ 18,074,000 | ||||||
Stated Rate (as a percent) | 5.56% | 5.56% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 17,452,000 | $ 19,847,000 | ||||||
VIE | 2006-2 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 15,058,000 | 18,859,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 15,304,000 | $ 20,009,000 | ||||||
VIE | 2006-2 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.20% | 0.20% | ||||||
VIE | 2006-2 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 20,066,000 | $ 20,395,000 | ||||||
Stated Rate (as a percent) | 5.93% | 5.93% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 19,967,000 | $ 22,484,000 | ||||||
VIE | 2006-3 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 15,798,000 | 21,361,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 16,131,000 | $ 22,604,000 | ||||||
VIE | 2006-3 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.20% | 0.20% | ||||||
VIE | 2006-3 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 25,755,000 | $ 26,343,000 | ||||||
Stated Rate (as a percent) | 5.60% | 5.60% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 25,703,000 | $ 28,861,000 | ||||||
VIE | 2006-4 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 15,166,000 | 19,719,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 15,419,000 | $ 20,608,000 | ||||||
VIE | 2006-4 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.20% | 0.20% | ||||||
VIE | 2006-4 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 20,797,000 | $ 21,133,000 | ||||||
Stated Rate (as a percent) | 5.43% | 5.43% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 20,315,000 | $ 22,907,000 | ||||||
VIE | 2007-1 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 26,887,000 | 32,994,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 25,201,000 | $ 33,431,000 | ||||||
VIE | 2007-1 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.20% | 0.20% | ||||||
VIE | 2007-1 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 16,841,000 | $ 17,220,000 | ||||||
Stated Rate (as a percent) | 5.59% | 5.59% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 14,866,000 | $ 17,681,000 | ||||||
VIE | 2007-2 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | 33,461,000 | 37,592,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 29,351,000 | $ 36,730,000 | ||||||
VIE | 2007-2 A-1 | 321 Henderson Receivables II, LLC | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate basis | Libor | Libor | ||||||
Margin added to variable interest rate basis (as a percent) | 0.21% | 0.21% | ||||||
VIE | 2007-2 A-2 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 16,725,000 | $ 17,041,000 | ||||||
Stated Rate (as a percent) | 6.21% | 6.21% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 13,759,000 | $ 16,806,000 | ||||||
VIE | 2007-3 A-1 | 321 Henderson Receivables II, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 54,273,000 | $ 59,378,000 | ||||||
Stated Rate (as a percent) | 6.15% | 6.15% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 58,821,000 | $ 70,026,000 | ||||||
VIE | 2008-1 A | 321 Henderson Receivables III, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 48,550,000 | $ 56,186,000 | ||||||
Stated Rate (as a percent) | 6.19% | 6.19% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 55,515,000 | $ 66,265,000 | ||||||
VIE | 2008-1 B | 321 Henderson Receivables III, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 3,235,000 | $ 3,235,000 | ||||||
Stated Rate (as a percent) | 8.37% | 8.37% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 4,325,000 | $ 4,790,000 | ||||||
VIE | 2008-1 C | 321 Henderson Receivables III, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 3,235,000 | $ 3,235,000 | ||||||
Stated Rate (as a percent) | 9.36% | 9.36% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 4,274,000 | $ 4,971,000 | ||||||
VIE | 2008-1 D | 321 Henderson Receivables III, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 3,529,000 | $ 3,529,000 | ||||||
Stated Rate (as a percent) | 10.81% | 10.81% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 4,802,000 | $ 5,828,000 | ||||||
VIE | 2008-2 A | 321 Henderson Receivables IV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 63,166,000 | $ 70,210,000 | ||||||
Stated Rate (as a percent) | 6.27% | 6.27% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 72,306,000 | $ 84,357,000 | ||||||
VIE | 2008-2 B | 321 Henderson Receivables IV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 6,194,000 | $ 6,194,000 | ||||||
Stated Rate (as a percent) | 8.63% | 8.63% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 7,647,000 | $ 9,296,000 | ||||||
VIE | 2008-3 A-1 | 321 Henderson Receivables V, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 44,521,000 | $ 49,385,000 | ||||||
Stated Rate (as a percent) | 8.00% | 8.00% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 56,574,000 | $ 66,074,000 | ||||||
VIE | 2008-3 A-2 | 321 Henderson Receivables V, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 5,503,000 | $ 6,104,000 | ||||||
Stated Rate (as a percent) | 8.00% | 8.00% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 6,777,000 | $ 8,045,000 | ||||||
VIE | 2008-3 B | 321 Henderson Receivables V, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 4,695,000 | $ 4,695,000 | ||||||
Stated Rate (as a percent) | 10.00% | 10.00% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 5,132,000 | $ 6,642,000 | ||||||
VIE | 2010-1 A-1 | 321 Henderson Receivables VI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 124,266,000 | $ 138,254,000 | ||||||
Stated Rate (as a percent) | 5.56% | 5.56% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 138,936,000 | $ 159,918,000 | ||||||
VIE | 2010-1 B | 321 Henderson Receivables VI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 22,166,000 | $ 24,661,000 | ||||||
Stated Rate (as a percent) | 9.31% | 9.31% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 27,223,000 | $ 32,595,000 | ||||||
VIE | 2010-2 A | JG Wentworth XXI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 52,416,000 | $ 59,582,000 | ||||||
Stated Rate (as a percent) | 4.07% | 4.07% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 55,186,000 | $ 64,313,000 | ||||||
VIE | 2010-2 B | JG Wentworth XXI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 7,483,000 | $ 8,506,000 | ||||||
Stated Rate (as a percent) | 7.45% | 7.45% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 8,611,000 | $ 10,368,000 | ||||||
VIE | 2010-3 A | JG Wentworth XXII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 101,526,000 | $ 115,400,000 | ||||||
Stated Rate (as a percent) | 3.82% | 3.82% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 105,888,000 | $ 123,222,000 | ||||||
VIE | 2010-3 B | JG Wentworth XXII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 14,754,000 | $ 16,770,000 | ||||||
Stated Rate (as a percent) | 6.85% | 6.85% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 16,449,000 | $ 19,893,000 | ||||||
VIE | 2011-1 A | JG Wentworth XXIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 161,050,000 | $ 176,119,000 | ||||||
Stated Rate (as a percent) | 4.89% | 4.89% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 171,059,000 | $ 196,934,000 | ||||||
VIE | 2011-1 B | JG Wentworth XXIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 20,246,000 | $ 21,212,000 | ||||||
Stated Rate (as a percent) | 7.68% | 7.68% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 23,517,000 | $ 26,981,000 | ||||||
VIE | 2011-2 A | JGWPT XXIV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 137,179,000 | $ 147,406,000 | ||||||
Stated Rate (as a percent) | 5.13% | 5.13% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 146,205,000 | $ 167,703,000 | ||||||
VIE | 2011-2 B | JGWPT XXIV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 15,580,000 | $ 15,580,000 | ||||||
Stated Rate (as a percent) | 8.54% | 8.54% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 18,974,000 | $ 21,286,000 | ||||||
VIE | 2012-1 A | JGWPT XXV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 167,818,000 | $ 182,576,000 | ||||||
Stated Rate (as a percent) | 4.21% | 4.21% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 170,557,000 | $ 197,497,000 | ||||||
VIE | 2012-1 B | JGWPT XXV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 20,564,000 | $ 20,564,000 | ||||||
Stated Rate (as a percent) | 7.14% | 7.14% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 23,385,000 | $ 26,088,000 | ||||||
VIE | 2012-2 A | JGWPT XXVI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 119,044,000 | $ 128,310,000 | ||||||
Stated Rate (as a percent) | 3.84% | 3.84% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 117,345,000 | $ 134,860,000 | ||||||
VIE | 2012-2 B | JGWPT XXVI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 13,985,000 | $ 13,985,000 | ||||||
Stated Rate (as a percent) | 6.77% | 6.77% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 15,489,000 | $ 17,391,000 | ||||||
VIE | 2012-3 A | JGWPT XXVII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 151,464,000 | $ 164,533,000 | ||||||
Stated Rate (as a percent) | 3.22% | 3.22% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 144,129,000 | $ 166,033,000 | ||||||
VIE | 2012-3 B | JGWPT XXVII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 17,181,000 | $ 17,181,000 | ||||||
Stated Rate (as a percent) | 6.17% | 6.17% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 18,384,000 | $ 20,500,000 | ||||||
VIE | 2013-1 A | JGWPT XXVIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 167,734,000 | $ 180,695,000 | ||||||
Stated Rate (as a percent) | 3.22% | 3.22% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 158,769,000 | $ 181,767,000 | ||||||
VIE | 2013-1 B | JGWPT XXVIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 18,589,000 | $ 18,589,000 | ||||||
Stated Rate (as a percent) | 4.94% | 4.94% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 18,154,000 | $ 20,280,000 | ||||||
VIE | 2013-2 A | JGWPT XXIX, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 141,592,000 | $ 150,541,000 | ||||||
Stated Rate (as a percent) | 4.21% | 4.21% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 142,820,000 | $ 162,561,000 | ||||||
VIE | 2013-2 B | JGWPT XXIX, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 14,985,000 | $ 14,985,000 | ||||||
Stated Rate (as a percent) | 5.68% | 5.68% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 15,298,000 | $ 17,277,000 | ||||||
VIE | 2013-3 A | JGWPT XXX, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 172,138,000 | $ 183,987,000 | ||||||
Stated Rate (as a percent) | 4.08% | 4.08% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 172,184,000 | $ 196,867,000 | ||||||
VIE | 2013-3 B | JGWPT XXX, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 18,248,000 | $ 18,248,000 | ||||||
Stated Rate (as a percent) | 5.54% | 5.54% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 18,437,000 | $ 20,832,000 | ||||||
VIE | 2014-1 A | JGWPT XXXI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 195,613,000 | $ 208,739,000 | ||||||
Stated Rate (as a percent) | 3.96% | 3.96% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 194,775,000 | $ 221,453,000 | ||||||
VIE | 2014-1 B | JGWPT XXXI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 21,776,000 | $ 21,776,000 | ||||||
Stated Rate (as a percent) | 4.94% | 4.94% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 21,003,000 | $ 23,679,000 | ||||||
VIE | 2014-2 A | JGWPT XXXII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 194,302,000 | $ 201,649,000 | ||||||
Stated Rate (as a percent) | 3.61% | 3.61% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 186,756,000 | $ 207,410,000 | ||||||
VIE | 2014-2 B | JGWPT XXXII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 25,284,000 | $ 25,284,000 | ||||||
Stated Rate (as a percent) | 4.48% | 4.48% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 23,041,000 | $ 26,221,000 | ||||||
VIE | 2014-3 A | JGWPT XXXIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 177,753,000 | $ 185,884,000 | ||||||
Stated Rate (as a percent) | 3.50% | 3.50% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 168,797,000 | $ 187,783,000 | ||||||
VIE | 2014-3 B | JGWPT XXXIII, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 21,408,000 | $ 21,408,000 | ||||||
Stated Rate (as a percent) | 4.40% | 4.40% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 19,210,000 | $ 21,684,000 | ||||||
VIE | 2015-1 A | JGWPT XXXIV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 188,121,000 | $ 0 | ||||||
Stated Rate (as a percent) | 3.26% | 3.26% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 175,468,000 | $ 0 | ||||||
VIE | 2015-1 B | JGWPT XXXIV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 20,957,000 | $ 0 | ||||||
Stated Rate (as a percent) | 4.25% | 4.25% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 18,518,000 | $ 0 | ||||||
VIE | 2015-2 A | JGWPT XXXV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 141,984,000 | $ 0 | ||||||
Stated Rate (as a percent) | 3.87% | 3.87% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 136,709,000 | $ 0 | ||||||
VIE | 2015-2 B | JGWPT XXXV, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 16,350,000 | $ 0 | ||||||
Stated Rate (as a percent) | 4.83% | 4.83% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 14,992,000 | $ 0 | ||||||
VIE | 2015-3 A | JGWPT XXXVI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 92,878,000 | $ 0 | ||||||
Stated Rate (as a percent) | 4.08% | 4.08% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 90,413,000 | $ 0 | ||||||
VIE | 2015-3 B | JGWPT XXXVI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 10,383,000 | $ 0 | ||||||
Stated Rate (as a percent) | 5.68% | 5.68% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 10,033,000 | $ 0 | ||||||
VIE | 2004-A B | Structured Receivables Finance No. 1, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 0 | $ 7,196,000 | ||||||
Stated Rate (as a percent) | 7.50% | 7.50% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 0 | $ 7,846,000 | ||||||
VIE | 2005-A A | Structured Receivables Finance No. 2, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 8,981,000 | $ 13,108,000 | ||||||
Stated Rate (as a percent) | 5.05% | 5.05% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 9,363,000 | $ 14,031,000 | ||||||
VIE | 2005-A B | Structured Receivables Finance No. 2, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 8,413,000 | $ 9,141,000 | ||||||
Stated Rate (as a percent) | 6.95% | 6.95% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 9,545,000 | $ 10,764,000 | ||||||
VIE | 2005-B A | Peachtree Finance Company No. 2, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 10,195,000 | $ 15,979,000 | ||||||
Stated Rate (as a percent) | 4.71% | 4.71% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 10,537,000 | $ 16,912,000 | ||||||
VIE | 2005-B B | Peachtree Finance Company No. 2, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 5,039,000 | $ 5,471,000 | ||||||
Stated Rate (as a percent) | 6.21% | 6.21% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 5,422,000 | $ 6,161,000 | ||||||
VIE | 2006-A A | Structured Receivables Finance No. 3, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 24,354,000 | $ 30,496,000 | ||||||
Stated Rate (as a percent) | 5.55% | 5.55% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 26,585,000 | $ 34,037,000 | ||||||
VIE | 2006-A B | Structured Receivables Finance No. 3, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 8,397,000 | $ 9,294,000 | ||||||
Stated Rate (as a percent) | 6.82% | 6.82% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 9,464,000 | $ 11,118,000 | ||||||
VIE | 2006-B A | Structured Receivables Finance 2006-B, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 36,406,000 | $ 41,959,000 | ||||||
Stated Rate (as a percent) | 5.19% | 5.19% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 40,082,000 | $ 47,413,000 | ||||||
VIE | 2006-B B | Structured Receivables Finance 2006-B, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 7,305,000 | $ 7,922,000 | ||||||
Stated Rate (as a percent) | 6.30% | 6.30% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 7,759,000 | $ 9,245,000 | ||||||
VIE | 2010-A A | Structured Receivables Finance 2010-A, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 56,516,000 | $ 65,773,000 | ||||||
Stated Rate (as a percent) | 5.22% | 5.22% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 62,295,000 | $ 74,239,000 | ||||||
VIE | 2010-A B | Structured Receivables Finance 2010-A, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 10,709,000 | $ 11,567,000 | ||||||
Stated Rate (as a percent) | 7.61% | 7.61% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 13,201,000 | $ 14,714,000 | ||||||
VIE | 2010-B A | Structured Receivables Finance 2010-B, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 45,150,000 | $ 51,681,000 | ||||||
Stated Rate (as a percent) | 3.73% | 3.73% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 46,981,000 | $ 54,968,000 | ||||||
VIE | 2010-B B | Structured Receivables Finance 2010-B, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 13,048,000 | $ 13,932,000 | ||||||
Stated Rate (as a percent) | 7.97% | 7.97% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 15,694,000 | $ 18,360,000 | ||||||
VIE | Securitization Transaction 2015-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of long term debt | $ 6,900,000 | |||||||
Gain on debt extinguishment | $ 600,000 | |||||||
VIE | Securitization Transaction 2002 A | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of long term debt | $ 6,100,000 | |||||||
Gain on debt extinguishment | $ 300,000 | |||||||
VIE | Securitization Transaction 2011 A | JGW-S LC II | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding Principal | $ 70,235,000 | $ 56,114,000 | ||||||
Stated Rate (as a percent) | 12.54% | 12.63% | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 70,235,000 | $ 56,114,000 | ||||||
Maximum borrowing capacity | $ 100,000,000 | $ 50,000,000 |
VIE Long-term Debt Issued by104
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Details 2) - VIE long-term debt issued by securitizations and permanent financing trusts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Estimated maturities of borrowings | |||
2,016 | $ 307,178 | ||
2,017 | 304,534 | ||
2,018 | 287,248 | ||
2,019 | 279,428 | ||
2,020 | 260,031 | ||
Thereafter | 2,449,707 | ||
Outstanding Principal | 3,888,126 | ||
Interest expense related to borrowings | $ 140,900 | $ 136,600 | $ 120,400 |
Derivative Financial Instrum105
Derivative Financial Instruments (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)swap | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Derivative financial instruments | |||
Notional | $ 248,500,000 | ||
(Loss) gain on swap terminations, net | (190,000) | $ (628,000) | $ 200,000 |
Unrealized gain | 9,346,000 | (5,619,000) | 51,157,000 |
Fair Value | (66,519,000) | (75,706,000) | |
Derivative asset, fair value, gross asset | 4,934,000 | ||
Derivative asset, notional amount | 222,512,000 | ||
Derivative liability, fair value, gross liability | 147,000 | ||
Interest Rate Swaps | |||
Derivative financial instruments | |||
Notional | 433,876,000 | 467,309,000 | |
Fair Value | (66,519,000) | (75,706,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | |||
Derivative financial instruments | |||
Terminated notional value | 61,100,000 | 46,500,000 | 112,900,000 |
(Loss) gain on swap terminations, net | (200,000) | (600,000) | 200,000 |
Unrealized gain | 0 | 0 | 0 |
Interest Rate Swaps | Hedge accounting has not been applied | JGW V, LLC | |||
Derivative financial instruments | |||
Notional | 31,857,000 | 0 | |
Fair Value | 59,000 | 0 | |
Interest Rate Swaps | Hedge accounting has not been applied | PLMT | |||
Derivative financial instruments | |||
Notional | 48,587,000 | 52,907,000 | |
Fair Value | (8,720,000) | (10,097,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | VIE | PSS | |||
Derivative financial instruments | |||
Notional | 162,546,000 | 176,943,000 | |
Fair Value | $ (29,486,000) | (31,807,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | Revolving credit facilities and other similar borrowings | VIE | |||
Derivative financial instruments | |||
Number of outstanding derivatives | swap | 2 | ||
Notional | $ 31,900,000 | ||
Interest Rate Swaps | Hedge accounting has not been applied | Revolving credit facilities and other similar borrowings | VIE | Minimum | |||
Derivative financial instruments | |||
Fixed interest rate (as a percent) | 1.75% | ||
Interest Rate Swaps | Hedge accounting has not been applied | Revolving credit facilities and other similar borrowings | VIE | Maximum | |||
Derivative financial instruments | |||
Fixed interest rate (as a percent) | 1.77% | ||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | |||
Derivative financial instruments | |||
Number of outstanding derivatives | swap | 8 | ||
Notional | $ 190,900,000 | ||
Unrealized gain | $ 5,600,000 | 2,400,000 | 24,500,000 |
Description of variable 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% | ||
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% | ||
Term of contract | 20 years | ||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | |||
Derivative financial instruments | |||
Number of outstanding derivatives | swap | 144 | ||
Notional | $ 211,100,000 | ||
Unrealized gain | $ 3,800,000 | (8,100,000) | $ 26,600,000 |
Description of variable 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% | ||
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% | ||
Term of contract | 19 years | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2004-A A-1 | 321 Henderson I | |||
Derivative financial instruments | |||
Notional | $ 25,859,000 | 32,628,000 | |
Fair Value | (2,382,000) | (3,019,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2005-1 A-1 | 321 Henderson I | |||
Derivative financial instruments | |||
Notional | 47,963,000 | 58,735,000 | |
Fair Value | (6,186,000) | (7,435,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2006-1 A-1 | 321 Henderson II | |||
Derivative financial instruments | |||
Notional | 10,694,000 | 15,571,000 | |
Fair Value | (1,091,000) | (1,509,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2006-2 A-1 | 322 Henderson II | |||
Derivative financial instruments | |||
Notional | 15,058,000 | 18,859,000 | |
Fair Value | (2,239,000) | (2,718,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2006-3 A-1 | 323 Henderson II | |||
Derivative financial instruments | |||
Notional | 15,798,000 | 21,361,000 | |
Fair Value | (1,951,000) | (2,475,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2006-4 A-1 | 324 Henderson II | |||
Derivative financial instruments | |||
Notional | 15,166,000 | 19,719,000 | |
Fair Value | (1,489,000) | (2,056,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2007-1 A-2 | 325 Henderson II | |||
Derivative financial instruments | |||
Notional | 26,887,000 | 32,994,000 | |
Fair Value | (4,949,000) | (5,624,000) | |
Interest Rate Swaps | Hedge accounting has not been applied | 2007-2 A-3 | 326 Henderson II | |||
Derivative financial instruments | |||
Notional | 33,461,000 | 37,592,000 | |
Fair Value | (8,085,000) | $ (8,966,000) | |
Interest Rate Lock Commitments | |||
Derivative financial instruments | |||
Derivative asset, fair value, gross asset | 4,934,000 | ||
Derivative asset, notional amount | 222,512,000 | ||
Forward Sale Commitments And Mandatory Sale Commitments [Member] | |||
Derivative financial instruments | |||
Notional | 248,500,000 | ||
Derivative liability, fair value, gross liability | $ 147,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ (234,000) | $ 107,000 | $ 177,000 |
State | (71,000) | 10,000 | 35,000 |
Total | (305,000) | 117,000 | 212,000 |
Deferred: | |||
Federal | (15,062,000) | 15,313,000 | 1,990,000 |
State | (2,849,000) | 5,710,000 | 344,000 |
Deferred income taxes | (17,911,000) | 21,023,000 | 2,334,000 |
Income tax provision (benefit) | $ (18,216,000) | $ 21,140,000 | $ 2,546,000 |
Reconciliation of difference between effective income tax rate and the United States statutory rate | |||
Federal | 35.00% | 35.00% | 35.00% |
Income passed through to Non-Corporate members | (15.90%) | (18.90%) | (35.10%) |
Permanent items | (11.10%) | 0.70% | 0.20% |
State income tax | 1.40% | 3.40% | (0.10%) |
Valuation allowance | (1.90%) | (2.00%) | 3.90% |
Other | 1.00% | (0.30%) | 0.00% |
Effective income tax rate | 8.50% | 17.90% | 3.90% |
Deferred tax assets: | |||
Swap liability | $ 1,047,000 | $ 974,000 | |
Net operating loss carryforwards | 63,999,000 | 46,856,000 | |
Total deferred tax assets | 65,046,000 | 47,830,000 | |
Valuation allowance | (4,531,000) | (216,000) | |
Total deferred tax assets, net | 60,515,000 | 47,614,000 | |
Deferred tax liabilities: | |||
Basis difference in partnership | 72,096,000 | 78,842,000 | |
Lottery winnings | 2,922,000 | 1,940,000 | |
Lottery winnings fair value adjustments | 1,868,000 | 1,140,000 | |
Other | 204,000 | 178,000 | |
Total deferred tax liabilities | 77,090,000 | 82,100,000 | |
Deferred tax liabilities, net | (16,575,000) | (34,486,000) | |
Income (loss) from continuing operations | (215,400,000) | 117,800,000 | |
Impairment charges and loss on disposal of assets | 121,594,000 | 69,000 | $ 4,200,000 |
Valuation allowance | (4,531,000) | (216,000) | |
Gross unrecognized tax benefits | $ 0 | 0 | |
Deferred Tax Asset, Operating Loss Carryforward | |||
Deferred tax liabilities: | |||
Increase (decrease) in deferred tax asset valuation allowance | $ 2,600,000 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Information (Details) $ in Millions | Dec. 31, 2015USD ($) |
Federal | |
Income Taxes | |
Net operating loss carryforwards | $ 154.1 |
State | |
Income Taxes | |
Net operating loss carryforwards | $ 110.8 |
Installment Obligations Paya108
Installment Obligations Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Installment Obligations Payable | ||
Maximum penalty as percentage of unscheduled installment amount | 20.00% | |
Estimated maturities for the next five years and thereafter | ||
2,016 | $ 14,401 | |
2,017 | 13,820 | |
2,018 | 11,048 | |
2,019 | 7,810 | |
2,020 | 5,628 | |
Thereafter | 32,287 | |
Total | $ 84,994 | $ 103,419 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jul. 31, 2015shares | May. 26, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)vote$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2015USD ($)vote$ / sharesshares | May. 02, 2014USD ($) | Nov. 14, 2013$ / sharesshares |
Stockholders' Equity | |||||||
Stock repurchased, value | $ | $ 14,471,000 | $ 4,466,000 | |||||
Treasury stock, shares | 542,072 | 600,755 | 542,072 | ||||
PGHI Corp | Tranche C-1 profit interests | |||||||
Stockholders' Equity | |||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 35.78 | $ 35.78 | |||||
PGHI Corp | Tranche C-1 profit interests | Maximum | |||||||
Stockholders' Equity | |||||||
Number of shares entitled by warrants (in shares) | 483,217 | 483,217 | |||||
PGHI Corp | Tranche C-2 profits interests | |||||||
Stockholders' Equity | |||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 63.01 | $ 63.01 | |||||
PGHI Corp | Tranche C-2 profits interests | Maximum | |||||||
Stockholders' Equity | |||||||
Number of shares entitled by warrants (in shares) | 483,217 | 483,217 | |||||
JG Wentworth Company LLC | |||||||
Stockholders' Equity | |||||||
Shares converted | 984,949 | 3,123,517 | |||||
Merger Sub | |||||||
Stockholders' Equity | |||||||
Shares converted | 715,916 | ||||||
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 | 16,076,444 | 15,021,147 | 16,076,444 | ||||
Common stock, shares outstanding | 15,534,372 | 14,420,392 | 15,534,372 | ||||
Stock repurchase program, amount authorized | $ | $ 15,000,000 | ||||||
Common interests repurchased as a result of Class A common stock repurchased | 1,087,312 | ||||||
Stock repurchased, value | $ | $ 10,500,000 | ||||||
Share repurchase price | $ / shares | $ 9.69 | ||||||
Number of votes per share of common stock held | vote | 1 | 1 | |||||
Conversion ratio of common stock | 1 | ||||||
Shares converted during period | 984,949 | 3,123,517 | |||||
Common Stock- Class A | Home Lending | |||||||
Stockholders' Equity | |||||||
Shares issued as consideration | 1,572,327 | ||||||
Common Stock- Class A | Merger Sub | |||||||
Stockholders' Equity | |||||||
Shares converted during period | 715,916 | ||||||
Common Stock- Class A | Stock Repurchase Program 2014 | |||||||
Stockholders' Equity | |||||||
Shares repurchased | 1,546,017 | ||||||
Shares repurchased, value | $ | $ 15,000,000 | ||||||
Common Stock- Class A | Private Repurchase | |||||||
Stockholders' Equity | |||||||
Shares repurchased | 426,332 | ||||||
Shares repurchased, value | $ | $ 3,900,000 | ||||||
Shares repurchased, price per share | $ / shares | $ 9.24 | ||||||
Shares repurchased, discount on repurchase (as a 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 | 8,908,698 | 9,963,750 | 8,908,698 | ||||
Common stock, shares outstanding | 8,908,698 | 9,963,750 | 8,908,698 | ||||
Number of votes per share of common stock held | vote | 10 | 10 | |||||
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 | ||||
Common stock, shares outstanding | 0 | 0 | 0 | ||||
Number of shares entitled by warrants (in shares) | 4,360,623 | 4,360,623 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Available-for-sale Securities, Gross realized gain (loss) | $ 0 | $ 2,098 | $ (1,862) |
Non-controlling Interests (Deta
Non-controlling Interests (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
JG Wentworth Company LLC | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance as of December 31, 2014 | 28,744,765 |
Common interests acquired by the J.G. Wentworth Company | 70,348 |
Common interests repurchased as a result of Class A common stock repurchased | 1,513,644 |
Common interest re-issued as a result of the Home Lending Acquisition | 1,572,327 |
Common interests forfeited | 70,103 |
Balance as of December 31, 2015 | 28,803,693 |
JG Wentworth Company LLC | JGWPT Holding Inc. | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance as of December 31, 2014 | 14,420,392 |
Common interests acquired by the J.G. Wentworth Company | 70,348 |
Common interests repurchased as a result of Class A common stock repurchased | 1,513,644 |
Common interest re-issued as a result of the Home Lending Acquisition | 1,572,327 |
Balance as of December 31, 2015 | 15,534,372 |
JG Wentworth Company LLC | Non-controlling Interests | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance as of December 31, 2014 | 14,324,373 |
Common interests forfeited | 70,103 |
Balance as of December 31, 2015 | 13,269,321 |
Common Stock- Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common interests repurchased as a result of Class A common stock repurchased | 1,087,312 |
Common Stock- Class A | JG Wentworth Company LLC | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common interests acquired by the J.G. Wentworth Company | (984,949) |
Common Stock- Class A | JG Wentworth Company LLC | JGWPT Holding Inc. | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common interests acquired by the J.G. Wentworth Company | 984,949 |
Common Stock - Class C | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Number of shares entitled by warrants (in shares) | 4,360,623 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - company | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finance receivables | Credit risk | |||
Risks and uncertainties | |||
Number of insurance companies and related subsidiaries, rated A or better | 3 | 3 | |
Percentage of risks | 34.00% | 34.00% | |
Finance receivables | Geographic Concentration Risk | Virginia | |||
Risks and uncertainties | |||
Percentage of risks | 25.50% | ||
Finance receivables | Geographic Concentration Risk | California | |||
Risks and uncertainties | |||
Percentage of risks | 15.90% | ||
Structured settlement business | Credit risk | |||
Risks and uncertainties | |||
Percentage of risks | 83.00% | 94.00% | 88.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Nov. 14, 2013 | Nov. 12, 2013 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loan Origination Commitments | ||||
Commitments and contingencies | ||||
Other commitment | $ 222.5 | |||
JG Wentworth Company LLC | ||||
Commitments and contingencies | ||||
Investment tax basis, increase during period | $ 207 | |||
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 | $ 10.2 | $ 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 | JG Wentworth Company LLC | Minimum | ||||
Commitments and contingencies | ||||
Common interestholders, ownership percentage | 1.00% |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Outstanding at the beginning of the period (in shares) | 1,376,932 | |
Granted (in shares) | 293,500 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (299,977) | |
Expired (in shares) | (7,077) | |
Outstanding at the end of the period (in shares) | 1,363,378 | 1,376,932 |
Outstanding and expected to vest (in shares) | 1,317,089 | |
Vested at the end of the period (in shares) | 270,407 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 11.44 | |
Granted (in dollars per share) | 9.44 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 11.47 | |
Expired (in dollars per share) | 13.36 | |
Outstanding at the end of the period (in dollars per share) | 11 | $ 11.44 |
Outstanding and expected to vest (in dollars per share) | 11.01 | |
Vested (in dollars per share) | $ 11.64 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding, weighted average contractual term (in years) | 8 years 5 months 12 days | 9 years 5 months 10 days |
Outstanding and expected to vest (in years) | 8 years 5 months 10 days | |
Vested at the end of the period (in years) | 7 years 5 months 14 days | |
Aggregate Intrinsic Value | ||
Options outstanding, aggregate intrinsic value | $ 0 | $ 0.1 |
Options outstanding, aggregate intrinsic value, vested and expected to vest | $ 0 | |
Stock options | ||
Assumptions used in the Black-Scholes valuation model for options granted | ||
Weighted average fair value of grant (in dollars per share) | $ 4.53 | $ 4.81 |
Risk-free interest rate (as a percent) | 1.62% | 1.91% |
Expected volatility (as a percent) | 47.10% | 41.60% |
Expected life of options in years | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 0.00% | 0.00% |
Performance Shares | ||
Awards granted, exercised, forfeited, and outstanding | ||
Outstanding at the beginning of the period (in shares) | 130,250,000 | |
Granted (in shares) | 165,000,000 | 87,750 |
Awards vested (in shares) | 0 | |
Forfeited (in shares) | (104,000,000) | |
Outstanding at the end of the period (in shares) | 191,250,000 | 130,250,000 |
Outstanding, vested and expected to vest at the end of the period (in shares) | 0 | |
Weighted-Average Grant-Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 10.60 | |
Granted (in dollars per share) | 9.01 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 10.13 | |
Outstanding at the end of the period (in dollars per share) | 9.48 | $ 10.60 |
Outstanding, vested and expected to vest at the end of the period (in dollars per share) | $ 0 | |
Restricted stock | ||
Awards granted, exercised, forfeited, and outstanding | ||
Outstanding at the beginning of the period (in shares) | 8,796 | |
Granted (in shares) | 70,348 | |
Forfeited (in shares) | (13,106) | |
Outstanding at the end of the period (in shares) | 66,038 | 8,796 |
Weighted-Average Grant-Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 12.40 | |
Granted (in dollars per share) | 2.60 | |
Forfeited (in dollars per share) | 11.59 | |
Outstanding at the end of the period (in dollars per share) | $ 2.12 | $ 12.40 |
Restricted Common Interests | ||
Awards granted, exercised, forfeited, and outstanding | ||
Outstanding at the beginning of the period (in shares) | 157,112 | |
Awards vested (in shares) | (58,428) | |
Forfeited (in shares) | (70,907) | |
Outstanding at the end of the period (in shares) | 27,777 | 157,112 |
Outstanding, vested and expected to vest at the end of the period (in shares) | 27,703 | |
Weighted-Average Grant-Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 9.86 | |
Granted (in dollars per share) | 8.97 | |
Forfeited (in dollars per share) | 12 | |
Outstanding at the end of the period (in dollars per share) | 6.30 | $ 9.86 |
Outstanding, vested and expected to vest at the end of the period (in dollars per share) | $ 6.29 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based compensation | |||
Vested during the period (in shares) | 233,713 | 43,771 | 0 |
Vested options grant date fair value | $ 1,200,000 | $ 300,000 | $ 0 |
Stock options | |||
Share-based compensation | |||
Share-based compensation expense | 1,200,000 | 800,000 | |
Unrecognized compensation expense | $ 4,800,000 | ||
Weighted average period for recognizing unrecognized compensation expense | 3 years 7 months 24 days | ||
Stock options | Maximum | |||
Share-based compensation | |||
Share-based compensation expense | 100,000 | ||
Performance Shares | |||
Share-based compensation | |||
Share-based compensation expense | $ (300,000) | $ 300,000 | 0 |
Shares granted during period | 165,000,000 | 87,750 | |
Shares granted during the period and outstanding | 133,500 | ||
Aggregate grant date fair value | $ 1,500,000 | $ 1,900,000 | 0 |
Unrecognized compensation cost | $ 1,200,000 | ||
Awards vested (in shares) | 0 | ||
Performance Shares | Maximum | |||
Share-based compensation | |||
Performance unit, conversion ratio | 1.5 | ||
Performance Shares | Minimum | |||
Share-based compensation | |||
Performance unit, conversion ratio | 0 | ||
Restricted stock | |||
Share-based compensation | |||
Award vesting period | 1 year | ||
Share-based compensation expense | 100,000 | 100,000 | |
Weighted average period for recognizing unrecognized compensation expense | 10 months 10 days | ||
Shares granted during period | 70,348 | ||
Unrecognized compensation cost | $ 100,000 | ||
Aggregate weighted average grant-date fair value | 100,000 | ||
Share-based compensation expense | 100,000 | ||
Restricted stock | Maximum | |||
Share-based compensation | |||
Share-based compensation expense | 100,000 | ||
Restricted Common Interests | |||
Share-based compensation | |||
Share-based compensation expense | $ 300,000 | 1,200,000 | 1,300,000 |
Weighted average period for recognizing unrecognized compensation expense | 1 year 11 months 11 days | ||
Aggregate grant date fair value | $ 0 | 0 | 1,500,000 |
Unrecognized compensation cost | $ 100,000 | ||
Awards vested (in shares) | 58,428 | ||
Fair value of equity instruments other than options vested during period | $ 500,000 | $ 1,500,000 | $ 1,400,000 |
Common Stock- Class A | |||
Share-based compensation | |||
Shares available for grant | 1,300,000 | 1,400,000 | |
Common Stock- Class A | Stock options | |||
Share-based compensation | |||
Period over which forfeiture restrictions lapsed | 10 years | ||
Award vesting period | 5 years |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Minimum age of employees under the Plan | 21 years | ||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee benefit plan expense | $ 668 | $ 520 | $ 505 |
Defined Contribution Plan, One | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contributions by the Company (as a percent) | 50.00% | 50.00% | 50.00% |
Compensation contribution on matching contributions by the Company (as a percent) | 8.00% | 8.00% | 8.00% |
Defined Contribution Plan, Two | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contributions by the Company (as a percent) | 15.00% |
Restructure Expense (Details)
Restructure Expense (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2013 | Dec. 31, 2013 | |
Restructure Expense | ||
Restructure expense | $ 3.6 | $ 3.6 |
Compensation and benefits | ||
Restructure Expense | ||
Restructure expense | 2.9 | |
General and administrative expense | ||
Restructure Expense | ||
Restructure expense | $ 0.7 |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, $ in Thousands | Nov. 14, 2013 | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2014$ / sharesshares | Nov. 13, 2013shares |
Common Interest and Vested Restricted Common Interest | ||||||
Diluted loss per share computation: | ||||||
Antidilutive securities, excluded from computation of earnings per share | 870,206 | 13,623,240 | 15,790,111 | |||
Unvested Restricted Common Interest | ||||||
Diluted loss per share computation: | ||||||
Antidilutive securities, excluded from computation of earnings per share | 807,993 | 102,562 | 568,606 | |||
Common Stock- Class A | ||||||
Basic loss per share computation: | ||||||
Net loss attributable to holders of JGWPT Holdings Inc. | $ | $ (5,577) | $ (95,312) | $ 31,211 | |||
Net (loss) income attributable to holders of the J.G. Wentworth Company Class A common stock | $ | $ (5,577) | $ (95,312) | $ 31,211 | |||
Weighted average shares of Class A common stock | 10,395,574 | 14,690,746 | 12,986,058 | 10,395,574 | ||
Restricted common stock and performance-based restricted stock units | 0 | 2,723 | ||||
Dilutive potential common shares | 0 | 2,723 | ||||
Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock | 10,395,574 | 14,690,746 | 12,988,781 | 10,395,574 | ||
Diluted loss per share computation: | ||||||
Basic (loss) income per share of Class A common stock (in dollars per share) | $ / shares | $ (0.54) | $ (6.49) | $ 2.40 | $ (0.54) | ||
Diluted (loss) per share of Class A common stock (in dollars per share) | $ / shares | $ (0.54) | $ (6.49) | $ 2.40 | $ (0.54) | ||
Conversion ratio of common stock | 1 | |||||
Common Stock- Class A | Stock options | ||||||
Diluted loss per share computation: | ||||||
Antidilutive securities, excluded from computation of earnings per share | 264,047 | 1,455,645 | 796,413 | |||
Common Stock- Class A | Restricted Common Interests | ||||||
Diluted loss per share computation: | ||||||
Antidilutive securities, excluded from computation of earnings per share | 188,218 | 86,904 | ||||
Common Stock- Class A | The J.G. Wentworth Company, LLC | ||||||
Diluted loss per share computation: | ||||||
Conversion ratio of common stock | 1 | |||||
Common Stock- Class A | Class C Profits Interests | PGHI Corp | ||||||
Diluted loss per share computation: | ||||||
Number of shares entitled by warrants (in shares) | 966,434 |
Business Segments - Operating D
Business Segments - Operating Data by Reportable Segment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 296,367 | $ 494,376 | $ 459,563 |
Net (loss) income before income taxes | (215,356) | 117,753 | 64,364 |
Total assets | 5,074,964 | 5,182,709 | 4,472,097 |
Structured Settlements and Annuity Purchasing | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 269,635 | 494,376 | 459,563 |
Net (loss) income before income taxes | (217,348) | 117,753 | 64,364 |
Total assets | 4,825,831 | 5,182,709 | 4,472,097 |
Home Lending | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 26,732 | 0 | 0 |
Net (loss) income before income taxes | 1,992 | 0 | 0 |
Total assets | $ 249,133 | $ 0 | $ 0 |