Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | GreenSky, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001712923 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Class A common stock | ||
Entity Information [Line Items] | ||
Class A common Stock, Shares Outstanding | 61,827,192 | |
Class B common stock | ||
Entity Information [Line Items] | ||
Class A common Stock, Shares Outstanding | 115,277,714 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 209,176 | $ 303,390 |
Restricted cash | 200,252 | 155,109 |
Loan receivables held for sale, net | 2,798 | 2,876 |
Accounts receivable, net | 22,622 | 15,400 |
Related party receivables | 100 | 142 |
Property, equipment and software, net | 14,194 | 10,232 |
Operating lease right-of-use assets | 12,895 | |
Deferred tax assets, net | 359,969 | 306,979 |
Other assets | 18,863 | 8,777 |
Total assets | 840,869 | 802,905 |
Liabilities | ||
Accounts payable | 14,430 | 5,357 |
Accrued compensation and benefits | 6,858 | 8,484 |
Other accrued expenses | 1,308 | 1,015 |
Finance charge reversal liability | 164,979 | 138,589 |
Term loan | 385,662 | 386,822 |
Tax receivable agreement liability | 303,233 | 260,901 |
Related party liabilities | 0 | 825 |
Operating lease liabilities | 15,761 | |
Other liabilities | 45,396 | 35,677 |
Total liabilities | 937,627 | 837,670 |
Commitments, Contingencies and Guarantees (Note 14) | ||
Equity (Deficit) | ||
Additional paid-in capital | 118,382 | 44,524 |
Retained earnings | 39,163 | 24,218 |
Treasury stock | (146,119) | (43,878) |
Accumulated other comprehensive income (loss) | (558) | 0 |
Noncontrolling interest | (108,495) | (60,349) |
Total equity (deficit) | (96,758) | (34,765) |
Total liabilities and equity (deficit) | 840,869 | 802,905 |
Class A common stock, par value $0.01 and 75,356,311 shares issued and 61,772,014 shares outstanding at June 30, 2019 and 59,197,863 shares issued and 54,504,902 shares outstanding at December 31, 2018 | ||
Equity (Deficit) | ||
Permanent equity | 753 | 591 |
Class B common stock, par value $0.001 and 115,309,728 and 128,549,555 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | ||
Equity (Deficit) | ||
Permanent equity | $ 116 | $ 129 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 75,356,311 | 59,197,863 |
Common stock, outstanding (in shares) | 61,772,014 | 54,504,902 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 115,309,728 | 128,549,555 |
Common stock, outstanding (in shares) | 115,309,728 | 128,549,555 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue | |||||
Total revenue | $ 138,695 | $ 105,704 | $ 242,395 | $ 191,030 | |
Costs and expenses | |||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 56,228 | 33,765 | 114,265 | 69,895 | |
Compensation and benefits | 20,459 | 15,585 | 40,092 | 31,928 | |
Sales and marketing | 1,187 | 1,038 | 2,390 | 1,866 | |
Property, office and technology | 4,512 | 3,137 | 8,926 | 5,859 | |
Depreciation and amortization | 1,695 | 1,067 | 3,162 | 2,037 | |
General and administrative | 7,519 | 4,074 | 14,441 | 8,247 | |
Related party expenses | 589 | 230 | 1,125 | 813 | |
Total costs and expenses | 92,189 | 58,896 | 184,401 | 120,645 | |
Operating profit | 46,506 | 46,808 | 57,994 | 70,385 | |
Other income (expense), net | |||||
Interest and dividend income | 869 | 1,482 | 2,465 | 2,802 | |
Interest expense | (6,323) | (5,787) | (12,566) | (11,378) | |
Other gains (losses) | (6,325) | (93) | (6,360) | (795) | |
Total other income (expense), net | (11,779) | (4,398) | (16,461) | (9,371) | |
Income before income tax expense (benefit) | 34,727 | 42,410 | 41,533 | 61,014 | |
Income tax expense (benefit) | (4,466) | 1,594 | (5,061) | 1,594 | |
Net income | 39,193 | 40,816 | 46,594 | 59,420 | |
Less: Net income attributable to noncontrolling interests | 26,877 | 35,266 | 31,379 | 53,870 | |
Net income attributable to GreenSky, Inc. | $ 12,316 | $ 5,550 | $ 15,215 | $ 5,550 | |
Earnings per share of Class A common stock | |||||
Basic (in dollars per share) | [1] | $ 0.20 | $ 0.10 | $ 0.26 | $ 0.10 |
Diluted (in dollars per share) | [1] | $ 0.19 | $ 0.09 | $ 0.23 | $ 0.09 |
Transaction fees | |||||
Revenue | |||||
Total revenue | $ 108,365 | $ 90,197 | $ 192,413 | $ 161,137 | |
Servicing and other | |||||
Revenue | |||||
Total revenue | $ 30,330 | $ 15,507 | $ 49,982 | $ 29,893 | |
[1] | For the three and six months ended JuneĀ 30, 2018, basic and diluted earnings per share of Class A common stock is applicable only for the period from May 24, 2018 through June 30, 2018, which is the period following the initial public offering ("IPO") and related Reorganization Transactions (as defined in Note 1 to the Unaudited Condensed Consolidated Financial Statements). See Note 2 to the Unaudited Condensed Consolidated Financial Statements for the number of shares used in the computation of earnings per share of Class A common stock and the basis for the computation of earnings per share. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39,193 | $ 40,816 | $ 46,594 | $ 59,420 |
Other comprehensive income (loss), net of tax | ||||
Net unrealized gains (losses) on interest rate swap arising during the period | (1,949) | 0 | (1,949) | 0 |
Other comprehensive income (loss), net of tax | (1,949) | 0 | (1,949) | 0 |
Comprehensive income | 37,244 | 40,816 | 44,645 | 59,420 |
Less: Comprehensive income attributable to noncontrolling interests | 25,486 | 35,266 | 29,988 | 53,870 |
Comprehensive income attributable to GreenSky, Inc. | $ 11,758 | $ 5,550 | $ 14,657 | $ 5,550 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (Unaudited) Statement - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Retained Earnings | Treasury stock | Noncontrolling Interest | Accumulated Other Comprehensive Income (Loss) | Class A common stock | Class A common stockCommon stock | Class A common stockAdditional Paid-in Capital | Class A common stockTreasury stock | Class B common stock | Class B common stockCommon stock | Class B common stockAdditional Paid-in Capital |
Members' equity, beginning balance at Dec. 31, 2017 | $ (456,387) | $ (554,906) | $ 98,519 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 59,420 | ||||||||||||
Other comprehensive income (loss), net of tax | 0 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2018 | 57,650,251 | 128,983,353 | |||||||||||
Ending balance at Jun. 30, 2018 | (46,460) | 15,373 | 5,482 | $ (68,020) | $ 576 | $ 129 | |||||||
Redeemable preferred units at Dec. 31, 2017 | 430,348 | ||||||||||||
Beginning balance at Dec. 31, 2017 | (26,039) | ||||||||||||
Members' equity, beginning balance at Mar. 31, 2018 | (454,872) | (553,901) | 99,029 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 40,816 | ||||||||||||
Other comprehensive income (loss), net of tax | 0 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2018 | 57,650,251 | 128,983,353 | |||||||||||
Ending balance at Jun. 30, 2018 | (46,460) | 15,373 | 5,482 | (68,020) | $ 576 | $ 129 | |||||||
Redeemable preferred units at Mar. 31, 2018 | 430,348 | ||||||||||||
Beginning balance at Mar. 31, 2018 | (24,524) | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 54,504,902 | 54,504,902 | 128,549,555 | 128,549,555 | |||||||||
Beginning balance at Dec. 31, 2018 | (34,765) | 44,524 | 24,218 | $ (43,878) | (60,349) | $ 0 | $ 591 | $ 129 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | $ 46,594 | 15,215 | 31,379 | ||||||||||
Issuance of unvested Class A common stock awards (in shares) | 1,873,512 | ||||||||||||
Issuance of unvested Class A common stock awards | $ 19 | $ (19) | |||||||||||
Class A common stock option exercises (in shares) | 851,401 | 281,292 | |||||||||||
Class A common stock option exercises | $ (1,260) | $ 3 | (1,263) | ||||||||||
Class B common stock exchanges (in shares) | (14,003,645) | (14,146,255) | |||||||||||
Class B common stock exchanges | $ 140 | (1,931) | $ (1,805) | $ (14) | |||||||||
Issuance of stock (in shares) | 1,180,163 | ||||||||||||
Issuance of stock | $ 1 | $ (1) | |||||||||||
Forfeited share-based compensation awards (in shares) | (146,860) | (273,735) | |||||||||||
Class A common stock repurchases (in shares) | (13,425,688) | (8,744,477) | |||||||||||
Purchases of Class A common stock | $ (146,100) | $ (102,241) | $ (102,241) | ||||||||||
Distributions | (14,124) | (183) | (13,941) | ||||||||||
Share-based compensation | 5,936 | 5,936 | |||||||||||
Equity-based payments to non-employees | 7 | 7 | |||||||||||
Tax adjustments | 7,139 | 7,139 | |||||||||||
Impact of noncontrolling interest on change in ownership during period | 63,990 | (63,990) | |||||||||||
Other comprehensive income (loss), net of tax | (1,949) | (1,391) | (558) | ||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 61,772,014 | 61,772,014 | 115,309,728 | 115,309,728 | |||||||||
Ending balance at Jun. 30, 2019 | (96,758) | 118,382 | 39,163 | (146,119) | (108,495) | (558) | $ 753 | $ 116 | |||||
Beginning balance (in shares) at Mar. 31, 2019 | 62,151,547 | 119,187,862 | |||||||||||
Beginning balance at Mar. 31, 2019 | (73,260) | 80,543 | 27,030 | (94,828) | (86,835) | 0 | $ 711 | $ 119 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net income | 39,193 | 12,316 | 26,877 | ||||||||||
Issuance of unvested Class A common stock awards (in shares) | 480,032 | ||||||||||||
Issuance of unvested Class A common stock awards | $ 5 | (5) | |||||||||||
Class A common stock option exercises (in shares) | 153,865 | ||||||||||||
Class A common stock option exercises | $ (858) | $ 2 | (860) | ||||||||||
Class B common stock exchanges (in shares) | (3,552,029) | (3,625,399) | |||||||||||
Class B common stock exchanges | $ 35 | $ (1,095) | $ (1,063) | $ (3) | |||||||||
Forfeited share-based compensation awards (in shares) | (102,426) | (252,735) | |||||||||||
Class A common stock repurchases (in shares) | (4,463,033) | ||||||||||||
Purchases of Class A common stock | $ (51,291) | $ (51,291) | |||||||||||
Distributions | (13,220) | (124) | (13,096) | ||||||||||
Share-based compensation | 3,271 | 3,271 | |||||||||||
Equity-based payments to non-employees | 4 | 4 | |||||||||||
Tax adjustments | 2,611 | 2,611 | |||||||||||
Impact of noncontrolling interest on change in ownership during period | 33,913 | (33,913) | |||||||||||
Other comprehensive income (loss), net of tax | (1,949) | (1,391) | (558) | ||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 61,772,014 | 61,772,014 | 115,309,728 | 115,309,728 | |||||||||
Ending balance at Jun. 30, 2019 | $ (96,758) | $ 118,382 | $ 39,163 | $ (146,119) | $ (108,495) | $ (558) | $ 753 | $ 116 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 46,594 | $ 59,420 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,162 | 2,037 |
Share-based compensation expense | 5,936 | 2,851 |
Equity-based payments to non-employees | 7 | 8 |
Operating lease liability payments | (143) | (193) |
Amortization of debt related costs | 840 | 840 |
Fair value change in servicing assets and liabilities | (8,635) | 201 |
Original issuance discount on term loan payment | (21) | (10) |
Deferred tax expense (benefit) | (5,061) | 1,594 |
Loss on remeasurement of tax receivable agreement liability | 6,383 | 0 |
Changes in assets and liabilities: | ||
(Increase) decrease in loan receivables held for sale | 78 | 30,116 |
(Increase) decrease in accounts receivable | (7,375) | (2,065) |
(Increase) decrease in related party receivables | 42 | 182 |
(Increase) decrease in other assets | (870) | 3,619 |
Increase (decrease) in accounts payable | 9,378 | (1,217) |
Increase (decrease) in finance charge reversal liability | 26,390 | 12,899 |
Increase (decrease) in related party liabilities | 0 | (1,044) |
Increase (decrease) in other liabilities | 13,084 | 366 |
Net cash provided by operating activities | 89,789 | 109,604 |
Cash flows from investing activities | ||
Purchases of property, equipment and software | (7,123) | (2,707) |
Net cash used in investing activities | (7,123) | (2,707) |
Cash flows from financing activities | ||
Proceeds from IPO, net of underwriters discount and commissions | 0 | 954,845 |
Purchases of GreenSky Holdings, LLC units | 0 | (901,833) |
Class A common stock repurchases | (104,272) | (53,012) |
Issuances of Class B common stock | 0 | 129 |
Redemptions of GreenSky Holdings, LLC units prior to Reorganization Transactions | 0 | (496) |
Proceeds from term loan | 0 | 399,000 |
Repayments of term loan | (1,979) | (350,115) |
Member distributions | (17,757) | (127,640) |
Payments under tax receivable agreement | (4,664) | 0 |
Payment of IPO related expenses | 0 | (2,749) |
Payment of equity transaction expenses, prior to Reorganization Transactions | 0 | (32) |
Payment of taxes on Class B common stock exchanges | (1,805) | 0 |
Proceeds from option exercises | 290 | 339 |
Payment of option exercise taxes | (1,550) | 0 |
Net cash used in financing activities | (131,737) | (81,564) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (49,071) | 25,333 |
Cash and cash equivalents and restricted cash at beginning of period | 458,499 | 353,838 |
Cash and cash equivalents and restricted cash at end of period | 409,428 | 379,171 |
Supplemental non-cash financing activities | ||
Equity transaction costs accrued but not paid | 0 | 1,106 |
Distributions accrued but not paid | $ 7,105 | $ 11,493 |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Summary of Significant Accounting Policies and New Accounting Standards | Organization, Summary of Significant Accounting Policies and New Accounting Standards Organization Unless the context requires otherwise, "we," "us," "our," "GreenSky" and "the Company" refer to the business of GreenSky, Inc. and its subsidiaries. "Bank Partners" are defined as federally insured banks that originate loans under the GreenSky program and any other lenders with respect to those loans. We are a leading technology company Powering Commerce at the Point of Sale Ā® . Our platform is powered by a proprietary technology infrastructure that facilitates merchant sales, while reducing the friction and improving the economics associated with a consumer making a purchase and a bank extending financing for that purchase. It supports the full transaction lifecycle, including credit application, underwriting, real-time allocation to our Bank Partners, document distribution, funding, settlement and servicing. Merchants using our platform, which presently range from small, owner-operated home improvement contractors and healthcare providers to large national home improvement brands and retailers and healthcare service organizations, rely on us to facilitate low or deferred interest promotional point-of-sale financing and payments solutions that enable higher sales volume. Consumers on our platform, who to date primarily have super-prime or prime credit scores, find financing with promotional terms to be an attractive alternative to other forms of payment. Our Bank Partners' access to our proprietary technology solution and merchant network enables them to build a diversified portfolio of high quality consumer loans with attractive risk-adjusted yields with minimal upfront investment. GreenSky, Inc. was formed as a Delaware corporation on July 12, 2017. The Company was formed for the purpose of completing an initial public offering ("IPO") of its Class A common stock and certain Reorganization Transactions, as further described below, in order to carry on the business of GreenSky Holdings, LLC (āGS Holdingsā) and its consolidated subsidiaries. GS Holdings, a holding company with no operating assets or operations, was organized in August 2017. On August 24, 2017, GS Holdings acquired a 100% interest in GreenSky, LLC ("GSLLC"), a Georgia limited liability company, which is an operating entity. Common membership interests of GS Holdings are referred to as "Holdco Units." Immediately prior to our IPO, (i) the operating agreement of GS Holdings (the "GS Holdings Agreement") was amended and restated to, among other things, modify its capital structure by replacing the different classes of membership interests and profits interests with Holdco Units; (ii) we issued to each of the Continuing LLC Members (as defined below) a number of shares of GreenSky, Inc. Class B common stock equal to the number of Holdco Units held by it (other than the Holdco Units that were exchanged in connection with the IPO), for consideration in the amount of $0.001 per share of Class B common stock; (iii) certain Holdco Units were contributed to GreenSky, Inc. in exchange for shares of our Class A common stock; (iv) equity holders of the Former Corporate Investors (as defined below) contributed their equity in the Former Corporate Investors to GreenSky, Inc. in exchange for shares of our Class A common stock and the right to certain payments under the Tax Receivable Agreement (āTRAā), and Former Corporate Investors merged with and into subsidiaries of GreenSky, Inc.; (v) outstanding options to acquire Class A units of GS Holdings were equitably adjusted so that they are exercisable for shares of Class A common stock; and (vi) outstanding warrants to acquire Class A units of GS Holdings were equitably adjusted pursuant to their terms so that they are exercisable for Holdco Units (and an equal number of shares of Class B common stock). We refer to these transactions collectively as the āReorganization Transactions.ā Following the Reorganization Transactions, the "Original GS Equity Owners" (other than the Former Corporate Investors) and certain "Original Profits Interests Holders," which we collectively refer to as the "Continuing LLC Members," continue to own Holdco Units. "Original GS Equity Owners" refers to the owners of units of GS Holdings prior to the Reorganization Transactions. "Former Corporate Investors" refers to certain of the Original GS Equity Owners that merged with and into one or more subsidiaries of GreenSky, Inc. in connection with the Reorganization Transactions, which was accounted for as a common control transaction and had no material impact on the net assets of the Company. "Original Profits Interests Holders" refers to the owners of profits interests in GS Holdings prior to the Reorganization Transactions. On May 24, 2018, the Company's Class A common stock commenced trading on the Nasdaq Global Select Market in connection with its IPO of 43,700,000 shares of its Class A common stock at a public offering price of $23.00 per share, receiving approximately $954.8 million in net proceeds, after deducting underwriting discounts and commissions (but not including other offering costs), which were used to purchase 2,426,198 shares of Class A common stock and 41,273,802 newly-issued Holdco Units at a price per unit equal to the price per share of Class A common stock sold in the IPO, less underwriting discounts and commissions. The newly-issued Holdco Units were sold by Continuing LLC Members, which we also refer to as "Exchanging Members." Pursuant to an "Exchange Agreement," the Exchanging Members can exchange their Holdco Units (with automatic cancellation of an equal number of shares of Class B common stock) for shares of our Class A common stock on a one -for-one basis, subject to customary adjustments, or for cash (based on the market price of the shares of Class A common stock), at our option (such determination to be made by the disinterested members of our board of directors). The IPO and Reorganization Transactions resulted in the Company becoming the sole managing member of GS Holdings. As the sole managing member of GS Holdings, we operate and control all of GS Holdingsā operations and, through GS Holdings and its subsidiaries, conduct GS Holdingsā business. The Company consolidates the financial results of GS Holdings and reports a noncontrolling interest in its Unaudited Condensed Consolidated Financial Statements representing the GS Holdings interests held by Continuing LLC Members. The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income (loss) to the Company and the noncontrolling interest. During the three and six months ended June 30, 2019 , the Company had a weighted average ownership interest in GS Holdings of 34.7% and 33.4% , respectively. Summary of Significant Accounting Policies Basis of Presentation The Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial statements. We condensed or omitted certain notes and other information from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these interim statements should be read in conjunction with the GreenSky, Inc. 2018 Form 10-K filed with the SEC on March 15, 2019. In the opinion of management, the Unaudited Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of our financial condition and results of operations for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2018 , was derived from the audited annual consolidated financial statements, but does not contain all of the footnote disclosures from the annual consolidated financial statements required by United States generally accepted accounting principles ("GAAP"). All intercompany balances and transactions are eliminated upon consolidation. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, share-based compensation and income taxes. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Balance Sheets to the total included within the Unaudited Condensed Consolidated Statements of Cash Flows as of the dates indicated. June 30, 2019 2018 Cash and cash equivalents $ 209,176 $ 236,629 Restricted cash 200,252 142,542 Cash and cash equivalents and restricted cash in Unaudited Condensed Consolidated Statements of Cash Flows $ 409,428 $ 379,171 Fair Value of Assets and Liabilities We have financial assets and liabilities subject to fair value measurement or disclosure on either a recurring or nonrecurring basis. Such measurements or disclosures relate to our cash and cash equivalents, loan receivables held for sale, derivative instruments, servicing assets and liabilities, and term loan. ASC 820, Fair Value Measurement , defines fair value 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. In valuing this asset or liability, we utilize market data or reasonable assumptions that market participants would use, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The guidance provides a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or a liability as of the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs for the asset or liability. An assetās or a liabilityās categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. We apply the market approach, which uses observable prices and other relevant information that is generated by market transactions involving identical or comparable assets or liabilities, to value our cash and cash equivalents and loan receivables held for sale. We apply the income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount, to value our finance charge reversal liability and servicing assets and liabilities. We determine the fair values of our interest rate swap and term loan by applying a discounted cash flow model based on observable market factors and credit factors specific to us. Refer to Note 3 for additional fair value disclosures. Derivative Instruments We are exposed to interest rate risk on our variable-rate term loan, which we manage by entering into an interest rate swap that is determined to be a derivative in accordance with ASC 815, Derivatives and Hedging . Derivatives are recorded on the balance sheet at fair value and are marked-to-market on a quarterly basis. The accounting for the change in fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate the derivative as a hedge and apply hedge accounting, and whether the hedging relationship continues to satisfy the criteria required to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in cash flows of a recognized asset or liability that is attributable to a particular risk are considered cash flow hedges. The primary purpose of cash flow hedge accounting is to link the income statement recognition of a hedging instrument and a hedged item whose changes in cash flows are expected to offset each other. The change in the fair value of the derivative instrument designated as a cash flow hedge is initially reported as a component of other comprehensive income (loss) and subsequently reclassified into earnings in the same period when the hedged item affects earnings. The reclassification into earnings is reported in the same income statement line item in which the hedged item is reported. To the extent that the hedge is ineffective, the amount deferred in other comprehensive income (loss) may not exactly offset the earnings impact of the hedged item. Refer to Note 3 and Note 8 for additional derivative disclosures. Revenue Recognition Disaggregated revenue Revenue disaggregated by type of service was as follows for the periods presented: Three Months Ended Six Months Ended 2019 2018 2019 2018 Merchant fees $ 96,127 $ 75,576 $ 170,221 $ 134,941 Interchange fees 12,238 14,621 22,192 26,196 Transaction fees 108,365 90,197 192,413 161,137 Servicing fees (1) 30,318 15,458 49,951 29,789 Other (2) 12 49 31 104 Servicing and other 30,330 15,507 49,982 29,893 Total revenue $ 138,695 $ 105,704 $ 242,395 $ 191,030 (1) For the three and six months ended June 30, 2019 , includes a $8,966 change in fair value of our servicing assets primarily associated with an increase to the contractually specified fixed servicing fee for one of our Bank Partners. Refer to Note 3 for additional information. (2) Other revenue includes miscellaneous revenue items that are individually immaterial. Other revenue is presented separately herein in order to clearly present merchant, interchange and servicing fees, which are more integral to our primary operations and better enable financial statement users to calculate metrics such as servicing and merchant fee yields. We have no remaining performance obligations as of June 30, 2019 . No assets were recognized from the costs to obtain or fulfill a contract with a customer as of June 30, 2019 or December 31, 2018 . V olume-based price concessions to merchants and other channel partners that were netted against the gross transaction price were $ 3,198 and $ 1,100 during the three months ended June 30, 2019 and 2018 , respectively, and $ 9,106 and $ 5,693 during the six months ended June 30, 2019 and 2018 , respectively. We recognized bad debt expense arising from our contracts with customers of $ 387 and $ 227 during the three months ended June 30, 2019 and 2018 , respectively, and $ 596 and $ 1,225 during the six months ended June 30, 2019 and 2018 , respectively, which is recorded within general and administrative expense in our Unaudited Condensed Consolidated Statements of Operations. Recently Adopted Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, which required the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases with terms greater than 12 months on our Unaudited Condensed Consolidated Balance Sheets. Presentation of leases within our Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Cash Flows was generally consistent with the prior lease accounting guidance codified in ASC 840, Leases . In July 2018, the FASB issued ASU 2018-11, which provided an additional (and optional) transition method to adopt ASU 2016-02 by applying its provisions at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, rather than applying the provisions at the beginning of the earliest period presented in the financial statements. We adopted the standard as of January 1, 2019 with the transition method outlined in ASU 2018-11, recognizing a cumulative-effect adjustment to retained earnings as of that date. Comparative periods continue to be presented and disclosed in accordance with legacy guidance in ASC 840. We applied the practical expedients permitted under the transition guidance outlined in ASU 2018-11, which permitted us to not reassess the following: (i) whether any expired or existing contracts are or contain a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any existing leases. As a result of adopting this standard, we recorded a ROU asset of $ 11.3 million, a lease liability of $ 14.1 million and an immaterial cumulative-effect adjustment to equity as of January 1, 2019. Our adoption of this standard did not have any impact on our Unaudited Condensed Consolidated Statements of Operations. See Note 14 for additional lease disclosures. Improvements to non-employee share-based payment accounting In June 2018, the FASB issued ASU 2018-07 to simplify certain aspects of the accounting for non-employee share-based payment transactions. Under the new standard, all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards are within the scope of ASC 718. Consistent with the accounting requirement for employee share-based payment awards, non-employee share-based payment awards within the scope of ASC 718 are measured at grant date fair value of the equity instruments, and the requirement to reassess classification of non-employee share-based payment awards upon vesting is eliminated. Our adoption of this standard on January 1, 2019 did not have any impact on our Unaudited Condensed Consolidated Financial Statements. Accounting Standards Issued, But Not Yet Adopted Measurement of credit losses on financial instruments In June 2016, the FASB issued ASU 2016-13, which is intended to better align the timing of recognition of credit losses on financial instruments with managementās expectations. The standard requires a financial asset (or group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. Management must determine expected credit losses for all financial instruments held at the reporting date based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts, the latter of which broadens current guidance. The standard requires enhanced disclosures to help investors and other financial statement users to better understand the significant estimates and judgments used in estimating credit losses. The standard is effective for us on January 1, 2020, with early adoption permitted. The majority of this standard's provisions must be applied using a modified retrospective approach. We are currently evaluating the potential impact of adopting this standard. Customer's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. This standard also requires entities to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and to apply the existing impairment guidance in ASC 350-40 to the capitalized implementation costs as if the costs were long-lived assets. The standard clarifies that such capitalized implementation costs are also subject to the guidance on abandonment in ASC 360, Property, Plant, and Equipment . In addition, this standard requires alignment in presentation between: (1) the expense related to the capitalized implementation costs and the fees associated with the hosting element (service) of the arrangement on the statement of operations; (2) the capitalized implementation costs and any prepayment for the fees of the associated hosting arrangement on the balance sheet; and (3) the payments for capitalized implementation costs and the payments made for fees associated with the hosting element in the statement of cash flows. The standard is effective for us on January 1, 2020, with early adoption permitted, and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are refining our inventory of existing cloud computing arrangements to identify hosting arrangements that are service contracts and will evaluate how to account for the implementation costs of such arrangements. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share of Class A common stock is computed by dividing net income attributable to GreenSky, Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to GreenSky, Inc., adjusted for the assumed exchange of all potentially dilutive Holdco Units for Class A common stock, by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive elements. Prior to the IPO, the GS Holdings membership structure included Class A, B and C Units and profits interests. The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these Unaudited Condensed Consolidated Financial Statements. Therefore, the basic and diluted earnings per share for the three and six months ended June 30, 2018 represent only the period from May 24, 2018 to June 30, 2018, the period wherein we had outstanding Class A common stock. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the periods indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Income before income tax expense $ 34,727 $ 42,410 $ 41,533 $ 61,014 Less: Net income attributable to GS Holdings prior to Reorganization Transactions ā 19,609 ā 38,213 Less: Net income attributable to noncontrolling interests after Reorganization Transactions 26,877 15,657 31,379 15,657 Less: Income tax expense (benefit) (4,466 ) 1,594 (5,061 ) 1,594 Net income attributable to GreenSky, Inc. ā basic $ 12,316 $ 5,550 $ 15,215 $ 5,550 Add: Reallocation of net income attributable to noncontrolling interests from the assumed exchange of common units of GS Holdings for Class A common stock 26,877 15,657 31,379 15,657 Less: Income tax expense (benefit) on reallocation of net income attributable to noncontrolling interests (1) 5,928 3,493 4,561 3,493 Net income attributable to GreenSky, Inc. ā diluted $ 33,265 $ 17,714 $ 42,033 $ 17,714 Denominator: Weighted average shares of Class A common stock outstanding ā basic 61,081,834 57,399,632 59,523,049 57,399,632 Add: Dilutive effects, as shown separately below Holdco Units exchangeable for Class A common stock 115,939,261 128,257,580 119,405,831 128,257,580 Class A common stock options 2,435,080 2,479,889 2,677,026 2,479,889 Holdco warrants exchangeable for Class A common stock ā 563,458 164,016 563,458 Unvested Class A common stock (2) 243,746 189,363 185,371 189,363 Weighted average shares of Class A common stock outstanding ā diluted 179,699,921 188,889,922 181,955,293 188,889,922 Earnings per share of Class A common stock outstanding ā basic $ 0.20 $ 0.10 $ 0.26 $ 0.10 Earnings per share of Class A common stock outstanding ā diluted $ 0.19 $ 0.09 $ 0.23 $ 0.09 Excluded from diluted earnings per share, as their inclusion would have been anti-dilutive (3) Class A common stock options 2,806,641 472,500 2,806,641 472,500 Unvested Class A common stock 360,847 ā 360,847 ā (1) We assumed effective tax rates of 4.2% and 22.3% for the three months ended June 30, 2019 and 2018 , respectively, and (1.2)% and 22.3% for the six months ended June 30, 2019 and 2018 , respectively, which represent the effective tax rates on the consolidated GreenSky, Inc. entity inclusive of the income taxes on the portion of GS Holdings' earnings that are attributable to noncontrolling interests. The rates for the three and six months ended June 30, 2019 are reflective of the tax benefits from remeasurement of net deferred tax assets, warrant exercises and stock-based compensation deductions. (2) Includes both unvested Class A common stock issued as part of the Reorganization Transactions and unvested Class A common stock awards issued subsequent to the Reorganization Transactions. (3) These amounts represent the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce these amounts if they had a dilutive effect and were included in the computation of diluted earnings per share. Shares of the Companyās Class B common stock do not participate in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The following table summarizes, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities measured at fair value on a recurring or nonrecurring basis or disclosed, but not carried, at fair value in the Unaudited Condensed Consolidated Balance Sheets as of the dates presented. There were no transfers into, out of, or between levels within the fair value hierarchy during any of the periods presented. Refer to Note 4 , Note 7 , Note 8 and Note 9 for additional information on these assets and liabilities. Level June 30, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Assets: Cash and cash equivalents (1) 1 $ 209,176 $ 209,176 $ 303,390 $ 303,390 Loan receivables held for sale, net (2) 2 2,798 3,299 2,876 3,552 Servicing assets (3) 3 8,966 8,966 ā ā Liabilities: Finance charge reversal liability (3) 3 $ 164,979 $ 164,979 $ 138,589 $ 138,589 Term loan (1) 2 385,662 394,134 386,822 386,234 Interest rate swap (3) 2 2,125 2,125 ā ā Servicing liabilities (3) 3 3,347 3,347 3,016 3,016 (1) Disclosed, but not carried, at fair value. (2) Measured at fair value on a nonrecurring basis. (3) Measured and carried at fair value on a recurring basis. Cash and cash equivalents Cash and cash equivalents are classified within Level 1 of the fair value hierarchy, as the primary component of the price is obtained from quoted market prices in an active market. The carrying amounts of our cash and cash equivalents approximate their fair values due to the short maturities and highly liquid nature of these accounts. Loan receivables held for sale, net Loan receivables held for sale are recorded in the Unaudited Condensed Consolidated Balance Sheets at the lower of cost or fair value and, therefore, are measured at fair value on a nonrecurring basis. For our loan receivables held for sale, fair value approximates par value, as we have consistently sold loans for the full current balance in historical and current period transactions with our Bank Partners. Loan receivables held for sale are classified within Level 2 of the fair value hierarchy, as the primary component of the price is obtained from observable values of loan receivables with similar terms and characteristics as the loan receivables sold to our Bank Partners. We have the ability to access this market, and it is the market into which these loan receivables are typically sold. Interest rate swap In June 2019, we entered into a $350.0 million notional, four -year interest rate swap agreement to hedge changes in our cash flows attributable to interest rate risk on $350.0 million of our variable-rate term loan to a fixed-rate basis, thus reducing the impact of interest rate changes on future interest expense. This swap involves the receipt of variable-rate amounts in exchange for fixed interest rate payments over the life of the agreement without an exchange of the underlying notional amount and was designated for accounting purposes as a cash flow hedge. The interest rate swap is carried at fair value on a recurring basis in the Unaudited Condensed Consolidated Balance Sheets and is classified within Level 2 of the fair value hierarchy, as the inputs to the derivative pricing model are generally observable and do not contain a high level of subjectivity. The fair value was determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. Finance charge reversal liability Our Bank Partners offer certain loan products that have a feature whereby the account holder is provided a promotional period to repay the loan principal balance in full without incurring a finance charge. For these loan products, we bill interest each month throughout the promotional period and, under the terms of the contracts with our Bank Partners, we are obligated to pay this billed interest to the Bank Partners if an account holder repays the loan balance in full within the promotional period. Therefore, the monthly process of billing interest on deferred loan products triggers a potential future finance charge reversal ("FCR") liability for the Company. The FCR component of our Bank Partner contracts qualifies as an embedded derivative. The FCR liability is not designated as a hedge for accounting purposes and, as such, changes in its fair value are recorded within cost of revenue in the Unaudited Condensed Consolidated Statements of Operations. The FCR liability is carried at fair value on a recurring basis in the Unaudited Condensed Consolidated Balance Sheets and is estimated based on historical experience and managementās expectation of future FCR. The FCR liability is classified within Level 3 of the fair value hierarchy, as the primary component of the fair value is obtained from unobservable inputs based on the Companyās data, reasonably adjusted for assumptions that would be used by market participants. The following table reconciles the beginning and ending fair value measurements of our FCR liability during the periods indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 149,598 $ 100,913 $ 138,589 $ 94,148 Receipts (1) 38,931 33,742 71,054 61,835 Settlements (2) (62,332 ) (46,834 ) (122,211 ) (89,672 ) Fair value changes recognized in cost of revenue (3) 38,782 19,226 77,547 40,736 Ending balance $ 164,979 $ 107,047 $ 164,979 $ 107,047 (1) Represents cash received from deferred payment loans during the promotional period (referred to as incentive payments), cash received from recoveries on previously charged-off Bank Partner loans, and the proceeds received from transferring our rights to Charged-Off Receivables (as defined below) attributable to previously charged-off Bank Partner loans. We consider all monthly incentive payments from Bank Partners during the period to be related to billed finance charges on deferred interest products until monthly incentive payments exceed total billed finance charges on deferred products, which did not occur during any of the periods presented. (2) Represents the reversal of previously billed finance charges associated with deferred payment loan principal balances that were repaid within the promotional period. (3) A fair value adjustment is made based on the expected reversal percentage of billed finance charges (expected settlements), which is estimated at each reporting date. The fair value adjustment is recognized in cost of revenue in the Unaudited Condensed Consolidated Statements of Operations. Our estimated reversal rate for billed interest on deferred loan products is the significant unobservable input used to value the Level 3 FCR liability. As we have expanded our deferred loan products and as our historical experience with these products has progressed, management has developed more specific reversal rates for categories of deferred loan products based on the length of the interest-free promotional period (ranging from 6 to 24 months), whether or not loan principal payments were required to be paid during the interest-free promotional period, and the industry vertical (home improvement or elective healthcare). This has resulted in incremental increases in the number of reversal rate assumptions used to value the FCR liability. The overall decrease in reversal rates is primarily attributable to lower reversal rate experience on loans within the elective healthcare industry vertical. The following table presents the ranges and weighted averages of our estimated reversal rates as of the dates indicated. Reversal rate June 30, 2019 December 31, 2018 Range 60.0% - 96.8% 70.0% - 97.3% Weighted average 87.7 % 88.2 % The weighted averages in the above table were calculated by first determining the percentage of the reporting date FCR liability attributable to each category of deferred loan products for which a reversal rate assumption was determined. We then multiplied these weights by the unique reversal rate for each category and summed the resulting products. A significant increase or decrease in the estimated reversal rates could result in a significantly higher or lower, respectively, calculation of our expected future payments to our Bank Partners, resulting in a higher or lower, respectively, fair value measurement of our FCR liability. Periodically, we transfer our rights to previously charged-off loan receivables ("Charged-Off Receivables") in exchange for a cash payment based on the expected recovery rate of such loan receivables, which consist primarily of previously charged-off Bank Partner loans. We have no continuing involvement with these Charged-Off Receivables other than performing reasonable servicing and collection efforts on behalf of the third parties and Bank Partners that purchased the Charged-Off Receivables. The proceeds from transfers of Charged-Off Receivables attributable to Bank Partner loans are recognized on a collected basis as reductions to cost of revenue, which reduces the fair value adjustment to the FCR liability in the period of transfer. The following table presents details of Charged-Off Receivables transfers during the periods indicated. Aggregate Unpaid Balance Proceeds Bank Partner loans Loan receivables held for sale Total (1) Bank Partner loans Loan receivables held for sale Total Three Months Ended June 30, 2019 $ 53,585 $ 360 $ 53,945 $ 7,427 $ 50 $ 7,477 Three Months Ended June 30, 2018 37,469 124 37,593 5,021 17 5,038 Six Months Ended June 30, 2019 107,237 1,027 108,264 14,782 141 14,923 Six Months Ended June 30, 2018 74,895 1,283 76,178 10,000 171 10,171 (1) During the three months ended June 30, 2019 and 2018 , $5,495 and $3,461 , respectively, of the aggregate unpaid balance on cumulative transferred Charged-Off Receivables were recovered through our servicing efforts on behalf of our Charged-Off Receivables investors. During the six months ended June 30, 2019 and 2018 , such recoveries on behalf of our Charged-Off Receivables investors were $10,655 and $6,680 , respectively. Term loan The carrying value of our term loan is net of unamortized debt discount and debt issuance costs. The fair value of our term loan was determined using a discounted cash flow model based on observable market factors (such as changes in credit spreads for comparable benchmark companies) and credit factors specific to us. The fair value of our term loan is classified within Level 2 of the fair value hierarchy, as the inputs to the discounted cash flow model are generally observable and do not contain a high level of subjectivity. Servicing assets and liabilities We elected the fair value method to account for our servicing assets and liabilities to more appropriately reflect the value of the servicing rights in our Unaudited Condensed Consolidated Financial Statements. As a result of this election, our servicing assets and liabilities are carried at fair value on a recurring basis within other assets and other liabilities, respectively, in the Unaudited Condensed Consolidated Balance Sheets and are estimated using a discounted cash flow model. Servicing assets and liabilities are classified within Level 3 of the fair value hierarchy, as the primary components of the fair values are obtained from unobservable inputs based on peer market data, reasonably adjusted for assumptions that would be used by market participants to service our Bank Partner loans and transferred Charged-Off Receivables portfolios, for which market data is not available. Changes in the fair value of our servicing assets are recorded within servicing and other revenue and changes in the fair value of our servicing liabilities are recorded within other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. Contractually specified servicing fees recorded within servicing and other revenue in the Unaudited Condensed Consolidated Statements of Operations totaled $21,352 and $15,458 for the three months ended June 30, 2019 and 2018 , respectively, and $40,985 and $29,789 for the six months ended June 30, 2019 and 2018 , respectively. The cash flow impacts of our assets and liabilities that are measured at fair value on a recurring basis are included within net cash provided by operating activities in the Unaudited Condensed Consolidated Statements of Cash Flows. The following table reconciles the beginning and ending fair value measurements of our servicing assets associated with Bank Partner loans during the periods presented. We did not have any servicing assets for the three and six months ended June 30, 2018 . Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Beginning balance $ ā $ ā Additions ā ā Fair value changes recognized in servicing and other revenue Change in inputs or assumptions used in the valuation model ā ā Other changes in fair value (1) 8,966 8,966 Ending balance $ 8,966 $ 8,966 (1) Primarily reflective of an increase to the contractually specified fixed servicing fee for one of our Bank Partners. The following table reconciles the beginning and ending fair value measurements of our servicing liabilities associated with transferring our rights to Charged-Off Receivables during the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 3,197 $ 2,187 $ 3,016 $ 2,071 Initial obligation from transfer of Charged-Off Receivables (1) 647 450 1,298 911 Fair value changes recognized in other gains (losses) Change in inputs or assumptions used in the valuation model ā ā ā ā Other changes in fair value (2) (497 ) (365 ) (967 ) (710 ) Ending balance $ 3,347 $ 2,272 $ 3,347 $ 2,272 (1) Recognized in other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. (2) Represents the reduction of our servicing liabilities due to the passage of time and collection of loan payments. Significant assumptions used in valuing our servicing assets and liabilities were as follows: Cost of servicing: The cost of servicing represents the servicing rate a willing market participant would require to service loans with similar characteristics as the Bank Partner loans or Charged-Off Receivables. The cost of servicing is weighted based on the outstanding balance of the loans. Discount rate: The discount rate reflects the time value of money adjusted for a risk premium and is within an observable range based on peer market data. Weighted average remaining life: For Bank Partner loans, the weighted average remaining life is determined using the aggregate curves for each loan product type based on expected cumulative annualized rates of prepayments and defaults. Recovery period: For Charged-Off Receivables, our recovery period was determined based on a reasonable recovery period for loans of these sizes and characteristics based on historical experience. We assumed that collection efforts for these loans will cease after five years, and the run-off of the portfolio will follow a straight-line methodology, adjusted for actual cash recoveries over time. The following table presents quantitative information about the significant unobservable inputs used to value the Level 3 servicing assets and liabilities as of the dates presented. Input June 30, 2019 December 31, 2018 Range Weighted Average Range Weighted Average Cost of servicing (basis points) (1) 57.5 - 108.0 105.9 62.5 62.5 Discount rate 18.0 % 18.0 % 18.0 % 18.0 % Weighted average remaining life (years) 2.4 - 5.9 2.5 N/A N/A Recovery period (years) 3.1 - 4.9 4.2 3.6 - 4.9 4.3 (1) The cost of servicing assumption as of December 31, 2018 relates only to Charged-Off Receivables, as the fair value measurement of servicing rights associated with Bank Partner loans was immaterial. A significant increase or decrease in the market cost of servicing could have resulted in significantly lower or higher, respectively, servicing assets and higher or lower, respectively, servicing liabilities as of the measurement date. A significant increase or decrease in the discount rate could have resulted in lower or higher, respectively, servicing assets and liabilities as of the measurement date. The average remaining life is weighted by the unpaid balance of the Bank Partner loans as of the measurement date. The weighted average remaining life represents the period over which we expect to collect servicing fees on the Bank Partner loans and primarily changes based on expectations of loan prepayments and defaults. The change in expected prepayments and defaults has an inverse correlation with the weighted average remaining life. A significant increase or decrease in the expected weighted average remaining life could have resulted in significantly higher or lower servicing assets as of the measurement date. The recovery period is weighted by the unpaid balance of previously transferred Charged-Off Receivables as of the measurement date. The recovery period reflects the length of time over which we expect to perform servicing activities and has an inverse correlation with the amount by which the servicing liability is reduced each reporting period. As such, a significant increase or decrease in the expected recovery period could have resulted in higher or lower, respectively, servicing liabilities. |
Loan Receivables Held for Sale
Loan Receivables Held for Sale | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loan Receivables Held for Sale | Loan Receivables Held for Sale The following table summarizes the activity in the balance of loan receivables held for sale, net at lower of cost or fair value during the periods indicated. Six Months Ended 2019 2018 Beginning balance $ 2,876 $ 73,606 Additions 65,804 43,085 Proceeds from sales and borrower payments (1) (66,714 ) (71,687 ) Decrease (increase) in valuation allowance 175 (220 ) Transfers (2) 1,590 24 Write offs and other (3) (933 ) (1,319 ) Ending balance $ 2,798 $ 43,489 (1) Includes accrued interest and fees, recoveries of previously charged-off loan receivables held for sale, as well as proceeds from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. We retain servicing arrangements on sold loan receivables with the same terms and conditions as loans that are originated by our Bank Partners. Income from loan receivables held for sale activities is recorded within interest income and other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. On March 27, 2019, we sold loan receivables held for sale to a Bank Partner in the amount of $63,673 . On May 21, 2018 and June 27, 2018, we sold loan receivables held for sale to Bank Partners in the amounts of $ 9,552 and $ 50,614 , respectively. (2) We temporarily hold certain loan receivables, which are originated by a Bank Partner, while non-originating Bank Partner eligibility is being determined. Once we determine that a loan receivable meets the investment requirements of an eligible Bank Partner, we transfer the loan receivable to the Bank Partner at cost plus any accrued interest. The reported amount also includes loan receivables that have been placed on non-accrual and non-payment status while we investigate consumer inquiries. (3) We received recovery payments of $25 and $33 during the six months ended June 30, 2019 and 2018 , respectively. Recoveries of principal and finance charges and fees on previously written off loan receivables held for sale are recognized on a collected basis as other gains and interest income, respectively, in the Unaudited Condensed Consolidated Statements of Operations. Separately, during the six months ended June 30, 2019 and 2018 , write offs and other were reduced by $141 and $171 , respectively, related to cash proceeds received from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. The cash proceeds received were recorded within other income (expense), net in the Unaudited Condensed Consolidated Statements of Operations. The following table presents activities associated with our loan receivable sales and servicing activities during the periods indicated. There were no gains or losses on sold loan receivables held for sale during the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Sales of loans $ ā $ 60,166 $ 63,673 $ 60,166 Servicing fees 1,050 533 1,736 1,099 The following tables present information about sold loan receivables held for sale that are not recorded in our Unaudited Condensed Consolidated Balance Sheets, but with which we have a continuing involvement through our servicing arrangements with our Bank Partners. The sold loan receivables held for sale are pooled with other loans originated by the Bank Partners for purposes of determining escrow balances and incentive payments. The escrow balances represent our only direct exposure to potential losses associated with these sold loan receivables. June 30, 2019 December 31, 2018 Total principal balance $ 361,692 $ 357,060 Delinquent loans (unpaid principal balance) 19,448 23,385 Three Months Ended Six Months Ended 2019 2018 2019 2018 Net charge-offs (unpaid principal balance) $ 4,407 $ 1,787 $ 8,207 $ 4,712 Accounts Receivable Accounts receivable consisted of the following as of the dates indicated. Accounts Receivable, Gross Allowance for Losses Accounts Receivable, Net June 30, 2019 Transaction related $ 20,777 $ (384 ) $ 20,393 Servicing related 2,229 ā 2,229 Total $ 23,006 $ (384 ) $ 22,622 December 31, 2018 Transaction related $ 14,704 $ (168 ) $ 14,536 Servicing related 864 ā 864 Total $ 15,568 $ (168 ) $ 15,400 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Loan Receivables Held for Sale The following table summarizes the activity in the balance of loan receivables held for sale, net at lower of cost or fair value during the periods indicated. Six Months Ended 2019 2018 Beginning balance $ 2,876 $ 73,606 Additions 65,804 43,085 Proceeds from sales and borrower payments (1) (66,714 ) (71,687 ) Decrease (increase) in valuation allowance 175 (220 ) Transfers (2) 1,590 24 Write offs and other (3) (933 ) (1,319 ) Ending balance $ 2,798 $ 43,489 (1) Includes accrued interest and fees, recoveries of previously charged-off loan receivables held for sale, as well as proceeds from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. We retain servicing arrangements on sold loan receivables with the same terms and conditions as loans that are originated by our Bank Partners. Income from loan receivables held for sale activities is recorded within interest income and other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. On March 27, 2019, we sold loan receivables held for sale to a Bank Partner in the amount of $63,673 . On May 21, 2018 and June 27, 2018, we sold loan receivables held for sale to Bank Partners in the amounts of $ 9,552 and $ 50,614 , respectively. (2) We temporarily hold certain loan receivables, which are originated by a Bank Partner, while non-originating Bank Partner eligibility is being determined. Once we determine that a loan receivable meets the investment requirements of an eligible Bank Partner, we transfer the loan receivable to the Bank Partner at cost plus any accrued interest. The reported amount also includes loan receivables that have been placed on non-accrual and non-payment status while we investigate consumer inquiries. (3) We received recovery payments of $25 and $33 during the six months ended June 30, 2019 and 2018 , respectively. Recoveries of principal and finance charges and fees on previously written off loan receivables held for sale are recognized on a collected basis as other gains and interest income, respectively, in the Unaudited Condensed Consolidated Statements of Operations. Separately, during the six months ended June 30, 2019 and 2018 , write offs and other were reduced by $141 and $171 , respectively, related to cash proceeds received from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. The cash proceeds received were recorded within other income (expense), net in the Unaudited Condensed Consolidated Statements of Operations. The following table presents activities associated with our loan receivable sales and servicing activities during the periods indicated. There were no gains or losses on sold loan receivables held for sale during the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Sales of loans $ ā $ 60,166 $ 63,673 $ 60,166 Servicing fees 1,050 533 1,736 1,099 The following tables present information about sold loan receivables held for sale that are not recorded in our Unaudited Condensed Consolidated Balance Sheets, but with which we have a continuing involvement through our servicing arrangements with our Bank Partners. The sold loan receivables held for sale are pooled with other loans originated by the Bank Partners for purposes of determining escrow balances and incentive payments. The escrow balances represent our only direct exposure to potential losses associated with these sold loan receivables. June 30, 2019 December 31, 2018 Total principal balance $ 361,692 $ 357,060 Delinquent loans (unpaid principal balance) 19,448 23,385 Three Months Ended Six Months Ended 2019 2018 2019 2018 Net charge-offs (unpaid principal balance) $ 4,407 $ 1,787 $ 8,207 $ 4,712 Accounts Receivable Accounts receivable consisted of the following as of the dates indicated. Accounts Receivable, Gross Allowance for Losses Accounts Receivable, Net June 30, 2019 Transaction related $ 20,777 $ (384 ) $ 20,393 Servicing related 2,229 ā 2,229 Total $ 23,006 $ (384 ) $ 22,622 December 31, 2018 Transaction related $ 14,704 $ (168 ) $ 14,536 Servicing related 864 ā 864 Total $ 15,568 $ (168 ) $ 15,400 |
Property, Equipment and Softwar
Property, Equipment and Software | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, Equipment and Software Property, equipment and software were as follows as of the dates indicated. June 30, 2019 December 31, 2018 Furniture $ 3,142 $ 2,813 Leasehold improvements 4,688 4,171 Computer hardware 2,680 2,923 Software 13,011 8,344 Total property, equipment and software, at cost 23,521 18,251 Less: accumulated depreciation (5,424 ) (5,462 ) Less: accumulated amortization (3,903 ) (2,557 ) Total property, equipment and software, net $ 14,194 $ 10,232 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Credit Agreement In August 2017, we entered into a $450.0 million credit agreement (āCredit Agreementā), which provided for a $350.0 million term loan (āoriginal term loanā) maturing on August 25, 2024 and a $100.0 million revolving loan facility maturing on August 25, 2022. The net proceeds from the term loan of $338.6 million , along with $7.9 million of cash, were set aside for a subsequent $346.5 million payment (which is occurring in stages) to certain equity holders and a related party. With the exception of the payments to the related party, which were related party expenses, the payments were accounted for as distributions. See Note 11 for distribution and payment details. As of June 30, 2019 and December 31, 2018 , we had no borrowings under the revolving loan facility. Amended Credit Agreement In March 2018, we amended certain terms of our Credit Agreement ("Amended Credit Agreement"). The term loan and revolving loan facility under the Amended Credit Agreement are collectively referred to as the "Credit Facility." The Amended Credit Agreement replaced the original term loan with a $400.0 million term loan (āmodified term loanā) and extended the maturity date to March 29, 2025. Further, the interest margin on the modified term loan was reduced to 3.25% per annum. If not otherwise indicated, references to "term loan" prior to the date of the Amended Credit Agreement indicate the original term loan and references subsequent to the date of the Amended Credit Agreement indicate the modified term loan. We contemporaneously settled the outstanding principal balance on the original term loan of $349.1 million with the issuance of the $400.0 million modified term loan. The net proceeds from the modified term loan were used to provide for distributions to certain equity holders and a related party prior to the Company's IPO. With the exception of the payments to the related party, which are related party expenses, the payments were accounted for as distributions. See Note 11 for distribution and payment details. When our first lien net leverage ratio is above 1.50 to 1.00 , we are subject to a quarterly commitment fee at a per annum rate of 0.50% on the daily unused amount of the revolving loan facility, inclusive of the aggregate amount available to be drawn under letters of credit, of which $10.0 million was available, but unused, as of June 30, 2019 . This rate is reduced to 0.375% for any quarterly period in which our first lien net leverage ratio is equal to or below 1.50 to 1.00 . For the three months ended June 30, 2019 and 2018 , we recognized $95 and $96 , respectively, of commitment fees within interest expense in the Unaudited Condensed Consolidated Statements of Operations. Commitment fees were $189 and $221 for the six months ended June 30, 2019 and 2018 , respectively. Key details of the term loan are as follows: June 30, 2019 December 31, 2018 Term loan, face value (1) $ 395,000 $ 397,000 Unamortized debt discount (2) (3,420 ) (3,728 ) Unamortized debt issuance costs (2) (5,918 ) (6,450 ) Term loan $ 385,662 $ 386,822 (1) The principal balance of the term loan is scheduled to be repaid on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity. (2) For the three months ended June 30, 2019 and 2018 , debt discount of $154 and $155 , respectively, and debt issuance costs of $266 and $268 , respectively, were amortized into interest expense in the Unaudited Condensed Consolidated Statements of Operations. For the six months ended June 30, 2019 and 2018 , debt discount of $308 and $283 , respectively, and debt issuance costs of $532 and $557 , respectively, were amortized into interest expense. Interest Rate Swap In June 2019, we entered into an interest rate swap agreement to hedge changes in cash flows attributable to interest rate risk on $350.0 million of our variable-rate term loan. This interest rate swap was designated for accounting purposes as a cash flow hedge. See Note 8 for additional derivative disclosures. Covenants We were in compliance with all covenants, both financial and non-financial, as of June 30, 2019 and December 31, 2018 . The Amended Credit Agreement defines events of default, the breach of which could require early payment of all borrowings under, and termination of, the Amended Credit Agreement or similar actions. Any borrowings under the Amended Credit Agreement are unconditionally guaranteed by our subsidiaries. Further, the lenders have a security interest in substantially all of the assets of GS Holdings and the other guarantors thereunder. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company does not hold or use derivative instruments for trading purposes. Derivative Instruments Designated as Hedges Interest rate fluctuations expose our variable-rate term loan to changes in interest expense and cash flows. As part of our risk management strategy, we may use interest rate derivatives, such as interest rate swaps, to manage our exposure to interest rate movements. In June 2019, we entered into a $350.0 million notional, four -year interest rate swap agreement to hedge changes in cash flows attributable to interest rate risk on $350.0 million of our variable-rate term loan. This agreement involves the receipt of variable-rate amounts in exchange for fixed interest rate payments over the life of the agreement without an exchange of the underlying notional amount. This interest rate swap was designated for accounting purposes as a cash flow hedge. As such, changes in the interest rate swapās fair value are deferred in accumulated other comprehensive income (loss) in the Unaudited Condensed Consolidated Balance Sheets and are subsequently reclassified into interest expense in each period that a hedged interest payment is made on our variable-rate term loan. As of June 30, 2019 , we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. Notional Amount Fixed Interest Rate Termination Date Interest rate swap $ 350,000 1.80% June 30, 2023 Derivative Instruments Not Designated as Hedges The FCR component of our Bank Partner contracts qualifies as an embedded derivative. The FCR liability is not designated as a hedge for accounting purposes and, as such, changes in its fair value are recorded within cost of revenue in the Unaudited Condensed Consolidated Statements of Operations. See Note 3 for additional information on finance charge reversals. Derivative Instruments on our Unaudited Condensed Consolidated Financial Statements The following table presents the fair values and Unaudited Condensed Consolidated Balance Sheets locations of our derivative instruments as of the dates indicated. Balance Sheet Location June 30, 2019 December 31, 2018 Designated as cash flow hedges Interest rate swap Other liabilities $ 2,125 $ ā Not designated as hedges FCR liability Finance charge reversal liability $ 164,979 $ 138,589 The following table presents the impacts of our derivative instruments on our Unaudited Condensed Consolidated Statements of Operations for the periods indicated, for which the interest rate swap had no impact during any of the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Not designated as hedges FCR liability ā change in fair value recorded in cost of revenue $ 38,782 $ 19,226 $ 77,547 $ 40,736 Our derivative instrument activities are included within operating cash flows in our Unaudited Condensed Consolidated Statements of Cash Flows. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the components of accumulated other comprehensive income (loss) associated with our cash flow hedge, which are net of income taxes and exclude amounts pertaining to noncontrolling interests. There was no accumulated other comprehensive income (loss) activity during the three and six months ended June 30, 2018 . Cash Flow Hedge Three months ended June 30, 2019 Beginning balance as of March 31, 2019 $ ā Other comprehensive income (loss) before reclassifications (558 ) Ending balance as of June 30, 2019 $ (558 ) Six months ended June 30, 2019 Beginning balance as of December 31, 2018 $ ā Other comprehensive income (loss) before reclassifications (558 ) Ending balance as of June 30, 2019 $ (558 ) There were no reclassifications out of accumulated other comprehensive income (loss) during the three and six months ended June 30, 2019 . Based on the current interest rate environment, the Company estimates that approximately $ 0.5 million of net unrealized gains (losses) reported in accumulated other comprehensive income (loss) will be reclassified into earnings within the next twelve months. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities The following table details the components of other liabilities in the Unaudited Condensed Consolidated Balance Sheets as of the dates indicated. June 30, 2019 December 31, 2018 Transaction processing liabilities $ 20,003 $ 4,958 Servicing liabilities (1) 3,347 3,016 Distributions payable (2) 7,105 10,066 Interest rate swap (3) 2,125 ā Tax related liabilities (4) 4,224 4,412 Deferred lease liabilities (5) ā 2,489 Accruals and other liabilities 8,592 10,736 Total other liabilities $ 45,396 $ 35,677 (1) We elected the fair value method to account for our servicing liabilities. Refer to Note 3 for additional information. (2) Related party distributions payable are not included in this balance, but rather are included within related party liabilities. (3) Refer to Note 3 and Note 8 for additional information on our interest rate swap, which was in a liability position as of June 30, 2019 . (4) Tax related liabilities primarily include a liability for uncertain tax positions and certain taxes payable related to the Reorganization Transactions. Refer to Note 13 for additional information on tax related liabilities. (5) Deferred lease liabilities were calculated in accordance with legacy lease guidance in ASC 840, Leases, for the amount presented as of December 31, 2018 . Under the new lease guidance codified in ASC 842, Leases, which we adopted on January 1, 2019, we recorded operating lease liabilities separately on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2019 . See Note 1 and Note 14 for additional information on our lease accounting. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests GreenSky, Inc. is the sole managing member of GS Holdings and consolidates the financial results of GS Holdings. Therefore, the Company reports a noncontrolling interest based on the common units of GS Holdings held by the Continuing LLC Members. Changes in GreenSky, Inc.ās ownership interest in GS Holdings, while GreenSky, Inc. retains its controlling interest in GS Holdings, are accounted for as equity transactions. As such, future redemptions or direct exchanges of Holdco Units by the Continuing LLC Members will result in a change in ownership and reduce or increase the amount recorded as noncontrolling interest and increase or decrease additional paid-in capital when GS Holdings has positive or negative net assets, respectively. As of June 30, 2019 , GreenSky, Inc. had 61,772,014 shares of Class A common stock outstanding, which resulted in an equivalent amount of ownership of Holdco Units. During the three and six months ended June 30, 2019 , GreenSky, Inc. had a weighted average ownership interest in GS Holdings of 34.7% and 33.4% , respectively. |
Stockholders Equity (Deficit)
Stockholders Equity (Deficit) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders Equity (Deficit) | Stockholders Equity (Deficit) Treasury Stock As of June 30, 2019 , there were 13,584,297 shares of Class A common stock held in treasury, including purchases of 13,425,688 shares of Class A common stock at a cost of $146.1 million and 158,609 shares associated with forfeited restricted Class A common stock awards. There were no reissuances of treasury shares during the six months ended June 30, 2019 . Warrant Exercises In January 2019, a warrant issued in January 2014 for 1,304,640 Holdco Units was fully exercised on a cashless basis, which resulted in the issuance of 1,180,163 Holdco Units and an equal number of shares of Class B common stock. Distributions The following table summarizes activity associated with our non-tax distributions and payments, as well as our tax distributions during the periods indicated. Three Months Ended Six Months Ended Remaining Reserved Payment (1) (in millions) 2019 2018 2019 2018 Non-tax distributions previously declared and paid upon vesting: Credit Agreement Distributions (2) Distributions $ 0.8 $ 48.8 $ 2.0 $ 50.0 $ 4.7 Related party payments 0.6 1.0 0.6 1.1 ā Special Operating Distributions (3) Distributions 0.4 25.2 1.0 25.2 2.4 Related party payments 0.2 1.0 0.2 1.0 ā Tax distributions 13.1 32.8 14.0 50.9 N/A Total $ 15.1 $ 108.8 $ 17.8 $ 128.2 $ 7.1 (1) As of June 30, 2019 , all remaining portions of the non-tax distributions were recorded within other liabilities in the Unaudited Condensed Consolidated Balance Sheets. (2) See Note 7 for discussion of distributions using the proceeds from our borrowings. (3) In May 2018, we declared a special operating distribution of $26.2 million, a portion of which was declared to a related party. In December 2017, we declared a $160.0 million special cash distribution to GS Holdings unit holders and holders of profits interests. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recorded share-based compensation expense of $ 3,271 and $ 1,850 for the three months ended June 30, 2019 and 2018 , respectively, and $5,936 and $2,851 for the six months ended June 30, 2019 and 2018 , respectively, which is included within compensation and benefits expense in the Unaudited Condensed Consolidated Statements of Operations. Class A Common Stock Options Class A common stock option ("Options") activity was as follows during the periods indicated: Six Months Ended Six Months Ended Number of Options Weighted Average Exercise Price Number of Options Outstanding at beginning of period 8,053,292 $ 5.25 9,821,884 Granted prior to Reorganization Transactions and IPO (1) N/A N/A 340,000 Exercised prior to Reorganization Transactions and IPO (2)(3) N/A N/A (270,000 ) Forfeited prior to Reorganization Transactions and IPO N/A N/A (260,000 ) Effect of Reorganization Transactions and IPO N/A N/A (186,772 ) Granted after the Reorganization Transactions and IPO (1) 1,290,012 12.55 622,500 Exercised after Reorganization Transactions and IPO (2)(3) (851,401 ) 2.47 ā Forfeited after Reorganization Transactions and IPO (148,819 ) 9.84 (160,000 ) Expired after Reorganization Transactions and IPO (4) (1,500 ) 14.95 ā Outstanding at end of period (5) 8,341,584 $ 6.58 9,907,612 Exercisable at end of period (5)(6) 5,242,936 $ 2.48 7,161,832 (1) Weighted average grant date fair value of Options granted during the six months ended June 30, 2019 and 2018 was $3.80 and $6.34 , respectively. (2) The total intrinsic value of Options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, during the six months ended June 30, 2019 and 2018 was $4.6 million and $1.2 million, respectively. (3) Employees paid $0.3 million to the Company during the six months ended June 30, 2019 to exercise Options, which resulted in the issuance of 34,897 shares of Class A common stock. In addition, the Company paid withholding taxes of $1.6 million during the six months ended June 30, 2019 related to cashless Option exercises, which resulted in the issuance of 246,396 shares of Class A common stock. Employees paid $0.3 million to the Company during the six months ended June 30, 2018 to exercise GS Holdings options, which resulted in the issuance of 30,516 Holdco Units. Additionally, during this same period, 210,000 GS Holdings options were exercised by means of a cashless net exercise procedure, which resulted in the issuance of 38,637 Holdco Units. The Company paid withholding taxes of $0.5 million during the six months ended June 30, 2018 related to cashless GS Holdings option exercises. (4) Expired Options represent vested, underwater Options that were not exercised by terminated employees within 30 days from the employment termination date, as stipulated in the Option award agreements. (5) The aggregate intrinsic value and weighted average remaining contractual terms of Options outstanding and Options exercisable were as follows as of the date indicated: June 30, 2019 Aggregate intrinsic value (in millions) Options outstanding $ 31.7 Options exercisable $ 29.8 Weighted average remaining term (in years) Options outstanding 5.8 Options exercisable 4.1 (6) The total fair value, based on grant date fair value, of Options that vested during the six months ended June 30, 2019 and 2018 was $ 1.4 million and $ 0.6 million, respectively. Profits Interests As part of the Reorganization Transactions, profits interests were converted into Holdco Units, which remain subject to the same service vesting requirements as the original profits interests. Therefore, there was no profits interests activity during the six months ended June 30, 2019 . Profits interests activity was as follows during the period indicated: Six Months Ended Number of Profits Interests Outstanding at beginning of period 14,061,530 Granted (1) 2,920,000 Forfeited (800,000 ) Outstanding at end of period (2) 16,181,530 (1) Weighted average grant date fair value of profits interests granted during the six months ended June 30, 2018 was $4.47 . (2) The total fair value based on grant date fair value of profits interests that vested during the six months ended June 30, 2018 was $0.4 million. Unvested Holdco Units As part of the Reorganization Transactions and IPO, outstanding profits interests in GS Holdings were converted into vested and unvested Holdco Units based on the prevailing profits interests thresholds and the IPO price of $23.00 per share. The converted Holdco Units remain subject to the same service vesting requirements as the original profits interests and are not subject to post-vesting restrictions. Unvested Holdco Units activity was as follows during the periods indicated: Six Months Ended Six Months Ended Number of Holdco Units Weighted Average Grant Date Fair Value Number of Holdco Units Unvested at beginning of period 2,514,856 $ 23.00 ā Effect of Reorganization Transactions and IPO N/A N/A 3,172,843 Granted ā ā ā Forfeited (273,734 ) 23.00 ā Vested (1) (659,527 ) 23.00 ā Unvested at end of period 1,581,595 $ 23.00 3,172,843 (1) The total fair value, based on grant date fair value, of previously unvested Holdco Units that vested during the six months ended June 30, 2019 and 2018 was $ 15.2 million and $0 , respectively. Restricted Stock Awards As part of the Reorganization Transactions and IPO, outstanding profits interests in GS Holdings were converted into vested and unvested Class A common stock based on the prevailing profits interests thresholds and the IPO price of $23.00 per share. The converted unvested Class A common stock awards are subject to the same service vesting requirements as the original profits interests and are not subject to post-vesting restrictions. Subsequent to the Reorganization Transactions and IPO, we granted restricted stock awards in the form of unvested Class A common stock to certain employees that vest ratably over a three or four -year period based on continued employment at the Company and to certain non-employee directors that vest one year from grant date based on continued service on the Board of Directors ("Board"). Unvested Class A common stock activity was as follows during the periods indicated: Six Months Ended Six Months Ended Class A common stock Weighted Average Grant Date Fair Value Class A common stock Unvested at beginning of period 454,561 $ 19.08 ā Effect of Reorganization Transactions and IPO N/A N/A 255,904 Granted 1,873,512 12.76 ā Forfeited (1) (146,859 ) 15.07 ā Vested (2) (66,789 ) 23.00 (6,696 ) Unvested at end of period 2,114,425 $ 13.64 249,208 (1) Forfeited shares of unvested Class A common stock associated with restricted stock awards are held in our treasury stock account. Refer to Note 11 for additional information on our treasury stock. (2) The total fair value, based on grant date fair value, of previously unvested Class A common stock that vested during the six months ended June 30, 2019 and 2018 was $ 1.5 million and $0.2 million, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes GreenSky, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from GS Holdings based upon GreenSky, Inc.ās economic interest held in GS Holdings. GS Holdings is treated as a pass-through partnership for income tax reporting purposes. GS Holdingsā members, including GreenSky, Inc., are liable for federal, state and local income taxes based on their share of GS Holdingsā pass-through taxable income. The Companyās effective tax rate for the three and six months ended June 30, 2019 was (12.9)% and (12.2)% , respectively, and the Company recorded $4.5 million and $5.1 million of income tax benefit for the three and six months ended June 30, 2019 , respectively. The Companyās effective tax rates for the three and six months ended June 30, 2019 were less than our combined federal and state statutory tax rate of 24.1% , primarily because the Company is not liable for income taxes on the portion of GS Holdingsā earnings that are attributable to noncontrolling interests. Further, the effective tax rates for the three and six months ended June 30, 2019 include the effects of remeasuring net deferred tax assets due to a change in state tax rates and warrant and stock-based compensation deductions, which are required to be recorded discretely in the interim period in which those items occur. The effective tax rate is dependent on many factors, including the estimated amount of income subject to income tax; therefore, the effective tax rate can vary from period to period. The Company's effective tax rate for the three and six months ended June 30, 2018 was 3.8% and 2.6% , respectively, and the Company recorded $1.6 million of income tax expense for the three and six months ended June 30, 2018 , respectively. The Company's effective tax rates for the three and six months ended June 30, 2018 were less than our combined federal and state statutory tax rate of 23.5% , primarily because the Company is not liable for income taxes on the portion of GS Holdingsā earnings that are attributable to noncontrolling interests, and prior to the Reorganization Transactions, GS Holdings' earnings were completely exempt from federal corporate income taxation. As of June 30, 2019 and December 31, 2018 , the total liability related to uncertain tax positions was $3.4 million. The Company recognizes interest and penalties, if applicable, related to uncertain tax positions as a component of income tax expense. Accrued interest and penalties were immaterial as of June 30, 2019 , and therefore did not impact the effective income tax rate. The Company anticipates that the liability for unrecognized tax benefits could decrease by up to $3.4 million within the next twelve months due to the Company filing a non-automatic method change with the Internal Revenue Service. Deferred tax assets, net of $360.0 million and $307.0 million as of June 30, 2019 and December 31, 2018 , respectively, relate primarily to the basis difference in our investment in GS Holdings. This basis difference arose primarily as a result of the Reorganization Transactions, the IPO and subsequent exchanges of Class B common stock for Class A common stock. As of June 30, 2019 , we concluded based on the weight of all available positive and negative evidence that all of our deferred tax assets are more likely than not to be realized. As such, no additional valuation allowance was recognized. Tax Receivable Agreement Pursuant to our election under Section 754 of the Internal Revenue Code (the "Code"), we expect to obtain an increase in our share of the tax basis in the net assets of GS Holdings when Holdco Units are redeemed or exchanged by the Continuing LLC Members of GS Holdings. We intend to treat any redemptions and exchanges of Holdco Units as direct purchases of Holdco Units for United States federal income tax purposes. These increases in tax basis may reduce the amounts that we would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. On May 23, 2018, we entered into a tax receivable agreement ("TRA") that provides for the payment by us of 85% of the amount of any tax benefits that we actually realize, or in some cases are deemed to realize, as a result of: (i) increases in our share of the tax basis in the net assets of GS Holdings resulting from any redemptions or exchanges of Holdco Units and from our acquisition of the equity of certain of the Former Corporate Investors; (ii) tax basis increases attributable to payments made under the TRA; and (iii) deductions attributable to imputed interest pursuant to the TRA (the "TRA Payments"). We expect to benefit from the remaining 15% of any tax benefits that we may actually realize. The TRA Payments are not conditioned upon any continued ownership interest in GS Holdings or us. The rights of each member of GS Holdings that is a party to the TRA are assignable to transferees of their respective Holdco Units. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the timing and amount of taxable income generated by the Company each year, as well as the tax rate then applicable. As of June 30, 2019 , the Company had a liability of $ 303.2 million related to its projected obligations under the TRA, which is captioned as tax receivable agreement liability in our Unaudited Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2019 , we made a payment, inclusive of interest, of $4.7 million to members of GS Holdings pursuant to the TRA. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments Leases As discussed in Note 1 , we adopted the provisions of ASU 2016-02 as of January 1, 2019. Periods subsequent to this adoption date are presented and disclosed in accordance with ASC 842, Leases, while comparative periods continue to be presented and disclosed in accordance with legacy guidance in ASC 840, Leases. In accordance with ASC 842, we determine if an arrangement is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We primarily lease our premises under multi-year, non-cancelable operating leases. Operating leases are included in operating lease ROU assets and operating lease liabilities in our Unaudited Condensed Consolidated Balance Sheets. As of June 30, 2019 , we did not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU assets are increased by any prepaid lease payments and are reduced by any unamortized lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Base rent is typically subject to rent escalations on each annual anniversary from the lease commencement dates. Lease expense for lease payments, including any step rent provisions specified in the lease agreements, is recognized on a straight-line basis over the lease term and is included within property, office and technology and related party expenses in the Unaudited Condensed Consolidated Statements of Operations. Operating lease cost was $973 and $812 for the three months ended June 30, 2019 and 2018 , respectively, and $1,784 and $1,556 for the six months ended June 30, 2019 and 2018 , respectively. See Note 15 for additional information regarding office space leased from a related party. Our operating leases have terms expiring from 2021 through 2024, exclusive of renewal option periods. Our leases contain renewal option periods ranging from five to fifteen years from the expiration dates. One lease also contains a termination option in 2023. These options were not recognized as part of our operating lease ROU assets and operating lease liabilities, as we did not conclude at the commencement date of the leases that we were reasonably certain to exercise these options. However, in our normal course of business, we expect our leases to be renewed, amended or replaced by other leases. As of June 30, 2019 , we did not have any operating leases that had not yet commenced. Supplemental cash flow and noncash information related to our operating leases were as follows for the period indicated. Six Months Ended Cash paid for amounts included in the measurement of operating lease liabilities Operating cash flows from operating leases $ 1,927 Noncash operating lease ROU assets obtained in exchange for operating lease liabilities Resulting from our adoption of ASU 2016-02 $ 11,279 Resulting from new or modified leases 2,975 Supplemental balance sheet information related to our operating leases was as follows as of the date indicated. June 30, 2019 Operating lease ROU assets $ 12,895 Operating lease liabilities $ 15,761 Weighted average remaining lease term (in years) 3.7 Weighted average discount rate 5.7 % For the periods presented, maturities of operating lease liabilities as of the date indicated and a reconciliation of the total undiscounted cash flows to the operating lease liabilities in the Unaudited Condensed Consolidated Balance Sheets, were as follows in accordance with ASC 842: June 30, 2019 Remainder of 2019 $ 2,041 2020 4,759 2021 4,892 2022 3,704 2023 1,501 Thereafter 814 Total lease payments $ 17,711 Less: imputed interest (1,950 ) Operating lease liabilities $ 15,761 For the periods presented, future minimum lease payments under leases entered into as of the date indicated (inclusive of leases that had not yet commenced) were as follows in accordance with ASC 840: December 31, 2018 2019 $ 3,871 2020 4,073 2021 4,173 2022 3,087 2023 1,238 Thereafter 542 Total minimum lease payments $ 16,984 Covenants Our transaction processor and some Bank Partners impose financial covenants upon our wholly owned subsidiary, GSLLC. As of June 30, 2019 and December 31, 2018 , GSLLC was in compliance with all financial covenants. See Note 7 to the Unaudited Condensed Consolidated Financial Statements for discussion of financial and non-financial covenants associated with our borrowings. Other Commitments As of June 30, 2019 and December 31, 2018 , the outstanding open and unused line of credit on approved loan receivables held for sale was $1.9 million and $ 3.0 million, respectively, for which we did not record a provision in the Unaudited Condensed Consolidated Financial Statements. For certain Bank Partners, we maintain a restricted cash balance based on a contractual percentage of the total interest billed on outstanding deferred interest loans that are within the promotional period less previous FCR on such outstanding loans. As of June 30, 2019 and December 31, 2018 , restricted cash in the Unaudited Condensed Consolidated Balance Sheets includes $55.9 million and $49.8 million, respectively, associated with these arrangements. Contingencies In limited instances, the Company may be subject to operating losses if we make certain errors in managing credit programs and we determine that a customer is not liable for a loan originated by a Bank Partner. We evaluated this contingency in accordance with ASC 450, Contingencies , and determined that it is reasonably possible that losses could result from errors in underwriting. However, in managementās opinion, it is not possible to estimate the likelihood or range of reasonably possible future losses related to errors in underwriting based on currently available information. Therefore, we have not established a liability for this loss contingency. Further, from time to time, we place Bank Partner loans on non-accrual and non-payment status (āPended Statusā) while we investigate consumer loan balance inquiries, which may arise from disputed charges related to work performed by third-party merchants. As of June 30, 2019 , Bank Partner loan balances in Pended Status were $16.1 million . While it is managementās expectation that most of these loan balance inquiries will be resolved without incident, in certain instances we may determine that it is appropriate for the Company to permanently reverse the loan balance and assume the economic responsibility for the loan balance itself. We record a liability for these instances. As of June 30, 2019 , our liability for potential Pended Status future losses was $5.9 million . Legal Proceedings From time to time, we may become a party to civil claims and lawsuits in the ordinary course of business. IPO Litigation The Company and certain of its officers and directors, together with certain underwriters of the Companyās IPO, were named in six putative class actions filed in the Supreme Court of the State of New York, all of which actions have been consolidated (In Re GreenSky, Inc. Securities Litigation (Consolidated Action), Index No. 655626/2018 (N.Y. Sup. Ct.) (the āState Caseā)), and in two putative class actions filed in the United States District Court for the Southern District of New York, both of which actions also have been consolidated (In Re GreenSky, Inc. Securities Litigation (Consolidated Action), Case No. 1:2018-cv-11071-PAE (S.D.N.Y.) (the āFederal Caseā and, together with the State Case, the āConsolidated Casesā)). The Company and its officers and directors named in the Consolidated Cases intend to defend themselves vigorously in all respects in regard thereto. Under certain circumstances, the Company may be obligated to indemnify some or all of the other defendants in the Consolidated Cases. As the Company has not determined that the likelihood of loss with respect to the Consolidated Cases is probable, the Company has not recorded any liability as of June 30, 2019 with respect to either of such actions. It is our policy to recognize legal fees as they are incurred when legal services are provided within general and administrative expense in our Unaudited Condensed Consolidated Statements of Operations. As it relates to ongoing legal proceedings, we estimate the aggregate range of reasonably possible losses in excess of amounts previously recognized and inclusive of additional potential legal fees to be up to approximately $4.0 million. Financial Guarantees Under the terms of the contracts with our Bank Partners, we provide limited protection to the Bank Partners in the event of excess Bank Partner portfolio credit losses by holding cash in restricted, interest-bearing escrow accounts in an amount equal to a contractual percentage of the Bank Partnersā monthly originations and month-end outstanding portfolio balance. The Companyās maximum exposure to Bank Partner portfolio credit losses is limited to the contractual restricted cash balance, which was $125.5 million as of June 30, 2019 . The estimated value of the financial guarantee was $1.2 million as of June 30, 2019 , representing the amount of payments to Bank Partners from these escrow accounts that are expected to be probable of occurring based on current Bank Partner portfolio composition. This estimated obligation was recorded within other liabilities in the Unaudited Condensed Consolidated Balance Sheets. Recorded financial guarantees are typically settled within one year of the initial measurement of the liabilities. In estimating the obligation, we consider a variety of factors, including historical experience and managementās expectations of current customer delinquencies converting into Bank Partner portfolio losses. We do not expect to directly recover any losses associated with this financial guarantee. One of our Bank Partners, Regions Bank, indicated that it has made a strategic decision to reduce its use of indirect lending programs and we currently do not anticipate its origination commitment will be renewed when it expires in the fourth quarter of this year. The parties are evaluating various alternatives with respect to Regionsā loan portfolio. Certain of these alternatives could require us to make payments from the Regions escrow account in future periods under our guarantee arrangement. The estimated amount of reasonably possible losses associated with such payments could range from $0 to approximately $16.0 million among the various alternatives under evaluation. As the Company has not determined that the likelihood of any amount of loss with respect to the Regions escrow account is probable of occurring, the Company has not recorded any liability as of June 30, 2019 with respect to this matter. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Leases We lease office space from a related party under common management control for which lease expense is recognized within related party expenses in the Unaudited Condensed Consolidated Statements of Operations and for which operating lease ROU assets and operating lease liabilities are recognized within those respective line items in the Unaudited Condensed Consolidated Balance Sheets. Total operating lease cost related to this office space was $432 and $441 for the three months ended June 30, 2019 and 2018 , respectively, and $869 and $813 for the six months ended June 30, 2019 and 2018 , respectively. Operating lease ROU assets and operating lease liabilities related to this office space were $ 5.8 million and $ 7.0 million, respectively, as of June 30, 2019 . Contractual and Other Arrangements In August 2018, we entered into an agreement in which an unrelated third party acted as a placement agent in connection with certain Charged-Off Receivables transfers and received a fee from us based on the proceeds received from such transfers. In performing these services, the third party agreed to use an affiliate of a member of the Board and, as such, we determined this arrangement to be related party in nature. In December 2018, the unrelated third party assigned its role in the agreement to the affiliate entity itself; therefore, the arrangement remains a related party transaction. We incurred expenses related to this arrangement of $ 150 and $249 during the three and six months ended June 30, 2019 , respectively, which are presented within related party expenses in the Unaudited Condensed Consolidated Statements of Operations. There was no payable related to this arrangement as of June 30, 2019 and December 31, 2018 . We entered into non-interest bearing loan agreements with certain non-executive employees for which the remaining outstanding balances are forgiven ratably over designated periods based on continued employment with the Company. As of June 30, 2019 and December 31, 2018 , the remaining outstanding balances on these loan agreements were $100 and $142 , respectively, which are presented within related party receivables in the Unaudited Condensed Consolidated Balance Sheets. There were no equity-based payments to non-employees that resulted in related party expenses during the three and six months ended June 30, 2019 and 2018 . Distributions As of June 30, 2019 , there were no unpaid portions of related party distributions or reserved payments recorded within related party liabilities in the Unaudited Condensed Consolidated Balance Sheets. See Note 11 for distribution and payment details. Financing Partner Arrangement In June 2018, the outstanding receivables owned by affiliates of two members of our Board pursuant to a November 2016 agreement were sold to a Bank Partner, which is not a related party, and continue to be serviced by us. In connection with that receivable sale, the related party financing partners ended this servicing agreement with us. As of June 30, 2019 and December 31, 2018 , we no longer had any such related party arrangements. Unaudited Condensed Consolidated Statements of Operations effects associated with our related party financing partners were as follows during the period indicated. Three Months Ended June 30, 2018 Six Months Ended Servicing and other $ 26 $ 54 Related party expenses (1) (211 ) ā (1) Expenses incurred related to related party financing partner credit losses. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We conduct our operations through a single operating segment and, therefore, one reportable segment. There are no significant concentrations by state or geographical location, nor are there any significant individual customer concentrations by balance. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Upon completion of our IPO, GreenSky, Inc. became the managing member of GS Holdings with 100% of the management and voting power in GS Holdings. In its capacity as managing member, GreenSky, Inc. has the sole authority to make decisions on behalf of GS Holdings and bind GS Holdings to agreements. Further, GS Holdings maintains separate capital accounts for its investors as a mechanism for tracking earnings and subsequent distribution rights. Accordingly, management concluded that GS Holdings is a limited partnership or similar legal entity as contemplated in ASC 810, Consolidation . Further, management concluded that GreenSky, Inc. is GS Holdings' primary beneficiary based on two conditions. First, GreenSky, Inc., in its capacity as managing member with sole voting rights, has the power to direct the activities of GS Holdings that most significantly impact its economic performance, including selecting, terminating and setting the compensation of management responsible for implementing GS Holdings' policies and procedures, as well as establishing the strategic, operating and capital decisions of GS Holdings in the ordinary course of business. Second, GreenSky, Inc. has an obligation to absorb potential losses of GS Holdings or the right to receive potential benefits from GS Holdings in proportion to its weighted average ownership interest, which was 34.7% and 33.4% for the three and six months ended June 30, 2019 , respectively. Management considers this exposure to be significant to GS Holdings. As the primary beneficiary, GreenSky, Inc. consolidates the results of GS Holdings for financial reporting purposes under the variable interest consolidation model guidance in ASC 810. GreenSky, Inc.ās relationship with GS Holdings results in no recourse to the general credit of GreenSky, Inc. GS Holdings and its consolidated subsidiaries represent GreenSky, Inc.ās sole investment. GreenSky, Inc. shares in the income and losses of GS Holdings in direct proportion to GreenSky, Inc.ās ownership percentage. Further, GreenSky, Inc. has no contractual requirement to provide financial support to GS Holdings. Below are tabular disclosures that provide insight into how GS Holdings affects GreenSky, Inc.ās financial position, performance and cash flows. Prior to the IPO and Reorganization Transactions, GreenSky, Inc. did not have any variable interest in GS Holdings. The following table presents the balances related to GS Holdings that are included in the Unaudited Condensed Consolidated Balance Sheets, as well as GreenSky, Inc.'s interest in the variable interest entity at the dates indicated. June 30, 2019 December 31, 2018 Assets Cash and cash equivalents $ 203,290 $ 294,364 Restricted cash 200,252 155,109 Loan receivables held for sale, net 2,798 2,876 Accounts receivable, net 22,622 15,400 Related party receivables 100 142 Property, equipment and software, net 14,194 10,232 Operating lease right-of-use assets 12,895 ā Other assets 17,866 7,448 Total assets $ 474,017 $ 485,571 Liabilities and Members Equity (Deficit) Liabilities Accounts payable $ 14,430 $ 5,357 Accrued compensation and benefits 6,858 8,484 Other accrued expenses 1,308 1,015 Finance charge reversal liability 164,979 138,589 Term loan 385,662 386,822 Related party liabilities ā 825 Operating lease liabilities 15,761 ā Other liabilities 41,172 31,264 Total liabilities 630,170 572,356 Members Equity (Deficit) Equity (deficit) attributable to Continuing LLC Members (108,495 ) (60,349 ) Equity (deficit) attributable to GreenSky, Inc. (47,658 ) (26,436 ) Total members equity (deficit) (156,153 ) (86,785 ) Total liabilities and members equity (deficit) $ 474,017 $ 485,571 The following table reflects the impact of consolidation of GS Holdings into the Unaudited Condensed Consolidated Statements of Operations for the period indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Total revenue $ 138,695 $ 105,704 $ 242,395 $ 191,030 Total costs and expenses 92,189 58,896 184,401 120,645 Operating profit 46,506 46,808 57,994 70,385 Total other income (expense), net (5,377 ) (4,398 ) (10,059 ) (9,371 ) Net income $ 41,129 $ 42,410 $ 47,935 $ 61,014 The following table reflects the cash flow impact of GS Holdings on the Unaudited Condensed Consolidated Statements of Cash Flows for the periods indicated. Six Months Ended 2019 2018 Net cash provided by operating activities $ 89,789 $ 109,604 Net cash used in investing activities (7,123 ) (2,707 ) Net cash used in financing activities (128,597 ) (81,669 ) Net increase (decrease) in cash and cash equivalents and restricted cash (45,931 ) 25,228 Cash and cash equivalents and restricted cash at beginning of period 449,473 353,838 Cash and cash equivalents and restricted cash at end of period $ 403,542 $ 379,066 |
Organization, Summary of Sign_2
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Unless the context requires otherwise, "we," "us," "our," "GreenSky" and "the Company" refer to the business of GreenSky, Inc. and its subsidiaries. "Bank Partners" are defined as federally insured banks that originate loans under the GreenSky program and any other lenders with respect to those loans. We are a leading technology company Powering Commerce at the Point of Sale Ā® . Our platform is powered by a proprietary technology infrastructure that facilitates merchant sales, while reducing the friction and improving the economics associated with a consumer making a purchase and a bank extending financing for that purchase. It supports the full transaction lifecycle, including credit application, underwriting, real-time allocation to our Bank Partners, document distribution, funding, settlement and servicing. Merchants using our platform, which presently range from small, owner-operated home improvement contractors and healthcare providers to large national home improvement brands and retailers and healthcare service organizations, rely on us to facilitate low or deferred interest promotional point-of-sale financing and payments solutions that enable higher sales volume. Consumers on our platform, who to date primarily have super-prime or prime credit scores, find financing with promotional terms to be an attractive alternative to other forms of payment. Our Bank Partners' access to our proprietary technology solution and merchant network enables them to build a diversified portfolio of high quality consumer loans with attractive risk-adjusted yields with minimal upfront investment. GreenSky, Inc. was formed as a Delaware corporation on July 12, 2017. The Company was formed for the purpose of completing an initial public offering ("IPO") of its Class A common stock and certain Reorganization Transactions, as further described below, in order to carry on the business of GreenSky Holdings, LLC (āGS Holdingsā) and its consolidated subsidiaries. GS Holdings, a holding company with no operating assets or operations, was organized in August 2017. On August 24, 2017, GS Holdings acquired a 100% interest in GreenSky, LLC ("GSLLC"), a Georgia limited liability company, which is an operating entity. Common membership interests of GS Holdings are referred to as "Holdco Units." Immediately prior to our IPO, (i) the operating agreement of GS Holdings (the "GS Holdings Agreement") was amended and restated to, among other things, modify its capital structure by replacing the different classes of membership interests and profits interests with Holdco Units; (ii) we issued to each of the Continuing LLC Members (as defined below) a number of shares of GreenSky, Inc. Class B common stock equal to the number of Holdco Units held by it (other than the Holdco Units that were exchanged in connection with the IPO), for consideration in the amount of $0.001 per share of Class B common stock; (iii) certain Holdco Units were contributed to GreenSky, Inc. in exchange for shares of our Class A common stock; (iv) equity holders of the Former Corporate Investors (as defined below) contributed their equity in the Former Corporate Investors to GreenSky, Inc. in exchange for shares of our Class A common stock and the right to certain payments under the Tax Receivable Agreement (āTRAā), and Former Corporate Investors merged with and into subsidiaries of GreenSky, Inc.; (v) outstanding options to acquire Class A units of GS Holdings were equitably adjusted so that they are exercisable for shares of Class A common stock; and (vi) outstanding warrants to acquire Class A units of GS Holdings were equitably adjusted pursuant to their terms so that they are exercisable for Holdco Units (and an equal number of shares of Class B common stock). We refer to these transactions collectively as the āReorganization Transactions.ā Following the Reorganization Transactions, the "Original GS Equity Owners" (other than the Former Corporate Investors) and certain "Original Profits Interests Holders," which we collectively refer to as the "Continuing LLC Members," continue to own Holdco Units. "Original GS Equity Owners" refers to the owners of units of GS Holdings prior to the Reorganization Transactions. "Former Corporate Investors" refers to certain of the Original GS Equity Owners that merged with and into one or more subsidiaries of GreenSky, Inc. in connection with the Reorganization Transactions, which was accounted for as a common control transaction and had no material impact on the net assets of the Company. "Original Profits Interests Holders" refers to the owners of profits interests in GS Holdings prior to the Reorganization Transactions. On May 24, 2018, the Company's Class A common stock commenced trading on the Nasdaq Global Select Market in connection with its IPO of 43,700,000 shares of its Class A common stock at a public offering price of $23.00 per share, receiving approximately $954.8 million in net proceeds, after deducting underwriting discounts and commissions (but not including other offering costs), which were used to purchase 2,426,198 shares of Class A common stock and 41,273,802 newly-issued Holdco Units at a price per unit equal to the price per share of Class A common stock sold in the IPO, less underwriting discounts and commissions. The newly-issued Holdco Units were sold by Continuing LLC Members, which we also refer to as "Exchanging Members." Pursuant to an "Exchange Agreement," the Exchanging Members can exchange their Holdco Units (with automatic cancellation of an equal number of shares of Class B common stock) for shares of our Class A common stock on a one -for-one basis, subject to customary adjustments, or for cash (based on the market price of the shares of Class A common stock), at our option (such determination to be made by the disinterested members of our board of directors). The IPO and Reorganization Transactions resulted in the Company becoming the sole managing member of GS Holdings. As the sole managing member of GS Holdings, we operate and control all of GS Holdingsā operations and, through GS Holdings and its subsidiaries, conduct GS Holdingsā business. The Company consolidates the financial results of GS Holdings and reports a noncontrolling interest in its Unaudited Condensed Consolidated Financial Statements representing the GS Holdings interests held by Continuing LLC Members. The weighted average ownership percentages for the applicable reporting periods are used to attribute net income and other comprehensive income (loss) to the Company and the noncontrolling interest. During the three and six months ended June 30, 2019 , the Company had a weighted average ownership interest in GS Holdings of 34.7% and 33.4% , respectively. |
Basis of Presentation | Basis of Presentation The Unaudited Condensed Consolidated Financial Statements were prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial statements. We condensed or omitted certain notes and other information from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these interim statements should be read in conjunction with the GreenSky, Inc. 2018 Form 10-K filed with the SEC on March 15, 2019. In the opinion of management, the Unaudited Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of our financial condition and results of operations for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2018 , was derived from the audited annual consolidated financial statements, but does not contain all of the footnote disclosures from the annual consolidated financial statements required by United States generally accepted accounting principles ("GAAP"). All intercompany balances and transactions are eliminated upon consolidation. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results expected for the full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, share-based compensation and income taxes. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities We have financial assets and liabilities subject to fair value measurement or disclosure on either a recurring or nonrecurring basis. Such measurements or disclosures relate to our cash and cash equivalents, loan receivables held for sale, derivative instruments, servicing assets and liabilities, and term loan. ASC 820, Fair Value Measurement , defines fair value 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. In valuing this asset or liability, we utilize market data or reasonable assumptions that market participants would use, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The guidance provides a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or a liability as of the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Unobservable inputs for the asset or liability. An assetās or a liabilityās categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. We apply the market approach, which uses observable prices and other relevant information that is generated by market transactions involving identical or comparable assets or liabilities, to value our cash and cash equivalents and loan receivables held for sale. We apply the income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount, to value our finance charge reversal liability and servicing assets and liabilities. We determine the fair values of our interest rate swap and term loan by applying a discounted cash flow model based on observable market factors and credit factors specific to us. |
Derivative Instruments | Derivative Instruments We are exposed to interest rate risk on our variable-rate term loan, which we manage by entering into an interest rate swap that is determined to be a derivative in accordance with ASC 815, Derivatives and Hedging . Derivatives are recorded on the balance sheet at fair value and are marked-to-market on a quarterly basis. The accounting for the change in fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate the derivative as a hedge and apply hedge accounting, and whether the hedging relationship continues to satisfy the criteria required to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in cash flows of a recognized asset or liability that is attributable to a particular risk are considered cash flow hedges. The primary purpose of cash flow hedge accounting is to link the income statement recognition of a hedging instrument and a hedged item whose changes in cash flows are expected to offset each other. The change in the fair value of the derivative instrument designated as a cash flow hedge is initially reported as a component of other comprehensive income (loss) and subsequently reclassified into earnings in the same period when the hedged item affects earnings. The reclassification into earnings is reported in the same income statement line item in which the hedged item is reported. To the extent that the hedge is ineffective, the amount deferred in other comprehensive income (loss) may not exactly offset the earnings impact of the hedged item. |
Recently Adopted Accounting Standards and Accounting Standards Issued but Not Yet Adopted | Recently Adopted Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, which required the recognition of right-of-use ("ROU") assets and lease liabilities for operating leases with terms greater than 12 months on our Unaudited Condensed Consolidated Balance Sheets. Presentation of leases within our Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Cash Flows was generally consistent with the prior lease accounting guidance codified in ASC 840, Leases . In July 2018, the FASB issued ASU 2018-11, which provided an additional (and optional) transition method to adopt ASU 2016-02 by applying its provisions at the adoption date and recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, rather than applying the provisions at the beginning of the earliest period presented in the financial statements. We adopted the standard as of January 1, 2019 with the transition method outlined in ASU 2018-11, recognizing a cumulative-effect adjustment to retained earnings as of that date. Comparative periods continue to be presented and disclosed in accordance with legacy guidance in ASC 840. We applied the practical expedients permitted under the transition guidance outlined in ASU 2018-11, which permitted us to not reassess the following: (i) whether any expired or existing contracts are or contain a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any existing leases. As a result of adopting this standard, we recorded a ROU asset of $ 11.3 million, a lease liability of $ 14.1 million and an immaterial cumulative-effect adjustment to equity as of January 1, 2019. Our adoption of this standard did not have any impact on our Unaudited Condensed Consolidated Statements of Operations. See Note 14 for additional lease disclosures. Improvements to non-employee share-based payment accounting In June 2018, the FASB issued ASU 2018-07 to simplify certain aspects of the accounting for non-employee share-based payment transactions. Under the new standard, all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards are within the scope of ASC 718. Consistent with the accounting requirement for employee share-based payment awards, non-employee share-based payment awards within the scope of ASC 718 are measured at grant date fair value of the equity instruments, and the requirement to reassess classification of non-employee share-based payment awards upon vesting is eliminated. Our adoption of this standard on January 1, 2019 did not have any impact on our Unaudited Condensed Consolidated Financial Statements. Accounting Standards Issued, But Not Yet Adopted Measurement of credit losses on financial instruments In June 2016, the FASB issued ASU 2016-13, which is intended to better align the timing of recognition of credit losses on financial instruments with managementās expectations. The standard requires a financial asset (or group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. Management must determine expected credit losses for all financial instruments held at the reporting date based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts, the latter of which broadens current guidance. The standard requires enhanced disclosures to help investors and other financial statement users to better understand the significant estimates and judgments used in estimating credit losses. The standard is effective for us on January 1, 2020, with early adoption permitted. The majority of this standard's provisions must be applied using a modified retrospective approach. We are currently evaluating the potential impact of adopting this standard. Customer's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. This standard also requires entities to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and to apply the existing impairment guidance in ASC 350-40 to the capitalized implementation costs as if the costs were long-lived assets. The standard clarifies that such capitalized implementation costs are also subject to the guidance on abandonment in ASC 360, Property, Plant, and Equipment . In addition, this standard requires alignment in presentation between: (1) the expense related to the capitalized implementation costs and the fees associated with the hosting element (service) of the arrangement on the statement of operations; (2) the capitalized implementation costs and any prepayment for the fees of the associated hosting arrangement on the balance sheet; and (3) the payments for capitalized implementation costs and the payments made for fees associated with the hosting element in the statement of cash flows. The standard is effective for us on January 1, 2020, with early adoption permitted, and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are refining our inventory of existing cloud computing arrangements to identify hosting arrangements that are service contracts and will evaluate how to account for the implementation costs of such arrangements. |
Organization, Summary of Sign_3
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Balance Sheets to the total included within the Unaudited Condensed Consolidated Statements of Cash Flows as of the dates indicated. June 30, 2019 2018 Cash and cash equivalents $ 209,176 $ 236,629 Restricted cash 200,252 142,542 Cash and cash equivalents and restricted cash in Unaudited Condensed Consolidated Statements of Cash Flows $ 409,428 $ 379,171 |
Schedule of restricted cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Balance Sheets to the total included within the Unaudited Condensed Consolidated Statements of Cash Flows as of the dates indicated. June 30, 2019 2018 Cash and cash equivalents $ 209,176 $ 236,629 Restricted cash 200,252 142,542 Cash and cash equivalents and restricted cash in Unaudited Condensed Consolidated Statements of Cash Flows $ 409,428 $ 379,171 |
Revenue disaggregated by type of service | Revenue disaggregated by type of service was as follows for the periods presented: Three Months Ended Six Months Ended 2019 2018 2019 2018 Merchant fees $ 96,127 $ 75,576 $ 170,221 $ 134,941 Interchange fees 12,238 14,621 22,192 26,196 Transaction fees 108,365 90,197 192,413 161,137 Servicing fees (1) 30,318 15,458 49,951 29,789 Other (2) 12 49 31 104 Servicing and other 30,330 15,507 49,982 29,893 Total revenue $ 138,695 $ 105,704 $ 242,395 $ 191,030 (1) For the three and six months ended June 30, 2019 , includes a $8,966 change in fair value of our servicing assets primarily associated with an increase to the contractually specified fixed servicing fee for one of our Bank Partners. Refer to Note 3 for additional information. (2) Other revenue includes miscellaneous revenue items that are individually immaterial. Other revenue is presented separately herein in order to clearly present merchant, interchange and servicing fees, which are more integral to our primary operations and better enable financial statement users to calculate metrics such as servicing and merchant fee yields. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the periods indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Income before income tax expense $ 34,727 $ 42,410 $ 41,533 $ 61,014 Less: Net income attributable to GS Holdings prior to Reorganization Transactions ā 19,609 ā 38,213 Less: Net income attributable to noncontrolling interests after Reorganization Transactions 26,877 15,657 31,379 15,657 Less: Income tax expense (benefit) (4,466 ) 1,594 (5,061 ) 1,594 Net income attributable to GreenSky, Inc. ā basic $ 12,316 $ 5,550 $ 15,215 $ 5,550 Add: Reallocation of net income attributable to noncontrolling interests from the assumed exchange of common units of GS Holdings for Class A common stock 26,877 15,657 31,379 15,657 Less: Income tax expense (benefit) on reallocation of net income attributable to noncontrolling interests (1) 5,928 3,493 4,561 3,493 Net income attributable to GreenSky, Inc. ā diluted $ 33,265 $ 17,714 $ 42,033 $ 17,714 Denominator: Weighted average shares of Class A common stock outstanding ā basic 61,081,834 57,399,632 59,523,049 57,399,632 Add: Dilutive effects, as shown separately below Holdco Units exchangeable for Class A common stock 115,939,261 128,257,580 119,405,831 128,257,580 Class A common stock options 2,435,080 2,479,889 2,677,026 2,479,889 Holdco warrants exchangeable for Class A common stock ā 563,458 164,016 563,458 Unvested Class A common stock (2) 243,746 189,363 185,371 189,363 Weighted average shares of Class A common stock outstanding ā diluted 179,699,921 188,889,922 181,955,293 188,889,922 Earnings per share of Class A common stock outstanding ā basic $ 0.20 $ 0.10 $ 0.26 $ 0.10 Earnings per share of Class A common stock outstanding ā diluted $ 0.19 $ 0.09 $ 0.23 $ 0.09 Excluded from diluted earnings per share, as their inclusion would have been anti-dilutive (3) Class A common stock options 2,806,641 472,500 2,806,641 472,500 Unvested Class A common stock 360,847 ā 360,847 ā (1) We assumed effective tax rates of 4.2% and 22.3% for the three months ended June 30, 2019 and 2018 , respectively, and (1.2)% and 22.3% for the six months ended June 30, 2019 and 2018 , respectively, which represent the effective tax rates on the consolidated GreenSky, Inc. entity inclusive of the income taxes on the portion of GS Holdings' earnings that are attributable to noncontrolling interests. The rates for the three and six months ended June 30, 2019 are reflective of the tax benefits from remeasurement of net deferred tax assets, warrant exercises and stock-based compensation deductions. (2) Includes both unvested Class A common stock issued as part of the Reorganization Transactions and unvested Class A common stock awards issued subsequent to the Reorganization Transactions. (3) These amounts represent the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce these amounts if they had a dilutive effect and were included in the computation of diluted earnings per share. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying amounts and estimated fair values of assets and liabilities measured at fair value on a recurring or nonrecurring basis | The following table summarizes, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities measured at fair value on a recurring or nonrecurring basis or disclosed, but not carried, at fair value in the Unaudited Condensed Consolidated Balance Sheets as of the dates presented. There were no transfers into, out of, or between levels within the fair value hierarchy during any of the periods presented. Refer to Note 4 , Note 7 , Note 8 and Note 9 for additional information on these assets and liabilities. Level June 30, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Assets: Cash and cash equivalents (1) 1 $ 209,176 $ 209,176 $ 303,390 $ 303,390 Loan receivables held for sale, net (2) 2 2,798 3,299 2,876 3,552 Servicing assets (3) 3 8,966 8,966 ā ā Liabilities: Finance charge reversal liability (3) 3 $ 164,979 $ 164,979 $ 138,589 $ 138,589 Term loan (1) 2 385,662 394,134 386,822 386,234 Interest rate swap (3) 2 2,125 2,125 ā ā Servicing liabilities (3) 3 3,347 3,347 3,016 3,016 (1) Disclosed, but not carried, at fair value. (2) Measured at fair value on a nonrecurring basis. (3) Measured and carried at fair value on a recurring basis. |
Reconciliation of the beginning and ending fair value measurements of FCR Liability | The following table reconciles the beginning and ending fair value measurements of our FCR liability during the periods indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 149,598 $ 100,913 $ 138,589 $ 94,148 Receipts (1) 38,931 33,742 71,054 61,835 Settlements (2) (62,332 ) (46,834 ) (122,211 ) (89,672 ) Fair value changes recognized in cost of revenue (3) 38,782 19,226 77,547 40,736 Ending balance $ 164,979 $ 107,047 $ 164,979 $ 107,047 (1) Represents cash received from deferred payment loans during the promotional period (referred to as incentive payments), cash received from recoveries on previously charged-off Bank Partner loans, and the proceeds received from transferring our rights to Charged-Off Receivables (as defined below) attributable to previously charged-off Bank Partner loans. We consider all monthly incentive payments from Bank Partners during the period to be related to billed finance charges on deferred interest products until monthly incentive payments exceed total billed finance charges on deferred products, which did not occur during any of the periods presented. (2) Represents the reversal of previously billed finance charges associated with deferred payment loan principal balances that were repaid within the promotional period. (3) A fair value adjustment is made based on the expected reversal percentage of billed finance charges (expected settlements), which is estimated at each reporting date. The fair value adjustment is recognized in cost of revenue in the Unaudited Condensed Consolidated Statements of Operations. |
Significant unobservable inputs used to value Level 3 FCR liability | The following table presents the ranges and weighted averages of our estimated reversal rates as of the dates indicated. Reversal rate June 30, 2019 December 31, 2018 Range 60.0% - 96.8% 70.0% - 97.3% Weighted average 87.7 % 88.2 % |
Charged-off receivable transfers | The following table presents details of Charged-Off Receivables transfers during the periods indicated. Aggregate Unpaid Balance Proceeds Bank Partner loans Loan receivables held for sale Total (1) Bank Partner loans Loan receivables held for sale Total Three Months Ended June 30, 2019 $ 53,585 $ 360 $ 53,945 $ 7,427 $ 50 $ 7,477 Three Months Ended June 30, 2018 37,469 124 37,593 5,021 17 5,038 Six Months Ended June 30, 2019 107,237 1,027 108,264 14,782 141 14,923 Six Months Ended June 30, 2018 74,895 1,283 76,178 10,000 171 10,171 (1) During the three months ended June 30, 2019 and 2018 , $5,495 and $3,461 , respectively, of the aggregate unpaid balance on cumulative transferred Charged-Off Receivables were recovered through our servicing efforts on behalf of our Charged-Off Receivables investors. During the six months ended June 30, 2019 and 2018 , such recoveries on behalf of our Charged-Off Receivables investors were $10,655 and $6,680 , respectively. |
Schedule of servicing assets at fair value | The following table reconciles the beginning and ending fair value measurements of our servicing assets associated with Bank Partner loans during the periods presented. We did not have any servicing assets for the three and six months ended June 30, 2018 . Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Beginning balance $ ā $ ā Additions ā ā Fair value changes recognized in servicing and other revenue Change in inputs or assumptions used in the valuation model ā ā Other changes in fair value (1) 8,966 8,966 Ending balance $ 8,966 $ 8,966 (1) Primarily reflective of an increase to the contractually specified fixed servicing fee for one of our Bank Partners. |
Servicing liabilities and unobservable inputs | The following table reconciles the beginning and ending fair value measurements of our servicing liabilities associated with transferring our rights to Charged-Off Receivables during the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 3,197 $ 2,187 $ 3,016 $ 2,071 Initial obligation from transfer of Charged-Off Receivables (1) 647 450 1,298 911 Fair value changes recognized in other gains (losses) Change in inputs or assumptions used in the valuation model ā ā ā ā Other changes in fair value (2) (497 ) (365 ) (967 ) (710 ) Ending balance $ 3,347 $ 2,272 $ 3,347 $ 2,272 (1) Recognized in other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. (2) Represents the reduction of our servicing liabilities due to the passage of time and collection of loan payments. |
Schedule of fair value assumption, servicing assets or liabilities | The following table presents quantitative information about the significant unobservable inputs used to value the Level 3 servicing assets and liabilities as of the dates presented. Input June 30, 2019 December 31, 2018 Range Weighted Average Range Weighted Average Cost of servicing (basis points) (1) 57.5 - 108.0 105.9 62.5 62.5 Discount rate 18.0 % 18.0 % 18.0 % 18.0 % Weighted average remaining life (years) 2.4 - 5.9 2.5 N/A N/A Recovery period (years) 3.1 - 4.9 4.2 3.6 - 4.9 4.3 (1) The cost of servicing assumption as of December 31, 2018 relates only to Charged-Off Receivables, as the fair value measurement of servicing rights associated with Bank Partner loans was immaterial. |
Loan Receivables Held for Sale
Loan Receivables Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Activity in the balance of loan receivables held for sale | The following table summarizes the activity in the balance of loan receivables held for sale, net at lower of cost or fair value during the periods indicated. Six Months Ended 2019 2018 Beginning balance $ 2,876 $ 73,606 Additions 65,804 43,085 Proceeds from sales and borrower payments (1) (66,714 ) (71,687 ) Decrease (increase) in valuation allowance 175 (220 ) Transfers (2) 1,590 24 Write offs and other (3) (933 ) (1,319 ) Ending balance $ 2,798 $ 43,489 (1) Includes accrued interest and fees, recoveries of previously charged-off loan receivables held for sale, as well as proceeds from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. We retain servicing arrangements on sold loan receivables with the same terms and conditions as loans that are originated by our Bank Partners. Income from loan receivables held for sale activities is recorded within interest income and other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. On March 27, 2019, we sold loan receivables held for sale to a Bank Partner in the amount of $63,673 . On May 21, 2018 and June 27, 2018, we sold loan receivables held for sale to Bank Partners in the amounts of $ 9,552 and $ 50,614 , respectively. (2) We temporarily hold certain loan receivables, which are originated by a Bank Partner, while non-originating Bank Partner eligibility is being determined. Once we determine that a loan receivable meets the investment requirements of an eligible Bank Partner, we transfer the loan receivable to the Bank Partner at cost plus any accrued interest. The reported amount also includes loan receivables that have been placed on non-accrual and non-payment status while we investigate consumer inquiries. (3) We received recovery payments of $25 and $33 during the six months ended June 30, 2019 and 2018 , respectively. Recoveries of principal and finance charges and fees on previously written off loan receivables held for sale are recognized on a collected basis as other gains and interest income, respectively, in the Unaudited Condensed Consolidated Statements of Operations. Separately, during the six months ended June 30, 2019 and 2018 , write offs and other were reduced by $141 and $171 , respectively, related to cash proceeds received from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. The cash proceeds received were recorded within other income (expense), net in the Unaudited Condensed Consolidated Statements of Operations. Accounts receivable consisted of the following as of the dates indicated. Accounts Receivable, Gross Allowance for Losses Accounts Receivable, Net June 30, 2019 Transaction related $ 20,777 $ (384 ) $ 20,393 Servicing related 2,229 ā 2,229 Total $ 23,006 $ (384 ) $ 22,622 December 31, 2018 Transaction related $ 14,704 $ (168 ) $ 14,536 Servicing related 864 ā 864 Total $ 15,568 $ (168 ) $ 15,400 |
Activities associated with loan receivable sales and servicing activities | The following table presents activities associated with our loan receivable sales and servicing activities during the periods indicated. There were no gains or losses on sold loan receivables held for sale during the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Sales of loans $ ā $ 60,166 $ 63,673 $ 60,166 Servicing fees 1,050 533 1,736 1,099 |
Principal balances of sold loan receivables | The following tables present information about sold loan receivables held for sale that are not recorded in our Unaudited Condensed Consolidated Balance Sheets, but with which we have a continuing involvement through our servicing arrangements with our Bank Partners. The sold loan receivables held for sale are pooled with other loans originated by the Bank Partners for purposes of determining escrow balances and incentive payments. The escrow balances represent our only direct exposure to potential losses associated with these sold loan receivables. June 30, 2019 December 31, 2018 Total principal balance $ 361,692 $ 357,060 Delinquent loans (unpaid principal balance) 19,448 23,385 Three Months Ended Six Months Ended 2019 2018 2019 2018 Net charge-offs (unpaid principal balance) $ 4,407 $ 1,787 $ 8,207 $ 4,712 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Activity in the balance of loan receivables held for sale | The following table summarizes the activity in the balance of loan receivables held for sale, net at lower of cost or fair value during the periods indicated. Six Months Ended 2019 2018 Beginning balance $ 2,876 $ 73,606 Additions 65,804 43,085 Proceeds from sales and borrower payments (1) (66,714 ) (71,687 ) Decrease (increase) in valuation allowance 175 (220 ) Transfers (2) 1,590 24 Write offs and other (3) (933 ) (1,319 ) Ending balance $ 2,798 $ 43,489 (1) Includes accrued interest and fees, recoveries of previously charged-off loan receivables held for sale, as well as proceeds from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. We retain servicing arrangements on sold loan receivables with the same terms and conditions as loans that are originated by our Bank Partners. Income from loan receivables held for sale activities is recorded within interest income and other gains (losses) in the Unaudited Condensed Consolidated Statements of Operations. On March 27, 2019, we sold loan receivables held for sale to a Bank Partner in the amount of $63,673 . On May 21, 2018 and June 27, 2018, we sold loan receivables held for sale to Bank Partners in the amounts of $ 9,552 and $ 50,614 , respectively. (2) We temporarily hold certain loan receivables, which are originated by a Bank Partner, while non-originating Bank Partner eligibility is being determined. Once we determine that a loan receivable meets the investment requirements of an eligible Bank Partner, we transfer the loan receivable to the Bank Partner at cost plus any accrued interest. The reported amount also includes loan receivables that have been placed on non-accrual and non-payment status while we investigate consumer inquiries. (3) We received recovery payments of $25 and $33 during the six months ended June 30, 2019 and 2018 , respectively. Recoveries of principal and finance charges and fees on previously written off loan receivables held for sale are recognized on a collected basis as other gains and interest income, respectively, in the Unaudited Condensed Consolidated Statements of Operations. Separately, during the six months ended June 30, 2019 and 2018 , write offs and other were reduced by $141 and $171 , respectively, related to cash proceeds received from transferring our rights to Charged-Off Receivables attributable to loan receivables held for sale. The cash proceeds received were recorded within other income (expense), net in the Unaudited Condensed Consolidated Statements of Operations. Accounts receivable consisted of the following as of the dates indicated. Accounts Receivable, Gross Allowance for Losses Accounts Receivable, Net June 30, 2019 Transaction related $ 20,777 $ (384 ) $ 20,393 Servicing related 2,229 ā 2,229 Total $ 23,006 $ (384 ) $ 22,622 December 31, 2018 Transaction related $ 14,704 $ (168 ) $ 14,536 Servicing related 864 ā 864 Total $ 15,568 $ (168 ) $ 15,400 |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, equipment and software | Property, equipment and software were as follows as of the dates indicated. June 30, 2019 December 31, 2018 Furniture $ 3,142 $ 2,813 Leasehold improvements 4,688 4,171 Computer hardware 2,680 2,923 Software 13,011 8,344 Total property, equipment and software, at cost 23,521 18,251 Less: accumulated depreciation (5,424 ) (5,462 ) Less: accumulated amortization (3,903 ) (2,557 ) Total property, equipment and software, net $ 14,194 $ 10,232 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Key details of the term loans | Key details of the term loan are as follows: June 30, 2019 December 31, 2018 Term loan, face value (1) $ 395,000 $ 397,000 Unamortized debt discount (2) (3,420 ) (3,728 ) Unamortized debt issuance costs (2) (5,918 ) (6,450 ) Term loan $ 385,662 $ 386,822 (1) The principal balance of the term loan is scheduled to be repaid on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity. (2) For the three months ended June 30, 2019 and 2018 , debt discount of $154 and $155 , respectively, and debt issuance costs of $266 and $268 , respectively, were amortized into interest expense in the Unaudited Condensed Consolidated Statements of Operations. For the six months ended June 30, 2019 and 2018 , debt discount of $308 and $283 , respectively, and debt issuance costs of $532 and $557 , respectively, were amortized into interest expense. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | As of June 30, 2019 , we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. Notional Amount Fixed Interest Rate Termination Date Interest rate swap $ 350,000 1.80% June 30, 2023 |
Schedule of derivative instruments in statement of financial position, fair value | The following table presents the fair values and Unaudited Condensed Consolidated Balance Sheets locations of our derivative instruments as of the dates indicated. Balance Sheet Location June 30, 2019 December 31, 2018 Designated as cash flow hedges Interest rate swap Other liabilities $ 2,125 $ ā Not designated as hedges FCR liability Finance charge reversal liability $ 164,979 $ 138,589 |
Derivative instruments, gain (loss) | The following table presents the impacts of our derivative instruments on our Unaudited Condensed Consolidated Statements of Operations for the periods indicated, for which the interest rate swap had no impact during any of the periods presented. Three Months Ended Six Months Ended 2019 2018 2019 2018 Not designated as hedges FCR liability ā change in fair value recorded in cost of revenue $ 38,782 $ 19,226 $ 77,547 $ 40,736 |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in the components of accumulated other comprehensive income (loss) associated with our cash flow hedge, which are net of income taxes and exclude amounts pertaining to noncontrolling interests. There was no accumulated other comprehensive income (loss) activity during the three and six months ended June 30, 2018 . Cash Flow Hedge Three months ended June 30, 2019 Beginning balance as of March 31, 2019 $ ā Other comprehensive income (loss) before reclassifications (558 ) Ending balance as of June 30, 2019 $ (558 ) Six months ended June 30, 2019 Beginning balance as of December 31, 2018 $ ā Other comprehensive income (loss) before reclassifications (558 ) Ending balance as of June 30, 2019 $ (558 ) |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | The following table details the components of other liabilities in the Unaudited Condensed Consolidated Balance Sheets as of the dates indicated. June 30, 2019 December 31, 2018 Transaction processing liabilities $ 20,003 $ 4,958 Servicing liabilities (1) 3,347 3,016 Distributions payable (2) 7,105 10,066 Interest rate swap (3) 2,125 ā Tax related liabilities (4) 4,224 4,412 Deferred lease liabilities (5) ā 2,489 Accruals and other liabilities 8,592 10,736 Total other liabilities $ 45,396 $ 35,677 (1) We elected the fair value method to account for our servicing liabilities. Refer to Note 3 for additional information. (2) Related party distributions payable are not included in this balance, but rather are included within related party liabilities. (3) Refer to Note 3 and Note 8 for additional information on our interest rate swap, which was in a liability position as of June 30, 2019 . (4) Tax related liabilities primarily include a liability for uncertain tax positions and certain taxes payable related to the Reorganization Transactions. Refer to Note 13 for additional information on tax related liabilities. (5) Deferred lease liabilities were calculated in accordance with legacy lease guidance in ASC 840, Leases, for the amount presented as of December 31, 2018 . Under the new lease guidance codified in ASC 842, Leases, which we adopted on January 1, 2019, we recorded operating lease liabilities separately on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2019 . See Note 1 and Note 14 for additional information on our lease accounting. |
Stockholders Equity (Deficit) -
Stockholders Equity (Deficit) - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of dividends declared | The following table summarizes activity associated with our non-tax distributions and payments, as well as our tax distributions during the periods indicated. Three Months Ended Six Months Ended Remaining Reserved Payment (1) (in millions) 2019 2018 2019 2018 Non-tax distributions previously declared and paid upon vesting: Credit Agreement Distributions (2) Distributions $ 0.8 $ 48.8 $ 2.0 $ 50.0 $ 4.7 Related party payments 0.6 1.0 0.6 1.1 ā Special Operating Distributions (3) Distributions 0.4 25.2 1.0 25.2 2.4 Related party payments 0.2 1.0 0.2 1.0 ā Tax distributions 13.1 32.8 14.0 50.9 N/A Total $ 15.1 $ 108.8 $ 17.8 $ 128.2 $ 7.1 (1) As of June 30, 2019 , all remaining portions of the non-tax distributions were recorded within other liabilities in the Unaudited Condensed Consolidated Balance Sheets. (2) See Note 7 for discussion of distributions using the proceeds from our borrowings. (3) In May 2018, we declared a special operating distribution of $26.2 million, a portion of which was declared to a related party. In December 2017, we declared a $160.0 million special cash distribution to GS Holdings unit holders and holders of profits interests. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation, stock options, activity | Class A common stock option ("Options") activity was as follows during the periods indicated: Six Months Ended Six Months Ended Number of Options Weighted Average Exercise Price Number of Options Outstanding at beginning of period 8,053,292 $ 5.25 9,821,884 Granted prior to Reorganization Transactions and IPO (1) N/A N/A 340,000 Exercised prior to Reorganization Transactions and IPO (2)(3) N/A N/A (270,000 ) Forfeited prior to Reorganization Transactions and IPO N/A N/A (260,000 ) Effect of Reorganization Transactions and IPO N/A N/A (186,772 ) Granted after the Reorganization Transactions and IPO (1) 1,290,012 12.55 622,500 Exercised after Reorganization Transactions and IPO (2)(3) (851,401 ) 2.47 ā Forfeited after Reorganization Transactions and IPO (148,819 ) 9.84 (160,000 ) Expired after Reorganization Transactions and IPO (4) (1,500 ) 14.95 ā Outstanding at end of period (5) 8,341,584 $ 6.58 9,907,612 Exercisable at end of period (5)(6) 5,242,936 $ 2.48 7,161,832 (1) Weighted average grant date fair value of Options granted during the six months ended June 30, 2019 and 2018 was $3.80 and $6.34 , respectively. (2) The total intrinsic value of Options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, during the six months ended June 30, 2019 and 2018 was $4.6 million and $1.2 million, respectively. (3) Employees paid $0.3 million to the Company during the six months ended June 30, 2019 to exercise Options, which resulted in the issuance of 34,897 shares of Class A common stock. In addition, the Company paid withholding taxes of $1.6 million during the six months ended June 30, 2019 related to cashless Option exercises, which resulted in the issuance of 246,396 shares of Class A common stock. Employees paid $0.3 million to the Company during the six months ended June 30, 2018 to exercise GS Holdings options, which resulted in the issuance of 30,516 Holdco Units. Additionally, during this same period, 210,000 GS Holdings options were exercised by means of a cashless net exercise procedure, which resulted in the issuance of 38,637 Holdco Units. The Company paid withholding taxes of $0.5 million during the six months ended June 30, 2018 related to cashless GS Holdings option exercises. (4) Expired Options represent vested, underwater Options that were not exercised by terminated employees within 30 days from the employment termination date, as stipulated in the Option award agreements. (5) The aggregate intrinsic value and weighted average remaining contractual terms of Options outstanding and Options exercisable were as follows as of the date indicated: June 30, 2019 Aggregate intrinsic value (in millions) Options outstanding $ 31.7 Options exercisable $ 29.8 Weighted average remaining term (in years) Options outstanding 5.8 Options exercisable 4.1 (6) The total fair value, based on grant date fair value, of Options that vested during the six months ended June 30, 2019 and 2018 was $ 1.4 million and $ 0.6 million, respectively. |
Schedule of share-based compensation, options, grants in period, grant date intrinsic value | The aggregate intrinsic value and weighted average remaining contractual terms of Options outstanding and Options exercisable were as follows as of the date indicated: June 30, 2019 Aggregate intrinsic value (in millions) Options outstanding $ 31.7 Options exercisable $ 29.8 Weighted average remaining term (in years) Options outstanding 5.8 Options exercisable 4.1 |
Schedule of other share-based compensation, activity | Profits interests activity was as follows during the period indicated: Six Months Ended Number of Profits Interests Outstanding at beginning of period 14,061,530 Granted (1) 2,920,000 Forfeited (800,000 ) Outstanding at end of period (2) 16,181,530 (1) Weighted average grant date fair value of profits interests granted during the six months ended June 30, 2018 was $4.47 . (2) The total fair value based on grant date fair value of profits interests that vested during the six months ended June 30, 2018 was $0.4 million. |
Schedule of nonvested share activity | Unvested Holdco Units activity was as follows during the periods indicated: Six Months Ended Six Months Ended Number of Holdco Units Weighted Average Grant Date Fair Value Number of Holdco Units Unvested at beginning of period 2,514,856 $ 23.00 ā Effect of Reorganization Transactions and IPO N/A N/A 3,172,843 Granted ā ā ā Forfeited (273,734 ) 23.00 ā Vested (1) (659,527 ) 23.00 ā Unvested at end of period 1,581,595 $ 23.00 3,172,843 (1) The total fair value, based on grant date fair value, of previously unvested Holdco Units that vested during the six months ended June 30, 2019 and 2018 was $ 15.2 million and $0 , respectively. Unvested Class A common stock activity was as follows during the periods indicated: Six Months Ended Six Months Ended Class A common stock Weighted Average Grant Date Fair Value Class A common stock Unvested at beginning of period 454,561 $ 19.08 ā Effect of Reorganization Transactions and IPO N/A N/A 255,904 Granted 1,873,512 12.76 ā Forfeited (1) (146,859 ) 15.07 ā Vested (2) (66,789 ) 23.00 (6,696 ) Unvested at end of period 2,114,425 $ 13.64 249,208 (1) Forfeited shares of unvested Class A common stock associated with restricted stock awards are held in our treasury stock account. Refer to Note 11 for additional information on our treasury stock. (2) The total fair value, based on grant date fair value, of previously unvested Class A common stock that vested during the six months ended June 30, 2019 and 2018 was $ 1.5 million and $0.2 million, respectively. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, cost | upplemental cash flow and noncash information related to our operating leases were as follows for the period indicated. Six Months Ended Cash paid for amounts included in the measurement of operating lease liabilities Operating cash flows from operating leases $ 1,927 Noncash operating lease ROU assets obtained in exchange for operating lease liabilities Resulting from our adoption of ASU 2016-02 $ 11,279 Resulting from new or modified leases 2,975 Supplemental balance sheet information related to our operating leases was as follows as of the date indicated. June 30, 2019 Operating lease ROU assets $ 12,895 Operating lease liabilities $ 15,761 Weighted average remaining lease term (in years) 3.7 Weighted average discount rate 5.7 % |
Schedule of operating lease liability, maturity | For the periods presented, maturities of operating lease liabilities as of the date indicated and a reconciliation of the total undiscounted cash flows to the operating lease liabilities in the Unaudited Condensed Consolidated Balance Sheets, were as follows in accordance with ASC 842: June 30, 2019 Remainder of 2019 $ 2,041 2020 4,759 2021 4,892 2022 3,704 2023 1,501 Thereafter 814 Total lease payments $ 17,711 Less: imputed interest (1,950 ) Operating lease liabilities $ 15,761 |
Schedule of future minimum rental payments for operating leases | For the periods presented, future minimum lease payments under leases entered into as of the date indicated (inclusive of leases that had not yet commenced) were as follows in accordance with ASC 840: December 31, 2018 2019 $ 3,871 2020 4,073 2021 4,173 2022 3,087 2023 1,238 Thereafter 542 Total minimum lease payments $ 16,984 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Unaudited Condensed Consolidated Statements of Operations effects associated with our related party financing partners were as follows during the period indicated. Three Months Ended June 30, 2018 Six Months Ended Servicing and other $ 26 $ 54 Related party expenses (1) (211 ) ā (1) Expenses incurred related to related party financing partner credit losses. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | Below are tabular disclosures that provide insight into how GS Holdings affects GreenSky, Inc.ās financial position, performance and cash flows. Prior to the IPO and Reorganization Transactions, GreenSky, Inc. did not have any variable interest in GS Holdings. The following table presents the balances related to GS Holdings that are included in the Unaudited Condensed Consolidated Balance Sheets, as well as GreenSky, Inc.'s interest in the variable interest entity at the dates indicated. June 30, 2019 December 31, 2018 Assets Cash and cash equivalents $ 203,290 $ 294,364 Restricted cash 200,252 155,109 Loan receivables held for sale, net 2,798 2,876 Accounts receivable, net 22,622 15,400 Related party receivables 100 142 Property, equipment and software, net 14,194 10,232 Operating lease right-of-use assets 12,895 ā Other assets 17,866 7,448 Total assets $ 474,017 $ 485,571 Liabilities and Members Equity (Deficit) Liabilities Accounts payable $ 14,430 $ 5,357 Accrued compensation and benefits 6,858 8,484 Other accrued expenses 1,308 1,015 Finance charge reversal liability 164,979 138,589 Term loan 385,662 386,822 Related party liabilities ā 825 Operating lease liabilities 15,761 ā Other liabilities 41,172 31,264 Total liabilities 630,170 572,356 Members Equity (Deficit) Equity (deficit) attributable to Continuing LLC Members (108,495 ) (60,349 ) Equity (deficit) attributable to GreenSky, Inc. (47,658 ) (26,436 ) Total members equity (deficit) (156,153 ) (86,785 ) Total liabilities and members equity (deficit) $ 474,017 $ 485,571 The following table reflects the impact of consolidation of GS Holdings into the Unaudited Condensed Consolidated Statements of Operations for the period indicated. Three Months Ended Six Months Ended 2019 2018 2019 2018 Total revenue $ 138,695 $ 105,704 $ 242,395 $ 191,030 Total costs and expenses 92,189 58,896 184,401 120,645 Operating profit 46,506 46,808 57,994 70,385 Total other income (expense), net (5,377 ) (4,398 ) (10,059 ) (9,371 ) Net income $ 41,129 $ 42,410 $ 47,935 $ 61,014 The following table reflects the cash flow impact of GS Holdings on the Unaudited Condensed Consolidated Statements of Cash Flows for the periods indicated. Six Months Ended 2019 2018 Net cash provided by operating activities $ 89,789 $ 109,604 Net cash used in investing activities (7,123 ) (2,707 ) Net cash used in financing activities (128,597 ) (81,669 ) Net increase (decrease) in cash and cash equivalents and restricted cash (45,931 ) 25,228 Cash and cash equivalents and restricted cash at beginning of period 449,473 353,838 Cash and cash equivalents and restricted cash at end of period $ 403,542 $ 379,066 |
Organization, Summary of Sign_4
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Narrative (Details) | May 24, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | May 23, 2018$ / shares | Aug. 24, 2017 |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Remaining performance obligations | $ 0 | $ 0 | |||||||
Volume-based price concessions for merchants and sponsors | 3,198,000 | $ 1,100,000 | 9,106,000 | $ 5,693,000 | |||||
Provision for doubtful accounts | 387,000 | $ 227,000 | 596,000 | $ 1,225,000 | |||||
Capitalized contract cost | 0 | 0 | $ 0 | ||||||
Operating lease right-of-use assets | 12,895,000 | 12,895,000 | |||||||
Operating lease liabilities | $ 15,761,000 | $ 15,761,000 | |||||||
Class B common stock | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Class A common stock | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Class A common stock | IPO | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares sold | shares | 43,700,000 | ||||||||
Price per share (in dollars per share) | $ / shares | $ 23 | ||||||||
Net proceeds, after deducting underwriting discounts and commissions | $ 954,800,000 | ||||||||
GS Holdings | Class A common stock | Sale of Stock to Parent Company | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares purchased by company | shares | 2,426,198 | ||||||||
GS Holdings | Newly-issued common units | Sale of Stock to Parent Company | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares purchased by company | shares | 41,273,802 | ||||||||
Exchange of Holdco Units for Class A common stock pursuant to the Exchange Agreement | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Exchange ratio | 1 | ||||||||
GreenSky, LLC | GS Holdings | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Economic interest (as a percent) | 100.00% | ||||||||
GS Holdings | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Weight average ownership percentage by parent | 34.70% | 33.40% | |||||||
Accounting Standards Update 2016-02 | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Operating lease right-of-use assets | $ 11,300,000 | ||||||||
Operating lease liabilities | $ 14,100,000 |
Organization, Summary of Sign_5
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Cash and restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 209,176 | $ 236,629 | ||
Restricted cash | 200,252 | $ 155,109 | 142,542 | |
Cash and cash equivalents and restricted cash in Unaudited Condensed Consolidated Statements of Cash Flows | $ 409,428 | $ 458,499 | $ 379,171 | $ 353,838 |
Organization, Summary of Sign_6
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Revenue disaggregated by type of service (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 138,695 | $ 105,704 | $ 242,395 | $ 191,030 |
Changes in fair value of servicing assets | 8,966 | 8,966 | ||
Transaction fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 108,365 | 90,197 | 192,413 | 161,137 |
Merchant fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 96,127 | 75,576 | 170,221 | 134,941 |
Interchange fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,238 | 14,621 | 22,192 | 26,196 |
Servicing and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 30,330 | 15,507 | 49,982 | 29,893 |
Servicing fees(1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 30,318 | 15,458 | 49,951 | 29,789 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 12 | $ 49 | $ 31 | $ 104 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | May 23, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 23, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Numerator: | ||||||||
Income before income tax expense | $ 34,727 | $ 42,410 | $ 41,533 | $ 61,014 | ||||
Less: Net income attributable to GS Holdings prior to Reorganization Transactions | $ 19,609 | $ 38,213 | ||||||
Less: Net income attributable to noncontrolling interests after Reorganization Transactions | $ 15,657 | 26,877 | 15,657 | 31,379 | 15,657 | |||
Less: Income tax expense (benefit) | (4,466) | 1,594 | (5,061) | 1,594 | ||||
Net income attributable to GreenSky, Inc. ā basic | 12,316 | 5,550 | 15,215 | 5,550 | ||||
Less: Income tax expense (benefit) on reallocation of net income attributable to noncontrolling interests(1) | 5,928 | 3,493 | 4,561 | 3,493 | ||||
Net income attributable to GreenSky, Inc. ā diluted | $ 33,265 | $ 17,714 | $ 42,033 | $ 17,714 | ||||
Denominator: | ||||||||
Weighted average shares of Class A common stock outstanding - basic (in shares) | 61,081,834 | 57,399,632 | 59,523,049 | 57,399,632 | ||||
Add: Dilutive effects, as shown separately below | ||||||||
Holdco warrants exchangeable for Class A common stock (in shares) | 0 | 563,458 | 164,016 | 563,458 | ||||
Weighted average shares of Class A common stock outstanding - diluted (in shares) | 179,699,921 | 188,889,922 | 181,955,293 | 188,889,922 | ||||
Earnings per share of Class A common stock outstanding - basic (in dollars per share) | [1] | $ 0.20 | $ 0.10 | $ 0.26 | $ 0.10 | |||
Earnings per share of Class A common stock outstanding - diluted (in dollars per share) | [1] | $ 0.19 | $ 0.09 | $ 0.23 | $ 0.09 | |||
Effective income tax rate (as a percent) | (12.90%) | 3.80% | (12.20%) | 2.60% | ||||
HoldCo Units | ||||||||
Add: Dilutive effects, as shown separately below | ||||||||
Holdco Units that are exchangeable for Class A common stock (in shares) | 115,939,261 | 128,257,580 | 119,405,831 | 128,257,580 | ||||
Class A common stock | ||||||||
Add: Dilutive effects, as shown separately below | ||||||||
Dilutive effect of share based compensation awards (in shares) | 2,435,080 | 2,479,889 | 2,677,026 | 2,479,889 | ||||
Excluded from diluted earnings per share, as their inclusion would have been anti-dilutive (in shares) | 2,806,641 | 472,500 | 2,806,641 | 472,500 | ||||
Unvested Class A stock awards | ||||||||
Add: Dilutive effects, as shown separately below | ||||||||
Dilutive effect of share based compensation awards (in shares) | 243,746 | 189,363 | 185,371 | 189,363 | ||||
Excluded from diluted earnings per share, as their inclusion would have been anti-dilutive (in shares) | 360,847 | 0 | 360,847 | 0 | ||||
Noncontrolling Interest | ||||||||
Add: Dilutive effects, as shown separately below | ||||||||
Effective income tax rate (as a percent) | 4.20% | 22.30% | (1.20%) | 22.30% | ||||
[1] | For the three and six months ended JuneĀ 30, 2018, basic and diluted earnings per share of Class A common stock is applicable only for the period from May 24, 2018 through June 30, 2018, which is the period following the initial public offering ("IPO") and related Reorganization Transactions (as defined in Note 1 to the Unaudited Condensed Consolidated Financial Statements). See Note 2 to the Unaudited Condensed Consolidated Financial Statements for the number of shares used in the computation of earnings per share of Class A common stock and the basis for the computation of earnings per share. |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Carrying amounts and estimated fair values of assets and liabilities measured at fair value on a recurring or nonrecurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 209,176 | $ 303,390 |
Liabilities: | ||
Finance charge reversal liability | 164,979 | 138,589 |
Interest rate swap | 2,125 | 0 |
Carrying Value | Measured at fair value on a nonrecurring basis | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 209,176 | 303,390 |
Carrying Value | Measured at fair value on a nonrecurring basis | Level 2 | ||
Assets: | ||
Loan receivables held for sale, net | 2,798 | 2,876 |
Liabilities: | ||
Term loan | 385,662 | 386,822 |
Carrying Value | Measured at fair value on a recurring basis | Level 2 | ||
Liabilities: | ||
Interest rate swap | 2,125 | 0 |
Carrying Value | Measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Servicing assets | 8,966 | 0 |
Liabilities: | ||
Finance charge reversal liability | 164,979 | 138,589 |
Servicing liability | 3,347 | 3,016 |
Fair Value | Measured at fair value on a nonrecurring basis | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 209,176 | 303,390 |
Fair Value | Measured at fair value on a nonrecurring basis | Level 2 | ||
Assets: | ||
Loan receivables held for sale, net | 3,299 | 3,552 |
Liabilities: | ||
Term loan | 394,134 | 386,234 |
Fair Value | Measured at fair value on a recurring basis | Level 2 | ||
Liabilities: | ||
Interest rate swap | 2,125 | 0 |
Fair Value | Measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Servicing assets | 8,966 | 0 |
Liabilities: | ||
Finance charge reversal liability | 164,979 | 138,589 |
Servicing liability | $ 3,347 | $ 3,016 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Additional information (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Servicing fees | $ 21,352,000 | $ 15,458,000 | $ 40,985,000 | $ 29,789,000 | |
Period after which collection efforts will cease | 5 years | ||||
Cash Flow Hedging | Interest rate swap | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||
Derivative, term of contract | 4 years |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Reconciliation of the beginning and ending fair value measurements of FCR Liability (Details) - Finance charge reversals - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||||
Beginning balance | $ 149,598 | $ 100,913 | $ 138,589 | $ 94,148 |
Receipts | 38,931 | 33,742 | 71,054 | 61,835 |
Settlements | (62,332) | (46,834) | (122,211) | (89,672) |
Fair value changes recognized in cost of revenue | 38,782 | 19,226 | 77,547 | 40,736 |
Ending balance | $ 164,979 | $ 107,047 | $ 164,979 | $ 107,047 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Significant unobservable inputs used to value Level 3 FCR liability (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Reversal rate | 0.600 | 0.700 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Reversal rate | 0.968 | 0.973 |
Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Reversal rate | 0.877 | 0.882 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Charged-off receivable transfers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Aggregate Unpaid Balance | $ 53,945 | $ 37,593 | $ 108,264 | $ 76,178 |
Proceeds | 7,477 | 5,038 | 14,923 | 10,171 |
Amount recovered on transferred Charged-Off Receivables | 5,495 | 3,461 | 10,655 | 6,680 |
Bank Partner loans | ||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Aggregate Unpaid Balance | 53,585 | 37,469 | 107,237 | 74,895 |
Proceeds | 7,427 | 5,021 | 14,782 | 10,000 |
Loan receivables held for sale | ||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||||
Aggregate Unpaid Balance | 360 | 124 | 1,027 | 1,283 |
Proceeds | $ 50 | $ 17 | $ 141 | $ 171 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Servicing assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Additions | 0 | 0 |
Fair value changes recognized in servicing and other revenue | ||
Change in inputs or assumptions used in the valuation model | 0 | 0 |
Other changes in fair value | 8,966 | 8,966 |
Ending balance | $ 8,966 | $ 8,966 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Servicing liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Servicing Liability at Fair Value, Amount | ||||
Beginning balance | $ 3,197 | $ 2,187 | $ 3,016 | $ 2,071 |
Initial obligation from transfer of Charged-Off Receivables | 647 | 450 | 1,298 | 911 |
Change in inputs or assumptions used in the valuation model | 0 | 0 | 0 | 0 |
Other changes in fair value | (497) | (365) | (967) | (710) |
Ending balance | $ 3,347 | $ 2,272 | $ 3,347 | $ 2,272 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Unobservable inputs (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Servicing Assets at Fair Value [Line Items] | ||
Cost of servicing (basis points)(1) | 0.625% | |
Discount rate | 18.00% | 18.00% |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Cost of servicing (basis points)(1) | 0.575% | |
Weighted average remaining life (years) | 2 years 4 months 24 days | |
Recovery period (years) | 3 years 1 month 6 days | 3 years 7 months 6 days |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Cost of servicing (basis points)(1) | 1.08% | |
Weighted average remaining life (years) | 5 years 10 months 24 days | |
Recovery period (years) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Cost of servicing (basis points)(1) | 1.059% | 0.625% |
Discount rate | 18.00% | 18.00% |
Weighted average remaining life (years) | 2 years 6 months | |
Recovery period (years) | 4 years 2 months 12 days | 4 years 3 months 19 days |
Loan Receivables Held for Sal_2
Loan Receivables Held for Sale - Activity in the balance of loan receivables held for sale (Details) - USD ($) $ in Thousands | Mar. 27, 2019 | Jun. 27, 2018 | May 21, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow | |||||||
Beginning balance | $ 2,876 | $ 73,606 | |||||
Additions | 65,804 | 43,085 | |||||
Proceeds from sales and borrower payments | (66,714) | (71,687) | |||||
Decrease (increase) in valuation allowance | 175 | (220) | |||||
Transfers | 1,590 | 24 | |||||
Write offs and other | (933) | (1,319) | |||||
Ending balance | $ 2,798 | $ 43,489 | 2,798 | 43,489 | |||
Sales of loans | $ 63,673 | $ 50,614 | $ 9,552 | 0 | 60,166 | 63,673 | 60,166 |
Recovery payments received | 25 | 33 | |||||
Proceeds | 7,477 | 5,038 | 14,923 | 10,171 | |||
Loan receivables held for sale | |||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow | |||||||
Proceeds | $ 50 | $ 17 | $ 141 | $ 171 |
Loan Receivables Held for Sal_3
Loan Receivables Held for Sale - Activities associated with loan receivable sales and servicing activities (Details) - USD ($) | Mar. 27, 2019 | Jun. 27, 2018 | May 21, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Receivables [Abstract] | |||||||
Gain/(loss) on sold loan receivables held for sale | $ 0 | $ 0 | $ 0 | $ 0 | |||
Cash Flows | |||||||
Sales of loans | $ 63,673,000 | $ 50,614,000 | $ 9,552,000 | 0 | 60,166,000 | 63,673,000 | 60,166,000 |
Servicing fees | $ 1,050,000 | $ 533,000 | $ 1,736,000 | $ 1,099,000 |
Loan Receivables Held for Sal_4
Loan Receivables Held for Sale - Principal balances of sold loan receivables (Details) - Bank Partners - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total principal balance | $ 361,692 | $ 361,692 | $ 357,060 | ||
Delinquent loans (unpaid principal balance) | 19,448 | 19,448 | $ 23,385 | ||
Net charge-offs (unpaid principal balance) | $ 4,407 | $ 1,787 | $ 8,207 | $ 4,712 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross | $ 23,006 | $ 15,568 |
Allowance for Losses | (384) | (168) |
Accounts receivable, net | 22,622 | 15,400 |
Transaction related | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross | 20,777 | 14,704 |
Allowance for Losses | (384) | (168) |
Accounts receivable, net | 20,393 | 14,536 |
Servicing related | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross | 2,229 | 864 |
Allowance for Losses | 0 | 0 |
Accounts receivable, net | $ 2,229 | $ 864 |
Property, Equipment and Softw_3
Property, Equipment and Software (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software, at cost | $ 23,521 | $ 18,251 |
Less: accumulated depreciation | (5,424) | (5,462) |
Less: accumulated amortization | (3,903) | (2,557) |
Total property, equipment and software, net | 14,194 | 10,232 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software, at cost | 3,142 | 2,813 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software, at cost | 4,688 | 4,171 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software, at cost | 2,680 | 2,923 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software, at cost | $ 13,011 | $ 8,344 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Aug. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 450,000,000 | ||||||
Term loan | Original term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 350,000,000 | ||||||
Proceeds from the term loan | 338,600,000 | ||||||
Cash reserved for repayment to equity holders and related party | 7,900,000 | ||||||
Cash and debt reserved for repayment to equity holders and related part | 346,500,000 | ||||||
Repayments of debt | $ 349,100,000 | ||||||
Term loan | Modified term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Term loan | Modified term loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Margin (as a percent) | 3.25% | ||||||
Revolving credit facility | Original revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||
Borrowings under the credit facility | $ 0 | $ 0 | $ 0 | ||||
Threshold first lien net leverage ratio | 1.50 | ||||||
Reduced interest margin (percent) | 0.375% | ||||||
Commitment fees within interest expense | 95,000 | $ 96,000 | $ 189,000 | $ 221,000 | |||
Letter of credit | Original revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 10,000,000 | $ 10,000,000 | |||||
Commitment fee percentage | 0.50% | ||||||
Interest rate swap | Cash Flow Hedging | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, notional amount | $ 350,000,000 | $ 350,000,000 |
Borrowings - Schedule of term l
Borrowings - Schedule of term loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Term loan, face value | $ 395,000 | $ 395,000 | $ 397,000 | ||
Unamortized debt discount | (3,420) | (3,420) | (3,728) | ||
Unamortized debt issuance costs | (5,918) | (5,918) | (6,450) | ||
Term loan | 385,662 | 385,662 | $ 386,822 | ||
Amortization of debt related costs | 840 | $ 840 | |||
Term loan | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt discount | 154 | $ 155 | 308 | 283 | |
Amortization of debt related costs | $ 266 | $ 268 | $ 532 | $ 557 | |
Term loan | Modified term loan | |||||
Debt Instrument [Line Items] | |||||
Quarterly amortization rate | 0.25% |
Derivative Instruments (Details
Derivative Instruments (Details) - Cash Flow Hedging - Interest rate swap | 1 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative [Line Items] | |
Derivative, notional amount | $ 350,000,000 |
Derivative, term of contract | 4 years |
Derivative, fixed interest rate | 1.8045% |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments on our Unaudited Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | $ 2,125 | $ 2,125 | $ 0 | ||
Interest rate swap | Other liabilities | Designated as cash flow hedges | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | 2,125 | 2,125 | 0 | ||
FCR liability | Finance charge reversal liability | Not designated as hedges | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liability | 164,979 | 164,979 | $ 138,589 | ||
FCR liability | Cost of Goods | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Change in fair value recorded in cost of revenue | $ 38,782 | $ 19,226 | $ 77,547 | $ 40,736 |
Derivative Instruments - Change
Derivative Instruments - Changes in Other Comprehensive Income (Loss) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 500 | $ 500 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Ending balance | (558) | (558) |
Cash Flow Hedge | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | $ (558) | $ (558) |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||||||
Transaction processing liabilities | $ 20,003 | $ 4,958 | ||||
Servicing liabilities | 3,347 | $ 3,197 | 3,016 | $ 2,272 | $ 2,187 | $ 2,071 |
Distributions payable | 7,105 | 10,066 | ||||
Interest rate swap | 2,125 | 0 | ||||
Tax related liabilities | 4,224 | 4,412 | ||||
Deferred lease liabilities | 0 | 2,489 | ||||
Accruals and other liabilities | 8,592 | 10,736 | ||||
Total other liabilities | $ 45,396 | $ 35,677 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
GS Holdings | |||
Noncontrolling Interest [Line Items] | |||
Weight average ownership percentage by parent | 34.70% | 33.40% | |
Class A common stock | |||
Noncontrolling Interest [Line Items] | |||
Common stock, outstanding (in shares) | 61,772,014 | 61,772,014 | 54,504,902 |
Stockholders Equity (Deficit) (
Stockholders Equity (Deficit) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2014 | |
Class of Stock [Line Items] | ||||
Treasury stock (in shares) | 13,584,297 | 13,584,297 | ||
Treasury stock, shares acquired (in shares) | 13,425,688 | |||
Treasury stock, acquired | $ 146,100 | |||
Treasury stock reissued (in shares) | 0 | |||
Number of securities called by warrants (in shares) | 1,304,640 | |||
Warrants exercised (in shares) | 1,180,163 | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Treasury stock, acquired | $ 51,291 | $ 102,241 | ||
Treasury stock, forfeited (in shares) | 158,609 |
Stockholders Equity (Deficit)_2
Stockholders Equity (Deficit) - Distributions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Dividends Payable [Line Items] | ||||||
Payments of distributions | $ 17,757,000 | $ 127,640,000 | ||||
Payment of tax distributions | $ 13,100,000 | $ 32,800,000 | 14,000,000 | 50,900,000 | ||
Remaining reserved payment | 7,105,000 | 11,493,000 | 7,105,000 | 11,493,000 | ||
Credit Agreement Distribution | ||||||
Dividends Payable [Line Items] | ||||||
Payments of distributions | 800,000 | 48,800,000 | 2,000,000 | 50,000,000 | ||
Remaining reserved payment | 4,700,000 | 4,700,000 | ||||
Special Operating Distribution | ||||||
Dividends Payable [Line Items] | ||||||
Payments of distributions | 400,000 | 25,200,000 | 1,000,000 | 25,200,000 | ||
Remaining reserved payment | 2,400,000 | 2,400,000 | ||||
Distributions | $ 26,200,000 | $ 160,000,000 | ||||
Tax and Non-Tax Distributions Gross | ||||||
Dividends Payable [Line Items] | ||||||
Payments of distributions | 15,100,000 | 108,800,000 | 17,800,000 | 128,200,000 | ||
Remaining reserved payment | 7,100,000 | 7,100,000 | ||||
Affiliated Entity | ||||||
Dividends Payable [Line Items] | ||||||
Remaining reserved payment | 0 | 0 | ||||
Affiliated Entity | Credit Agreement Distribution | ||||||
Dividends Payable [Line Items] | ||||||
Payments of distributions | 600,000 | 1,000,000 | 600,000 | 1,100,000 | ||
Remaining reserved payment | 0 | 0 | ||||
Affiliated Entity | Special Operating Distribution | ||||||
Dividends Payable [Line Items] | ||||||
Payments of distributions | 200,000 | $ 1,000,000 | 200,000 | $ 1,000,000 | ||
Remaining reserved payment | $ 0 | $ 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 24, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 3,271 | $ 1,850 | $ 5,936 | $ 2,851 | |
Profits Interests converted into vested and unvested HoldCo Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Price per share (in dollars per share) | $ 23 | $ 23 | |||
Profits Interests converted into vested and unvested Class A stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Price per share (in dollars per share) | $ 23 | ||||
Unvested Class A stock awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unvested Class A stock awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Unvested Class A stock awards | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year |
Share-Based Compensation - Clas
Share-Based Compensation - Class A Common Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | May 24, 2018 | Jun. 30, 2018 | May 23, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Payment of option taxes | $ 1,550 | $ 0 | |||
Shares exercised by means of cashless net exercise procedure (in shares) | 210,000 | ||||
Class A common stock | |||||
Number of Options | |||||
Outstanding at beginning of period (in shares) | 9,821,884 | 8,053,292 | 9,821,884 | ||
Granted (in shares) | 622,500 | 340,000 | 1,290,012 | ||
Exercised (in shares) | 0 | (270,000) | (851,401) | ||
Forfeited (in shares) | (160,000) | (260,000) | (148,819) | ||
Effect of Reorganization Transactions and IPO (in shares) | (186,772) | ||||
Expired (in shares) | 0 | (1,500) | |||
Outstanding at end of period (in shares) | 9,907,612 | 8,341,584 | 9,907,612 | ||
Exercisable at end of period (in shares) | 7,161,832 | 5,242,936 | 7,161,832 | ||
Weighted Average Exercise Price | |||||
Outstanding at beginning of period (in dollars per share) | $ 5.25 | ||||
Granted (in dollars per share) | 12.55 | ||||
Exercised (in dollars per share) | 2.47 | ||||
Forfeited (in dollars per share) | 9.84 | ||||
Expired (in dollars per share) | 14.95 | ||||
Outstanding at end of period (in dollars per share) | 6.58 | ||||
Exercisable at end of period (in dollars per share) | 2.48 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Weighted average grant date fair value, grants in period (in dollars per share) | $ 3.80 | $ 6.34 | |||
Exercises in period, intrinsic value | $ 4,600 | $ 1,200 | |||
Payment of option taxes | $ 1,600 | ||||
Issuance of shares by means of cashless net exercise procedure (in shares) | 246,396 | ||||
Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Proceeds from issuance of shares under share-based compensation plans | $ 300 | 300 | |||
Employees | Class A common stock | |||||
Number of Options | |||||
Exercised (in shares) | (34,897) | ||||
Unvested HoldCo Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Payment of option taxes | $ 500 | ||||
Issuance of shares by means of cashless net exercise procedure (in shares) | 38,637 | ||||
Unvested HoldCo Units | Employees | |||||
Number of Options | |||||
Exercised (in shares) | (30,516) |
Share-Based Compensation - Intr
Share-Based Compensation - Intrinsic Value (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Aggregate intrinsic value (in millions) | ||
Options outstanding | $ 31.7 | |
Options exercisable | $ 29.8 | |
Weighted average remaining term (in years) | ||
Options outstanding | 5 years 9 months 18 days | |
Options exercisable | 4 years 1 month 6 days | |
Options, vested in period, fair value | $ 1.4 | $ 0.6 |
Share-Based Compensation - Prof
Share-Based Compensation - Profits Interests (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Vested in period, fair value | $ | $ 0.4 |
Profit Interests | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at beginning of period (in shares) | 14,061,530 |
Granted (in shares) | 2,920,000 |
Forfeited (in shares) | (800,000) |
Outstanding at end of period (in shares) | 16,181,530 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.47 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested HoldCo Units, Class A Common Stock Awards, and RSAs (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Unvested HoldCo Units | ||
Class A common stock | ||
Unvested at beginning of period (in shares) | 2,514,856 | 0 |
Effect of Reorganization Transactions and IPO (in shares) | 3,172,843 | |
Granted (in shares) | 0 | 0 |
Forfeited (in shares) | (273,734) | 0 |
Vested (in shares) | (659,527) | 0 |
Unvested at period end (in shares) | 1,581,595 | 3,172,843 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in dollars per share) | $ 23 | |
Granted (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 23 | |
Vested (in dollars per share) | 23 | |
Unvested at period end (in dollars per share) | $ 23 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Vested in period, fair value | $ 15,200,000 | $ 0 |
Unvested Class A stock awards | ||
Class A common stock | ||
Unvested at beginning of period (in shares) | 454,561 | 0 |
Effect of Reorganization Transactions and IPO (in shares) | 255,904 | |
Granted (in shares) | 1,873,512 | 0 |
Forfeited (in shares) | (146,859) | 0 |
Vested (in shares) | (66,789) | (6,696) |
Unvested at period end (in shares) | 2,114,425 | 249,208 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in dollars per share) | $ 19.08 | |
Granted (in dollars per share) | 12.76 | |
Forfeited (in dollars per share) | 15.07 | |
Vested (in dollars per share) | 23 | |
Unvested at period end (in dollars per share) | $ 13.64 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Vested in period, fair value | $ 1,500,000 | $ 200,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | (12.90%) | 3.80% | (12.20%) | 2.60% | |
Income tax expense (benefit) | $ (4,466) | $ 1,594 | $ (5,061) | $ 1,594 | |
Federal and state statutory rate | 24.10% | 23.50% | 24.10% | 23.50% | |
Unrecognized tax benefits | $ 3,400 | $ 3,400 | $ 3,400 | ||
Decrease in unrecognized tax benefits is reasonably possible | 3,400 | 3,400 | |||
Deferred tax assets, net | 359,969 | 359,969 | 306,979 | ||
Tax receivable agreement liability | 303,233 | 303,233 | $ 260,901 | ||
Payments for tax receivable agreement inclusive of interest | $ 4,700 | $ 4,664 | $ 0 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||||
Operating lease, expense | $ 973 | $ 1,784 | |||
Rent expense | $ 812 | $ 1,556 | |||
Unused commitments to extend credit | 1,900 | 1,900 | $ 3,000 | ||
Restricted cash | 200,252 | $ 142,542 | 200,252 | $ 142,542 | 155,109 |
Collectibility of Receivables | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 5,900 | 5,900 | |||
Financial Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 1,200 | 1,200 | |||
Possible losses as guarantor, maximum | 125,500 | 125,500 | |||
Contractual Restricted Cash Under Arrangement | |||||
Loss Contingencies [Line Items] | |||||
Restricted cash | 55,900 | 55,900 | $ 49,800 | ||
Bank Partners | |||||
Loss Contingencies [Line Items] | |||||
Financing receivable, nonaccrual status | $ 16,100 | $ 16,100 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Renewal term (in years) | 5 years | 5 years | |||
Minimum | Financial Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 0 | $ 0 | |||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Renewal term (in years) | 15 years | 15 years | |||
Loss contingency, estimate of possible loss | $ 4,000 | $ 4,000 | |||
Maximum | Financial Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 16,000 | $ 16,000 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Lease Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating cash flows from operating leases | $ 1,927 | |
Noncash operating lease ROU assets obtained in exchange for operating lease liabilities | 2,975 | |
Operating lease ROU assets | 12,895 | |
Operating lease liabilities | $ 15,761 | |
Weighted average remaining lease term (in years) | 3 years 8 months 12 days | |
Weighted average discount rate | 5.70% | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Noncash operating lease ROU assets obtained in exchange for operating lease liabilities | $ 11,279 | |
Operating lease ROU assets | $ 11,300 | |
Operating lease liabilities | $ 14,100 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 2,041 |
2020 | 4,759 |
2021 | 4,892 |
2022 | 3,704 |
2023 | 1,501 |
Thereafter | 814 |
Total lease payments | 17,711 |
Less: imputed interest | (1,950) |
Operating lease liabilities | $ 15,761 |
Commitments, Contingencies an_6
Commitments, Contingencies and Guarantees - Future Lease Payment Prior to the Adoption of ASC 842 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 3,871 |
2020 | 4,073 |
2021 | 4,173 |
2022 | 3,087 |
2023 | 1,238 |
Thereafter | 542 |
Total minimum lease payments | $ 16,984 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2016director | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||
Operating lease right-of-use assets | $ 12,895,000 | $ 12,895,000 | ||||
Operating lease liabilities | 15,761,000 | 15,761,000 | ||||
Related party receivables | 100,000 | 100,000 | $ 142,000 | |||
Remaining reserved payment | 7,105,000 | $ 11,493,000 | 7,105,000 | $ 11,493,000 | ||
Related party liabilities | 0 | 0 | 825,000 | |||
Common Management | ||||||
Related Party Transaction [Line Items] | ||||||
Operating lease right-of-use assets | 5,800,000 | 5,800,000 | ||||
Operating lease liabilities | 7,000,000 | 7,000,000 | ||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Remaining reserved payment | 0 | 0 | ||||
Rent expense | Common Management | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | 432,000 | 441,000 | 869,000 | 813,000 | ||
Recruiting Services | Director | ||||||
Related Party Transaction [Line Items] | ||||||
Related party liabilities | 0 | 0 | 0 | |||
Loans receivable | Non-Executive Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Related party receivables | 100,000 | 100,000 | $ 142,000 | |||
Share-based compensation | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | 0 | 0 | 0 | 0 | ||
Charged-off receivables | Director | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 150,000 | $ 249,000 | ||||
Bank partner agreement | Financing Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 211,000 | $ 0 | ||||
Number of directors | director | 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - Bank partner agreement - Financing Partner - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Servicing and other | $ 26 | $ 54 |
Related party expenses | $ (211) | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Variable Interest Entities (Det
Variable Interest Entities (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
GS Holdings | ||
Variable Interest Entity [Line Items] | ||
Weight average ownership percentage by parent | 34.70% | 33.40% |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIE, ownership percentage | 100.00% |
Variable Interest Entities - Ba
Variable Interest Entities - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | |||||
Cash and cash equivalents | $ 209,176 | $ 236,629 | |||
Restricted cash | 200,252 | $ 155,109 | 142,542 | ||
Loan receivables held for sale, net | 2,798 | 2,876 | 43,489 | $ 73,606 | |
Accounts receivable, net | 22,622 | 15,400 | |||
Related party receivables | 100 | 142 | |||
Property, equipment and software, net | 14,194 | 10,232 | |||
Operating lease right-of-use assets | 12,895 | ||||
Other assets | 18,863 | 8,777 | |||
Total assets | 840,869 | 802,905 | |||
Liabilities | |||||
Accounts payable | 14,430 | 5,357 | |||
Accrued compensation and benefits | 6,858 | 8,484 | |||
Other accrued expenses | 1,308 | 1,015 | |||
Finance charge reversal liability | 164,979 | 138,589 | |||
Term loan | 385,662 | 386,822 | |||
Related party liabilities | 0 | 825 | |||
Operating lease liabilities | 15,761 | ||||
Other liabilities | 45,396 | 35,677 | |||
Total liabilities | 937,627 | 837,670 | |||
Equity (Deficit) | |||||
Noncontrolling interest | (108,495) | (60,349) | |||
Total equity (deficit) | (96,758) | $ (73,260) | (34,765) | $ (46,460) | |
Total liabilities and equity (deficit) | 840,869 | 802,905 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Assets | |||||
Cash and cash equivalents | 203,290 | 294,364 | |||
Restricted cash | 200,252 | 155,109 | |||
Loan receivables held for sale, net | 2,798 | 2,876 | |||
Accounts receivable, net | 22,622 | 15,400 | |||
Related party receivables | 100 | 142 | |||
Property, equipment and software, net | 14,194 | 10,232 | |||
Operating lease right-of-use assets | 12,895 | ||||
Other assets | 17,866 | 7,448 | |||
Total assets | 474,017 | 485,571 | |||
Liabilities | |||||
Accounts payable | 14,430 | 5,357 | |||
Accrued compensation and benefits | 6,858 | 8,484 | |||
Other accrued expenses | 1,308 | 1,015 | |||
Finance charge reversal liability | 164,979 | 138,589 | |||
Term loan | 385,662 | 386,822 | |||
Related party liabilities | 0 | 825 | |||
Operating lease liabilities | 15,761 | ||||
Other liabilities | 41,172 | 31,264 | |||
Total liabilities | 630,170 | 572,356 | |||
Equity (Deficit) | |||||
Noncontrolling interest | (108,495) | (60,349) | |||
Total permanent equity (deficit) | (47,658) | (26,436) | |||
Total equity (deficit) | (156,153) | (86,785) | |||
Total liabilities and equity (deficit) | $ 474,017 | $ 485,571 |
Variable Interest Entities - St
Variable Interest Entities - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Variable Interest Entity [Line Items] | ||||
Total revenue | $ 138,695 | $ 105,704 | $ 242,395 | $ 191,030 |
Total costs and expenses | 92,189 | 58,896 | 184,401 | 120,645 |
Operating profit | 46,506 | 46,808 | 57,994 | 70,385 |
Total other income (expense), net | (11,779) | (4,398) | (16,461) | (9,371) |
Income before income tax expense (benefit) | 34,727 | 42,410 | 41,533 | 61,014 |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Total revenue | 138,695 | 105,704 | 242,395 | 191,030 |
Total costs and expenses | 92,189 | 58,896 | 184,401 | 120,645 |
Operating profit | 46,506 | 46,808 | 57,994 | 70,385 |
Total other income (expense), net | (5,377) | (4,398) | (10,059) | (9,371) |
Income before income tax expense (benefit) | $ 41,129 | $ 42,410 | $ 47,935 | $ 61,014 |
Variable Interest Entities - _2
Variable Interest Entities - Statement of Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net cash provided by operating activities | $ 89,789 | $ 109,604 |
Net cash used in investing activities | (7,123) | (2,707) |
Net cash used in financing activities | (131,737) | (81,564) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (49,071) | 25,333 |
Cash and cash equivalents and restricted cash at beginning of period | 458,499 | 353,838 |
Cash and cash equivalents and restricted cash at end of period | 409,428 | 379,171 |
Variable Interest Entity, Primary Beneficiary | ||
Cash flows from operating activities | ||
Net cash provided by operating activities | 89,789 | 109,604 |
Net cash used in investing activities | (7,123) | (2,707) |
Net cash used in financing activities | (128,597) | (81,669) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (45,931) | 25,228 |
Cash and cash equivalents and restricted cash at beginning of period | 449,473 | 353,838 |
Cash and cash equivalents and restricted cash at end of period | $ 403,542 | $ 379,066 |
Uncategorized Items - gsky-2019
Label | Element | Value | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | $ 14,605,000 | |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 719,000 | |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | 413,990,000 | |
Temporary Equity, Elimination as Part of Reorganization | us-gaap_TemporaryEquityEliminationAsPartofReorganization | 413,990,000 | |
Temporary Equity, Distributions | gsky_TemporaryEquityDistributions | 16,358,000 | |
Temporary Equity, Distributions | gsky_TemporaryEquityDistributions | 16,358,000 | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (2,000) | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (6,000) | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (2,000) | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared, Including Temporary Equity | gsky_DistributionMadetoLimitedLiabilityCompanyLLCMemberCashDistributionsDeclaredIncludingTemporaryEquity | 93,247,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared, Including Temporary Equity | gsky_DistributionMadetoLimitedLiabilityCompanyLLCMemberCashDistributionsDeclaredIncludingTemporaryEquity | 111,341,000 | |
Limited Liability Company (LLC) Members' Equity, Unit-based Payment Arrangement | us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation | 1,131,000 | |
Limited Liability Company (LLC) Members' Equity, Unit-based Payment Arrangement | us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation | 2,132,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 339,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 339,000 | |
Purchases Of Subsidiary Units In Connection With IPO | gsky_PurchasesOfSubsidiaryUnitsInConnectionWithIPO | 901,833,000 | |
Purchases Of Subsidiary Units In Connection With IPO | gsky_PurchasesOfSubsidiaryUnitsInConnectionWithIPO | 901,833,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (290,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (196,000) | [2] |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | 511,176,000 | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | 511,176,000 | |
Adjustment To Additional Paid In Capital, Deferred Tax Adjustment Related To Tax Receivable Agreement | gsky_AdjustmentToAdditionalPaidInCapitalDeferredTaxAdjustmentRelatedToTaxReceivableAgreement | 47,129,000 | |
Adjustment To Additional Paid In Capital, Deferred Tax Adjustment Related To Tax Receivable Agreement | gsky_AdjustmentToAdditionalPaidInCapitalDeferredTaxAdjustmentRelatedToTaxReceivableAgreement | 47,129,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 496,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 496,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 76,889,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 94,983,000 | |
Retained Earnings [Member] | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 68,000 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 19,609,000 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 38,213,000 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 5,550,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (87,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (59,000) | [2] |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | (79,729,000) | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | (79,729,000) | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 38,909,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 57,003,000 | |
Noncontrolling Interest [Member] | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 14,537,000 | |
Noncontrolling Interest, Effect Of Reorganization | gsky_NoncontrollingInterestEffectOfReorganization | (69,299,000) | |
Noncontrolling Interest, Effect Of Reorganization | gsky_NoncontrollingInterestEffectOfReorganization | (69,299,000) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 15,657,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (203,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (137,000) | [2] |
Noncontrolling Interest, Increase From Vesting Of Shares | gsky_NoncontrollingInterestIncreaseFromVestingOfShares | 159,000 | |
Additional Paid-in Capital [Member] | |||
Noncontrolling Interest, Effect Of Reorganization | gsky_NoncontrollingInterestEffectOfReorganization | 69,299,000 | |
Noncontrolling Interest, Effect Of Reorganization | gsky_NoncontrollingInterestEffectOfReorganization | 69,299,000 | |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 719,000 | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (2,000) | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (6,000) | |
Equity-Based Payments To Non-Employees | gsky_EquityBasedPaymentsToNonEmployees | (2,000) | |
Limited Liability Company (LLC) Members' Equity, Unit-based Payment Arrangement | us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation | 1,131,000 | |
Limited Liability Company (LLC) Members' Equity, Unit-based Payment Arrangement | us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation | 2,132,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 339,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 339,000 | |
Purchases Of Subsidiary Units In Connection With IPO | gsky_PurchasesOfSubsidiaryUnitsInConnectionWithIPO | 901,833,000 | |
Purchases Of Subsidiary Units In Connection With IPO | gsky_PurchasesOfSubsidiaryUnitsInConnectionWithIPO | 901,833,000 | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | 590,905,000 | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | 590,905,000 | |
Adjustment To Additional Paid In Capital, Deferred Tax Adjustment Related To Tax Receivable Agreement | gsky_AdjustmentToAdditionalPaidInCapitalDeferredTaxAdjustmentRelatedToTaxReceivableAgreement | 47,129,000 | |
Adjustment To Additional Paid In Capital, Deferred Tax Adjustment Related To Tax Receivable Agreement | gsky_AdjustmentToAdditionalPaidInCapitalDeferredTaxAdjustmentRelatedToTaxReceivableAgreement | 47,129,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 496,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 496,000 | |
Noncontrolling Interest, Increase From Vesting Of Shares | gsky_NoncontrollingInterestIncreaseFromVestingOfShares | (159,000) | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 37,980,000 | |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared | us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared | 37,980,000 | |
Additional Paid In Capital - LLC [Member] | |||
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | (97,344,000) | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | (97,344,000) | |
Common Class B [Member] | |||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 129,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 129,000 | |
Common Class B [Member] | Common Stock [Member] | |||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 128,983,353 | |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 128,983,353 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 129,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 129,000 | |
Common Class A [Member] | |||
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 53,012,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 53,012,000 | |
Common Class A [Member] | IPO [Member] | |||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 950,990,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 950,990,000 | |
Common Class A [Member] | Common Stock [Member] | |||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 1,000 | |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | $ 1,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised | 125,398 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised | 125,398 | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | $ 158,000 | |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | 158,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 24,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | $ 24,000 | |
Stock Issued During Period, Shares, Conversion of Units | us-gaap_StockIssuedDuringPeriodSharesConversionOfUnits | 15,816,268 | |
Stock Issued During Period, Shares, Conversion of Units | us-gaap_StockIssuedDuringPeriodSharesConversionOfUnits | 15,816,268 | |
Stock Repurchased During Period, Shares | us-gaap_StockRepurchasedDuringPeriodShares | 2,426,198 | |
Stock Repurchased During Period, Shares | us-gaap_StockRepurchasedDuringPeriodShares | 2,426,198 | |
Common Class A [Member] | Common Stock [Member] | IPO [Member] | |||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 43,700,000 | |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 43,700,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 437,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 437,000 | |
Common Class A [Member] | Common Stock [Member] | Other Offering [Member] | |||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 434,783 | |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 434,783 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 4,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 4,000 | |
Common Class A [Member] | Additional Paid-in Capital [Member] | |||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | (1,000) | |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | (1,000) | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 52,988,000 | |
Stock Repurchased During Period, Value | us-gaap_StockRepurchasedDuringPeriodValue | 52,988,000 | |
Common Class A [Member] | Additional Paid-in Capital [Member] | IPO [Member] | |||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 950,553,000 | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 950,553,000 | |
Common Class A [Member] | Additional Paid-in Capital [Member] | Other Offering [Member] | |||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | (4,000) | |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ (4,000) | |
[1] | Represents the cumulative effect resulting from our adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-02, Leases. See Note 1 to the Unaudited Condensed Consolidated Financial Statements for additional information on our lease guidance implementation. | ||
[2] | Represents an adjustment to the cumulative effect resulting from our adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-02, Leases. See Note 1 to the Unaudited Condensed Consolidated Financial Statements for additional information on our lease guidance implementation. |