COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 28, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-10960 | ||
Entity Registrant Name | FIRSTCASH, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2237318 | ||
Entity Address, Address Line One | 1600 West 7th Street | ||
Entity Address, City or Town | Fort Worth | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76102 | ||
City Area Code | 817 | ||
Local Phone Number | 335-1100 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | FCFS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,102,000,000 | ||
Entity Common Stock, Shares Outstanding | 41,997,062 | ||
Entity Central Index Key | 0000840489 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 46,527 | $ 71,793 |
Fees and service charges receivable | 46,686 | 45,430 |
Pawn loans | 369,527 | 362,941 |
Consumer loans, net | 751 | 15,902 |
Inventories | 265,256 | 275,130 |
Income taxes receivable | 875 | 1,379 |
Prepaid expenses and other current assets | 11,367 | 17,317 |
Total current assets | 740,989 | 789,892 |
Property and equipment, net | 336,167 | 251,645 |
Operating lease right of use asset | 304,549 | 0 |
Goodwill | 948,643 | 917,419 |
Intangible assets, net | 85,875 | 88,140 |
Other assets | 11,506 | 49,238 |
Deferred tax assets | 11,711 | 11,640 |
Total assets | 2,439,440 | 2,107,974 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable and accrued liabilities | 72,398 | 96,928 |
Customer deposits | 39,736 | 35,368 |
Income taxes payable | 4,302 | 749 |
Lease liability, current | 86,466 | 0 |
Total current liabilities | 202,902 | 133,045 |
Revolving unsecured credit facility | 335,000 | 295,000 |
Senior unsecured notes | 296,568 | 295,887 |
Deferred tax liabilities | 61,431 | 54,854 |
Lease liability, non-current | 193,504 | 0 |
Other liabilities | 0 | 11,084 |
Total liabilities | 1,089,405 | 789,870 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock; $0.01 par value; 90,000 shares authorized; 49,276 and 49,276 shares issued, respectively; 43,603 and 46,914 shares outstanding, respectively | 493 | 493 |
Additional paid-in capital | 1,231,528 | 1,224,608 |
Retained earnings | 727,476 | 606,810 |
Accumulated other comprehensive loss | (96,969) | (113,117) |
Common stock held in treasury, 6,947 and 5,673 shares at cost, respectively | (512,493) | (400,690) |
Total stockholders’ equity | 1,350,035 | 1,318,104 |
Total liabilities and stockholders’ equity | $ 2,439,440 | $ 2,107,974 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 90,000,000 | 90,000,000 |
Common stock, issued | 49,276,000 | 49,276,000 |
Common stock, outstanding | 42,329,000 | 43,603,000 |
Treasury stock | 6,947,000 | 5,673,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Retail merchandise sales | $ 1,175,561 | $ 1,091,614 | $ 1,051,099 | ||||||||
Pawn loan fees | 564,824 | 525,146 | 510,905 | ||||||||
Wholesale scrap jewelry sales | 103,876 | 107,821 | 140,842 | ||||||||
Consumer loan and credit services fees | 20,178 | 56,277 | 76,976 | ||||||||
Total revenue | $ 498,362 | $ 452,459 | $ 446,014 | $ 467,604 | $ 481,208 | $ 429,878 | $ 419,972 | $ 449,800 | 1,864,439 | 1,780,858 | 1,779,822 |
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 745,861 | 696,666 | 679,703 | ||||||||
Cost of wholesale scrap jewelry sold | 96,072 | 99,964 | 132,794 | ||||||||
Consumer loan and credit services loss provision | 4,159 | 17,461 | 19,819 | ||||||||
Total cost of revenue | 231,098 | 201,480 | 201,709 | 211,805 | 219,208 | 192,620 | 191,544 | 210,719 | 846,092 | 814,091 | 832,316 |
Net revenue | 267,264 | 250,979 | 244,305 | 255,799 | 262,000 | 237,258 | 228,428 | 239,081 | 1,018,347 | 966,767 | 947,506 |
Expenses and other income: | |||||||||||
Store operating expenses | 595,539 | 563,321 | 552,191 | ||||||||
Administrative expenses | 122,334 | 120,042 | 122,473 | ||||||||
Depreciation and amortization | 41,904 | 42,961 | 55,233 | ||||||||
Interest expense | 34,035 | 29,173 | 24,035 | ||||||||
Interest income | (1,055) | (2,444) | (1,597) | ||||||||
Merger and other acquisition expenses | 1,766 | 7,643 | 9,062 | ||||||||
(Gain) loss on foreign exchange | (787) | 762 | (317) | ||||||||
Loss on extinguishment of debt | 0 | 0 | 14,114 | ||||||||
Total expenses and other income | 195,746 | 202,015 | 199,019 | 196,956 | 198,824 | 193,175 | 186,157 | 183,302 | 793,736 | 761,458 | 775,194 |
Income before income taxes | 224,611 | 205,309 | 172,312 | ||||||||
Provision for income taxes | 59,993 | 52,103 | 28,420 | ||||||||
Net income | $ 54,154 | $ 34,761 | $ 33,048 | $ 42,655 | $ 48,075 | $ 33,325 | $ 30,171 | $ 41,635 | $ 164,618 | $ 153,206 | $ 143,892 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 3.83 | $ 3.42 | $ 3.01 | ||||||||
Diluted (in dollars per share | $ 1.27 | $ 0.81 | $ 0.76 | $ 0.98 | $ 1.09 | $ 0.76 | $ 0.67 | $ 0.90 | $ 3.81 | $ 3.41 | $ 3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 164,618 | $ 153,206 | $ 143,892 |
Other comprehensive income: | |||
Currency translation adjustment | 16,148 | (1,240) | 7,929 |
Comprehensive income | $ 180,766 | $ 151,966 | $ 151,821 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock Held in Treasury |
Balance at beginning of period (shares) at Dec. 31, 2016 | 49,276 | 769 | ||||
Balance at beginning of period (value) at Dec. 31, 2016 | $ 1,449,986 | $ 493 | $ 1,217,969 | $ 387,401 | $ (119,806) | $ (36,071) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (shares) | 0 | (10) | ||||
Shares issued under share-based compensation (value) | 0 | $ 0 | (440) | $ 440 | ||
Exercise of stock options, net of shares net-settled (shares) | 0 | (13) | ||||
Exercise of stock options, net of shares net-settled (value) | 307 | $ 0 | (242) | $ 549 | ||
Share-based compensation expense (value) | 3,069 | 3,069 | ||||
Net income | 143,892 | 143,892 | ||||
Dividends paid | (36,836) | (36,836) | ||||
Currency translation adjustment | 7,929 | 7,929 | ||||
Repurchases of treasury stock (shares) | 1,616 | |||||
Repurchases of treasury stock (value) | (93,014) | $ (93,014) | ||||
Balance at end of period (shares) at Dec. 31, 2017 | 49,276 | 2,362 | ||||
Balance at end of period (value) at Dec. 31, 2017 | 1,475,333 | $ 493 | 1,220,356 | 494,457 | (111,877) | $ (128,096) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (shares) | 0 | (22) | ||||
Shares issued under share-based compensation (value) | 0 | $ 0 | (1,240) | $ 1,240 | ||
Exercise of stock options, net of shares net-settled (shares) | (10) | |||||
Exercise of stock options, net of shares net-settled (value) | 400 | (294) | $ 694 | |||
Share-based compensation expense (value) | 5,786 | 5,786 | ||||
Net income | 153,206 | 153,206 | ||||
Dividends paid | (40,853) | (40,853) | ||||
Currency translation adjustment | (1,240) | (1,240) | ||||
Repurchases of treasury stock (shares) | 3,343 | |||||
Repurchases of treasury stock (value) | (274,528) | $ (274,528) | ||||
Balance at end of period (shares) at Dec. 31, 2018 | 49,276 | 5,673 | ||||
Balance at end of period (value) at Dec. 31, 2018 | 1,318,104 | $ 493 | 1,224,608 | 606,810 | (113,117) | $ (400,690) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (shares) | (21) | |||||
Shares issued under share-based compensation (value) | 0 | (1,441) | $ 1,441 | |||
Exercise of stock options, net of shares net-settled (shares) | (10) | |||||
Exercise of stock options, net of shares net-settled (value) | 400 | (319) | $ 719 | |||
Share-based compensation expense (value) | 8,680 | 8,680 | ||||
Net income | 164,618 | 164,618 | ||||
Dividends paid | (43,952) | (43,952) | ||||
Currency translation adjustment | 16,148 | 16,148 | ||||
Repurchases of treasury stock (shares) | 1,305 | |||||
Repurchases of treasury stock (value) | (113,963) | $ (113,963) | ||||
Balance at end of period (shares) at Dec. 31, 2019 | 49,276 | 6,947 | ||||
Balance at end of period (value) at Dec. 31, 2019 | $ 1,350,035 | $ 493 | $ 1,231,528 | $ 727,476 | $ (96,969) | $ (512,493) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends, declared (in dollars per share) | $ 1.020 | $ 0.910 | $ 0.770 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from operating activities: | |||
Net income | $ 164,618 | $ 153,206 | $ 143,892 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Non-cash portion of credit loss provision | 2,395 | 9,405 | 12,727 |
Share-based compensation expense | 8,680 | 5,786 | 3,069 |
Depreciation and amortization expense | 41,904 | 42,961 | 55,233 |
Asset impairments related to consumer loan operations | 0 | 1,514 | 0 |
Amortization of debt issuance costs | 1,430 | 1,920 | 1,838 |
Amortization of favorable/(unfavorable) lease intangibles, net | 0 | (259) | (976) |
Loss on extinguishment of debt | 0 | 0 | 14,114 |
Deferred income taxes, net | 7,008 | 7,427 | (14,497) |
Changes in operating assets and liabilities, net of business combinations: | |||
Fees and service charges receivable | 110 | (432) | (1,411) |
Inventories | 5,842 | 3,321 | 16,193 |
Prepaid expenses and other assets | (1,049) | 681 | 13,702 |
Accounts payable, accrued liabilities and other liabilities | (3,383) | 3,077 | (35,135) |
Income taxes | 4,041 | 14,822 | 11,608 |
Net cash flow provided by operating activities | 231,596 | 243,429 | 220,357 |
Cash flow from investing activities: | |||
Loan receivables, net of cash repayments | 34,406 | 10,125 | 40,735 |
Purchases of furniture, fixtures, equipment and improvements | (44,311) | (35,677) | (25,971) |
Purchases of store real property | (74,661) | (19,996) | (11,164) |
Acquisitions of pawn stores, net of cash acquired | (52,487) | (113,699) | (2,203) |
Net cash flow provided by (used in) investing activities | (137,053) | (159,247) | 1,397 |
Cash flow from financing activities: | |||
Borrowings from revolving unsecured credit facility | 257,000 | 416,000 | 206,000 |
Repayments of revolving unsecured credit facility | (217,000) | (228,000) | (359,000) |
Issuance of senior unsecured notes | 0 | 0 | 300,000 |
Repurchase/redemption of senior unsecured notes | 0 | 0 | (200,000) |
Repurchase/redemption premiums paid on senior unsecured notes | 0 | 0 | (10,895) |
Debt issuance costs paid | (1,149) | (948) | (5,342) |
Purchases of treasury stock | (116,105) | (273,660) | (91,740) |
Proceeds from exercise of share-based compensation awards | 400 | 400 | 307 |
Dividends paid | (43,952) | (40,853) | (36,836) |
Net cash flow used in financing activities | (120,806) | (127,061) | (197,506) |
Effect of exchange rates on cash | 997 | 249 | 220 |
Change in cash and cash equivalents | (25,266) | (42,630) | 24,468 |
Cash and cash equivalents at beginning of the year | 71,793 | 114,423 | 89,955 |
Cash and cash equivalents at end of the year | 46,527 | 71,793 | 114,423 |
Cash paid during the period for: | |||
Interest | 32,680 | 27,121 | 24,301 |
Income taxes | 48,867 | 29,597 | 29,813 |
Supplemental disclosure of non-cash investing and financing activity: | |||
Non-cash transactions in connection with pawn loans settled through forfeitures of collateral transferred to inventories | $ 500,744 | $ 492,743 | $ 436,705 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES As described in Note 2 , the Company adopted ASC 842 prospectively as of January 1, 2019. The Company leases the majority of its pawnshop locations under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components, which the Company accounts for separately. Lease components include rent, taxes and insurance costs while non-lease components include common area or other maintenance costs. Operating leases are included in operating lease right of use assets, lease liability, current and lease liability, non-current in the consolidated balance sheets. The Company does not have any finance leases. The following table details the components of the operating lease right of use asset and lease liability recognized upon adoption of ASC 842 on January 1, 2019 (in thousands): Initial measurement of operating lease right of use asset (present value of the future minimum lease payments) $ 295,063 Accrued straight-line rent liability (1) (4,237 ) Amounts previously recognized in respect of business combinations: Favorable lease intangible assets (2) 45,596 Unfavorable lease intangible liabilities (3) (17,275 ) Total initial operating lease right of use asset $ 319,147 Lease liability, current $ (87,608 ) Lease liability, non-current (207,455 ) Total initial lease liability (present value of the future minimum lease payments) $ (295,063 ) (1) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet as of December 31, 2018. (2) Included in prepaid expenses and other current assets and other assets in the accompanying consolidated balance sheet as of December 31, 2018. (3) Included in accounts payable and accrued liabilities and other liabilities in the accompanying consolidated balance sheet as of December 31, 2018. Leased facilities are generally leased for a term of three to five years with one or more options to renew for an additional three to five years , typically at the Company’s sole discretion. In addition, the majority of these leases can be terminated early upon an adverse change in law which negatively affects the store’s profitability. The Company regularly evaluates renewal and termination options to determine if the Company is reasonably certain to exercise the option, and excludes these options from the lease term included in the recognition of the operating lease right of use asset and lease liability until such certainty exists. The weighted-average remaining lease term for operating leases as of December 31, 2019 was 3.9 years . The operating lease right of use asset and lease liability is recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate and therefore, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company utilizes a portfolio approach for determining the incremental borrowing rate to apply to groups of leases with similar characteristics. The weighted-average discount rate used to measure the lease liability as of December 31, 2019 was 7.8% . The Company has certain operating leases in Mexico which are denominated in U.S. dollars. The liability related to these leases is considered a monetary liability, and requires remeasurement each reporting period into the functional currency (Mexican pesos) using reporting date exchange rates. The remeasurement results in the recognition of foreign currency exchange gains or losses each reporting period, which can produce a certain level of earnings volatility. The Company recognized a foreign currency gain of $0.9 million during the year ended December 31, 2019 related to the remeasurement of these U.S. dollar denominated operating leases, which is included in gain on foreign exchange in the accompanying consolidated statements of income. Lease expense is recognized on a straight-line basis over the lease term, with variable lease expense recognized in the period such payments are incurred. The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the year ended December 31, 2019 (in thousands): Operating lease expense (1) $ 124,082 Variable lease expense (2) 7,775 Total operating lease expense $ 131,857 (1) Includes $0.8 million of net amortization related to the favorable/unfavorable lease intangible assets/liabilities that were reclassified to the operating lease right of use asset in the accompanying consolidated balance sheets upon adoption of ASC 842 on January 1, 2019. (2) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details the maturity of lease liabilities for all operating leases as of December 31, 2019 (in thousands): 2020 $ 105,118 2021 84,541 2022 60,690 2023 40,514 2024 18,760 Thereafter 15,477 Total $ 325,100 Less amount of lease payments representing interest (45,130 ) Total present value of lease payments $ 279,970 The following table details supplemental cash flow information related to operating leases for the year ended December 31, 2019 (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 116,448 Leased assets obtained in exchange for new operating lease liabilities $ 71,117 |
Organization and Nature of the
Organization and Nature of the Company | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Company | ORGANIZATION AND NATURE OF THE COMPANY FirstCash, Inc., (together with its wholly-owned subsidiaries, the “Company”) is incorporated in the state of Delaware. The Company is engaged primarily in the operation of pawn stores, which lend money on the collateral of pledged personal property and retail previously owned merchandise acquired through pawn loan forfeitures and purchases directly from the general public. As of December 31, 2019 , the Company owned and operated 2,679 stores in 24 U.S. states and the District of Columbia, all 32 states in Mexico and the countries of Guatemala, El Salvador and Colombia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed in the preparation of these financial statements: Principles of consolidation - The accompanying consolidated financial statements include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. See Note 3 . Cash and cash equivalents - The Company considers any highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of December 31, 2019 , the amount of cash associated with indefinitely reinvested foreign earnings was $19.6 million , which is primarily held in Mexican pesos. Customer loans and revenue recognition - Pawn loans typically have a term of 30 days and are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. In certain markets, the Company also provides pawn loans collateralized by automobiles, which remain in the Company’s possession or in limited cases, remain in the possession of the customer. If a pawn loan defaults, the Company relies on the sale of the pawned property to recover the principal amount of an unpaid pawn loan, plus a yield on the investment, because the Company’s pawn loans are non-recourse against the customer. The customer’s creditworthiness does not affect the Company’s financial position or results of operations. The Company accrues pawn loan fee revenue on a constant-yield basis over the life of the pawn loan for all pawns for which the Company deems collection to be probable based on historical pawn redemption statistics. If the pawn loan is not repaid, the principal amount loaned becomes the inventory carrying value of the forfeited collateral, which is recovered through sales to other customers at prices above the carrying value. The Company’s pawn merchandise sales are primarily retail sales to the general public in its pawn stores. The Company typically acquires pawn merchandise inventory through forfeited pawn loans and through purchases of used goods directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. The Company records sales revenue at the time of the sale. The Company presents merchandise sales net of any sales or value-added taxes collected. The Company does not provide direct financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free “layaway” plan. Should the customer fail to make a required payment pursuant to a layaway plan, the item is returned to inventory and all or a portion of previous payments are typically forfeited to the Company. Interim payments from customers on layaway sales are recorded as deferred revenue and subsequently recorded as retail merchandise sales revenue when the merchandise is delivered to the customer upon receipt of final payment or when previous payments are forfeited to the Company. Some jewelry is processed at third-party facilities and the precious metal and diamond content is sold at either prevailing market commodity prices or a previously agreed upon price with a commodity buyer. The Company records revenue from these wholesale scrap jewelry transactions when a price has been agreed upon and the Company ships the commodity to the buyer. Unsecured consumer loans are cash advances with terms that typically range from 7 to 45 days. The Company accrues unsecured consumer loan fees on a constant-yield basis over the term of the consumer loan. The Company offers a fee-based credit services organization program (“CSO Program”) to assist consumers in obtaining extensions of credit from an independent, non-bank, consumer lending company (the “Independent Lender”). The Company’s stand-alone unsecured consumer loan stores and select pawn stores in the state of Texas offer the CSO Program. The Company recognizes credit services fees ratably over the life of the extension of credit made by the Independent Lender. The extensions of credit made by the Independent Lender to credit services customers typically have terms of 7 to 180 days . Credit loss provisions - The Company has determined no allowance related to credit losses on pawn loans is required, as the fair value of the pledged collateral is significantly in excess of the pawn loan amount. The Company maintains an allowance for credit losses on unsecured consumer loans on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its unsecured consumer loans. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an Independent Lender and issues the Independent Lender a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the estimated fair value of the obligation undertaken by issuing the guarantee, which is included in accrued liabilities. The estimated fair value of the liability is periodically reviewed by management with any changes reflected in current operations. Foreign currency transactions - The Company has significant operations in Latin America, where in Mexico, Guatemala and Colombia the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective period. Prior to translation, U.S. dollar-denominated transactions of the foreign subsidiaries are remeasured into their functional currency using current rates of exchange for monetary assets and liabilities and historical rates of exchange for non-monetary assets and liabilities. Gains and losses from remeasurement of dollar-denominated monetary assets and liabilities in Mexico, Guatemala and Colombia are included in (gain) loss on foreign exchange in the consolidated statements of income. Deferred taxes are not currently recorded on cumulative foreign currency translation adjustments as the Company indefinitely reinvests earnings of its foreign subsidiaries. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. The average value of the Mexican peso to the U.S. dollar exchange rate for 2019 was 19.3 to 1 , compared to 19.2 to 1 in 2018 and 18.9 to 1 in 2017 . The average value of the Guatemalan quetzal to the U.S. dollar exchange rate for 2019 was 7.7 to 1 , compared to 7.5 to 1 in 2018 and 7.4 to 1 in 2017 . The average value of the Colombian peso to the U.S. dollar exchange rate for 2019 was 3,280 to 1 , compared to 2,956 to 1 in 2018 and 2,951 to 1 in 2017 . Store operating expenses - Costs incurred in operating the Company’s stores have been classified as store operating expenses. Operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores. Layaway and deferred revenue - Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as retail merchandise sales revenue when the merchandise is delivered to the customer upon receipt of final payment or when the previous payments are forfeited to the Company. Layaway payments from customers are included in customer deposits in the accompanying consolidated balance sheets. Inventories - Inventories represent merchandise acquired from forfeited pawns and merchandise purchased directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. Inventories from forfeited pawns are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of inventories is determined on the specific identification method. Inventories are stated at the lower of cost or net realizable value and, accordingly, inventory valuation allowances are established if inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated inventories and determined that a valuation allowance is not necessary. Property and equipment - Property and equipment are recorded at cost. Depreciation is recorded on the straight-line method generally based on estimated useful lives of 30 to 40 years for buildings and three to five years for furniture, fixtures and equipment. The costs of improvements on leased stores are capitalized as leasehold improvements and are depreciated using the straight-line method over the applicable lease period, or useful life, if shorter. Maintenance and repairs are charged to expense as incurred and renewals and betterments are charged to the appropriate property and equipment accounts. Upon sale or retirement of depreciable assets, the cost and related accumulated depreciation is removed from the accounts, and the resulting gain or loss is included in the results of operations in the period the assets are sold or retired. Goodwill and other indefinite-lived intangible assets - Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination. The Company performs its goodwill impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s reporting units, which are tested for impairment, are U.S. operations and Latin America operations. The Company assesses goodwill for impairment at a reporting unit level by first assessing a range of qualitative factors, including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors, such as strategy and changes in key personnel, and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to the two-step impairment testing methodology. See Note 13 . The Company’s material indefinite-lived intangible assets consist of trade names and pawn licenses. The Company performs its indefinite-lived intangible asset impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 13 . Merger and other acquisition expenses - The Company incurs incremental costs directly associated with merger and acquisition activity, including, but not limited to, professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to consolidation of technology systems and corporate facilities. The Company presents merger and other acquisition expenses separately in the consolidated statements of income to identify these incremental activities apart from the expenses incurred to operate the business. Long-lived assets - Property and equipment, intangible assets subject to amortization and non-current assets are reviewed for impairment whenever events or changes in circumstances indicate that the net book value of the asset may not be recoverable. An impairment loss is recognized if the sum of the expected future cash flows (undiscounted and before interest) from the use of the asset is less than the net book value of the asset. Generally, the amount of the impairment loss is measured as the difference between the net book value of the asset and the estimated fair value of the related asset. As a result of certain regulatory impacts to the Company’s consumer loan operations, the Company recorded a fixed asset impairment charge of approximately $1.5 million related to certain stores primarily offering unsecured consumer loan products during the fourth quarter of 2018. The Company did not record any impairment loss for the years ended December 31, 2019 and 2017 . Fair value of financial instruments - The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. All fair value measurements related to acquisitions are level 3, non-recurring measurements, based on unobservable inputs. Unless otherwise disclosed, the fair values of financial instruments approximate their recorded values, due primarily to their short-term nature. See Note 6 . Income taxes - The Company uses the asset and liability method of computing deferred income taxes on all material temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. See Note 11 . Advertising - The Company expenses the costs of advertising the first time the advertising takes place. Advertising expense for the years ended December 31, 2019 , 2018 and 2017 , was $1.2 million , $1.4 million , and $1.8 million , respectively. Share-based compensation - All share-based payments to employees and directors are recognized in the financial statements based on the grant date or if applicable, the subsequent modification date fair value. The Company recognizes compensation cost net of estimated forfeitures and recognizes the compensation cost for only those awards expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The Company records share-based compensation cost as an administrative expense. See Note 14 . Forward sales commitments - The Company periodically uses forward sale agreements with a major gold bullion bank to sell a portion of the expected amount of scrap gold, which is typically jewelry that is broken or of low retail value, produced in the normal course of business from its liquidation of such merchandise. These commitments qualify for an exemption from derivative accounting as normal sales, based on historical terms, conditions and quantities, and are therefore not recorded on the Company's balance sheet. Earnings per share - Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net income $ 164,618 $ 153,206 $ 143,892 Denominator: Weighted-average common shares for calculating basic earnings per share 43,020 44,777 47,854 Effect of dilutive securities: Stock options and restricted stock unit awards 188 107 34 Weighted-average common shares for calculating diluted earnings per share 43,208 44,884 47,888 Earnings per share: Basic $ 3.83 $ 3.42 $ 3.01 Diluted 3.81 3.41 3.00 Pervasiveness of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Significant estimates include the accrual for earned but uncollected pawn loan fees, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities. Recent accounting pronouncements - On January 1, 2019, the Financial Accounting Standards Board’s lease accounting standard (“ASC 842”) became effective requiring lessees to recognize, in the statement of financial position, a liability for the present value of future minimum lease payments (the lease liability) and an asset representing its right to use the underlying leased property for the lease term (the right of use asset). Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASC 842 provides for a modified retrospective transition approach, which requires lessees to recognize and measure leases on the balance sheet at the beginning of the earliest period presented, or a cumulative effect adjustment transition approach, which requires prospective application from the adoption date. The Company adopted ASC 842 prospectively as of January 1, 2019 using the cumulative effect adjustment approach. As a result of the transition method used, ASC 842 was not applied to periods prior to adoption and the adoption of ASC 842 had no impact on the Company’s comparative prior periods presented. ASC 842 provides a number of optional practical expedients in transition. The Company elected the package of practical expedients, which permit it to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs but did not elect any other practical expedient available under ASC 842. The adoption of ASC 842 resulted in a material increase in the assets and liabilities reflected on the Company’s consolidated balance sheets, but did not have a material impact on its consolidated statements of income or consolidated statements of cash flows. See Note 4 . In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. In November 2018, the Financial Accounting Standards Board issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2018-19”), which clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. In April 2019, the Financial Accounting Standards Board issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which clarifies the treatment of certain credit losses. In May 2019, the Financial Accounting Standards Board issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”), which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, the Financial Accounting Standards Board issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2019-11”), which provides guidance around how to report expected recoveries. ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-11 (collectively, “ASC 326”) are effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company will adopt ASC 326 on January 1, 2020 prospectively and has concluded ASC 326 will not materially impact the Company’s recognition of financial instruments within the scope of the standard. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates step 2 from the goodwill impairment test. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In June 2018, the Financial Accounting Standards Board issued ASU No. 2018-07, “Compensation-Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to 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. ASU 2018-07 is effective for public entities for fiscal years beginning after December 15, 2018. The adoption of ASU 2018-07 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In July 2018, the Financial Accounting Standards Board issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different Financial Accounting Standards Board Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt in fiscal years beginning after December 15, 2018. The adoption of ASU 2018-09 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect ASU 2018-13 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In July 2019, the Financial Accounting Standards Board issued ASU 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates” (“ASU 2019-07”). ASU 2019-07 aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. ASU 2019-07 is effective immediately and the adoption of ASU 2019-07 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In November 2019, the Financial Accounting Standards Board issued ASU No. 2019-08, “Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer” (“ASU 2019-08”). ASU 2019-08 expands the scope of ASC Topic 718 to provide guidance for share-based payment awards granted to a customer in conjunction with selling goods or services accounted for under Topic 606. For entities that have adopted the amendments in ASU 2018-07, the amendments in ASU 2019-08 are effective in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. An entity may early adopt the amendments in ASU 2019-08, but not before it adopts the amendments in ASU 2018-07. The Company adopted ASU 2019-08 effective December 31, 2019. The adoption of ASU 2019-08 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS 2019 Acquisitions Consistent with the Company’s strategy to continue its expansion of pawn stores in selected markets, during 2019, the Company acquired 163 pawn stores located in Mexico in 13 separate transactions and 27 pawn stores located in the U.S. in nine separate transactions. The aggregate purchase price for these acquisitions totaled $46.8 million , net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $44.9 million in cash paid during 2019 and remaining short-term amounts payable to the sellers of approximately $1.9 million . During 2019, the Company also paid $7.6 million of purchase price amounts payable related to prior-year acquisitions. The purchase price of each of the 2019 acquisitions was allocated to assets acquired and liabilities assumed based upon the estimated fair market values at the date of acquisition. The excess purchase price over the estimated fair market value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. The estimated fair value of the assets acquired and liabilities assumed are preliminary, as the Company is gathering information to finalize the valuation of these assets and liabilities. The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during 2019 is as follows (in thousands): Pawn loans $ 9,991 Pawn loan fees receivable 815 Inventories 6,729 Other current assets 259 Property and equipment 1,642 Goodwill (1) 27,306 Intangible assets (2) 545 Current liabilities (523 ) Aggregate purchase price $ 46,764 (1) Goodwill associated with the U.S. operations segment and the Latin America operations segment was $11.8 million and $15.5 million , respectively. Substantially all of the goodwill is expected to be deductible for respective U.S. and Mexico income tax purposes. (2) Intangible assets primarily consist of customer relationships, which are generally amortized over five years . The results of operations for the acquired stores have been consolidated since the respective acquisition dates. During 2019 , revenue from the acquired stores was $31.0 million and the earnings from the combined acquisitions since the acquisition dates (including $1.3 million of transaction and integration costs, net of tax) was approximately $1.2 million . Historical pre-acquisition financial statements of the 13 separate Mexico acquisitions were created in local country GAAP and the Company did not obtain pre-acquisition financial statements prepared in accordance with U.S. GAAP. As a result, and due to the insignificance of these acquisitions, it is impractical for the Company to adequately present supplemental pro forma information. 2018 Acquisitions During 2018, the Company acquired 366 pawn stores located in Mexico in six separate transactions and 27 pawn stores located in the U.S. in nine separate transactions. The aggregate purchase price for these acquisitions totaled $125.4 million , net of cash acquired. The aggregate purchase price was composed of $113.7 million in cash paid during 2018 and remaining short-term amounts payable to the sellers of approximately $11.7 million . In regard to the Mexico acquisitions, in February 2018, the Company acquired the operating assets of 126 pawn stores operating under the Prendamex brand. The seller of these pawn stores also owned and operated a franchise business whereby independent franchisees entered into individual franchise agreements allowing the franchisee, among other things, the use of the Prendamex brand. Subsequent to the February 2018 transaction, the Company entered into five additional asset acquisitions in 2018 and 13 additional asset acquisitions in 2019 of stores owned by certain of the independent Prendamex franchisees, representing aggregate purchases of 403 locations. Each of the 18 acquisitions involved different independent ownership groups and were individually negotiated and completed separately. Also in conjunction with the February 2018 transaction, the Company assumed certain of the franchisor rights and obligations from the original Prendamex seller representing a total of 43 franchised store locations under which the Company continues to operate as the franchisor of these locations as of December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | STOCKHOLDERS' EQUITY During 2019 , the Company repurchased a total of 1,305,000 shares of common stock at an aggregate cost of $114.0 million and an average cost per share of $87.37 , and during 2018 , repurchased 3,343,000 shares of common stock at an aggregate cost of $274.5 million and an average cost per share of $82.12 . The Company intends to continue repurchases under its active share repurchase program through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act of 1934, as amended, subject to a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the Company’s stock, dividend policy and the availability of alternative investment opportunities. The following table provides purchases made by the Company of shares of its common stock under each share repurchase program in effect during 2019 (dollars in thousands): Plan Authorization Date Plan Completion Date Dollar Amount Authorized Shares Purchased in 2019 Dollar Amount Purchased in 2019 Remaining Dollar Amount Authorized For Future Purchases July 25, 2018 April 23, 2019 $ 100,000 496,000 $ 42,760 $ — October 24, 2018 Currently active 100,000 809,000 71,203 28,797 Total 1,305,000 $ 113,963 $ 28,797 Total cash dividends paid in 2019 and 2018 were $44.0 million and $40.9 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements As of December 31, 2019 and 2018 , the Company did not have any financial assets or liabilities that are measured at fair value on a recurring basis. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of December 31, 2019 and 2018 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2019 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 46,527 $ 46,527 $ 46,527 $ — $ — Fees and service charges receivable 46,686 46,686 — — 46,686 Pawn loans 369,527 369,527 — — 369,527 Consumer loans, net 751 751 — — 751 $ 463,491 $ 463,491 $ 46,527 $ — $ 416,964 Financial liabilities: Revolving unsecured credit facility $ 335,000 $ 335,000 $ — $ 335,000 $ — Senior unsecured notes (outstanding principal) 300,000 310,000 — 310,000 — $ 635,000 $ 645,000 $ — $ 645,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2018 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 71,793 $ 71,793 $ 71,793 $ — $ — Fees and service charges receivable 45,430 45,430 — — 45,430 Pawn loans 362,941 362,941 — — 362,941 Consumer loans, net 15,902 15,902 — — 15,902 $ 496,066 $ 496,066 $ 71,793 $ — $ 424,273 Financial liabilities: Revolving unsecured credit facility $ 295,000 $ 295,000 $ — $ 295,000 $ — Senior unsecured notes (outstanding principal) 300,000 293,000 — 293,000 — $ 595,000 $ 588,000 $ — $ 588,000 $ — As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value. Consumer loans, net are carried net of the allowance for estimated loan losses, which is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. Therefore, the carrying value approximates the fair value. The carrying value of the Company’s revolving unsecured credit facility approximates fair value as of December 31, 2019 and 2018 |
Customer Loans and Valuation Ac
Customer Loans and Valuation Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Customer Loans and Valuation Accounts | CONSUMER LOANS AND RELATED VALUATION ALLOWANCE Consumer loans, net are composed of the following (in thousands): December 31, 2019 Total consumer loans $ 785 Less allowance for doubtful accounts (34 ) Consumer loans, net $ 751 December 31, 2018 Total consumer loans $ 16,785 Less allowance for doubtful accounts (883 ) Consumer loans, net $ 15,902 Changes in the allowance for consumer loan credit losses are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 883 $ 1,815 $ 2,251 Provision for credit losses 2,395 9,405 12,762 Charge-offs, net of recoveries from customers (3,244 ) (10,337 ) (13,198 ) Balance at end of year $ 34 $ 883 $ 1,815 Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an Independent Lender and issues the Independent Lender a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the estimated fair value of the obligation undertaken by issuing the guarantee. The Company records the estimated fair value of the liability in accrued liabilities. Changes in the liability for credit services losses are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 252 $ 440 $ 582 Provision for credit losses 1,764 8,056 7,057 Amounts paid to Independent Lenders under guarantees, net of recoveries from customers (1,926 ) (8,244 ) (7,199 ) Balance at end of year $ 90 $ 252 $ 440 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): As of December 31, 2019 2018 Land $ 66,198 $ 37,578 Buildings 123,397 76,406 Furniture, fixtures, equipment and improvements 398,905 348,620 588,500 462,604 Less: accumulated depreciation (252,333 ) (210,959 ) $ 336,167 $ 251,645 Depreciation expense for the years ended December 31, 2019 , 2018 and 2017 was $39.1 million , $36.4 million and $44.5 million , respectively. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following (in thousands): As of December 31, 2019 2018 Accrued compensation $ 27,738 $ 28,130 Sales, property, and payroll withholding taxes payable 15,237 12,563 Acquisition purchase price amounts payable to sellers 6,374 12,636 Trade accounts payable 5,871 6,886 Benefits liabilities and withholding payable 3,353 3,541 Accrued interest payable 1,459 1,534 Liability for expected losses on outstanding guarantees from CSO Program 90 252 Deferred fees from CSO Program 28 4,501 Current unfavorable lease intangible liability (1) — 6,191 Other accrued liabilities 12,248 20,694 $ 72,398 $ 96,928 (1) Current unfavorable lease intangible liability was reclassified to operating lease right of use asset on January 1, 2019 in conjunction with the adoption of ASC 842. See Note 4 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands): As of December 31, 2019 2018 Revolving unsecured credit facility, maturing 2024 (1) $ 335,000 $ 295,000 5.375% senior unsecured notes due 2024 (2) 296,568 295,887 Total long-term debt $ 631,568 $ 590,887 (1) Debt issuance costs related to the Company’s revolving unsecured credit facility are included in other assets in the accompanying consolidated balance sheets. (2) As of December 31, 2019 and 2018 , deferred debt issuance costs of $3.4 million and $4.1 million , respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes in the accompanying consolidated balance sheets. Revolving Unsecured Credit Facility During the period from January 1, 2019 through December 19, 2019, the Company maintained an unsecured line of credit with a group of U.S. based commercial lenders (the “Credit Facility”) in the amount of $425.0 million , which was scheduled to mature in October 2023. The Credit Facility charged interest, at the Company’s option, at either (1) the prevailing London Interbank Offered Rate (“LIBOR”) (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (2) the prevailing prime or base rate plus a fixed spread of 1.5% . On December 19, 2019, the Company amended and extended the Credit Facility. The total lender commitment under the amended facility increased from $425.0 million to $500.0 million and the term was extended to December 19, 2024 , which would accelerate to 90 days prior to the maturity of the Company’s senior unsecured notes due June 1, 2024 if the Company’s senior unsecured notes have not been refinanced or otherwise extended past December 19, 2024 by such date. Certain financial covenants in the facility were amended, including a temporary increase in the permitted domestic leverage ratio from 4.0 to 4.5 times domestic EBITDA, adjusted for certain customary items as more fully set forth in the Credit Facility (“Adjusted Domestic EBITDA”), through December 31, 2020 and to 4.25 times Adjusted Domestic EBITDA from January 1, 2021 through December 31, 2021 and a temporary decrease in the consolidated leverage ratio from 3.0 to 2.75 times consolidated EBTIDA, adjusted for certain customary items as more fully set forth in the Credit Agreement, through December 31, 2021. The temporary changes to the leverage ratios will revert to the previous ratios effective January 1, 2022. In addition, the amendment allowed for a permanent exclusion of up to $50 million in parent guaranteed indebtedness of foreign subsidiaries from funded indebtedness used in the calculation of the domestic leverage ratio. At December 31, 2019 , the Company had $335.0 million in outstanding borrowings and $3.3 million in outstanding letters of credit under the Credit Facility, leaving $161.7 million available for future borrowings. The Credit Facility is unsecured and bears interest, at the Company’s option, of either (1) the prevailing LIBOR (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (2) the prevailing prime or base rate plus a fixed spread of 1.5% . The agreement has a LIBOR floor of 0% . Additionally, the Company is required to pay an annual commitment fee of 0.50% on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at December 31, 2019 was 4.13% based on 1 week LIBOR. Under the terms of the Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the covenants of the Credit Facility as of December 31, 2019 . During 2019 , the Company received net proceeds of $40.0 million from borrowings pursuant to the Credit Facility. Senior Unsecured Notes On May 30, 2017, the Company issued $300.0 million of 5.375% senior unsecured notes due on June 1, 2024 (the “Notes”), all of which are currently outstanding. Interest on the Notes is payable semi-annually in arrears on June 1 and December 1. The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio (“Net Debt Ratio”) is less than 2.25 to 1 . The Net Debt Ratio is defined generally in the indenture governing the Notes as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. The Company used the proceeds from the Notes to repurchase, or otherwise redeem, its previously outstanding $200.0 million , 6.75% senior unsecured notes due 2021 (the “2021 Notes”). As a result, during 2017, the Company recognized a $14.1 million loss on extinguishment of debt related to the repurchase or redemption of the 2021 Notes. As of December 31, 2019 , annual maturities of the outstanding long-term debt for each of the five years after December 31, 2019 are as follows (in thousands): 2020 $ — 2021 — 2022 — 2023 — 2024 635,000 Thereafter — $ 635,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2019 , 2018 and 2017 consist of the following (in thousands): Year Ended December 31, 2019 2018 2017 Income before income taxes (1) : Domestic $ 145,570 $ 125,056 $ 93,365 Foreign 79,041 80,253 78,947 Income before income taxes $ 224,611 $ 205,309 $ 172,312 Current income taxes: Federal (2) $ 26,624 $ 18,751 $ 15,995 Foreign 21,904 23,231 23,340 State and local 2,553 2,506 968 Current provision for income taxes 51,081 44,488 40,303 Deferred provision (benefit) for income taxes: Federal (3) 7,498 7,621 (11,509 ) Foreign 863 (566 ) (1,079 ) State and local 551 560 705 Total deferred provision (benefit) for income taxes 8,912 7,615 (11,883 ) Provision for income taxes $ 59,993 $ 52,103 $ 28,420 (1) Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries. (2) The year ended December 31, 2017 includes a provisional $1.9 million income tax expense relating to the one-time mandatory tax on previously deferred earnings of the Company’s foreign subsidiaries as a result of the Tax Cuts and Jobs Act (“Tax Act”). The year ended December 31, 2018 includes a $1.5 million income tax benefit as a result of the Company’s finalization of certain estimates and tax positions used to record the 2017 provisional tax expense. The years ended December 31, 2019 and 2018 include $1.1 million and $0.8 million of income tax expense, respectively, relating to the global intangible low-taxed income (GILTI) inclusion. (3) The year ended December 31, 2017 includes a provisional $29.2 million income tax benefit resulting from the remeasurement of the Company’s domestic net deferred tax liabilities based on the lower corporate income tax rate as a result of the Tax Act. During 2018, the Company finalized certain estimates and tax positions used in the analysis of the 2017 provisional tax benefit resulting in no adjustments. The Company does not include foreign subsidiaries in its consolidated U.S. federal income tax return, and it is the Company’s intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. At December 31, 2019 , the cumulative amount of indefinitely reinvested earnings of foreign subsidiaries was $256.5 million , which would not be subject to additional U.S. taxes if the earnings were repatriated into the U.S. The principal deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2019 2018 Deferred tax assets: Property and equipment $ 10,407 $ 8,073 Accrued fees on forfeited pawn loans 8,006 7,489 Deferred cost of goods sold deduction 5,721 3,494 Accrued compensation and employee benefits 2,163 1,912 State net operating losses 6,012 6,430 Other 4,428 6,027 Total deferred tax assets 36,737 33,425 Deferred tax liabilities: Intangible assets 71,814 66,734 Net operating lease asset 5,819 — Property and equipment — 1,668 Other 2,812 1,807 Total deferred tax liabilities 80,445 70,209 Net deferred tax liabilities before valuation allowance (43,708 ) (36,784 ) Valuation allowance (6,012 ) (6,430 ) Net deferred tax liabilities $ (49,720 ) $ (43,214 ) Reported as: Deferred tax assets $ 11,711 $ 11,640 Deferred tax liabilities (61,431 ) (54,854 ) Net deferred tax liabilities $ (49,720 ) $ (43,214 ) The Company has a valuation allowance of $6.0 million and $6.4 million as of December 31, 2019 and 2018 , respectively, related to the deferred tax assets associated with its state net operating losses. The Company has evaluated the nature and timing of its other deferred tax assets and concluded that no additional valuation allowance is necessary. The following is a reconciliation of income taxes calculated at the U.S. federal statutory rate to the provision for income taxes (dollars in thousands): Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21 % 21 % 35 % Tax at the U.S. federal statutory rate $ 47,168 $ 43,115 $ 60,309 State income tax, net of federal tax benefit of $652 , $644 and $586, respectively 2,452 2,422 1,087 Net incremental income tax expense (benefit) from foreign earnings (1) 6,314 6,031 (5,442 ) Net tax benefit resulting from the enactment of the Tax Act — (1,494 ) (27,269 ) Non-deductible compensation expense 2,074 1,827 — Other taxes and adjustments, net 1,985 202 (265 ) Provision for income taxes $ 59,993 $ 52,103 $ 28,420 Effective tax rate 26.7 % 25.4 % 16.5 % (1) Includes a $2.3 million , $3.3 million and $4.0 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company’s foreign operating subsidiaries are owned by a wholly-owned subsidiary located in the Netherlands. The foreign operating subsidiaries are subject to their respective foreign statutory rates, which differ from the U.S. federal statutory rate. The statutory tax rates in Mexico, Guatemala, El Salvador and Colombia are generally 30% , 25% , 30% and 33% , respectively. The statutory tax rate in the Netherlands is 0% on eligible dividends received from its foreign subsidiaries. The Company reviews the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties related to income tax liabilities that could arise would be classified as interest expense in the Company’s consolidated statements of income. As of December 31, 2019 and 2018 , the Company had no unrecognized tax benefits and, therefore, the Company did no t have a liability for accrued interest and penalties and no such interest or penalties were incurred for the years ended December 31, 2019 , 2018 and 2017 . The Company files federal income tax returns in the U.S., Mexico, Guatemala, El Salvador, Colombia and the Netherlands, as well as multiple state and local income tax returns in the U.S. The Company’s U.S. federal returns are not subject to examination for tax years prior to 2016. The Company’s U.S. state income tax returns are not subject to examination for the tax years prior to 2016 with the exception of six states, which are not subject to examination for tax years prior to 2015. With respect to federal tax returns in Mexico, Guatemala, El Salvador, Colombia and the Netherlands, the tax years prior to 2014 are closed to examination. There are no state income taxes in Mexico, Guatemala, El Salvador, Colombia or the Netherlands. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation The Company, in the ordinary course of business, is a defendant (actual or threatened) in certain lawsuits, arbitration claims and other general claims. In management’s opinion, any potential adverse result should not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Guarantees The Company offers a fee-based CSO Program to assist consumers in obtaining extensions of credit from an Independent Lender. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an Independent Lender and issues the Independent Lender a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the estimated fair value of the obligation undertaken by issuing the guarantees. The Company records the estimated fair value of the liability in accrued liabilities. The Company’s maximum loss exposure under all of the outstanding guarantees issued on behalf of its customers to the Independent Lender as of December 31, 2019 was $1.4 million compared to $6.2 million at December 31, 2018 . Gold Forward Sales Contracts As of December 31, 2019 , the Company had contractual commitments to deliver a total of 30,500 gold ounces between the months of January and December 2020 at a weighted-average price of $1,440 per ounce. The ounces required to be delivered over this time period are within historical scrap gold volumes. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Changes in the carrying value of goodwill by segment were as follows (in thousands): December 31, 2019 U.S. operations segment Latin America operations segment Total Balance, beginning of year $ 759,538 $ 157,881 $ 917,419 Acquisitions (see Note 3) 11,773 15,533 27,306 Effect of foreign currency translation — 5,175 5,175 Other adjustments — (1,257 ) (1,257 ) Balance, end of year $ 771,311 $ 177,332 $ 948,643 December 31, 2018 Balance, beginning of year $ 743,997 $ 87,148 $ 831,145 Acquisitions (see Note 3) 15,541 71,427 86,968 Effect of foreign currency translation — (694 ) (694 ) Balance, end of year $ 759,538 $ 157,881 $ 917,419 The Company performed its annual assessment of goodwill and determined there was no impairment as of December 31, 2019 and 2018 . Definite-Lived Intangible Assets The following table summarizes the components of gross and net definite-lived intangible assets subject to amortization (in thousands): As of December 31, 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 25,899 $ (21,681 ) $ 4,218 $ 25,453 $ (18,955 ) $ 6,498 Executive non-compete agreements — — — 8,700 (8,700 ) — $ 25,899 $ (21,681 ) $ 4,218 $ 34,153 $ (27,655 ) $ 6,498 Customer relationships are generally amortized using an accelerated amortization method that reflects the future cash flows expected from the returning pawn customers. The executive non-compete agreements expired and were fully amortized during 2018. Amortization expense for definite-lived intangible assets was $2.9 million , $6.6 million and $10.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The remaining weighted-average amortization period for customer relationships is 1.1 years. Estimated future amortization expense is as follows (in thousands): 2020 $ 2,368 2021 1,300 2022 299 2023 231 2024 20 $ 4,218 Indefinite-Lived Intangible Assets Indefinite-lived intangible assets as of December 31, 2019 and 2018 , consist of the following (in thousands): As of December 31, 2019 2018 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 34,107 34,092 Other indefinite-lived intangibles 1,250 1,250 $ 81,657 $ 81,642 (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in store operating expenses in the consolidated statements of income. The Company performed its annual assessment of indefinite-lived intangible assets and determined there was no impairment as of December 31, 2019 and 2018 |
Equity Compensation Plans and S
Equity Compensation Plans and Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans and Share-Based Compensation | EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION The Company has previously adopted equity and share-based compensation plans to attract and retain executive officers, directors and key employees. Under these plans, the Company has granted qualified and non-qualified common stock options and restricted stock unit awards to executive officers, directors and other key employees. At December 31, 2019 , 3,500,000 shares were reserved for future grants to all employees and directors under the plans. Restricted Stock Unit Awards The Company has granted restricted stock units under the Company’s equity and share-based incentive compensation plans. The restricted stock units are settled in shares of common stock upon vesting. The performance-based awards vest three years from the date of the grant. The performance period for each of the performance-based grants is a three-year cumulative period beginning in January of the respective grant year. The Company’s level of achievement of the performance goals at the end of each respective performance period will result in awards between zero and the maximum share award. The award criteria for the 2019 performance-based grants relate to growth in the Company’s net income, adjusted for certain non-core and/or non-recurring items, growth in constant currency pawn revenue (retail merchandise sales, pawn loan fees and wholesale scrap jewelry sales) and new (“de novo”) store openings over the three-year cumulative period. The award criteria for the 2018 and 2017 performance-based grants relate to growth in the Company’s net income, adjusted for certain non-core and/or non-recurring items, and total store additions over the respective three-year cumulative period. The time-based awards granted in 2019 , 2018 and 2017 vest in equal annual installments, subject to continued employment with the Company, over a five year period from the grant date. The grant date fair value of the restricted stock units is based on the Company’s closing stock price on the day of the grant or subsequent award modification date, if applicable, and the fair value of performance-based awards is based on the maximum amount of the award expected to be achieved. The amount attributable to award grants is amortized to expense over the vesting periods. The Company typically issues treasury shares to satisfy vested restricted stock unit awards. The following table summarizes the restricted stock unit award activity for the years ended December 31, 2019 , 2018 and 2017 (shares in thousands): 2019 2018 2017 Weighted- Weighted- Weighted- Average Average Average Underlying Fair Value Underlying Fair Value Underlying Fair Value Shares of Grant Shares of Grant Shares of Grant Outstanding at beginning of year 254 $ 59.53 157 $ 47.36 30 $ 45.93 Performance-based grants (1) 109 86.86 102 72.70 117 48.25 Time-based grants 19 86.86 17 72.70 20 43.55 Performance-based vested (10 ) 45.93 (10 ) 45.93 (10 ) 45.93 Time-based vested (15 ) 73.78 (12 ) 43.55 — — Outstanding at end of year 357 $ 69.13 254 $ 59.53 157 $ 47.36 (1) Represents the maximum possible award. The Company’s level of achievement of the respective performance goals will result in actual vesting of between zero shares and the maximum share award. Restricted stock unit awards vesting in 2019 , 2018 and 2017 had an aggregate intrinsic value of $2.1 million , $1.6 million and $0.7 million , respectively, based on the closing price of the Company’s stock on the date of vesting. The outstanding award units had an aggregate intrinsic value of $28.8 million at December 31, 2019 . Stock Options The Company has no t issued common stock options in the last eight years. Previous option awards have been granted to purchase the Company’s common stock at an exercise price equal to or greater than the fair market value at the date of grant and generally had a maximum duration of ten years . The Company typically issues treasury shares to satisfy stock option exercises. Stock options outstanding as of December 31, 2019 are as follows (shares in thousands): Weighted-Average Currently Exercise Price Option Shares Remaining Life Exercisable Shares $ 38.00 40 1.9 20 40.00 30 1.0 20 70 1.5 40 The following table summarizes stock option activity for the years ended December 31, 2019 , 2018 and 2017 (shares in thousands): 2019 2018 2017 Weighted- Weighted- Weighted- Average Average Average Underlying Exercise Underlying Exercise Underlying Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 80 $ 39.00 90 $ 39.11 103 $ 37.34 Exercised (10 ) 40.00 (10 ) 40.00 (13 ) 24.57 Outstanding at end of year 70 38.86 80 39.00 90 39.11 Exercisable at end of year 40 39.00 30 39.33 20 40.00 At December 31, 2019 , the aggregate intrinsic value for the stock options outstanding was $2.9 million , of which $1.7 million was exercisable at the end of the year, with weighted-average remaining contractual terms of 1.5 years. The aggregate intrinsic value reflects the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2019 . The total intrinsic value of options exercised for 2019 , 2018 and 2017 was $0.6 million , $0.5 million and $0.3 million , respectively. The intrinsic values are based on the closing price of the Company’s stock on the date of exercise. Share-Based Compensation Expense The Company’s net income includes the following compensation costs related to share-based compensation arrangements (in thousands): Year Ended December 31, 2019 2018 2017 Gross compensation costs: Restricted stock unit awards $ 8,637 $ 5,712 $ 2,959 Stock options 43 74 110 Total gross compensation costs 8,680 5,786 3,069 Income tax benefits: Restricted stock unit awards (302 ) (1,320 ) (1,036 ) Exercise of stock options (114 ) (94 ) (39 ) Total income tax benefits (416 ) (1,414 ) (1,075 ) Net compensation expense $ 8,264 $ 4,372 $ 1,994 As of December 31, 2019 , the total compensation cost related to non-vested restricted stock unit awards not yet recognized was $9.8 million and is expected to be recognized over the weighted-average period of 1.4 years. As of December 31, 2019 , the total compensation cost related to non-vested stock options not yet recognized was $16,000 and is expected to be recognized over the weighted-average period of 0.5 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | BENEFIT PLANS The Company’s 401(k) savings plan (the “Plan”) is available to all full-time, U.S.-based employees who have been employed with the Company for six months or longer. Under the Plan, a participant may contribute up to 100% of earnings, with the Company matching the first 5% of contributions at a rate of 50% . The employee and Company contributions are paid to a corporate trustee and invested in various funds based on participant direction. Company contributions made to participants’ accounts become fully vested upon completion of five years of service. The total Company matching contributions to the Plan were $3.1 million , $3.1 million and $4.2 million for the years ended December 31, 2019 , 2018 and 2017 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company organizes its operations into two reportable segments as follows: • U.S. operations - Includes all pawn and unsecured consumer loan operations in the U.S. • Latin America operations - Includes all pawn operations in Latin America, which includes operations in Mexico, Guatemala, El Salvador and Colombia. Corporate expenses, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, merger and other acquisition expenses and loss (gain) on foreign exchange, are incurred or earned in both the U.S. and Latin America, but presented on a consolidated basis and are not allocated between the U.S. operations segment and Latin America operations segment. The following tables present reportable segment information for the years ended December 31, 2019 , 2018 and 2017 as well as separately identified segment assets (in thousands): Year Ended December 31, 2019 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 722,127 $ 453,434 $ — $ 1,175,561 Pawn loan fees 379,395 185,429 — 564,824 Wholesale scrap jewelry sales 71,813 32,063 — 103,876 Consumer loan and credit services fees (1) 20,178 — — 20,178 Total revenue 1,193,513 670,926 — 1,864,439 Cost of revenue: Cost of retail merchandise sold 447,911 297,950 — 745,861 Cost of wholesale scrap jewelry sold 65,941 30,131 — 96,072 Consumer loan and credit services loss provision (1) 4,159 — — 4,159 Total cost of revenue 518,011 328,081 — 846,092 Net revenue 675,502 342,845 — 1,018,347 Expenses and other income: Store operating expenses 412,508 183,031 — 595,539 Administrative expenses — — 122,334 122,334 Depreciation and amortization 20,860 14,626 6,418 41,904 Interest expense — — 34,035 34,035 Interest income — — (1,055 ) (1,055 ) Merger and other acquisition expenses — — 1,766 1,766 Loss on foreign exchange — — (787 ) (787 ) Total expenses and other income 433,368 197,657 162,711 793,736 Income (loss) before income taxes $ 242,134 $ 145,188 $ (162,711 ) $ 224,611 As of December 31, 2019 U.S. Latin America Corporate Consolidated Pawn loans $ 268,793 $ 100,734 $ — $ 369,527 Consumer loans, net (1) 751 — — 751 Inventories 181,320 83,936 — 265,256 Goodwill 771,311 177,332 — 948,643 Total assets 1,767,504 574,059 97,877 2,439,440 (1) The Company ceased offering unsecured consumer lending and credit services products in all of its Ohio locations on April 26, 2019 and closed 52 Ohio locations during the second quarter of 2019. Year Ended December 31, 2018 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 709,594 $ 382,020 $ — $ 1,091,614 Pawn loan fees 373,406 151,740 — 525,146 Wholesale scrap jewelry sales 85,718 22,103 — 107,821 Consumer loan and credit services fees (1) 55,417 860 — 56,277 Total revenue 1,224,135 556,723 — 1,780,858 Cost of revenue: Cost of retail merchandise sold 450,516 246,150 — 696,666 Cost of wholesale scrap jewelry sold 78,308 21,656 — 99,964 Consumer loan and credit services loss provision (1) 17,223 238 — 17,461 Total cost of revenue 546,047 268,044 — 814,091 Net revenue 678,088 288,679 — 966,767 Expenses and other income: Store operating expenses 414,097 149,224 — 563,321 Administrative expenses — — 120,042 120,042 Depreciation and amortization 21,021 11,333 10,607 42,961 Interest expense — — 29,173 29,173 Interest income — — (2,444 ) (2,444 ) Merger and other acquisition expenses — — 7,643 7,643 Loss on foreign exchange — — 762 762 Total expenses and other income 435,118 160,557 165,783 761,458 Income (loss) before income taxes $ 242,970 $ 128,122 $ (165,783 ) $ 205,309 As of December 31, 2018 U.S. Latin America Corporate Consolidated Pawn loans $ 271,584 $ 91,357 $ — $ 362,941 Consumer loans, net (1) 15,902 — — 15,902 Inventories 199,978 75,152 — 275,130 Goodwill 759,538 157,881 — 917,419 Total assets 1,534,542 407,282 166,150 2,107,974 (1) Effective June 30, 2018, the Company no longer offers an unsecured consumer loan product in Latin America. Year Ended December 31, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 717,490 $ 333,609 $ — $ 1,051,099 Pawn loan fees 380,596 130,309 — 510,905 Wholesale scrap jewelry sales 119,197 21,645 — 140,842 Consumer loan and credit services fees 75,209 1,767 — 76,976 Total revenue 1,292,492 487,330 — 1,779,822 Cost of revenue: Cost of retail merchandise sold 468,527 211,176 — 679,703 Cost of wholesale scrap jewelry sold 112,467 20,327 — 132,794 Consumer loan and credit services loss provision 19,431 388 — 19,819 Total cost of revenue 600,425 231,891 — 832,316 Net revenue 692,067 255,439 — 947,506 Expenses and other income: Store operating expenses (1) 423,214 128,977 — 552,191 Administrative expenses — — 122,473 122,473 Depreciation and amortization 24,073 10,311 20,849 55,233 Interest expense — — 24,035 24,035 Interest income — — (1,597 ) (1,597 ) Merger and other acquisition expenses — — 9,062 9,062 Gain on foreign exchange (1) — — (317 ) (317 ) Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 447,287 139,288 188,619 775,194 Income (loss) before income taxes $ 244,780 $ 116,151 $ (188,619 ) $ 172,312 (1) The gain on foreign exchange for the Latin America operations segment of $0.3 million for 2017 was reclassified on the consolidated statements of income in order to conform with the presentation for the year ended December 31, 2019. The gain on foreign exchange was reclassified from store operating expenses and reported separately on the consolidated statements of income. As of December 31, 2017 U.S. Latin America Corporate Consolidated Pawn loans $ 276,570 $ 68,178 $ — $ 344,748 Consumer loans, net 23,179 343 — 23,522 Inventories 216,739 60,032 — 276,771 Goodwill 743,997 87,148 — 831,145 Total assets 1,527,012 282,605 253,167 2,062,784 Geographic Information The following table shows revenue and long-lived assets (all non-current assets except operating lease right of use asset, goodwill, intangibles, net and deferred tax assets) by geographic area (in thousands): Year Ended December 31, 2019 2018 2017 Revenue: U.S. $ 1,193,513 $ 1,224,135 $ 1,292,492 Mexico 641,505 531,744 464,161 Other Latin America 29,421 24,979 23,169 $ 1,864,439 $ 1,780,858 $ 1,779,822 Long-lived assets: U.S. $ 254,395 $ 226,358 $ 227,659 Mexico 80,385 65,260 53,175 Other Latin America 12,893 9,265 3,552 $ 347,673 $ 300,883 $ 284,386 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for the years ended December 31, 2019 and 2018 are set forth in the table below (in thousands, except per share amounts). The Company’s operations are subject to seasonal fluctuations. The Company computed the quarterly diluted earnings per share amounts as if each quarter was a discrete period based on that quarter’s weighted-average shares outstanding. As a result, the sum of the diluted earnings per share by quarter will not necessarily total the annual diluted earnings per share. Quarter Ended March 31 June 30 September 30 December 31 2019 Total revenue $ 467,604 $ 446,014 $ 452,459 $ 498,362 Total cost of revenue 211,805 201,709 201,480 231,098 Net revenue 255,799 244,305 250,979 267,264 Total expenses and other income 196,956 199,019 202,015 195,746 Net income 42,655 33,048 34,761 54,154 Diluted earnings per share 0.98 0.76 0.81 1.27 Diluted weighted-average shares 43,658 43,256 43,167 42,760 2018 Total revenue $ 449,800 $ 419,972 $ 429,878 $ 481,208 Total cost of revenue 210,719 191,544 192,620 219,208 Net revenue 239,081 228,428 237,258 262,000 Total expenses and other income 183,302 186,157 193,175 198,824 Net income 41,635 30,171 33,325 48,075 Diluted earnings per share 0.90 0.67 0.76 1.09 Diluted weighted-average shares 46,479 45,043 44,116 43,936 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation - The accompanying consolidated financial statements include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. See Note 3 . |
Cash and cash equivalents | Cash and cash equivalents - The Company considers any highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. As of December 31, 2019 , the amount of cash associated with indefinitely reinvested foreign earnings was $19.6 million , which is primarily held in Mexican pesos. |
Customer loans and revenue recognition | Customer loans and revenue recognition - Pawn loans typically have a term of 30 days and are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. In certain markets, the Company also provides pawn loans collateralized by automobiles, which remain in the Company’s possession or in limited cases, remain in the possession of the customer. If a pawn loan defaults, the Company relies on the sale of the pawned property to recover the principal amount of an unpaid pawn loan, plus a yield on the investment, because the Company’s pawn loans are non-recourse against the customer. The customer’s creditworthiness does not affect the Company’s financial position or results of operations. The Company accrues pawn loan fee revenue on a constant-yield basis over the life of the pawn loan for all pawns for which the Company deems collection to be probable based on historical pawn redemption statistics. If the pawn loan is not repaid, the principal amount loaned becomes the inventory carrying value of the forfeited collateral, which is recovered through sales to other customers at prices above the carrying value. The Company’s pawn merchandise sales are primarily retail sales to the general public in its pawn stores. The Company typically acquires pawn merchandise inventory through forfeited pawn loans and through purchases of used goods directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. The Company records sales revenue at the time of the sale. The Company presents merchandise sales net of any sales or value-added taxes collected. The Company does not provide direct financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free “layaway” plan. Should the customer fail to make a required payment pursuant to a layaway plan, the item is returned to inventory and all or a portion of previous payments are typically forfeited to the Company. Interim payments from customers on layaway sales are recorded as deferred revenue and subsequently recorded as retail merchandise sales revenue when the merchandise is delivered to the customer upon receipt of final payment or when previous payments are forfeited to the Company. Some jewelry is processed at third-party facilities and the precious metal and diamond content is sold at either prevailing market commodity prices or a previously agreed upon price with a commodity buyer. The Company records revenue from these wholesale scrap jewelry transactions when a price has been agreed upon and the Company ships the commodity to the buyer. Unsecured consumer loans are cash advances with terms that typically range from 7 to 45 days. The Company accrues unsecured consumer loan fees on a constant-yield basis over the term of the consumer loan. The Company offers a fee-based credit services organization program (“CSO Program”) to assist consumers in obtaining extensions of credit from an independent, non-bank, consumer lending company (the “Independent Lender”). The Company’s stand-alone unsecured consumer loan stores and select pawn stores in the state of Texas offer the CSO Program. The Company recognizes credit services fees ratably over the life of the extension of credit made by the Independent Lender. The extensions of credit made by the Independent Lender to credit services customers typically have terms of 7 to 180 days . |
Credit loss provisions | Credit loss provisions - The Company has determined no allowance related to credit losses on pawn loans is required, as the fair value of the pledged collateral is significantly in excess of the pawn loan amount. The Company maintains an allowance for credit losses on unsecured consumer loans on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its unsecured consumer loans. The allowance for credit losses is periodically reviewed by management with any changes reflected in current operations. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an Independent Lender and issues the Independent Lender a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the estimated fair value of the obligation undertaken by issuing the guarantee, which is included in accrued liabilities. The estimated fair value of the liability is periodically reviewed by management with any changes reflected in current operations. |
Foreign Currency Transactions | Foreign currency transactions - The Company has significant operations in Latin America, where in Mexico, Guatemala and Colombia the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective period. Prior to translation, U.S. dollar-denominated transactions of the foreign subsidiaries are remeasured into their functional currency using current rates of exchange for monetary assets and liabilities and historical rates of exchange for non-monetary assets and liabilities. Gains and losses from remeasurement of dollar-denominated monetary assets and liabilities in Mexico, Guatemala and Colombia are included in (gain) loss on foreign exchange in the consolidated statements of income. Deferred taxes are not currently recorded on cumulative foreign currency translation adjustments as the Company indefinitely reinvests earnings of its foreign subsidiaries. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. The average value of the Mexican peso to the U.S. dollar exchange rate for 2019 was 19.3 to 1 , compared to 19.2 to 1 in 2018 and 18.9 to 1 in 2017 . The average value of the Guatemalan quetzal to the U.S. dollar exchange rate for 2019 was 7.7 to 1 , compared to 7.5 to 1 in 2018 and 7.4 to 1 in 2017 . The average value of the Colombian peso to the U.S. dollar exchange rate for 2019 was 3,280 to 1 , compared to 2,956 to 1 in 2018 and 2,951 to 1 in 2017 . |
Store operating expenses | Store operating expenses - Costs incurred in operating the Company’s stores have been classified as store operating expenses. Operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores. |
Layaway and deferred revenue | Layaway and deferred revenue - Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as retail merchandise sales revenue when the merchandise is delivered to the customer upon receipt of final payment or when the previous payments are forfeited to the Company. Layaway payments from customers are included in customer deposits in the accompanying consolidated balance sheets. |
Inventories | Inventories - Inventories represent merchandise acquired from forfeited pawns and merchandise purchased directly from the general public. The Company also retails limited quantities of new or refurbished merchandise obtained directly from wholesalers and manufacturers. Inventories from forfeited pawns are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of inventories is determined on the specific identification method. Inventories are stated at the lower of cost or net realizable value and, accordingly, inventory valuation allowances are established if inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated inventories and determined that a valuation allowance is not necessary. |
Property and equipment | Property and equipment - Property and equipment are recorded at cost. Depreciation is recorded on the straight-line method generally based on estimated useful lives of 30 to 40 years for buildings and three to five years for furniture, fixtures and equipment. The costs of improvements on leased stores are capitalized as leasehold improvements and are depreciated using the straight-line method over the applicable lease period, or useful life, if shorter. Maintenance and repairs are charged to expense as incurred and renewals and betterments are charged to the appropriate property and equipment accounts. Upon sale or retirement of depreciable assets, the cost and related accumulated depreciation is removed from the accounts, and the resulting gain or loss is included in the results of operations in the period the assets are sold or retired. |
Goodwill and other indefinite-lived intangible assets | Goodwill and other indefinite-lived intangible assets - Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination. The Company performs its goodwill impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s reporting units, which are tested for impairment, are U.S. operations and Latin America operations. The Company assesses goodwill for impairment at a reporting unit level by first assessing a range of qualitative factors, including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors, such as strategy and changes in key personnel, and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company proceeds to the two-step impairment testing methodology. See Note 13 . The Company’s material indefinite-lived intangible assets consist of trade names and pawn licenses. The Company performs its indefinite-lived intangible asset impairment assessment annually as of December 31, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 13 . Merger and other acquisition expenses - The Company incurs incremental costs directly associated with merger and acquisition activity, including, but not limited to, professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to consolidation of technology systems and corporate facilities. The Company presents merger and other acquisition expenses separately in the consolidated statements of income to identify these incremental activities apart from the expenses incurred to operate the business. |
Long-lived assets | Long-lived assets - Property and equipment, intangible assets subject to amortization and non-current assets are reviewed for impairment whenever events or changes in circumstances indicate that the net book value of the asset may not be recoverable. An impairment loss is recognized if the sum of the expected future cash flows (undiscounted and before interest) from the use of the asset is less than the net book value of the asset. Generally, the amount of the impairment loss is measured as the difference between the net book value of the asset and the estimated fair value of the related asset. As a result of certain regulatory impacts to the Company’s consumer loan operations, the Company recorded a fixed asset impairment charge of approximately $1.5 million related to certain stores primarily offering unsecured consumer loan products during the fourth quarter of 2018. The Company did not record any impairment loss for the years ended December 31, 2019 and 2017 . |
Fair value of financial instruments | Fair value of financial instruments - The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. All fair value measurements related to acquisitions are level 3, non-recurring measurements, based on unobservable inputs. Unless otherwise disclosed, the fair values of financial instruments approximate their recorded values, due primarily to their short-term nature. See Note 6 . |
Income taxes | Income taxes - The Company uses the asset and liability method of computing deferred income taxes on all material temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. See Note 11 . |
Advertising | Advertising - The Company expenses the costs of advertising the first time the advertising takes place. Advertising expense for the years ended December 31, 2019 , 2018 and 2017 , was $1.2 million , $1.4 million , and $1.8 million , respectively. |
Share-based compensation | Share-based compensation - All share-based payments to employees and directors are recognized in the financial statements based on the grant date or if applicable, the subsequent modification date fair value. The Company recognizes compensation cost net of estimated forfeitures and recognizes the compensation cost for only those awards expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The Company records share-based compensation cost as an administrative expense. See Note 14 . Forward sales commitments - The Company periodically uses forward sale agreements with a major gold bullion bank to sell a portion of the expected amount of scrap gold, which is typically jewelry that is broken or of low retail value, produced in the normal course of business from its liquidation of such merchandise. These commitments qualify for an exemption from derivative accounting as normal sales, based on historical terms, conditions and quantities, and are therefore not recorded on the Company's balance sheet. |
Earnings per share | Earnings per share - Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net income $ 164,618 $ 153,206 $ 143,892 Denominator: Weighted-average common shares for calculating basic earnings per share 43,020 44,777 47,854 Effect of dilutive securities: Stock options and restricted stock unit awards 188 107 34 Weighted-average common shares for calculating diluted earnings per share 43,208 44,884 47,888 Earnings per share: Basic $ 3.83 $ 3.42 $ 3.01 Diluted 3.81 3.41 3.00 |
Pervasiveness of estimates | Pervasiveness of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Significant estimates include the accrual for earned but uncollected pawn loan fees, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities. |
Revisions and reclassifications | |
Recent accounting pronouncements | Recent accounting pronouncements - On January 1, 2019, the Financial Accounting Standards Board’s lease accounting standard (“ASC 842”) became effective requiring lessees to recognize, in the statement of financial position, a liability for the present value of future minimum lease payments (the lease liability) and an asset representing its right to use the underlying leased property for the lease term (the right of use asset). Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASC 842 provides for a modified retrospective transition approach, which requires lessees to recognize and measure leases on the balance sheet at the beginning of the earliest period presented, or a cumulative effect adjustment transition approach, which requires prospective application from the adoption date. The Company adopted ASC 842 prospectively as of January 1, 2019 using the cumulative effect adjustment approach. As a result of the transition method used, ASC 842 was not applied to periods prior to adoption and the adoption of ASC 842 had no impact on the Company’s comparative prior periods presented. ASC 842 provides a number of optional practical expedients in transition. The Company elected the package of practical expedients, which permit it to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs but did not elect any other practical expedient available under ASC 842. The adoption of ASC 842 resulted in a material increase in the assets and liabilities reflected on the Company’s consolidated balance sheets, but did not have a material impact on its consolidated statements of income or consolidated statements of cash flows. See Note 4 . In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. In November 2018, the Financial Accounting Standards Board issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2018-19”), which clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. In April 2019, the Financial Accounting Standards Board issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which clarifies the treatment of certain credit losses. In May 2019, the Financial Accounting Standards Board issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief” (“ASU 2019-05”), which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. In November 2019, the Financial Accounting Standards Board issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses” (“ASU 2019-11”), which provides guidance around how to report expected recoveries. ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-11 (collectively, “ASC 326”) are effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company will adopt ASC 326 on January 1, 2020 prospectively and has concluded ASC 326 will not materially impact the Company’s recognition of financial instruments within the scope of the standard. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates step 2 from the goodwill impairment test. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In June 2018, the Financial Accounting Standards Board issued ASU No. 2018-07, “Compensation-Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to 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. ASU 2018-07 is effective for public entities for fiscal years beginning after December 15, 2018. The adoption of ASU 2018-07 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In July 2018, the Financial Accounting Standards Board issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different Financial Accounting Standards Board Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt in fiscal years beginning after December 15, 2018. The adoption of ASU 2018-09 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect ASU 2018-13 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In July 2019, the Financial Accounting Standards Board issued ASU 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates” (“ASU 2019-07”). ASU 2019-07 aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. ASU 2019-07 is effective immediately and the adoption of ASU 2019-07 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In November 2019, the Financial Accounting Standards Board issued ASU No. 2019-08, “Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer” (“ASU 2019-08”). ASU 2019-08 expands the scope of ASC Topic 718 to provide guidance for share-based payment awards granted to a customer in conjunction with selling goods or services accounted for under Topic 606. For entities that have adopted the amendments in ASU 2018-07, the amendments in ASU 2019-08 are effective in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. An entity may early adopt the amendments in ASU 2019-08, but not before it adopts the amendments in ASU 2018-07. The Company adopted ASU 2019-08 effective December 31, 2019. The adoption of ASU 2019-08 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-Use Asset and Lease Liability | The following table details the components of the operating lease right of use asset and lease liability recognized upon adoption of ASC 842 on January 1, 2019 (in thousands): Initial measurement of operating lease right of use asset (present value of the future minimum lease payments) $ 295,063 Accrued straight-line rent liability (1) (4,237 ) Amounts previously recognized in respect of business combinations: Favorable lease intangible assets (2) 45,596 Unfavorable lease intangible liabilities (3) (17,275 ) Total initial operating lease right of use asset $ 319,147 Lease liability, current $ (87,608 ) Lease liability, non-current (207,455 ) Total initial lease liability (present value of the future minimum lease payments) $ (295,063 ) (1) Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet as of December 31, 2018. (2) Included in prepaid expenses and other current assets and other assets in the accompanying consolidated balance sheet as of December 31, 2018. (3) Included in accounts payable and accrued liabilities and other liabilities in the accompanying consolidated balance sheet as of December 31, 2018. |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the year ended December 31, 2019 (in thousands): Operating lease expense (1) $ 124,082 Variable lease expense (2) 7,775 Total operating lease expense $ 131,857 (1) Includes $0.8 million of net amortization related to the favorable/unfavorable lease intangible assets/liabilities that were reclassified to the operating lease right of use asset in the accompanying consolidated balance sheets upon adoption of ASC 842 on January 1, 2019. (2) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details supplemental cash flow information related to operating leases for the year ended December 31, 2019 (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 116,448 Leased assets obtained in exchange for new operating lease liabilities $ 71,117 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of December 31, 2019 (in thousands): 2020 $ 105,118 2021 84,541 2022 60,690 2023 40,514 2024 18,760 Thereafter 15,477 Total $ 325,100 Less amount of lease payments representing interest (45,130 ) Total present value of lease payments $ 279,970 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Calculation of Numerator and Denominator in EPS | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net income $ 164,618 $ 153,206 $ 143,892 Denominator: Weighted-average common shares for calculating basic earnings per share 43,020 44,777 47,854 Effect of dilutive securities: Stock options and restricted stock unit awards 188 107 34 Weighted-average common shares for calculating diluted earnings per share 43,208 44,884 47,888 Earnings per share: Basic $ 3.83 $ 3.42 $ 3.01 Diluted 3.81 3.41 3.00 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocations of Purchase Price | The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during 2019 is as follows (in thousands): Pawn loans $ 9,991 Pawn loan fees receivable 815 Inventories 6,729 Other current assets 259 Property and equipment 1,642 Goodwill (1) 27,306 Intangible assets (2) 545 Current liabilities (523 ) Aggregate purchase price $ 46,764 (1) Goodwill associated with the U.S. operations segment and the Latin America operations segment was $11.8 million and $15.5 million , respectively. Substantially all of the goodwill is expected to be deductible for respective U.S. and Mexico income tax purposes. (2) Intangible assets primarily consist of customer relationships, which are generally amortized over five years . |
Stockholders' Equity Equity (Ta
Stockholders' Equity Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table provides purchases made by the Company of shares of its common stock under each share repurchase program in effect during 2019 (dollars in thousands): Plan Authorization Date Plan Completion Date Dollar Amount Authorized Shares Purchased in 2019 Dollar Amount Purchased in 2019 Remaining Dollar Amount Authorized For Future Purchases July 25, 2018 April 23, 2019 $ 100,000 496,000 $ 42,760 $ — October 24, 2018 Currently active 100,000 809,000 71,203 28,797 Total 1,305,000 $ 113,963 $ 28,797 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s financial assets and liabilities as of December 31, 2019 and 2018 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2019 2019 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 46,527 $ 46,527 $ 46,527 $ — $ — Fees and service charges receivable 46,686 46,686 — — 46,686 Pawn loans 369,527 369,527 — — 369,527 Consumer loans, net 751 751 — — 751 $ 463,491 $ 463,491 $ 46,527 $ — $ 416,964 Financial liabilities: Revolving unsecured credit facility $ 335,000 $ 335,000 $ — $ 335,000 $ — Senior unsecured notes (outstanding principal) 300,000 310,000 — 310,000 — $ 635,000 $ 645,000 $ — $ 645,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2018 2018 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 71,793 $ 71,793 $ 71,793 $ — $ — Fees and service charges receivable 45,430 45,430 — — 45,430 Pawn loans 362,941 362,941 — — 362,941 Consumer loans, net 15,902 15,902 — — 15,902 $ 496,066 $ 496,066 $ 71,793 $ — $ 424,273 Financial liabilities: Revolving unsecured credit facility $ 295,000 $ 295,000 $ — $ 295,000 $ — Senior unsecured notes (outstanding principal) 300,000 293,000 — 293,000 — $ 595,000 $ 588,000 $ — $ 588,000 $ — |
Customer Loans and Valuation _2
Customer Loans and Valuation Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Consumer Loans | Consumer loans, net are composed of the following (in thousands): December 31, 2019 Total consumer loans $ 785 Less allowance for doubtful accounts (34 ) Consumer loans, net $ 751 December 31, 2018 Total consumer loans $ 16,785 Less allowance for doubtful accounts (883 ) Consumer loans, net $ 15,902 |
Allowance for Credit Losses | Changes in the allowance for consumer loan credit losses are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 883 $ 1,815 $ 2,251 Provision for credit losses 2,395 9,405 12,762 Charge-offs, net of recoveries from customers (3,244 ) (10,337 ) (13,198 ) Balance at end of year $ 34 $ 883 $ 1,815 Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an Independent Lender and issues the Independent Lender a guarantee for the repayment of the extension of credit. The Company is required to recognize, at the inception of the guarantee, a liability for the estimated fair value of the obligation undertaken by issuing the guarantee. The Company records the estimated fair value of the liability in accrued liabilities. Changes in the liability for credit services losses are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at beginning of year $ 252 $ 440 $ 582 Provision for credit losses 1,764 8,056 7,057 Amounts paid to Independent Lenders under guarantees, net of recoveries from customers (1,926 ) (8,244 ) (7,199 ) Balance at end of year $ 90 $ 252 $ 440 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following (in thousands): As of December 31, 2019 2018 Land $ 66,198 $ 37,578 Buildings 123,397 76,406 Furniture, fixtures, equipment and improvements 398,905 348,620 588,500 462,604 Less: accumulated depreciation (252,333 ) (210,959 ) $ 336,167 $ 251,645 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following (in thousands): As of December 31, 2019 2018 Accrued compensation $ 27,738 $ 28,130 Sales, property, and payroll withholding taxes payable 15,237 12,563 Acquisition purchase price amounts payable to sellers 6,374 12,636 Trade accounts payable 5,871 6,886 Benefits liabilities and withholding payable 3,353 3,541 Accrued interest payable 1,459 1,534 Liability for expected losses on outstanding guarantees from CSO Program 90 252 Deferred fees from CSO Program 28 4,501 Current unfavorable lease intangible liability (1) — 6,191 Other accrued liabilities 12,248 20,694 $ 72,398 $ 96,928 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of December 31, 2019 , annual maturities of the outstanding long-term debt for each of the five years after December 31, 2019 are as follows (in thousands): 2020 $ — 2021 — 2022 — 2023 — 2024 635,000 Thereafter — $ 635,000 |
Schedule of Debt | The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands): As of December 31, 2019 2018 Revolving unsecured credit facility, maturing 2024 (1) $ 335,000 $ 295,000 5.375% senior unsecured notes due 2024 (2) 296,568 295,887 Total long-term debt $ 631,568 $ 590,887 (1) Debt issuance costs related to the Company’s revolving unsecured credit facility are included in other assets in the accompanying consolidated balance sheets. (2) As of December 31, 2019 and 2018 , deferred debt issuance costs of $3.4 million and $4.1 million , respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes in the accompanying consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2019 , 2018 and 2017 consist of the following (in thousands): Year Ended December 31, 2019 2018 2017 Income before income taxes (1) : Domestic $ 145,570 $ 125,056 $ 93,365 Foreign 79,041 80,253 78,947 Income before income taxes $ 224,611 $ 205,309 $ 172,312 Current income taxes: Federal (2) $ 26,624 $ 18,751 $ 15,995 Foreign 21,904 23,231 23,340 State and local 2,553 2,506 968 Current provision for income taxes 51,081 44,488 40,303 Deferred provision (benefit) for income taxes: Federal (3) 7,498 7,621 (11,509 ) Foreign 863 (566 ) (1,079 ) State and local 551 560 705 Total deferred provision (benefit) for income taxes 8,912 7,615 (11,883 ) Provision for income taxes $ 59,993 $ 52,103 $ 28,420 (1) Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries. (2) The year ended December 31, 2017 includes a provisional $1.9 million income tax expense relating to the one-time mandatory tax on previously deferred earnings of the Company’s foreign subsidiaries as a result of the Tax Cuts and Jobs Act (“Tax Act”). The year ended December 31, 2018 includes a $1.5 million income tax benefit as a result of the Company’s finalization of certain estimates and tax positions used to record the 2017 provisional tax expense. The years ended December 31, 2019 and 2018 include $1.1 million and $0.8 million of income tax expense, respectively, relating to the global intangible low-taxed income (GILTI) inclusion. (3) The year ended December 31, 2017 includes a provisional $29.2 million income tax benefit resulting from the remeasurement of the Company’s domestic net deferred tax liabilities based on the lower corporate income tax rate as a result of the Tax Act. During 2018, the Company finalized certain estimates and tax positions used in the analysis of the 2017 provisional tax benefit resulting in no adjustments. |
Schedule of Deferred Tax Assets and Liabilities | The principal deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2019 2018 Deferred tax assets: Property and equipment $ 10,407 $ 8,073 Accrued fees on forfeited pawn loans 8,006 7,489 Deferred cost of goods sold deduction 5,721 3,494 Accrued compensation and employee benefits 2,163 1,912 State net operating losses 6,012 6,430 Other 4,428 6,027 Total deferred tax assets 36,737 33,425 Deferred tax liabilities: Intangible assets 71,814 66,734 Net operating lease asset 5,819 — Property and equipment — 1,668 Other 2,812 1,807 Total deferred tax liabilities 80,445 70,209 Net deferred tax liabilities before valuation allowance (43,708 ) (36,784 ) Valuation allowance (6,012 ) (6,430 ) Net deferred tax liabilities $ (49,720 ) $ (43,214 ) Reported as: Deferred tax assets $ 11,711 $ 11,640 Deferred tax liabilities (61,431 ) (54,854 ) Net deferred tax liabilities $ (49,720 ) $ (43,214 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of income taxes calculated at the U.S. federal statutory rate to the provision for income taxes (dollars in thousands): Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21 % 21 % 35 % Tax at the U.S. federal statutory rate $ 47,168 $ 43,115 $ 60,309 State income tax, net of federal tax benefit of $652 , $644 and $586, respectively 2,452 2,422 1,087 Net incremental income tax expense (benefit) from foreign earnings (1) 6,314 6,031 (5,442 ) Net tax benefit resulting from the enactment of the Tax Act — (1,494 ) (27,269 ) Non-deductible compensation expense 2,074 1,827 — Other taxes and adjustments, net 1,985 202 (265 ) Provision for income taxes $ 59,993 $ 52,103 $ 28,420 Effective tax rate 26.7 % 25.4 % 16.5 % (1) Includes a $2.3 million , $3.3 million and $4.0 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Future Amortization Expense | Estimated future amortization expense is as follows (in thousands): 2020 $ 2,368 2021 1,300 2022 299 2023 231 2024 20 $ 4,218 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | Changes in the carrying value of goodwill by segment were as follows (in thousands): December 31, 2019 U.S. operations segment Latin America operations segment Total Balance, beginning of year $ 759,538 $ 157,881 $ 917,419 Acquisitions (see Note 3) 11,773 15,533 27,306 Effect of foreign currency translation — 5,175 5,175 Other adjustments — (1,257 ) (1,257 ) Balance, end of year $ 771,311 $ 177,332 $ 948,643 December 31, 2018 Balance, beginning of year $ 743,997 $ 87,148 $ 831,145 Acquisitions (see Note 3) 15,541 71,427 86,968 Effect of foreign currency translation — (694 ) (694 ) Balance, end of year $ 759,538 $ 157,881 $ 917,419 |
Definite Lived Intangible Assets Amortization | The following table summarizes the components of gross and net definite-lived intangible assets subject to amortization (in thousands): As of December 31, 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 25,899 $ (21,681 ) $ 4,218 $ 25,453 $ (18,955 ) $ 6,498 Executive non-compete agreements — — — 8,700 (8,700 ) — $ 25,899 $ (21,681 ) $ 4,218 $ 34,153 $ (27,655 ) $ 6,498 |
Goodwill Future Amortization Expense | Estimated future amortization expense is as follows (in thousands): 2020 $ 2,368 2021 1,300 2022 299 2023 231 2024 20 $ 4,218 |
Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets as of December 31, 2019 and 2018 , consist of the following (in thousands): As of December 31, 2019 2018 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 34,107 34,092 Other indefinite-lived intangibles 1,250 1,250 $ 81,657 $ 81,642 (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in store operating expenses in the consolidated statements of income. The Company performed its annual assessment of indefinite-lived intangible assets and determined there was no impairment as of December 31, 2019 and 2018 |
Equity Compensation Plans and_2
Equity Compensation Plans and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Stock Options Activity | The following table summarizes the restricted stock unit award activity for the years ended December 31, 2019 , 2018 and 2017 (shares in thousands): 2019 2018 2017 Weighted- Weighted- Weighted- Average Average Average Underlying Fair Value Underlying Fair Value Underlying Fair Value Shares of Grant Shares of Grant Shares of Grant Outstanding at beginning of year 254 $ 59.53 157 $ 47.36 30 $ 45.93 Performance-based grants (1) 109 86.86 102 72.70 117 48.25 Time-based grants 19 86.86 17 72.70 20 43.55 Performance-based vested (10 ) 45.93 (10 ) 45.93 (10 ) 45.93 Time-based vested (15 ) 73.78 (12 ) 43.55 — — Outstanding at end of year 357 $ 69.13 254 $ 59.53 157 $ 47.36 (1) Represents the maximum possible award. The Company’s level of achievement of the respective performance goals will result in actual vesting of between zero shares and the maximum share award. |
Schedule of Share-based Compensation, Shares Authorized under Stock Option and Warrant Plans, by Exercise Price | Stock options outstanding as of December 31, 2019 are as follows (shares in thousands): Weighted-Average Currently Exercise Price Option Shares Remaining Life Exercisable Shares $ 38.00 40 1.9 20 40.00 30 1.0 20 70 1.5 40 |
Schedule of Stock Options Activity | The following table summarizes stock option activity for the years ended December 31, 2019 , 2018 and 2017 (shares in thousands): 2019 2018 2017 Weighted- Weighted- Weighted- Average Average Average Underlying Exercise Underlying Exercise Underlying Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 80 $ 39.00 90 $ 39.11 103 $ 37.34 Exercised (10 ) 40.00 (10 ) 40.00 (13 ) 24.57 Outstanding at end of year 70 38.86 80 39.00 90 39.11 Exercisable at end of year 40 39.00 30 39.33 20 40.00 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company’s net income includes the following compensation costs related to share-based compensation arrangements (in thousands): Year Ended December 31, 2019 2018 2017 Gross compensation costs: Restricted stock unit awards $ 8,637 $ 5,712 $ 2,959 Stock options 43 74 110 Total gross compensation costs 8,680 5,786 3,069 Income tax benefits: Restricted stock unit awards (302 ) (1,320 ) (1,036 ) Exercise of stock options (114 ) (94 ) (39 ) Total income tax benefits (416 ) (1,414 ) (1,075 ) Net compensation expense $ 8,264 $ 4,372 $ 1,994 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the years ended December 31, 2019 , 2018 and 2017 as well as separately identified segment assets (in thousands): Year Ended December 31, 2019 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 722,127 $ 453,434 $ — $ 1,175,561 Pawn loan fees 379,395 185,429 — 564,824 Wholesale scrap jewelry sales 71,813 32,063 — 103,876 Consumer loan and credit services fees (1) 20,178 — — 20,178 Total revenue 1,193,513 670,926 — 1,864,439 Cost of revenue: Cost of retail merchandise sold 447,911 297,950 — 745,861 Cost of wholesale scrap jewelry sold 65,941 30,131 — 96,072 Consumer loan and credit services loss provision (1) 4,159 — — 4,159 Total cost of revenue 518,011 328,081 — 846,092 Net revenue 675,502 342,845 — 1,018,347 Expenses and other income: Store operating expenses 412,508 183,031 — 595,539 Administrative expenses — — 122,334 122,334 Depreciation and amortization 20,860 14,626 6,418 41,904 Interest expense — — 34,035 34,035 Interest income — — (1,055 ) (1,055 ) Merger and other acquisition expenses — — 1,766 1,766 Loss on foreign exchange — — (787 ) (787 ) Total expenses and other income 433,368 197,657 162,711 793,736 Income (loss) before income taxes $ 242,134 $ 145,188 $ (162,711 ) $ 224,611 As of December 31, 2019 U.S. Latin America Corporate Consolidated Pawn loans $ 268,793 $ 100,734 $ — $ 369,527 Consumer loans, net (1) 751 — — 751 Inventories 181,320 83,936 — 265,256 Goodwill 771,311 177,332 — 948,643 Total assets 1,767,504 574,059 97,877 2,439,440 (1) The Company ceased offering unsecured consumer lending and credit services products in all of its Ohio locations on April 26, 2019 and closed 52 Ohio locations during the second quarter of 2019. Year Ended December 31, 2018 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 709,594 $ 382,020 $ — $ 1,091,614 Pawn loan fees 373,406 151,740 — 525,146 Wholesale scrap jewelry sales 85,718 22,103 — 107,821 Consumer loan and credit services fees (1) 55,417 860 — 56,277 Total revenue 1,224,135 556,723 — 1,780,858 Cost of revenue: Cost of retail merchandise sold 450,516 246,150 — 696,666 Cost of wholesale scrap jewelry sold 78,308 21,656 — 99,964 Consumer loan and credit services loss provision (1) 17,223 238 — 17,461 Total cost of revenue 546,047 268,044 — 814,091 Net revenue 678,088 288,679 — 966,767 Expenses and other income: Store operating expenses 414,097 149,224 — 563,321 Administrative expenses — — 120,042 120,042 Depreciation and amortization 21,021 11,333 10,607 42,961 Interest expense — — 29,173 29,173 Interest income — — (2,444 ) (2,444 ) Merger and other acquisition expenses — — 7,643 7,643 Loss on foreign exchange — — 762 762 Total expenses and other income 435,118 160,557 165,783 761,458 Income (loss) before income taxes $ 242,970 $ 128,122 $ (165,783 ) $ 205,309 As of December 31, 2018 U.S. Latin America Corporate Consolidated Pawn loans $ 271,584 $ 91,357 $ — $ 362,941 Consumer loans, net (1) 15,902 — — 15,902 Inventories 199,978 75,152 — 275,130 Goodwill 759,538 157,881 — 917,419 Total assets 1,534,542 407,282 166,150 2,107,974 (1) Effective June 30, 2018, the Company no longer offers an unsecured consumer loan product in Latin America. Year Ended December 31, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 717,490 $ 333,609 $ — $ 1,051,099 Pawn loan fees 380,596 130,309 — 510,905 Wholesale scrap jewelry sales 119,197 21,645 — 140,842 Consumer loan and credit services fees 75,209 1,767 — 76,976 Total revenue 1,292,492 487,330 — 1,779,822 Cost of revenue: Cost of retail merchandise sold 468,527 211,176 — 679,703 Cost of wholesale scrap jewelry sold 112,467 20,327 — 132,794 Consumer loan and credit services loss provision 19,431 388 — 19,819 Total cost of revenue 600,425 231,891 — 832,316 Net revenue 692,067 255,439 — 947,506 Expenses and other income: Store operating expenses (1) 423,214 128,977 — 552,191 Administrative expenses — — 122,473 122,473 Depreciation and amortization 24,073 10,311 20,849 55,233 Interest expense — — 24,035 24,035 Interest income — — (1,597 ) (1,597 ) Merger and other acquisition expenses — — 9,062 9,062 Gain on foreign exchange (1) — — (317 ) (317 ) Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 447,287 139,288 188,619 775,194 Income (loss) before income taxes $ 244,780 $ 116,151 $ (188,619 ) $ 172,312 (1) The gain on foreign exchange for the Latin America operations segment of $0.3 million for 2017 was reclassified on the consolidated statements of income in order to conform with the presentation for the year ended December 31, 2019. The gain on foreign exchange was reclassified from store operating expenses and reported separately on the consolidated statements of income. As of December 31, 2017 U.S. Latin America Corporate Consolidated Pawn loans $ 276,570 $ 68,178 $ — $ 344,748 Consumer loans, net 23,179 343 — 23,522 Inventories 216,739 60,032 — 276,771 Goodwill 743,997 87,148 — 831,145 Total assets 1,527,012 282,605 253,167 2,062,784 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table shows revenue and long-lived assets (all non-current assets except operating lease right of use asset, goodwill, intangibles, net and deferred tax assets) by geographic area (in thousands): Year Ended December 31, 2019 2018 2017 Revenue: U.S. $ 1,193,513 $ 1,224,135 $ 1,292,492 Mexico 641,505 531,744 464,161 Other Latin America 29,421 24,979 23,169 $ 1,864,439 $ 1,780,858 $ 1,779,822 Long-lived assets: U.S. $ 254,395 $ 226,358 $ 227,659 Mexico 80,385 65,260 53,175 Other Latin America 12,893 9,265 3,552 $ 347,673 $ 300,883 $ 284,386 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2019 and 2018 are set forth in the table below (in thousands, except per share amounts). The Company’s operations are subject to seasonal fluctuations. The Company computed the quarterly diluted earnings per share amounts as if each quarter was a discrete period based on that quarter’s weighted-average shares outstanding. As a result, the sum of the diluted earnings per share by quarter will not necessarily total the annual diluted earnings per share. Quarter Ended March 31 June 30 September 30 December 31 2019 Total revenue $ 467,604 $ 446,014 $ 452,459 $ 498,362 Total cost of revenue 211,805 201,709 201,480 231,098 Net revenue 255,799 244,305 250,979 267,264 Total expenses and other income 196,956 199,019 202,015 195,746 Net income 42,655 33,048 34,761 54,154 Diluted earnings per share 0.98 0.76 0.81 1.27 Diluted weighted-average shares 43,658 43,256 43,167 42,760 2018 Total revenue $ 449,800 $ 419,972 $ 429,878 $ 481,208 Total cost of revenue 210,719 191,544 192,620 219,208 Net revenue 239,081 228,428 237,258 262,000 Total expenses and other income 183,302 186,157 193,175 198,824 Net income 41,635 30,171 33,325 48,075 Diluted earnings per share 0.90 0.67 0.76 1.09 Diluted weighted-average shares 46,479 45,043 44,116 43,936 |
Organization and Nature of th_2
Organization and Nature of the Company (Details) | Dec. 31, 2019statestore |
Organization and Nature of the Company [Line Items] | |
Number of stores | store | 2,679 |
United States | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | 24 |
Latin America Operations | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | 32 |
Operating Leases - Supplemental
Operating Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Initial measurement of operating lease right of use asset (present value of the future minimum lease payments) | |||
Initial measurement of operating lease right of use asset (present value of the future minimum lease payments) | $ 295,063 | ||
Accrued straight-line rent liability | (4,237) | ||
Amounts previously recognized in respect of business combinations: | |||
Favorable lease intangible assets | 45,596 | ||
Unfavorable lease intangible liabilities | (17,275) | ||
Total initial operating lease right of use asset | $ 304,549 | 319,147 | $ 0 |
Lease liability, current | (86,466) | (87,608) | 0 |
Lease liability, non-current | (193,504) | (207,455) | $ 0 |
Total initial lease liability (present value of the future minimum lease payments) | $ (279,970) | $ (295,063) |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 3 years 10 months 24 days |
Weighted average discount rate (as a percent) | 7.80% |
Unrealized foreign currency gain (loss) | $ 900 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
General term of leased facilities | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
General term of leased facilities | 5 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 124,082 |
Variable lease expense | 7,775 |
Total operating lease expense | 131,857 |
Amortization related to favorable/unfavorable lease intangible | $ 800 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 105,118 | |
2021 | 84,541 | |
2022 | 60,690 | |
2023 | 40,514 | |
2024 | 18,760 | |
Thereafter | 15,477 | |
Total | 325,100 | |
Less amount of lease payments representing interest | (45,130) | |
Total present value of lease payments | $ 279,970 | $ 295,063 |
Operating Leases - Supplement_2
Operating Leases - Supplemental Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 116,448 |
Leased assets obtained in exchange for new operating lease liabilities | $ 71,117 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash associated with undistributed earnings of foreign subsidiaries | $ 19,600 | |||
Pawn loans, term | 30 days | |||
Asset impairments related to consumer loan operations | $ 1,500 | $ 0 | $ 1,514 | $ 0 |
U.S. federal statutory rate | 35.00% | |||
Advertising expense | 1,200 | 1,400 | $ 1,800 | |
(Gain) loss on foreign exchange | 787 | (762) | 317 | |
Purchases of store real property | $ 74,661 | $ 19,996 | $ 11,164 | |
Mexico, Pesos | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign currency exchange rate, translation | 1920.00% | 1930.00% | 1920.00% | 1890.00% |
United States of America, Dollars | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign currency exchange rate, translation | 100.00% | 100.00% | 100.00% | 100.00% |
Guatemala, Quetzales | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign currency exchange rate, translation | 750.00% | 770.00% | 750.00% | 740.00% |
Colombia, Pesos | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign currency exchange rate, translation | 295600.00% | 328000.00% | 295600.00% | 295100.00% |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Consumer loans term | 7 days | |||
Extensions of credit made by the Independent Lender to credit services customers terms | 7 days | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Consumer loans term | 45 days | |||
Extensions of credit made by the Independent Lender to credit services customers terms | 180 days | |||
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 30 years | |||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 40 years | |||
Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 3 years | |||
Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment useful life (years) | 5 years | |||
United States | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
U.S. federal statutory rate | 21.00% | 21.00% | ||
(Gain) loss on foreign exchange | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net income | $ 54,154 | $ 34,761 | $ 33,048 | $ 42,655 | $ 48,075 | $ 33,325 | $ 30,171 | $ 41,635 | $ 164,618 | $ 153,206 | $ 143,892 |
Weighted-average common shares for calculating basic earnings per share | 43,020 | 44,777 | 47,854 | ||||||||
Stock options and restricted stock unit awards | 188 | 107 | 34 | ||||||||
Weighted-average common shares for calculating diluted earnings per share | 42,760 | 43,167 | 43,256 | 43,658 | 43,936 | 44,116 | 45,043 | 46,479 | 43,208 | 44,884 | 47,888 |
Basic (in dollars per share) | $ 3.83 | $ 3.42 | $ 3.01 | ||||||||
Diluted (in dollars per share | $ 1.27 | $ 0.81 | $ 0.76 | $ 0.98 | $ 1.09 | $ 0.76 | $ 0.67 | $ 0.90 | $ 3.81 | $ 3.41 | $ 3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)store | Dec. 31, 2018USD ($)store | Nov. 30, 2018store | Feb. 28, 2018store | |
Business Acquisition [Line Items] | ||||
Purchase price | $ | $ 46.8 | $ 125.4 | ||
Cash paid | $ | 44.9 | 113.7 | ||
Liabilities incurred | $ | 1.9 | $ 11.7 | ||
Revenue since acquisition | $ | 31 | |||
Transaction and integration costs | $ | 1.3 | |||
Net earnings since acquisition | $ | 1.2 | |||
Payments for Previous Acquisition | $ | $ 7.6 | |||
Mexico | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 163 | |||
Number of acquisitions | 13 | |||
United States | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 27 | |||
Number of acquisitions | 9 | |||
Latin America Operations | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 366 | 403 | 126 | |
Number of acquisitions | 13 | 6 | 5 | |
Latin America Operations | Mexico | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | 18 | |||
Latin America Operations | Franchise [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 43 | |||
U.S. Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 27 | |||
Number of acquisitions | 9 |
Acquisitions - Acquisitions Pur
Acquisitions - Acquisitions Purchase Price Allocation Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 948,643 | $ 917,419 | $ 831,145 |
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets amortization period | 5 years | ||
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Pawn loans | $ 9,991 | ||
Fees and service charges receivable | 815 | ||
Inventory | 6,729 | ||
Other current assets | 259 | ||
Property and equipment | 1,642 | ||
Goodwill | 27,306 | ||
Intangible assets | 545 | ||
Current liabilities | (523) | ||
Aggregate merger consideration | 46,764 | ||
U.S. Acquisitions | |||
Business Acquisition [Line Items] | |||
Goodwill | 11,800 | ||
Latin America Acquisition | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 15,500 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 1,305,000 | 3,343,000 | |
Dollar Amount Purchased in 2019 | $ 113,963 | $ 274,500 | |
Stock repurchase program, average cost per share (in dollars per share) | $ 87.37 | $ 82.12 | |
Dollar Amount Authorized | $ 100,000 | ||
Remaining Dollar Amount Authorized For Future Purchases | 28,797 | ||
Payments of dividends | $ 43,952 | $ 40,853 | $ 36,836 |
July 25, 2018 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 496,000 | ||
Dollar Amount Purchased in 2019 | $ 42,760 | ||
Remaining Dollar Amount Authorized For Future Purchases | $ 0 | ||
October 24, 2018 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 809,000 | ||
Dollar Amount Purchased in 2019 | $ 71,203 | ||
Remaining Dollar Amount Authorized For Future Purchases | $ 28,797 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 46,527 | $ 71,793 |
Pawn loan fees and service charges receivable | 46,686 | 45,430 |
Total assets | 463,491 | 496,066 |
Total liabilities | 635,000 | 595,000 |
Carrying Value | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 335,000 | 295,000 |
Carrying Value | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 300,000 | 300,000 |
Carrying Value | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 369,527 | 362,941 |
Carrying Value | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 751 | 15,902 |
Estimate Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 46,527 | 71,793 |
Pawn loan fees and service charges receivable | 46,686 | 45,430 |
Total assets | 463,491 | 496,066 |
Total liabilities | 645,000 | 588,000 |
Estimate Value | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 335,000 | 295,000 |
Estimate Value | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 310,000 | 293,000 |
Estimate Value | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 369,527 | 362,941 |
Estimate Value | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 751 | 15,902 |
Estimate Value | Fair Value Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 46,527 | 71,793 |
Pawn loan fees and service charges receivable | 0 | 0 |
Total assets | 46,527 | 71,793 |
Total liabilities | 0 | 0 |
Estimate Value | Fair Value Level 1 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 1 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 1 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 1 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Pawn loan fees and service charges receivable | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | 645,000 | 588,000 |
Estimate Value | Fair Value Level 2 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 335,000 | 295,000 |
Estimate Value | Fair Value Level 2 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 310,000 | 293,000 |
Estimate Value | Fair Value Level 2 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 2 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 0 | 0 |
Estimate Value | Fair Value Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Pawn loan fees and service charges receivable | 46,686 | 45,430 |
Total assets | 416,964 | 424,273 |
Total liabilities | 0 | 0 |
Estimate Value | Fair Value Level 3 | Revolving unsecured credit facilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 3 | Senior unsecured notes, outstanding principal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 0 | 0 |
Estimate Value | Fair Value Level 3 | Pawn Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | 369,527 | 362,941 |
Estimate Value | Fair Value Level 3 | Consumer loans, net | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable | $ 751 | $ 15,902 |
Customer Loans and Valuation _3
Customer Loans and Valuation Accounts - Schedule of Customer Loans (Details) - Consumer Loan - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total consumer loans | $ 785 | $ 16,785 |
Less allowance for doubtful accounts | (34) | (883) |
Consumer loan, net | $ 751 | $ 15,902 |
Customer Loans and Valuation _4
Customer Loans and Valuation Accounts - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consumer Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 883 | $ 1,815 | $ 2,251 |
Provision for credit losses | 2,395 | 9,405 | 12,762 |
Charge-offs, net of recoveries from customers | (3,244) | (10,337) | (13,198) |
Balance at end of year | 34 | 883 | 1,815 |
CSO loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 252 | 440 | 582 |
Provision for credit losses | 1,764 | 8,056 | 7,057 |
Charge-offs, net of recoveries from customers | (1,926) | (8,244) | (7,199) |
Balance at end of year | $ 90 | $ 252 | $ 440 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 588,500 | $ 462,604 | |
Less: accumulated depreciation | (252,333) | (210,959) | |
Property and equipment, net | 336,167 | 251,645 | |
Depreciation expense | 39,100 | 36,400 | $ 44,500 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 66,198 | 37,578 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 123,397 | 76,406 | |
Furniture, fixtures, equipment and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 398,905 | $ 348,620 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 27,738 | $ 28,130 |
Sales, property, and payroll withholding taxes payable | 15,237 | 12,563 |
Acquisition purchase price amounts payable to sellers | 6,374 | 12,636 |
Trade accounts payable | 5,871 | 6,886 |
Current unfavorable lease intangible liability (1) | 0 | 6,191 |
Deferred fees from CSO Program | 28 | 4,501 |
Benefits liabilities and withholding payable | 3,353 | 3,541 |
Accrued interest payable | 1,459 | 1,534 |
Liability for expected losses on outstanding guarantees from CSO Program | 90 | 252 |
Other accrued liabilities | 12,248 | 20,694 |
Accounts payable and accrued liabilities | $ 72,398 | $ 96,928 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities for Long-term Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 635,000 |
Thereafter | 0 |
Total long-term debt | $ 635,000 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 335,000 | |
Senior unsecured notes | 296,568 | $ 295,887 |
Total long-term debt | 631,568 | 590,887 |
Debt Issuance Costs, Net | 3,400 | 4,100 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 335,000 | 295,000 |
Senior Notes | 5.375% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 296,568 | $ 295,887 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Dec. 19, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 18, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | May 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Line of credit facility, leverage ratio | 4.5 | 4 | |||||
Line of credit facility, leverage ratio, adjusted domestic EBITDA | 4.25 | ||||||
Line of credit facility, consolidation leverage ratio | 2.75 | 3 | |||||
Foreign indebtedness, exclusion amount from leverage ratio | $ 50,000,000 | ||||||
Long-term line of credit | 335,000,000 | ||||||
Letters of credit outstanding, amount | $ 1,400,000 | $ 6,200,000 | |||||
Total debt ratio threshold | 2.25 | ||||||
Loss on extinguishment of debt | $ 0 | 0 | $ 14,114,000 | ||||
Senior notes 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.375% | ||||||
Face Amount | $ 300,000,000 | ||||||
Senior notes 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.75% | ||||||
Face Amount | $ 200,000,000 | ||||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | $ 425,000,000 | $ 425,000,000 | ||||
Long-term line of credit | 335,000,000 | $ 295,000,000 | |||||
Letters of credit outstanding, amount | 3,300,000 | ||||||
Remaining borrowing capacity | $ 161,700,000 | ||||||
Commitment fee percentage | 0.50% | ||||||
Interest rate at period end | 4.13% | ||||||
Repayments of debt | $ 40,000,000 | ||||||
Line of Credit | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
Line of Credit | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)state | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Entity Location [Line Items] | |||
U.S. federal statutory rate | 35.00% | ||
Tax Cuts and Jobs Act of 2017, Provisional income tax expense (benefit) | $ 1,500,000 | ||
Undistributed earnings of foreign subsidiaries | 256,500,000 | ||
Valuation allowance | $ 6,012,000 | $ 6,430,000 | |
Income tax benefit, percent of likelihood of being realized upon settlement | 5000.00% | ||
Unrecognized tax benefits | $ 0 | 0 | |
Income tax penalties and interest accrued | 0 | 0 | |
Income tax penalties and interest expense | $ 0 | 0 | $ 0 |
Number of states subject to examination in years prior to 2010 | state | 6 | ||
Other Tax Expense (Benefit) | $ 1,100,000 | $ 800,000 | |
United States | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 21.00% | 21.00% | |
Mexico | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 30.00% | ||
Guatemala | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 25.00% | ||
EL Salvador | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 30.00% | ||
COLOMBIA | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 33.00% | ||
NETHERLANDS | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 0.00% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income from continuing operations before income taxes | |||
Domestic | $ 145,570 | $ 125,056 | $ 93,365 |
Foreign | 79,041 | 80,253 | 78,947 |
Income before income taxes | 224,611 | 205,309 | 172,312 |
Current income taxes: | |||
Federal | 26,624 | 18,751 | 15,995 |
Foreign | 21,904 | 23,231 | 23,340 |
State and local | 2,553 | 2,506 | 968 |
Current provision for income taxes | 51,081 | 44,488 | 40,303 |
Deferred provision (benefit) for income taxes: | |||
Federal | 7,498 | 7,621 | (11,509) |
Foreign | 863 | (566) | (1,079) |
State and local | 551 | 560 | 705 |
Total deferred provision (benefit) for income taxes | 8,912 | 7,615 | (11,883) |
Provision for income taxes | 59,993 | 52,103 | $ 28,420 |
Tax on previously deferred earnings of foreign subsidiaries | 1,900 | ||
Tax Cuts and Jobs Act of 2017, Provisional income tax expense (benefit) | 1,500 | ||
Other Tax Expense (Benefit) | $ 1,100 | 800 | |
Tax Cuts And Jobs Act of 2017, deferred tax liability, provisional income tax (expense) benefit | $ 29,200 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Property and equipment | $ 10,407 | $ 8,073 |
Accrued fees on forfeited pawn loans | 8,006 | 7,489 |
Deferred cost of goods sold deduction | 5,721 | 3,494 |
Accrued compensation and employee benefits | 2,163 | 1,912 |
State net operating losses | 6,012 | 6,430 |
Other | 4,428 | 6,027 |
Total deferred tax assets | 36,737 | 33,425 |
Deferred tax liabilities: | ||
Intangible assets | 71,814 | 66,734 |
Deferred Tax Liabilities, Leasing Arrangements | 5,819 | 0 |
Property and equipment | 0 | 1,668 |
Other | 2,812 | 1,807 |
Total deferred tax liabilities | 80,445 | 70,209 |
Net deferred tax liabilities before valuation allowance | 43,708 | 36,784 |
Valuation allowance | (6,012) | (6,430) |
Net deferred tax liabilities | (49,720) | (43,214) |
Deferred tax assets | 11,711 | 11,640 |
Deferred tax liabilities | $ (61,431) | $ (54,854) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | ||
Tax at the U.S. federal statutory rate | $ 47,168 | $ 43,115 | $ 60,309 |
State income tax, net of federal tax benefit of $652, $644 and $586, respectively | 2,452 | 2,422 | 1,087 |
Federal Income tax provision (benefit) for state income taxes | 652 | 644 | 586 |
Net incremental income tax expense (benefit) from foreign earnings (1) | 6,314 | 6,031 | (5,442) |
Net tax benefit resulting from the enactment of the Tax Act | 0 | (1,494) | (27,269) |
Non-deductible compensation expense | 2,074 | 1,827 | 0 |
Other taxes and adjustments, net | 1,985 | 202 | (265) |
Provision for income taxes | $ 59,993 | $ 52,103 | $ 28,420 |
Effective tax rate | 26.70% | 25.40% | 16.50% |
Foreign inflation index adjustment | $ 2,300 | $ 3,300 | $ 4,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($)oz$ / oz | Dec. 31, 2018USD ($) |
Guarantor Obligations [Line Items] | ||
Maximum loss exposure under outstanding letters of credit | $ | $ 1.4 | $ 6.2 |
Forward Contracts | Gold, Ounces | ||
Guarantor Obligations [Line Items] | ||
Investment contract weight | oz | 30,500 | |
Derivative, average forward price | $ / oz | 1,440 | |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Operating leases term | 3 years | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Operating leases term | 5 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Roll-forward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Balance, beginning of year | $ 917,419,000 | $ 831,145,000 |
Merger and other acquisitions | 27,306,000 | 86,968,000 |
Effect of foreign currency translation | 5,175,000 | (694,000) |
Other adjustments | (1,257,000) | |
Balance, end of year | 948,643,000 | 917,419,000 |
Goodwill impairment | 0 | 0 |
United States | ||
Goodwill [Line Items] | ||
Balance, beginning of year | 759,538,000 | 743,997,000 |
Merger and other acquisitions | 11,773,000 | 15,541,000 |
Effect of foreign currency translation | 0 | 0 |
Other adjustments | 0 | |
Balance, end of year | 771,311,000 | 759,538,000 |
Latin America Operations | ||
Goodwill [Line Items] | ||
Balance, beginning of year | 157,881,000 | 87,148,000 |
Merger and other acquisitions | 15,533,000 | 71,427,000 |
Effect of foreign currency translation | 5,175,000 | (694,000) |
Other adjustments | (1,257,000) | |
Balance, end of year | $ 177,332,000 | $ 157,881,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 25,899 | $ 34,153 | |
Accumulated Amortization | (21,681) | (27,655) | |
Net Carrying Amount | 4,218 | 6,498 | |
Amortization expenses of intangible assets | 2,900 | 6,600 | $ 10,700 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 25,899 | 25,453 | |
Accumulated Amortization | (21,681) | (18,955) | |
Net Carrying Amount | $ 4,218 | 6,498 | |
Weighted average amortization period remaining, in years | 1 year 1 month 6 days | ||
Executive non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 0 | 8,700 | |
Accumulated Amortization | 0 | (8,700) | |
Net Carrying Amount | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Goodwill Future Amortization (Details) - Goodwill $ in Thousands | Dec. 31, 2019USD ($) |
2019 | $ 2,368 |
2020 | 1,300 |
2021 | 299 |
2022 | 231 |
2023 | 20 |
Total future amortization | $ 4,218 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets,indefinite-lived | $ 0 | $ 0 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 81,657,000 | 81,642,000 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 46,300,000 | 46,300,000 |
Pawn licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 34,107,000 | 34,092,000 |
Other indefinite-lived intangibles | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 1,250,000 | $ 1,250,000 |
Equity Compensation Plans and_3
Equity Compensation Plans and Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Additional Disclosures [Abstract] | |||
Options and warrants outstanding, intrinsic value | $ 2,900,000 | ||
Options and warrants exercisable, intrinsic value | $ 1,700,000 | ||
Options and warrants outstanding, weighted average remaining contractual term (years) | 1 year 6 months | ||
Options and warrants exercises in period, total intrinsic value | $ 600,000 | $ 500,000 | $ 300,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Shares issued in period | 0 | ||
Total compensation cost not yet recognized, nonvested stock options | $ 16,000 | ||
Nonvested “restricted” stock | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Total intrinsic value for nonvested common stock awards vested during period | 2,100,000 | $ 1,600,000 | $ 700,000 |
Total intrinsic value for nonvested common stock awards outstanding | $ 28,800,000 | ||
Weighted-average period of recognition (years) | 1 year 4 months 24 days | ||
Total compensation cost not yet recognized, nonvested common stock awards | $ 9,800,000 | ||
Time Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (shares) | 19,000 | 17,000 | 20,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Vesting period | 5 years | 5 years | 5 years |
Stock Options and Warrants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Stock options | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Weighted-average period of recognition (years) | 6 months | ||
Prior to merger | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 3,500,000 |
Equity Compensation Plans and_4
Equity Compensation Plans and Share-Based Compensation - Restricted Stock Unit Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Underlying Shares - Outstanding at beginning of year | 254 | 157 | 30 |
Underlying Shares - Outstanding at end of year | 357 | 254 | 157 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-Average Exercise Price - Outstanding at beginning of year | $ 59.53 | $ 47.36 | $ 45.93 |
Weighted-Average Exercise Price - Outstanding at end of year | $ 69.13 | $ 59.53 | $ 47.36 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Underlying Shares - Granted | 109 | 102 | 117 |
Underlying Shares - Exercised | (10) | (10) | (10) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-Average Exercise Price - Granted | $ 86.86 | $ 72.70 | $ 48.25 |
Weighted-Average Exercise Price - Vested | $ 45.93 | $ 45.93 | $ 45.93 |
Vesting period | 3 years | ||
Time Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Underlying Shares - Granted | 19 | 17 | 20 |
Underlying Shares - Exercised | (15) | (12) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted-Average Exercise Price - Granted | $ 86.86 | $ 72.70 | $ 43.55 |
Weighted-Average Exercise Price - Vested | $ 73.78 | $ 43.55 | $ 0 |
Vesting period | 5 years | 5 years | 5 years |
Equity Compensation Plans and_5
Equity Compensation Plans and Share-Based Compensation - Warrants and Options Exercise Prices and Remaining Life (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Options | 70 |
Weighted-Average Remaining Life (years) | 1 year 6 months |
Currently Exercisable (shares) | 40 |
Exercise Price, $38.00 | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Exercise Price | $ / shares | $ 38 |
Options | 40 |
Weighted-Average Remaining Life (years) | 1 year 10 months 24 days |
Currently Exercisable (shares) | 20 |
Exercise Price, $40.00 | |
Schedule of Share-based Compensation, Shares Authorized under Stock Options Plans and Warrants, by Exercise Price [Line Items] | |
Exercise Price | $ / shares | $ 40 |
Options | 30 |
Weighted-Average Remaining Life (years) | 1 year |
Currently Exercisable (shares) | 20 |
Equity Compensation Plans and_6
Equity Compensation Plans and Share-Based Compensation - Warranty and Options Activity (Details) - Stock Options and Warrants - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding [Roll Forward] | |||
Underlying Shares - Outstanding at beginning of year | 80 | 90 | 103 |
Underlying Shares - Exercised | (10) | (10) | (13) |
Underlying Shares - Outstanding at end of year | 70 | 80 | 90 |
Underlying Shares - Exercisable at end of year | 40 | 30 | 20 |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted-Average Exercise Price - Outstanding at beginning of year | $ 39 | $ 39.11 | $ 37.34 |
Weighted-Average Exercise Price - Exercised | 40 | 40 | 24.57 |
Weighted-Average Exercise Price - Outstanding at end of year | 38.86 | 39 | 39.11 |
Weighted-Average Exercise Price - Exercisable at end of year | $ 39 | $ 39.33 | $ 40 |
Equity Compensation Plans and_7
Equity Compensation Plans and Share-Based Compensation - Share-based Compensation Allocation of Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | $ 8,680 | $ 5,786 | $ 3,069 |
Income tax benefits: | (416) | (1,414) | (1,075) |
Net compensation expense | 8,264 | 4,372 | 1,994 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | 43 | 74 | 110 |
Income tax benefits: | (114) | (94) | (39) |
Nonvested “restricted” stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | 8,637 | 5,712 | 2,959 |
Income tax benefits: | $ (302) | $ (1,320) | $ (1,036) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee | 100.00% | ||
Vesting period for company contributions | 5 years | ||
Employer contribution amount | $ 3.1 | $ 3.1 | $ 4.2 |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period until participation in 401(k) | 6 months | ||
First Cash | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution | 5.00% | ||
Rate of employer match | 50.00% |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)storesegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Revenues from External Customers and Assets [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Number of consumer loan stores closed | store | 52 | ||||||||||
Revenue: | |||||||||||
Retail merchandise sales | $ 1,175,561 | $ 1,091,614 | $ 1,051,099 | ||||||||
Pawn loan fees | 564,824 | 525,146 | 510,905 | ||||||||
Wholesale scrap jewelry sales | 103,876 | 107,821 | 140,842 | ||||||||
Consumer loan and credit services fees | 20,178 | 56,277 | 76,976 | ||||||||
Total revenue | $ 498,362 | $ 452,459 | $ 446,014 | $ 467,604 | $ 481,208 | $ 429,878 | $ 419,972 | $ 449,800 | 1,864,439 | 1,780,858 | 1,779,822 |
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 745,861 | 696,666 | 679,703 | ||||||||
Cost of wholesale scrap jewelry sold | 96,072 | 99,964 | 132,794 | ||||||||
Consumer loan and credit services loss provision | 4,159 | 17,461 | 19,819 | ||||||||
Total cost of revenue | 231,098 | 201,480 | 201,709 | 211,805 | 219,208 | 192,620 | 191,544 | 210,719 | 846,092 | 814,091 | 832,316 |
Net revenue | 267,264 | 250,979 | 244,305 | 255,799 | 262,000 | 237,258 | 228,428 | 239,081 | 1,018,347 | 966,767 | 947,506 |
Expenses and other income: | |||||||||||
Store operating expenses | 595,539 | 563,321 | 552,191 | ||||||||
Administrative expenses | 122,334 | 120,042 | 122,473 | ||||||||
Depreciation and amortization | 41,904 | 42,961 | 55,233 | ||||||||
Interest expense | 34,035 | 29,173 | 24,035 | ||||||||
Interest income | (1,055) | (2,444) | (1,597) | ||||||||
Merger and other acquisition expenses | 1,766 | 7,643 | 9,062 | ||||||||
(Gain) loss on foreign exchange | (787) | 762 | (317) | ||||||||
Loss on extinguishment of debt | 0 | 0 | 14,114 | ||||||||
Total expenses and other income | 195,746 | $ 202,015 | $ 199,019 | $ 196,956 | 198,824 | $ 193,175 | $ 186,157 | $ 183,302 | 793,736 | 761,458 | 775,194 |
Income before income taxes | 224,611 | 205,309 | 172,312 | ||||||||
Pawn loans | 369,527 | 362,941 | 369,527 | 362,941 | 344,748 | ||||||
Consumer loans, net | 751 | 15,902 | 751 | 15,902 | 23,522 | ||||||
Inventories | 265,256 | 275,130 | 265,256 | 275,130 | 276,771 | ||||||
Goodwill | 948,643 | 917,419 | 948,643 | 917,419 | 831,145 | ||||||
Total assets | 2,439,440 | 2,107,974 | 2,439,440 | 2,107,974 | 2,062,784 | ||||||
U.S. Operations | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 722,127 | 709,594 | 717,490 | ||||||||
Pawn loan fees | 379,395 | 373,406 | 380,596 | ||||||||
Wholesale scrap jewelry sales | 71,813 | 85,718 | 119,197 | ||||||||
Consumer loan and credit services fees | 20,178 | 55,417 | 75,209 | ||||||||
Total revenue | 1,193,513 | 1,224,135 | 1,292,492 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 447,911 | 450,516 | 468,527 | ||||||||
Cost of wholesale scrap jewelry sold | 65,941 | 78,308 | 112,467 | ||||||||
Consumer loan and credit services loss provision | 4,159 | 17,223 | 19,431 | ||||||||
Total cost of revenue | 518,011 | 546,047 | 600,425 | ||||||||
Net revenue | 675,502 | 678,088 | 692,067 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 412,508 | 414,097 | 423,214 | ||||||||
Administrative expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 20,860 | 21,021 | 24,073 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Merger and other acquisition expenses | 0 | 0 | 0 | ||||||||
(Gain) loss on foreign exchange | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Total expenses and other income | 433,368 | 435,118 | 447,287 | ||||||||
Income before income taxes | 242,134 | 242,970 | 244,780 | ||||||||
Pawn loans | 268,793 | 271,584 | 268,793 | 271,584 | 276,570 | ||||||
Consumer loans, net | 751 | 15,902 | 751 | 15,902 | 23,179 | ||||||
Inventories | 181,320 | 199,978 | 181,320 | 199,978 | 216,739 | ||||||
Goodwill | 771,311 | 759,538 | 771,311 | 759,538 | |||||||
Total assets | 1,767,504 | 1,534,542 | 1,767,504 | 1,534,542 | 1,527,012 | ||||||
Latin America Operations | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 453,434 | 382,020 | 333,609 | ||||||||
Pawn loan fees | 185,429 | 151,740 | 130,309 | ||||||||
Wholesale scrap jewelry sales | 32,063 | 22,103 | 21,645 | ||||||||
Consumer loan and credit services fees | 0 | 860 | 1,767 | ||||||||
Total revenue | 670,926 | 556,723 | 487,330 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 297,950 | 246,150 | 211,176 | ||||||||
Cost of wholesale scrap jewelry sold | 30,131 | 21,656 | 20,327 | ||||||||
Consumer loan and credit services loss provision | 0 | 238 | 388 | ||||||||
Total cost of revenue | 328,081 | 268,044 | 231,891 | ||||||||
Net revenue | 342,845 | 288,679 | 255,439 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 183,031 | 149,224 | 128,977 | ||||||||
Administrative expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 14,626 | 11,333 | 10,311 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Merger and other acquisition expenses | 0 | 0 | 0 | ||||||||
(Gain) loss on foreign exchange | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Total expenses and other income | 197,657 | 160,557 | 139,288 | ||||||||
Income before income taxes | 145,188 | 128,122 | 116,151 | ||||||||
Pawn loans | 100,734 | 91,357 | 100,734 | 91,357 | 68,178 | ||||||
Consumer loans, net | 0 | 0 | 0 | 0 | 343 | ||||||
Inventories | 83,936 | 75,152 | 83,936 | 75,152 | 60,032 | ||||||
Goodwill | 177,332 | 157,881 | 177,332 | 157,881 | |||||||
Total assets | 574,059 | 407,282 | 574,059 | 407,282 | 282,605 | ||||||
Corporate | |||||||||||
Revenue: | |||||||||||
Retail merchandise sales | 0 | 0 | 0 | ||||||||
Pawn loan fees | 0 | 0 | 0 | ||||||||
Wholesale scrap jewelry sales | 0 | 0 | 0 | ||||||||
Consumer loan and credit services fees | 0 | 0 | 0 | ||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 0 | 0 | 0 | ||||||||
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | ||||||||
Consumer loan and credit services loss provision | 0 | 0 | 0 | ||||||||
Total cost of revenue | 0 | 0 | 0 | ||||||||
Net revenue | 0 | 0 | 0 | ||||||||
Expenses and other income: | |||||||||||
Store operating expenses | 0 | 0 | 0 | ||||||||
Administrative expenses | 122,334 | 120,042 | 122,473 | ||||||||
Depreciation and amortization | 6,418 | 10,607 | 20,849 | ||||||||
Interest expense | 34,035 | 29,173 | 24,035 | ||||||||
Interest income | (1,055) | (2,444) | (1,597) | ||||||||
Merger and other acquisition expenses | 1,766 | 7,643 | 9,062 | ||||||||
(Gain) loss on foreign exchange | (787) | 762 | (317) | ||||||||
Loss on extinguishment of debt | 14,114 | ||||||||||
Total expenses and other income | 162,711 | 165,783 | 188,619 | ||||||||
Income before income taxes | (162,711) | (165,783) | (188,619) | ||||||||
Pawn loans | 0 | 0 | 0 | 0 | 0 | ||||||
Consumer loans, net | 0 | 0 | 0 | 0 | 0 | ||||||
Inventories | 0 | 0 | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | $ 97,877 | $ 166,150 | $ 97,877 | $ 166,150 | $ 253,167 |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 498,362 | $ 452,459 | $ 446,014 | $ 467,604 | $ 481,208 | $ 429,878 | $ 419,972 | $ 449,800 | $ 1,864,439 | $ 1,780,858 | $ 1,779,822 |
Long-Lived Assets | 347,673 | 300,883 | 347,673 | 300,883 | 284,386 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,193,513 | 1,224,135 | 1,292,492 | ||||||||
Long-Lived Assets | 254,395 | 226,358 | 254,395 | 226,358 | 227,659 | ||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 641,505 | 531,744 | 464,161 | ||||||||
Long-Lived Assets | 80,385 | 65,260 | 80,385 | 65,260 | 53,175 | ||||||
Other Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 29,421 | 24,979 | 23,169 | ||||||||
Long-Lived Assets | $ 12,893 | $ 9,265 | $ 12,893 | $ 9,265 | $ 3,552 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenue | $ 498,362 | $ 452,459 | $ 446,014 | $ 467,604 | $ 481,208 | $ 429,878 | $ 419,972 | $ 449,800 | $ 1,864,439 | $ 1,780,858 | $ 1,779,822 |
Total cost of revenue | 231,098 | 201,480 | 201,709 | 211,805 | 219,208 | 192,620 | 191,544 | 210,719 | 846,092 | 814,091 | 832,316 |
Net revenue | 267,264 | 250,979 | 244,305 | 255,799 | 262,000 | 237,258 | 228,428 | 239,081 | 1,018,347 | 966,767 | 947,506 |
Total expenses and other income | 195,746 | 202,015 | 199,019 | 196,956 | 198,824 | 193,175 | 186,157 | 183,302 | 793,736 | 761,458 | 775,194 |
Net income | $ 54,154 | $ 34,761 | $ 33,048 | $ 42,655 | $ 48,075 | $ 33,325 | $ 30,171 | $ 41,635 | $ 164,618 | $ 153,206 | $ 143,892 |
Diluted income per share: | |||||||||||
Net income per diluted share (in dollars per share) | $ 1.27 | $ 0.81 | $ 0.76 | $ 0.98 | $ 1.09 | $ 0.76 | $ 0.67 | $ 0.90 | $ 3.81 | $ 3.41 | $ 3 |
Diluted weighted-average shares | 42,760 | 43,167 | 43,256 | 43,658 | 43,936 | 44,116 | 45,043 | 46,479 | 43,208 | 44,884 | 47,888 |