COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 01, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-10960 | ||
Entity Registrant Name | FIRSTCASH HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 87-3920732 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,259,000,000 | ||
Entity Common Stock, Shares Outstanding | 46,293,162 | ||
Entity Central Index Key | 0000840489 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | RSM US LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 49 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 117,330 | $ 120,046 |
Accounts receivable, net | 57,792 | 55,356 |
Pawn loans | 390,617 | 347,973 |
Finance receivables, net | 103,494 | 181,021 |
Inventories | 288,339 | 263,311 |
Leased merchandise, net | 153,302 | 143,944 |
Prepaid expenses and other current assets | 19,788 | 17,707 |
Total current assets | 1,130,662 | 1,129,358 |
Property and equipment, net | 538,681 | 462,526 |
Operating lease right of use asset | 307,009 | 306,061 |
Goodwill | 1,581,381 | 1,536,178 |
Intangible assets, net | 330,338 | 388,184 |
Other assets | 9,415 | 8,531 |
Deferred tax assets, net | 7,381 | 5,614 |
Total assets | 3,904,867 | 3,836,452 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable and accrued liabilities | 139,460 | 244,327 |
Customer deposits and prepayments | 63,125 | 57,310 |
Lease liability, current | 92,944 | 90,570 |
Total current liabilities | 295,529 | 392,207 |
Revolving unsecured credit facilities | 339,000 | 259,000 |
Senior unsecured notes | 1,035,698 | 1,033,904 |
Deferred tax liabilities, net | 151,759 | 126,098 |
Lease liability, non-current | 203,115 | 203,166 |
Other liabilities | 0 | 13,950 |
Total liabilities | 2,025,101 | 2,028,325 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock; $0.01 par value; 90,000 shares authorized; 57,322 and 49,276 shares issued, respectively; 48,479 and 41,038 shares outstanding, respectively | 573 | 573 |
Additional paid-in capital | 1,734,528 | 1,724,956 |
Retained earnings | 1,060,603 | 866,679 |
Accumulated other comprehensive loss | (106,573) | (131,299) |
Common stock held in treasury, 11,030 and 8,843 shares at cost, respectively | (809,365) | (652,782) |
Total stockholders’ equity | 1,879,766 | 1,808,127 |
Total liabilities and stockholders’ equity | $ 3,904,867 | $ 3,836,452 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 90,000,000 | |
Common Stock, Shares, Issued | 57,322,000 | 57,322,000 |
Common Stock, Shares, Outstanding | 46,292,000 | 48,479,000 |
Treasury Stock, Shares | 11,030,000 | 8,843,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Retail merchandise sales | $ 1,261,136 | $ 1,134,249 | $ 1,075,518 |
Pawn loan fees | 561,390 | 475,782 | 457,517 |
Leased merchandise income | 622,163 | 22,720 | 0 |
Interest and fees on finance receivables | 181,280 | 9,024 | 2,016 |
Wholesale scrap jewelry sales | 102,973 | 57,190 | 96,233 |
Total revenue | 2,728,942 | 1,698,965 | 1,631,284 |
Cost of revenue: | |||
Cost of retail merchandise sold | 764,553 | 663,464 | 641,087 |
Depreciation of leased merchandise | 353,495 | 12,826 | 0 |
Provision for Lease Losses | 139,502 | 5,442 | 0 |
Provision for loan losses (1) | 118,502 | 48,952 | (488) |
Cost of wholesale scrap jewelry sold | 88,304 | 49,129 | 79,546 |
Total cost of revenue | 1,464,356 | 779,813 | 720,145 |
Net revenue | 1,264,586 | 919,152 | 911,139 |
Expenses and other income: | |||
Operating expenses | 728,909 | 564,832 | 562,158 |
Administrative expenses | 147,943 | 111,259 | 110,931 |
Depreciation and amortization | 103,832 | 45,906 | 42,105 |
Interest expense | 70,708 | 32,386 | 29,344 |
Interest income | (1,313) | (696) | (1,540) |
(Gain) loss on foreign exchange | (585) | 436 | 884 |
Merger and acquisition expenses | 3,739 | 15,449 | 1,316 |
Gain on revaluation of contingent acquisition consideration | (109,549) | (17,871) | 0 |
Loss on extinguishment of debt | 0 | 0 | 11,737 |
Total expenses and other income | 940,953 | 752,650 | 767,440 |
Income before income taxes | 323,633 | 166,502 | 143,699 |
Provision for income taxes | 70,138 | 41,593 | 37,120 |
Net income | $ 253,495 | $ 124,909 | $ 106,579 |
Earnings per share: | |||
Basic (in dollars per share) | $ 5.37 | $ 3.05 | $ 2.57 |
Diluted (in dollars per share | $ 5.36 | $ 3.04 | $ 2.56 |
Other Nonoperating Income (Expense) | $ (2,731) | $ 949 | $ 10,505 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 253,495 | $ 124,909 | $ 106,579 |
Other comprehensive income (loss): | |||
Currency translation adjustment | 24,726 | (12,867) | (21,463) |
Comprehensive income | $ 278,221 | $ 112,042 | $ 85,116 |
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, 2019 | 49,276 | 6,947 | ||||
Balance at beginning of period (value) at Dec. 31, 2019 | $ 1,350,035 | $ 493 | $ 1,231,528 | $ 727,476 | $ (96,969) | $ (512,493) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (value) | (3,326) | $ 0 | (10,663) | $ 7,337 | ||
Shares issued under share-based compensation (shares) | 0 | (98) | ||||
Exercise of stock options, net of shares net-settled (shares) | 0 | (38) | ||||
Exercise of stock options, net of shares net-settled (value) | 798 | $ 0 | (1,991) | $ 2,789 | ||
Stock Issued During Period, Value, Acquisitions | 0 | |||||
Share-based compensation expense (value) | 2,914 | 2,914 | ||||
Net income | 106,579 | 106,579 | ||||
Dividends paid | (44,752) | (44,752) | ||||
Currency translation adjustment | (21,463) | (21,463) | ||||
Repurchases of treasury stock (shares) | 1,427 | |||||
Repurchases of treasury stock (value) | (106,970) | $ (106,970) | ||||
Balance at end of period (shares) at Dec. 31, 2020 | 49,276 | 8,238 | ||||
Balance at end of period (value) at Dec. 31, 2020 | 1,283,815 | $ 493 | 1,221,788 | 789,303 | (118,432) | $ (609,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (value) | (1,663) | $ 0 | (7,090) | $ 5,427 | ||
Shares issued under share-based compensation (shares) | 0 | (73) | ||||
Exercise of stock options, net of shares net-settled (shares) | (10) | |||||
Exercise of stock options, net of shares net-settled (value) | 380 | (358) | $ 738 | |||
Stock Issued During Period, Value, Acquisitions | 505,546 | $ 80 | 505,466 | |||
Shares issued upon acquisition of American First Finance (shares) | 8,046 | |||||
Share-based compensation expense (value) | 5,150 | 5,150 | ||||
Net income | 124,909 | 124,909 | ||||
Dividends paid | (47,533) | (47,533) | ||||
Currency translation adjustment | (12,867) | (12,867) | ||||
Repurchases of treasury stock (shares) | 688 | |||||
Repurchases of treasury stock (value) | (49,610) | $ (49,610) | ||||
Balance at end of period (shares) at Dec. 31, 2021 | 57,322 | 8,843 | ||||
Balance at end of period (value) at Dec. 31, 2021 | 1,808,127 | $ 573 | 1,724,956 | 866,679 | (131,299) | $ (652,782) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation (value) | 0 | (1,281) | $ 1,281 | |||
Shares issued under share-based compensation (shares) | (17) | |||||
Stock Issued During Period, Value, Acquisitions | 0 | |||||
Share-based compensation expense (value) | 10,853 | 10,853 | ||||
Net income | 253,495 | 253,495 | ||||
Dividends paid | (59,571) | (59,571) | ||||
Currency translation adjustment | 24,726 | 24,726 | ||||
Repurchases of treasury stock (shares) | 2,204 | |||||
Repurchases of treasury stock (value) | (157,864) | $ (157,864) | ||||
Balance at end of period (shares) at Dec. 31, 2022 | 57,322 | 11,030 | ||||
Balance at end of period (value) at Dec. 31, 2022 | $ 1,879,766 | $ 573 | $ 1,734,528 | $ 1,060,603 | $ (106,573) | $ (809,365) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 28 | 46 | |
Exercise of stock options | 22 | ||
Common stock, dividends, declared (in dollars per share) | $ 1.26 | $ 1.17 | $ 1.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow from operating activities: | |||
Net income | $ 253,495 | $ 124,909 | $ 106,579 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Depreciation of leased merchandise | 353,495 | 12,826 | 0 |
Provision for lease losses | 139,502 | 5,442 | 0 |
Provision for loan losses | 118,502 | 48,952 | (839) |
Share-based compensation expense | 10,853 | 5,150 | 2,914 |
Depreciation and amortization expense | 103,832 | 45,906 | 42,105 |
Amortization of debt issuance costs | 2,962 | 1,671 | 1,649 |
Net amortization of premiums, discounts and unearned origination fees on finance receivables | 44,378 | 1,132 | 0 |
Gain on revaluation of contingent acquisition consideration | (109,549) | (17,871) | 0 |
Other expenses (income), net | 1,722 | 949 | 10,505 |
Loss on extinguishment of debt | 0 | 0 | 11,737 |
Deferred income taxes, net | 42,488 | 10,722 | 14,476 |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable, net | (1,217) | (2,492) | 5,474 |
Inventories purchased directly from customers, wholesalers or manufacturers | (3,141) | (27,006) | 29,174 |
Prepaid expenses and other assets | (502,355) | (22,563) | 0 |
Prepaid expenses and other assets | (3,419) | 3,094 | 1,400 |
Accounts payable, accrued liabilities and other liabilities | 19,993 | 26,180 | 8,621 |
Income taxes | (2,236) | 6,303 | (11,531) |
Net cash flow provided by operating activities | 469,305 | 223,304 | 222,264 |
Cash flow from investing activities: | |||
Pawn loans, net | (35,817) | (73,340) | 105,418 |
Finance receivables, net | (85,353) | (5,844) | 1,590 |
Purchases of furniture, fixtures, equipment and improvements | (35,586) | (42,022) | (37,543) |
Purchases of store real property | (82,902) | (79,507) | (45,502) |
Portion of AFF Acquisition paid in cash, net of cash acquired | (25,000) | (462,102) | 0 |
Acquisitions of pawn stores, net of cash acquired | (71,785) | (81,822) | (44,315) |
Net cash flow used in investing activities | (336,443) | (744,637) | (20,352) |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 286,000 | 560,000 | 354,425 |
Repayments of unsecured credit facilities | (206,000) | (424,000) | (569,933) |
Issuance of senior unsecured notes | 0 | 550,000 | 500,000 |
Redemption of senior unsecured notes | 0 | 0 | (300,000) |
Redemption premium and other redemption costs on senior unsecured notes | 0 | 0 | (8,781) |
Debt issuance costs paid | (1,838) | (10,581) | (7,963) |
Purchases of treasury stock | (157,864) | (49,610) | (106,970) |
Proceeds from exercise of stock options | 0 | 380 | 1,140 |
Payment of minimum withholding taxes on net share settlement of stock options exercised | 0 | (1,663) | (3,668) |
Payments of Dividends | (59,571) | (47,533) | (44,752) |
Net cash flow (used in) provided by financing activities | (139,273) | 576,993 | (186,502) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | 3,695 | (1,464) | 3,913 |
Change in cash and cash equivalents | (2,716) | 54,196 | 19,323 |
Supplemental disclosure of cash flow information: | |||
Interest | 52,891 | 29,461 | 21,033 |
Income taxes | 30,069 | 24,563 | 34,186 |
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 | 502,964 | 430,306 | 340,891 |
Stock Issued During Period, Value, Acquisitions | 0 | 505,546 | 0 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 117,330 | $ 120,046 | $ 65,850 |
Organization and Nature of the
Organization and Nature of the Company | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of the Company | GENERAL Organization and Nature of the Company FirstCash Holdings, Inc. (together with its wholly-owned subsidiaries, the “Company”) is incorporated in the state of Delaware. On December 17, 2021, the Company completed the acquisition of AFF, which is a leading technology-driven retail POS payment solutions platform primarily focused on providing LTO products. The accompanying audited consolidated results of operations for the year ended December 31, 2022 includes the results of operations for AFF, while the comparable prior-year period includes the results of operations for AFF for the period December 17, 2021 to December 31, 2021, affecting the comparability of 2022 and 2021 amounts. See Note 3 for additional information about the AFF Acquisition. The Company operates two business lines: pawn operations and retail POS payment solutions which are organized into three reportable segments. The U.S. pawn segment consists of all pawn operations in 25 U.S. states and the District of Columbia, while the Latin America pawn segment consists of all pawn operations in Mexico, Guatemala, Colombia and El Salvador. The retail POS payment solutions segment consists of the operations of AFF in all 50 states in the U.S., the District of Columbia and Puerto Rico. The Company’s primary business line continues to be the operation of retail pawn stores, also known as “pawnshops,” which focus on serving cash and credit-constrained consumers. Pawn stores help customers meet small short-term cash needs by providing non-recourse pawn loans and buying merchandise directly from customers. Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the typical 30-day term of the loan. Pawn stores also generate retail sales primarily from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers. The Company’s retail POS payment solutions segment focuses on providing LTO and retail financing payment options across a large network of traditional and e-commerce retail merchant partners. AFF’s retail merchant partnerships provide consumer goods and services to their shoppers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions. Continuing Impact of COVID-19 The COVID-19 pandemic and government responses thereto had an initial adverse and material impact on pawn loan demand in 2020, which negatively impacted pawn receivables, inventories and revenues. This initial adverse impact in pawn loan demand was offset in large part by a positive impact in merchandise sales, especially among stay-at-home products, which were enhanced by federal stimulus payments directly to consumers. Throughout 2021 and 2022, as the contributory impacts of the pandemic normalized, pawn loan demand steadily recovered and pawn receivables, inventories and revenues are now ahead of pre-pandemic levels. Inflationary pressures on the Company’s customer base helped drive further demand for consumer credit especially among its customer base, which contributed to the recovery in pawn loan demand. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 Holdings, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of the acquired operations have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. 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, 2022, the amount of cash associated with indefinitely reinvested foreign earnings was $37.4 million, which is primarily held in Mexican pesos. Pawn loans and revenue recognition - Pawn loans are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. 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, as the Company’s pawn loans are non-recourse against the customer. 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, which is included in accounts receivable, net in the accompanying consolidated balance sheets. If the pawn loan is not repaid prior to the expiration of the pawn loan term, including any extension or grace period, if applicable, the principal amount loaned becomes the inventory carrying value of the forfeited collateral, which is typically recovered through sales of the forfeited items at prices well above the carrying value. 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. Pawn inventories and revenue recognition - Pawn inventories represent merchandise acquired from forfeited pawn loans 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. Pawn inventories from forfeited pawn loans are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Pawn inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of pawn inventories is determined on the specific identification method. Pawn inventories are stated at the lower of cost or net realizable value and, accordingly, valuation allowances are established if pawn inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated pawn inventories and determined that a valuation allowance is not necessary. The Company’s merchandise sales are primarily retail sales to the general public in its pawn stores. 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. Some jewelry inventory is melted and 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. Layaway plan and deferred revenue - Customers can 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 pawn inventory and all or a portion of previous payments are typically forfeited to the Company. Deposits and 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. Layaway payments from customers are included in customer deposits and prepayments in the accompanying consolidated balance sheets. Leased merchandise and revenue recognition - The Company provides merchandise, consisting primarily of furniture and mattresses, appliances, jewelry, electronics and automotive products, to customers of its merchant partners for lease under certain terms agreed to by the customer. The customer has the right to acquire the title either through an early buyout option or through payment of all required lease payments. The Company maintains ownership of the leased merchandise until all payment obligations are satisfied under the lease agreement. The customer has the right to cancel the lease at any time by returning the merchandise and making all scheduled payments due through the minimum lease holding period, which is typically 60 days. Leased merchandise contracts can typically be renewed for between six Lease income is recognized over the lease term and is recorded net of any sales taxes collected. Charges for late fees and insufficient fund fees are recognized as income when collected. Initial direct costs related to the Companyʼs lease agreements are added to the basis of the leased property and recognized over the lease term in proportion to the recognition of lease income. The Company typically charges the customer a non-refundable processing fee at lease inception and may also receive a discount from or pay a premium to certain merchant partners for leases originated at their locations, which are deferred and amortized using the straight-line method as adjustments to lease income over the contractual life of the related leased merchandise. Unamortized fees, discounts and premiums are recognized in full upon early buyout or charge-off. The Company accrues for lease income earned but not yet collected as accrued rent receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets. Alternatively, lease payments received in excess of the amount earned are recognized as deferred revenue, which is included in customer deposits and prepayments in the accompanying consolidated balance sheets. Customer payments are first applied to applicable sales tax and scheduled lease payments, then applied to any uncollected fees, such as late fees and insufficient fund fees. The Company collects sales taxes on behalf of the customer and remits all applicable sales taxes collected to the respective jurisdiction. Provision for lease losses - The Company records a provision for lease losses on an allowance method, which estimates the leased merchandise losses incurred but not yet identified by management as of the end of the accounting period. The allowance for lease losses is based primarily upon historical loss experience with consideration given to recent and forecasted business trends including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices. The Company charges off leased merchandise when a lease is 90 days or more contractually past due. If an account is deemed to be uncollectible prior to this date, the Company will charge off the leased merchandise at the point in time it is deemed uncollectible. Finance receivables and revenue recognition - The Company purchases and services retail finance receivables, the term of which typically ranges from six Interest income is recognized using the interest method over the life of the finance receivable for all loans for which the Company deems collection to be probable based on historical loan redemption statistics and stops accruing interest upon charge-off. Accrued interest, net of an allowance for uncollectible interest income is included in accounts receivable, net The Company offers customers an early payoff discount on most of its finance receivables, whereby the customer has between 90 and 105 days to pay the full principal balance without incurring any interest charge. If the borrower does not pay the full principal balance prior to the expiration of the early payoff discount period, interest charges are applied retroactively to the inception date of the loan. The Company accrues interest income during the early payoff discount period but records a reserve for loans expected to pay the full principal balance prior to the expiration of the early payoff discount period based on historical payment patterns. Provision for loan losses - Expected lifetime losses on finance receivables are recognized upon loan purchase, which requires the Company to make its best estimate of probable lifetime losses at the time of purchase. The Company segments its finance receivable portfolio into pools of receivables with similar risk characteristics which include loan product and monthly origination vintage and evaluates each pool for impairment. The Company calculates the allowance for loan losses based on historical loss information and incorporates observable and forecasted economic conditions over a reasonable and supportable forecast period covering the full contractual life of finance receivables. Incorporating observable and forecasted economic conditions could have a material impact on the measurement of the allowance to the extent that forecasted economic conditions change significantly. The Company may also consider other qualitative factors to address recent and forecasted business trends in estimating the allowance, as necessary, including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices. The allowance for loan losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end. The Company charges off finance receivables when a receivable is 90 days or more contractually past due. If an account is deemed to be uncollectible prior to this date, the Company will charge off the finance receivable at the point in time it is deemed uncollectible. Foreign currency transactions - The Company has pawn operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. 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 pawn 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 2022 was 20.1 to 1 compared to 20.3 to 1 in 2021 and 21.5 to 1 in 2020. The average value of the Guatemalan quetzal to the U.S. dollar exchange rate for 2022, 2021 and 2020 was 7.7 to 1. The average value of the Colombian peso to the U.S. dollar exchange rate for 2022 was 4,253 to 1 compared to 3,742 to 1 in 2021 and 3,693 to 1 in 2020. Operating expenses - Costs incurred in operating the Company’s pawn stores have been classified as operating expenses, which include salary and benefit expense of pawn store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the pawn stores. Additionally, costs incurred in operating AFF have been classified as operating expenses, which include salary and benefit expense of certain operations focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred. 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 Business combinations - Business combination accounting requires the Company to determine the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination. The total consideration of the acquisition is allocated to the assets and liabilities in amounts equal to the estimated fair value of each asset and liability as of the acquisition date, and any remaining acquisition consideration is classified as goodwill. This allocation process requires extensive use of estimates and assumptions. When appropriate, the Company utilizes independent valuation experts to advise and assist in determining the fair value of the assets acquired and liabilities assumed in connection with a business acquisition, in determining appropriate amortization methods and periods for identified intangible assets and in determining the fair value of contingent consideration, which is reviewed at each subsequent reporting period with changes in the fair value of the contingent consideration recognized in the consolidated statements of income. See Note 3. 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 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 historically assessed goodwill for impairment as of December 31 each year. In 2022, the Company changed the date of its annual goodwill impairment assessment to October 1 to allow for operational expediency. The Company believes the change in goodwill impairment testing date does not represent a material change to its method of applying an accounting principle in light of its internal controls and requirements to assess goodwill impairment upon certain triggering events. The Company’s reporting units, which are tested for impairment, are U.S. pawn, Latin America pawn and retail POS payment solutions. 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 quantitative impairment testing methodology. See Note 14. The Company’s other material indefinite-lived intangible assets consist of certain 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 an indefinite-lived intangible asset below its carrying amount. See Note 14. Merger and 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 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. The Company did not record any impairment loss for the years ended December 31, 2022 and 2021. 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 12. Advertising - The Company expenses the costs of advertising when incurred. Advertising expense for the years ended December 31, 2022, 2021 and 2020, was $4.1 million, $1.0 million and $1.1 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 15. 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, 2022 2021 2020 Numerator: Net income $ 253,495 $ 124,909 $ 106,579 Denominator: Weighted-average common shares for calculating basic earnings per share 47,213 40,975 41,502 Effect of dilutive securities: Stock options and restricted stock unit awards 117 49 98 Weighted-average common shares for calculating diluted earnings per share 47,330 41,024 41,600 Earnings per share: Basic $ 5.37 $ 3.05 $ 2.57 Diluted 5.36 3.04 2.56 Use of estimates - The preparation of financial statements in conformity with GAAP 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 fees, allowances for lease and loan losses and related lease and loan loss provisions, valuation of acquired assets, assumed liabilities and contingent consideration of acquisitions, evaluation of goodwill and other intangible assets for impairment and current and deferred tax assets and liabilities. Reclassification - For the purposes of comparability, certain prior year amounts in the consolidated balance sheets have been reclassified in order to conform to the current period presentation. Recent accounting pronouncements - In March 2020, the Financial Accounting Standards Board issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank-offered rates to alternative reference rates. ASU 2020-04 was effective beginning on March 12, 2020, and the Company could elect to apply the amendments prospectively through December 31, 2022. In December 2022, the Financial Accounting Standards Board issued ASU No 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” (“ASU 2022-06”). ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. As the Company no longer has any LIBOR based contracts (see Note 11), ASU 2020-04 and ASU 2022-06 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, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS 2022 Pawn Acquisitions Consistent with the Company’s strategy to continue its expansion of pawn stores in selected markets, during 2022, the Company acquired 30 pawn stores in the U.S. in six separate transactions and one store in Guatemala in a separate transaction. The aggregate purchase price for these acquisitions totaled $73.0 million, net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $69.6 million in cash paid at closing and remaining short-term amounts payable to the sellers of approximately $3.4 million. During 2022, the Company also paid $2.2 million of purchase price amounts payable related to prior-year pawn acquisitions. The purchase price of each of the 2022 pawn 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 pawn store acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. These pawn acquisitions were not material individually or in the aggregate to the Company’s consolidated financial statements. 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 price for these individually immaterial pawn store acquisitions during 2022 (the “2022 Pawn Acquisitions”) is as follows (in thousands): 2022 Pawn Acquisitions Pawn loans $ 7,291 Accounts receivable, net 426 Inventories 11,523 Property and equipment 300 Goodwill (1) 55,455 Intangible assets 310 Current liabilities (2,329) Aggregate purchase price $ 72,976 (1) Substantially all of the goodwill is expected to be deductible for income tax purposes. The results of operations for the 2022 Pawn Acquisitions have been consolidated since the respective acquisition dates. During 2022, revenue from the 2022 Pawn Acquisitions was $4.0 million and the net loss from the 2022 Pawn Acquisitions since the acquisition dates (including $1.2 million of transaction costs, net of tax) was approximately $0.2 million. Transaction costs associated with the 2022 Pawn Acquisitions were expensed as incurred and are presented in the consolidated statements of income as merger and acquisition expenses. These expenses include investment banking, legal, accounting and other related third-party costs. Unaudited pro forma financial information reflecting the consolidated results of operations of the Company as if the 2022 Pawn Acquisitions had occurred on January 1, 2021 has not been presented as the 2022 Pawn Acquisitions were not significant in relation to the Company’s consolidated financial position or results of operations. 2021 American First Finance Acquisition On December 17, 2021, the Company completed the AFF Acquisition. Under the terms and conditions set forth in the business combination agreement dated October 27, 2021, as amended, the Company acquired all of the equity interests of AFF in exchange for 8,046,252 shares of the Company’s common stock and cash consideration. Immediately following the AFF Acquisition, the Company’s shareholders owned approximately 83% of the common stock of the Company and the seller parties owned approximately 17%. In addition to the closing purchase price, the seller parties have the right to receive up to an additional $375.0 million of contingent consideration (the “Contingent Consideration”), which is payable in cash or Company common stock, at the Company’s discretion. In particular, the seller parties had the right to receive up to $250.0 million of additional consideration if AFF achieved certain adjusted EBITDA targets for the period consisting of the fourth quarter of 2021 through the end of 2022. AFF did not achieve the threshold adjusted EBITDA target for the period ending December 31, 2022 and, therefore, the $250.0 million of additional consideration was not earned by the seller parties. The seller parties also have the right to receive up to $50.0 million of additional consideration if AFF achieves certain adjusted EBITDA targets for the first half of 2023. Lastly, the seller parties had the right to receive up to $75.0 million of additional consideration in the event that the highest average stock price of the Company for any 10-day period from December 6, 2021 through February 28, 2023 is less than $86.25. As a result of an increase in the Company’s stock price during October 2022, no such contingent payment to the seller parties is required. See Note 6. The following table summarizes the consideration transferred in connection with the AFF Acquisition, net of cash acquired (in thousands except share and per share amounts): AFF Acquisition Shares of FirstCash Holdings, Inc. common stock issued 8,046,252 Closing common stock price per share at December 16, 2021 $ 62.83 Stock consideration $ 505,546 Cash consideration paid to AFF shareholders at closing 253,087 Cash consideration paid to extinguish AFF pre-existing debt 257,278 Present value of deferred consideration payable to AFF shareholders on December 31, 2022 23,873 Estimated fair value of Contingent Consideration (see Note 6) 127,420 Less cash acquired (48,263) Aggregate purchase consideration $ 1,118,941 During 2022, the Company made certain measurement period adjustments to the preliminary purchase price allocation, which resulted in a decrease in goodwill of $16.9 million. The adjusted purchase price allocation is reflected in the accompanying consolidated balance sheet as of December 31, 2022. The following table details the preliminary purchase price allocation as of December 31, 2021, the measurement period adjustments made during the twelve months ended December 31, 2022 and the final purchase price allocation as of December 31, 2022 (in thousands): December 31, 2022 December 31, 2021 Adjustments 2022 Accounts receivable $ 11,660 $ — $ 11,660 Finance receivables 225,261 — 225,261 Leased merchandise 139,649 — 139,649 Prepaid expenses and other current assets 4,474 (188) 4,286 Property and equipment 11,670 (9) 11,661 Operating lease right of use asset 491 — 491 Goodwill 503,106 (16,901) 486,205 Intangible assets 305,100 — 305,100 Accounts payable and accrued liabilities (28,357) (1,116) (29,473) Customer deposits and prepayments (11,014) — (11,014) Lease liability, current (10) — (10) Deferred tax liabilities (1) (42,608) 18,214 (24,394) Lease liability, non-current (481) — (481) Purchase price $ 1,118,941 $ — $ 1,118,941 (1) Measurement period adjustment is primarily a result of the seller finalizing the ending tax basis in the assets and liabilities acquired, which carried over to the Company. 2021 Pawn Acquisitions During 2021, the Company acquired 46 pawn stores in the U.S. in three separate transactions and acquired a pawn license that will be used to open a new pawn store in the state of Nevada. The aggregate purchase price for these acquisitions totaled $79.5 million, net of cash acquired. The aggregate purchase price was composed of $76.0 million in cash paid at closing and remaining short-term amounts payable to the sellers of approximately $3.5 million. 2021 Unaudited Pro Forma Financial Information The results of operations for the AFF Acquisition and the 2021 Pawn Acquisitions have been consolidated since the respective acquisition dates. During 2021, revenue from AFF and the 2021 Pawn Acquisitions was $56.0 million and the net loss from AFF and the 2021 Pawn Acquisitions since the acquisition dates (including $11.9 million of transaction costs, net of tax) was approximately $41.0 million. Transaction costs associated with the AFF Acquisition and the 2021 Pawn Acquisitions were expensed as incurred and are presented in the consolidated statements of income as merger and acquisition expenses. These expenses include investment banking, legal, accounting and other related third-party costs, including preparation for regulatory filings. The following unaudited pro forma financial information reflects the consolidated results of operations of the Company as if the AFF Acquisition and the 2021 Pawn Acquisitions had occurred on January 1, 2020, after giving effect to certain adjustments (in thousands, except per share amounts): Year Ended Year Ended December 31, 2021 December 31, 2020 As Reported Pro Forma As Reported Pro Forma Total revenue $ 1,698,965 $ 2,305,860 $ 1,631,284 $ 2,024,055 Net income 124,909 156,257 106,579 60,059 Net income per share: Basic $ 3.05 $ 3.21 $ 2.57 $ 1.21 Diluted 3.04 3.20 2.56 1.21 The unaudited pro forma results have been adjusted with respect to certain aspects of the AFF Acquisition and 2021 Pawn Acquisitions primarily to reflect: • Depreciation and amortization expense that would have been recognized assuming fair value adjustments to the tangible and intangible assets acquired and liabilities assumed; • An increase in total indebtedness primarily incurred to finance certain cash payments and transaction costs related to the AFF Acquisition and 2021 Pawn Acquisitions, partially offset by the elimination of AFF’s pre-existing debt that was repaid at closing; • The inclusion in the year ended December 31, 2020 of $15.4 million in acquisition expenses incurred by the Company (excluded from the year ended December 31, 2021); and • The exclusion of $44.3 million of loan loss provision expense in the year ended December 31, 2021 resulting from the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition. The pro forma financial information has been prepared for informational purposes only and does not include any anticipated synergies or other potential benefits of the AFF Acquisition and 2021 Pawn Acquisitions. It also does not give effect to certain future charges that the Company expects to incur in connection with the AFF Acquisition and 2021 Pawn Acquisitions, including, but not limited to, additional professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to consolidation of technology systems. Pro forma results do not purport to be indicative of what would have resulted had the acquisitions occurred on the date indicated or what may result in the future. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES Lessor Refer to Note 2 to the consolidated financial statements for further information about the Company’s revenue generating activities as a lessor. All of the Company’s lease agreements are considered operating leases. Lessee The Company leases the majority of its pawnshop locations and certain administrative offices under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components for which the Company accounts 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. Leased facilities are generally leased for a term of three three 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, 2022, 2021 and 2020 was 6.5%, 6.2% and 7.0%, respectively. 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 $1.3 million, loss of $0.6 million and loss of $1.2 million during the year ended December 31, 2022, 2021 and 2020, respectively, related to the remeasurement of these U.S.-dollar-denominated operating leases, which is included in (gain) loss 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 operating expenses in the consolidated statements of income during the year ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease expense $ 128,174 $ 125,439 $ 121,649 Variable lease expense (1) 16,979 16,021 14,444 Total operating lease expense $ 145,153 $ 141,460 $ 136,093 (1) 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, 2022 (in thousands): 2023 $ 109,116 2024 86,941 2025 59,971 2026 39,707 2027 17,936 Thereafter 23,501 Total $ 337,172 Less amount of lease payments representing interest (41,113) Total present value of lease payments $ 296,059 The following table details supplemental cash flow information related to operating leases for the year ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 116,225 $ 114,463 $ 110,965 Leased assets obtained in exchange for new operating lease liabilities 95,132 110,531 104,576 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY During 2022, the Company repurchased a total of 2,204,000 shares of common stock at an aggregate cost of $157.9 million and an average cost per share of $71.63, and during 2021, repurchased 688,000 shares of common stock at an aggregate cost of $49.6 million and an average cost per share of $72.10. The Company intends to continue repurchases under its active share repurchase program, including 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, liquidity needs, credit availability, debt covenant restrictions, general business and economic conditions, regulatory requirements, the market price of the Company’s stock, the Company’s 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 2022 (dollars in thousands): Plan Announcement Date Plan Completion Date Dollar Amount Authorized Shares Purchased in 2022 Dollar Amount Purchased in 2022 Remaining Dollar Amount Authorized For Future Purchases January 28, 2021 March 28, 2022 $ 100,000 1,048,000 $ 72,217 $ — April 28, 2022 Currently active 100,000 1,156,000 85,647 14,353 October 27, 2022 Currently active 100,000 — — 100,000 Total 2,204,000 $ 157,864 $ 114,353 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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 The Company’s financial assets and liabilities as of December 31, 2022 and 2021 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial liabilities: Contingent Consideration $ — $ — $ — $ — Estimated Fair Value December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial liabilities: Contingent Consideration (1) $ 109,549 $ — $ — $ 109,549 (1) The current portion of $95.6 million is included in accounts payable and accrued liabilities and the non-current portion of $14.0 million is included in other liabilities in the accompanying consolidated balance sheet as of December 31, 2021. As further discussed in Note 3, the Company estimated the preliminary fair value of the Contingent Consideration to be $127.4 million, as of the AFF Acquisition date. The Company revalues the Contingent Consideration to fair value at the end of each reporting period. The estimate of the fair value of Contingent Consideration is determined by applying a Monte Carlo simulation, which includes inputs not observable in the market, such as the risk-free rate, risk-adjusted discount rate, the volatility of the underlying financial metrics and projected financial forecast of AFF over the earn-out period, and therefore represents a Level 3 measurement. Significant increases or decreases in these inputs could result in a significantly lower or higher fair value measurement of the Contingent Consideration. The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the year ended December 31, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2022 2021 Contingent Consideration at beginning of period $ 109,549 $ — Contingent Consideration issued December 17, 2021 (see Note 3 ) — 127,420 Change in fair value (1) (109,549) (17,871) Contingent Consideration at end of period $ — $ 109,549 (1) The Company recognized a gain of $109.5 million and $17.9 million during the year ended December 31, 2022 and 2021, respectively, as a result of the change in fair value of the Contingent Consideration (see Note 3), which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. As further described in Note 3, $325.0 million of the potential $375.0 million in Contingent Consideration was not earned leaving the right to receive up to $50.0 million of additional consideration if AFF achieves certain adjusted EBITDA targets for the first half of 2023, and is the only remaining portion of Contingent Consideration as of December 31, 2022. There were no transfers in or out of Level 1, 2 or 3 during the year ended December 31, 2022, 2021 and 2020. 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, But for Which Fair Value is Disclosed The Company’s financial assets and liabilities as of December 31, 2022 and 2021 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 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 117,330 $ 117,330 $ 117,330 $ — $ — Accounts receivable, net 57,792 57,792 — — 57,792 Pawn loans 390,617 390,617 — — 390,617 Finance receivables, net (1) 103,494 201,895 — — 201,895 $ 669,233 $ 767,634 $ 117,330 $ — $ 650,304 Financial liabilities: Revolving unsecured credit facilities $ 339,000 $ 339,000 $ — $ 339,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 932,000 — 932,000 — $ 1,389,000 $ 1,271,000 $ — $ 1,271,000 $ — (1) Finance receivables, gross as of December 31, 2022 was $196.0 million. See Note 7. Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 120,046 $ 120,046 $ 120,046 $ — $ — Accounts receivable, net 55,356 55,356 — — 55,356 Pawn loans 347,973 347,973 — — 347,973 Finance receivables, net (1) 181,021 233,000 — — 233,000 $ 704,396 $ 756,375 $ 120,046 $ — $ 636,329 Financial liabilities: Revolving unsecured credit facility $ 259,000 $ 259,000 $ — $ 259,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 1,058,000 — 1,058,000 — $ 1,309,000 $ 1,317,000 $ — $ 1,317,000 $ — (1) Finance receivables, gross as of December 31, 2021 was $220.3 million. See Note 7. 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 accounts receivable, net approximate fair value. Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). |
Finance Receivables, Net
Finance Receivables, Net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Finance Receivables, Net | FINANCE RECEIVABLES, NET Finance receivables, net, originated in the retail POS payment solutions segment, consist of the following (in thousands): As of December 31, 2022 2021 Finance receivables, gross $ 195,987 $ 220,329 Fair value premium on non-PCD finance receivables (1) — 40,251 Non-credit discount on PCD finance receivables (2) — (3,521) Merchant partner discounts and premiums, net (3,517) (104) Unearned origination fees (4,143) (360) Finance receivables, amortized cost 188,327 256,595 Less allowance for loan losses (84,833) (75,574) Finance receivables, net $ 103,494 $ 181,021 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized as interest income on an effective yield basis over the lives of the related non-PCD finance receivables. (2) Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related PCD finance receivables. Changes in the allowance for loan losses are as follows (in thousands): As of December 31, 2022 2021 Balance at beginning of year $ 75,574 $ — Provision for loan losses (1) 118,502 48,952 Initial allowance recognized for PCD loans (2) — 32,036 Charge-offs (114,535) (5,545) Recoveries 5,292 131 Balance at end of year $ 84,833 $ 75,574 (1) For the year ended December 31, 2021, includes $44.3 million as a result of the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition, which is recorded as provision for loan losses in the consolidated statements of income. (2) Represents the establishment of the initial allowance for expected lifetime credit losses for PCD finance receivables acquired in the AFF Acquisition, which is added to the acquisition date fair value to establish the initial amortized cost basis of the PCD loans. As this initial allowance for loan losses is added to the acquisition date fair value, there is no provision for loan losses recognized in the consolidated statements of income during 2021 for PCD loans. The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2022 and 2021, by origination year (in thousands): Origination Year 2022 2021 2020 Total As of December 31, 2022 Delinquency: 1 to 30 days past due $ 14,186 $ 2,795 $ — $ 16,981 31 to 60 days past due 8,048 1,822 — 9,870 61 to 90 days past due (1) 6,597 1,750 — 8,347 Total past due finance receivables 28,831 6,367 — 35,198 Current finance receivables 132,197 20,932 — 153,129 Finance receivables, amortized cost $ 161,028 $ 27,299 $ — 188,327 As of December 31, 2021 Delinquency: 1 to 30 days past due $ — $ 16,077 $ 2,260 $ 18,337 31 to 60 days past due — 10,024 1,648 11,672 61 to 90 days past due (1) — 7,898 1,478 9,376 Total past due finance receivables before fair value adjustments — 33,999 5,386 39,385 Current finance receivables before fair value adjustments — 160,998 19,482 180,480 Finance receivables before fair value adjustments $ — $ 194,997 $ 24,868 219,865 Fair value premium on non-PCD finance receivables 40,251 Non-credit discount on PCD finance receivables (3,521) Finance receivables, amortized cost $ 256,595 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. |
Leased Merchandise, Net
Leased Merchandise, Net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Leased Merchandise, Net | LEASED MERCHANDISE, NET Leased merchandise, net, for the retail POS payment solutions segment, consists of the following (in thousands): As of December 31, 2022 2021 Leased merchandise (1) $ 335,038 $ 156,280 Processing fees (4,124) (440) Merchant partner discounts and premiums, net 2,456 310 Accumulated depreciation (100,879) (6,764) Leased merchandise, before allowance for lease losses 232,491 149,386 Less allowance for lease losses (79,189) (5,442) Leased merchandise, net $ 153,302 $ 143,944 (1) Acquired leased merchandise in the AFF Acquisition was recorded at fair value. See Note 3. Changes in the allowance for lease losses are as follows (in thousands): As of December 31, 2022 2021 Balance at beginning of year $ 5,442 $ — Provision for lease losses (1) 139,502 5,442 Charge-offs (2) (70,114) — Recoveries 4,359 — Balance at end of year $ 79,189 $ 5,442 (1) During 2021, represents the provision for lease losses on leases originated from December 17, 2021 through December 31, 2021. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): As of December 31, 2022 2021 Land $ 141,795 $ 114,150 Buildings 249,658 199,100 Furniture, fixtures, equipment and improvements 516,801 468,118 908,254 781,368 Less accumulated depreciation (369,573) (318,842) Property and equipment, net $ 538,681 $ 462,526 Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $46.8 million, $42.5 million and $39.8 million, respectively. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Accrued compensation $ 38,595 $ 33,546 Trade accounts payable 29,243 23,077 Sales, property, and payroll taxes payable 27,226 32,463 Accrued interest payable 24,276 9,375 Benefits liabilities and withholding payable 2,383 3,084 Acquisition purchase price amounts payable to sellers (1) 1,217 123,475 Income taxes payable 569 3,387 Other accrued liabilities 15,951 15,920 $ 139,460 $ 244,327 (1) As of December 31, 2021, includes the present value of the deferred consideration payable to AFF shareholders on December 31, 2022 of $23.9 million and the short-term portion of the estimated fair value of Contingent Consideration of $95.6 million. See Note 3 and Note 6. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Revolving unsecured credit facility, maturing 2027 (1) $ 339,000 $ 259,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,475 492,499 5.625% senior unsecured notes due 2030 (3) 542,223 541,405 Total senior unsecured notes 1,035,698 1,033,904 Total long-term debt $ 1,374,698 $ 1,292,904 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of December 31, 2022 and 2021, deferred debt issuance costs of $6.5 million and $7.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. (3) As of December 31, 2022 and 2021, deferred debt issuance costs of $7.8 million and $8.6 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2030 in the accompanying consolidated balance sheets. As of December 31, 2022, annual maturities of the outstanding long-term debt for each of the five years after December 31, 2022 are as follows (in thousands): 2023 $ — 2024 — 2025 — 2026 — 2027 339,000 Thereafter 1,050,000 $ 1,389,000 Revolving Unsecured Credit Facility During the period from January 1, 2022 through August 30, 2022, the Company maintained an unsecured line of credit with a group of U.S.-based commercial lenders (the “Credit Facility”) in the amount of $500.0 million, which was scheduled to mature on December 19, 2024. The Credit Facility charged interest, at the Company’s option, of either (1) the prevailing LIBOR (with interest periods of 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 August 30, 2022, the Credit Facility was amended (the “2022 Amendment”) in order to increase the total lender commitment, extend the term of the Credit Facility, amend certain financial covenants and modify the benchmark interest rate to SOFR. Under the 2022 Amendment, the total lender commitment was increased from $500.0 million to $590.0 million and the term of the Credit Facility was extended to August 30, 2027. In addition, certain financial covenants were amended, as follows: The financial covenant limiting the domestic leverage ratio was eliminated. The permitted consolidated leverage ratio (defined as consolidated EBITDA, adjusted for certain customary items as more fully set forth in the Credit Facility (“Adjusted EBITDA”), divided by outstanding consolidated debt), which was previously scheduled to decrease to 3.0 times effective December 31, 2022, will remain at the current level of 3.5 times Adjusted EBITDA through December 31, 2023 when it decreases to 3.25 times Adjusted EBITDA through December 31, 2024. The consolidated leverage ratio will revert to the previously scheduled ratio of 3.0 times Adjusted EBITDA effective January 1, 2025. The 2022 Amendment also includes additional limits to certain restricted payments when the consolidated leverage ratio is equal to or greater than 3.0 times Adjusted EBITDA, which are more fully described in the 2022 Amendment. The Credit Facility now bears interest at the Company’s option of either (i) the prevailing SOFR (with interest periods of 1, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% and a fixed SOFR adjustment of 0.1% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5%. As of December 31, 2022, the Company had $339.0 million in outstanding borrowings and $3.2 million in outstanding letters of credit under the Credit Facility, leaving $247.8 million available for future borrowings, subject to certain financial covenants. The agreement has an interest rate floor of 0%. Additionally, the Company is required to pay an annual commitment fee of 0.325% 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, 2022 was 6.90% based on 1-month SOFR. 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, 2022. During 2022, the Company received net proceeds of $80.0 million from borrowings pursuant to the Credit Facility. Revolving Unsecured Uncommitted Credit Facility As of December 31, 2022, the Company’s primary subsidiary in Mexico, First Cash S.A. de C.V., maintained an unsecured and uncommitted line of credit guaranteed by FirstCash, Inc. with a bank in Mexico (the “Mexico Credit Facility”) in the amount of $600.0 million Mexican pesos. The Mexico Credit Facility bears interest at the TIIE plus a fixed spread of 2.5% and matures on March 9, 2023. Under the terms of the Mexico Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Company was in compliance with the covenants of the Mexico Credit Facility as of December 31, 2022. At December 31, 2022, the Company had no amount outstanding under the Mexico Credit Facility and $600.0 million Mexican pesos available for borrowings. Senior Unsecured Notes Due 2028 On August 26, 2020, the Company issued $500.0 million of 4.625% senior unsecured notes due on September 1, 2028 (the “2028 Notes”), all of which are currently outstanding. Interest on the 2028 Notes is payable semi-annually in arrears on March 1 and September 1, commencing on March 1, 2021. The 2028 Notes were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Company used the net proceeds from the offering to redeem its outstanding $300.0 million, 5.375% senior notes due 2024 (the “2024 Notes”), to repay a portion of the Credit Facility and to pay for related fees and expenses associated with the offering and the redemption of the 2024 Notes. The 2028 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 2028 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 is less than 2.75 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2028 Notes (the “2028 Notes Indenture”) 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. As of December 31, 2022, the Company’s consolidated total debt ratio was 2.7 to 1. While the 2028 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 2.75 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 2.75 to 1. The Company may redeem some or all of the 2028 Notes at any time on or after September 1, 2023, at the redemption prices set forth in the 2028 Notes Indenture, plus accrued and unpaid interest, if any. In addition, prior to September 1, 2023, the Company may redeem some or all of the 2028 Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the 2028 Notes Indenture. The Company may redeem up to 40% of the 2028 Notes on or prior to September 1, 2023 with the proceeds of certain equity offerings at the redemption prices set forth in the 2028 Notes Indenture. If the Company sells certain assets or consummates certain change in control transactions, the Company will be required to make an offer to repurchase the 2028 Notes. Redemption of 2024 Notes During 2020, the Company redeemed all outstanding 2024 Notes. As a result, the Company recognized a loss on extinguishment of debt of $11.7 million, which includes the redemption premium paid over the outstanding $300.0 million principal amount of the 2024 Notes and other redemption costs of $8.8 million and the write-off of unamortized debt issuance costs of $2.9 million. Senior Unsecured Notes Due 2030 On December 13, 2021, the Company issued $550.0 million of 5.625% senior unsecured notes due on January 1, 2030 (the “2030 Notes”), all of which are currently outstanding. Interest on the 2030 Notes is payable semi-annually in arrears on January 1 and July 1, commencing on July 1, 2022. The 2030 Notes were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act. The Company used the net proceeds from the offering to finance the cash consideration and transaction expenses for the AFF Acquisition, including the repayment, in full, of the outstanding debt under AFF’s credit facility at the closing of the AFF Acquisition, payment of fees and expenses related to the offering and reduction of the outstanding balance on the Credit Facility. The Company capitalized approximately $8.6 million in debt issuance costs, which consisted primarily of the initial purchaser’s discount and fees and legal and other professional expenses. The debt issuance costs are being amortized over the life of the 2030 Notes as a component of interest expense and are carried as a direct deduction from the carrying amount of the 2030 Notes in the accompanying consolidated balance sheets. The 2030 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 2030 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 is less than 3.0 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2030 Notes (the “2030 Notes Indenture”) 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. As of December 31, 2022, the Company’s consolidated total debt ratio was 2.7 to 1. While the 2030 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 3.0 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 3.0 to 1. The Company may redeem some or all of the 2030 Notes at any time on or after January 1, 2025, at the redemption prices set forth in the 2030 Notes Indenture, plus accrued and unpaid interest, if any. In addition, prior to January 1, 2025, the Company may redeem some or all of the 2030 Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the 2030 Notes Indenture. The Company may redeem up to 40% of the 2030 Notes on or prior to January 1, 2025 with the proceeds of certain equity offerings at the redemption prices set forth in the 2030 Notes Indenture. If the Company sells certain assets or consummates certain change in control transactions, the Company will be required to make an offer to repurchase the 2030 Notes. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 consist of the following (in thousands): Year Ended December 31, 2022 2021 2020 Income before income taxes (1) : Domestic $ 253,560 $ 110,535 $ 98,111 Foreign 70,073 55,967 45,588 Income before income taxes $ 323,633 $ 166,502 $ 143,699 Current income taxes: U.S. Federal $ 23,034 $ 14,031 $ 14,951 Foreign 15,444 15,242 9,909 U.S. state and local 3,421 2,045 2,158 Current provision for income taxes 41,899 31,318 27,018 Deferred provision (benefit) for income taxes: U.S. Federal 26,732 11,008 4,485 Foreign (458) (1,542) 5,287 U.S. state and local 1,965 809 330 Total deferred provision for income taxes 28,239 10,275 10,102 Provision for income taxes $ 70,138 $ 41,593 $ 37,120 (1) Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries. At December 31, 2022, the cumulative amount of undistributed earnings of foreign subsidiaries was $246.1 million. The Tax Cuts and Jobs Act imposed a mandatory transition tax on accumulated foreign earnings and generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries with the exception of foreign withholding taxes and other foreign local tax. During 2022 and 2021, the Company repatriated $47.5 million and $10.0 million, respectively, from certain foreign subsidiaries, which was not subject to withholding or federal income tax. It is the Company’s intent to indefinitely reinvest the remaining undistributed earnings and future earnings of these subsidiaries outside the U.S. and, therefore, deferred taxes are not currently recorded on cumulative foreign currency translation adjustments. The principal deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2022 2021 Deferred tax assets: Property and equipment in foreign jurisdictions $ 14,585 $ 11,452 Finance receivables 19,125 7,421 Accrued fees on forfeited pawn loans 8,168 6,645 Deferred cost of goods sold deduction 2,800 1,989 Accrued compensation, payroll taxes and employee benefits 3,699 4,294 U.S. state and certain foreign net operating losses 6,504 6,429 Other 5,167 3,811 Total deferred tax assets 60,048 42,041 Deferred tax liabilities: Intangible assets 150,397 126,283 Leased merchandise and property and equipment in domestic jurisdictions 40,950 24,035 Net operating lease asset 2,646 3,726 Other 3,929 2,052 Total deferred tax liabilities 197,922 156,096 Net deferred tax liabilities before valuation allowance (137,874) (114,055) Valuation allowance (6,504) (6,429) Net deferred tax liabilities $ (144,378) $ (120,484) Reported as: Deferred tax assets $ 7,381 $ 5,614 Deferred tax liabilities (151,759) (126,098) Net deferred tax liabilities $ (144,378) $ (120,484) The Company has a valuation allowance of $6.5 million and $6.4 million as of December 31, 2022 and 2021, respectively, related to the deferred tax assets associated with its U.S. state and certain foreign 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, 2022 2021 2020 U.S. federal statutory rate 21 % 21 % 21 % Tax at the U.S. federal statutory rate $ 67,963 $ 35,149 $ 30,177 U.S. state income tax, net of federal tax benefit of $1,131 , $599 and $522, respectively 4,255 2,255 1,965 Benefit from gain on revaluation of contingent acquisition consideration (4,580) — — Net incremental income tax expense from foreign earnings (1) 272 2,007 5,732 Non-deductible compensation expense 3,297 1,943 1,050 Global intangible low-taxed income tax — — (1,863) Other taxes and adjustments, net (1,069) 239 59 Provision for income taxes $ 70,138 $ 41,593 $ 37,120 Effective tax rate 21.7 % 25.0 % 25.8 % (1) Includes an $8.0 million, $6.3 million and $2.0 million foreign permanent tax benefit related to an inflation index adjustment allowed under Mexico tax law for the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s foreign pawn operating subsidiaries are owned by a wholly-owned subsidiary located in the Netherlands. The foreign pawn 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, Colombia and El Salvador are 30%, 25%, 35% and 30%, 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, 2022 and 2021, the Company had no unrecognized tax benefits and, therefore, the Company did not have a liability for accrued interest and penalties and no such interest or penalties were incurred for the years ended December 31, 2022, 2021 and 2020. The Company files federal income tax returns in the U.S., Mexico, Guatemala, Colombia, El Salvador, Jamaica, Puerto Rico 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 2019. The majority of the Company’s U.S. state income tax returns are not subject to examination for the tax years prior to 2019. With respect to federal tax returns in Mexico, Guatemala, Colombia, El Salvador, Jamaica, Puerto Rico and the Netherlands, the tax years prior to 2017 are closed to examination. There are no state income taxes in Mexico, Guatemala, Colombia, El Salvador, Jamaica, Puerto Rico or the Netherlands. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation The Company, in the ordinary course of business, is a party to various legal and regulatory proceedings and other general claims. Although no assurances can be given, in management’s opinion, such outstanding proceedings are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company believes it has meritorious defenses to all of the claims described below, and intends to vigorously defend against such claims. However, legal and regulatory proceedings involve an inherent level of uncertainty and no assurances can be given regarding the ultimate outcome of any such matters or whether an adverse outcome would not have a material adverse impact on the Company’s financial position, results of operations, or cash flows. At this stage, the Company is unable to determine whether a future loss will be incurred for any of its outstanding legal and regulatory proceedings or estimate a range of loss with respect to such proceeding, if any, and accordingly, no material amounts have been accrued in the Company’s financial statements for legal and regulatory proceedings. On January 14, 2022, plaintiff Genesee County Employees’ Retirement System filed a putative shareholder securities class action lawsuit (the “Litigation”) in the United States District Court for the Northern District of Texas against the Company and certain of its current officers styled Genesee County Employees’ Retirement System v. FirstCash Holdings, Inc., et al. , Civil Action No. 4:22-CV-00033-P (N.D. Tex.). The complaint alleges that the defendants made materially false and/or misleading statements that caused losses to investors, including that the Company failed to disclose in public statements that the Company engaged in widespread and systemic violations of the MLA. The Litigation does not quantify any alleged damages, but, in addition to attorneys’ fees and costs, it seeks to recover damages on behalf of the plaintiff and other persons who purchased or otherwise acquired Company stock during the putative class period from February 1, 2018 through November 12, 2021 at allegedly inflated prices and purportedly suffered financial harm as a result. On June 8, 2022, the Company and named defendants filed a motion to dismiss, which remains pending. The Company was named as a nominal defendant and certain of the Company’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit filed on July 19, 2022 in the United States District Court for the Northern District of Texas and styled Treppel Family Trust U/A 08/18/18 Lawrence A. Treppel and Geri D. Treppel for the Benefit of Geri D. Treppel and Larry A. Treppel, Derivatively on Behalf of FirstCash Holdings, Inc., v. Rick L. Wessel, et. al , Case 4:22-cv-00623-P (N.D. Tex). The complaint makes similar allegations as the Litigation and alleges a single count for breach of fiduciary duty against the named derivative defendants. The action does not quantify any alleged damages, but, in addition to attorneys’ fees and costs and certain equitable relief, the derivative plaintiff seeks to recover damages on behalf of the Company for purported financial harm and to have the court order changes in the Company’s corporate governance. On August 8, 2022, the Court entered an Order staying proceedings in this action pending the disposition of any motion to dismiss filed in the Litigation noted above. On November 12, 2021, the CFPB initiated a civil action in the United States District Court for the Northern District of Texas against FirstCash, Inc. and Cash America West, Inc., two of the Company’s subsidiaries, alleging violations of the MLA in connection with pawn transactions. The CFPB also alleges that these same alleged violations of the MLA constitute breaches of a 2013 CFPB consent order entered into by its predecessor company that, among other things, allegedly required the company and its successors to cease and desist from further MLA violations. The CFPB is seeking an injunction, redress for affected borrowers and a civil monetary penalty. On March 28, 2022, the CFPB filed a motion to strike certain affirmative defenses of the Company. The Company responded by filing a motion for partial summary judgment. On October 24, 2022, the Company filed a motion to dismiss the lawsuit due to the funding structure of the CFPB, which the motion alleges is unconstitutional. This motion to dismiss follows the recent decision in another case by the Fifth Circuit Court of Appeals whose decisions govern the law applied in the CFPB action against the Company. The Fifth Circuit found that the CFPB is unconstitutionally structured. In light of the CFPB's stated intent to seek Supreme Court review of that decision, the parties stipulated to a stay of the action against the Company, which the Court entered on November 4, 2022. That stay will remain in effect until the Supreme Court decides whether to review the Fifth Circuit's decision and, if it grants review, until that appeal is resolved. The motion to dismiss remains pending. While the Company intends to vigorously defend itself against the allegations in the case, it cannot predict or determine the timing or final outcome of this matter, or the effect that any adverse determinations from the lawsuit may have on the Company. Gold Forward Sales Contracts As of December 31, 2022, the Company had contractual commitments to deliver a total of 5,500 gold ounces during the months of January 2023 and February 2023 at a weighted-average price of $1,892 per ounce. The ounces required to be delivered were on hand as of December 31, 2022. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 U.S. Latin America Retail POS Payment Solutions Segment Total Balance, beginning of year $ 861,793 $ 171,279 $ 503,106 $ 1,536,178 Acquisitions (see Note 3) 55,455 — — 55,455 Effect of foreign currency translation — 7,849 — 7,849 Other adjustments (1,200) — (16,901) (18,101) Balance, end of year $ 916,048 $ 179,128 $ 486,205 $ 1,581,381 December 31, 2021 Balance, beginning of year $ 802,148 $ 175,233 $ — $ 977,381 Acquisitions (see Note 3) 59,645 — 503,106 562,751 Effect of foreign currency translation — (3,954) — (3,954) Balance, end of year $ 861,793 $ 171,279 $ 503,106 $ 1,536,178 The Company performed its annual assessment of goodwill and determined there was no impairment as of December 31, 2022 and 2021. 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, 2022 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Merchant relationships $ 194,000 $ (31,530) $ 162,470 $ 194,000 $ (962) $ 193,038 Developed technology 99,400 (20,708) 78,692 99,400 (828) 98,572 Customer relationships 26,294 (25,716) 578 26,111 (25,174) 937 AFF trade name 10,200 (5,314) 4,886 10,200 (213) 9,987 Lessee relationships 1,500 (1,201) 299 1,500 (48) 1,452 $ 331,394 $ (84,469) $ 246,925 $ 331,211 $ (27,225) $ 303,986 Merchant relationships and customer relationships are generally amortized using an accelerated amortization method that reflects the future cash flows expected from the existing AFF merchants and returning pawn customers. The following table details the remaining weighted-average amortization periods for the definite-lived intangible assets included in the table above: Weighted-Average As of December 31, 2022 Merchant relationships 2.8 Developed technology 2.0 Customer relationships 1.2 Trade name 0.5 Lessee relationships 0.2 Total definite-lived intangible assets 2.5 Amortization expense for definite-lived intangible assets was $57.1 million , $3.4 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. Estimated future amortization expense is as follows (in thousands): 2023 $ 56,926 2024 49,843 2025 48,188 2026 45,250 2027 24,244 Thereafter 22,474 $ 246,925 Indefinite-Lived Intangible Assets Indefinite-lived intangible assets as of December 31, 2022 and 2021 consist of the following (in thousands): As of December 31, 2022 2021 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 37,113 36,648 Other indefinite-lived intangibles — 1,250 $ 83,413 $ 84,198 (1) Costs to renew licenses with indefinite lives are expensed as incurred and recorded in operating expenses in the consolidated statements of income. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company organizes its operations into three reportable segments as follows: • U.S. pawn • Latin America pawn • Retail POS payment solutions (AFF) Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, (gain) loss on foreign exchange, merger and acquisition expenses, gain on revaluation of contingent acquisition consideration, and other expenses (income), net, are presented on a consolidated basis and are not allocated between the U.S. pawn segment, Latin America pawn segment or retail POS payment solutions segment. Intersegment transactions relate to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores and are eliminated to arrive at consolidated totals. The following tables present reportable segment information for the years ended December 31, 2022, 2021 and 2020 as well as separately identified segment assets (in thousands): Year Ended December 31, 2022 U.S. Latin Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 818,548 $ 447,523 $ — $ (4,935) (1) $ 1,261,136 Pawn loan fees 373,416 187,974 — — 561,390 Leased merchandise income — — 622,163 — 622,163 Interest and fees on finance receivables — — 181,280 — 181,280 Wholesale scrap jewelry sales 63,004 39,969 — — 102,973 Total revenue 1,254,968 675,466 803,443 (4,935) 2,728,942 Cost of revenue: Cost of retail merchandise sold 478,718 288,449 — (2,614) (1) 764,553 Depreciation of leased merchandise — — 354,104 (609) (1) 353,495 Provision for lease losses — — 140,118 (616) (1) 139,502 Provision for loan losses — — 118,502 — 118,502 Cost of wholesale scrap jewelry sold 54,893 33,411 — — 88,304 Total cost of revenue 533,611 321,860 612,724 (3,839) 1,464,356 Net revenue (loss) 721,357 353,606 190,719 (1,096) (1) 1,264,586 Expenses and other income: Operating expenses 407,039 193,254 128,616 — 728,909 Administrative expenses — — — 147,943 147,943 Depreciation and amortization 23,205 18,325 2,912 59,390 103,832 Interest expense — — — 70,708 70,708 Interest income — — — (1,313) (1,313) Gain on foreign exchange — — — (585) (585) Merger and acquisition expenses — — — 3,739 3,739 Gain on revaluation of contingent acquisition consideration — — — (109,549) (109,549) Other expenses (income), net — — — (2,731) (2,731) Total expenses and other income 430,244 211,579 131,528 167,602 940,953 Income (loss) before income taxes $ 291,113 $ 142,027 $ 59,191 $ (168,698) $ 323,633 As of December 31, 2022 U.S. Latin Retail POS Corporate/ Consolidated Pawn loans $ 282,089 $ 108,528 $ — $ — $ 390,617 Finance receivables, net — — 103,494 — 103,494 Inventories 202,594 85,745 — — 288,339 Leased merchandise, net — — 154,398 (1,096) (1) 153,302 Goodwill 916,048 179,128 486,205 — 1,581,381 Total assets 2,108,157 619,839 1,047,814 129,057 3,904,867 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Year Ended December 31, 2021 U.S. Latin Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 742,374 $ 391,875 $ — $ — $ 1,134,249 Pawn loan fees 305,350 170,432 — — 475,782 Leased merchandise income — — 22,720 — 22,720 Interest and fees on finance receivables — — 9,024 — 9,024 Wholesale scrap jewelry sales 27,163 30,027 — — 57,190 Total revenue 1,074,887 592,334 31,744 — 1,698,965 Cost of revenue: Cost of retail merchandise sold 416,039 247,425 — — 663,464 Depreciation of leased merchandise — — 12,826 — 12,826 Provision for lease losses — — 5,442 — 5,442 Provision for loan losses — — 48,952 — 48,952 Cost of wholesale scrap jewelry sold 22,886 26,243 — — 49,129 Total cost of revenue 438,925 273,668 67,220 — 779,813 Net revenue (loss) 635,962 318,666 (35,476) — 919,152 Expenses and other income: Operating expenses 380,895 179,020 4,917 — 564,832 Administrative expenses — — — 111,259 111,259 Depreciation and amortization 22,234 17,834 122 5,716 45,906 Interest expense — — — 32,386 32,386 Interest income — — — (696) (696) Loss on foreign exchange — — — 436 436 Merger and acquisition expenses — — — 15,449 15,449 Gain on revaluation of contingent acquisition consideration — — — (17,871) (17,871) Other expenses (income), net — — — 949 949 Total expenses and other income 403,129 196,854 5,039 147,628 752,650 Income (loss) before income taxes $ 232,833 $ 121,812 $ (40,515) $ (147,628) $ 166,502 As of December 31, 2021 U.S. Latin Retail POS Corporate/ Consolidated Pawn loans $ 256,311 $ 91,662 $ — $ — $ 347,973 Finance receivables, net — — 181,021 — 181,021 Inventories 197,486 65,825 — — 263,311 Leased merchandise, net — — 143,944 — 143,944 Goodwill 861,793 171,279 503,106 — 1,536,178 Total assets 1,944,487 562,661 1,178,729 150,575 3,836,452 Year Ended December 31, 2020 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 720,281 $ 355,237 $ — $ 1,075,518 Pawn loan fees 310,437 147,080 — 457,517 Interest and fees on finance receivables (1) 2,016 — — 2,016 Wholesale scrap jewelry sales 45,405 50,828 — 96,233 Total revenue 1,078,139 553,145 — 1,631,284 Cost of revenue: Cost of retail merchandise sold 415,938 225,149 — 641,087 Provision for loan losses (1) (488) — — (488) Cost of wholesale scrap jewelry sold 39,584 39,962 — 79,546 Total cost of revenue 455,034 265,111 — 720,145 Net revenue 623,105 288,034 — 911,139 Expenses and other income: Operating expenses 396,627 165,531 — 562,158 Administrative expenses — — 110,931 110,931 Depreciation and amortization 21,743 15,816 4,546 42,105 Interest expense — — 29,344 29,344 Interest income — — (1,540) (1,540) Loss on foreign exchange — — 884 884 Merger and acquisition expenses — — 1,316 1,316 Other expenses (income), net — — 10,505 10,505 Loss on extinguishment of debt — — 11,737 11,737 Total expenses and other income 418,370 181,347 167,723 767,440 Income (loss) before income taxes $ 204,735 $ 106,687 $ (167,723) $ 143,699 As of December 31, 2020 U.S. Latin America Corporate/ Consolidated Pawn loans $ 220,391 $ 87,840 $ — $ 308,231 Inventories 136,109 54,243 — 190,352 Goodwill 802,148 175,233 — 977,381 Total assets 1,718,975 540,473 112,749 2,372,197 (1) Effective June 30, 2020, the Company’s U.S. pawn segment ceased offering an unsecured consumer loan product in the U.S. 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, net) by geographic area (in thousands): Year Ended December 31, 2022 2021 2020 Revenue: U.S. $ 2,053,476 $ 1,106,631 $ 1,078,139 Mexico 639,199 562,493 530,462 Other Latin America 36,267 29,841 22,683 $ 2,728,942 $ 1,698,965 $ 1,631,284 Long-lived assets: U.S. $ 449,201 $ 373,218 $ 286,079 Mexico 88,233 84,648 82,438 Other Latin America 10,662 13,191 14,968 $ 548,096 $ 471,057 $ 383,485 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation - The accompanying consolidated financial statements include the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries. The Company regularly makes acquisitions and the results of the acquired operations have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. |
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, 2022, the amount of cash associated with indefinitely reinvested foreign earnings was $37.4 million, which is primarily held in Mexican pesos. |
Customer loans and revenue recognition | Pawn loans and revenue recognition - Pawn loans are secured by the customer’s pledge of tangible personal property, which the Company holds during the term of the loan. 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, as the Company’s pawn loans are non-recourse against the customer. 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, which is included in accounts receivable, net in the accompanying consolidated balance sheets. If the pawn loan is not repaid prior to the expiration of the pawn loan term, including any extension or grace period, if applicable, the principal amount loaned becomes the inventory carrying value of the forfeited collateral, which is typically recovered through sales of the forfeited items at prices well above the carrying value. 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. Pawn inventories and revenue recognition - Pawn inventories represent merchandise acquired from forfeited pawn loans 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. Pawn inventories from forfeited pawn loans are recorded at the amount of the pawn principal on the unredeemed goods, exclusive of accrued interest. Pawn inventories purchased directly from customers, wholesalers and manufacturers are recorded at cost. The cost of pawn inventories is determined on the specific identification method. Pawn inventories are stated at the lower of cost or net realizable value and, accordingly, valuation allowances are established if pawn inventory carrying values are in excess of estimated selling prices, net of direct costs of disposal. Management has evaluated pawn inventories and determined that a valuation allowance is not necessary. The Company’s merchandise sales are primarily retail sales to the general public in its pawn stores. 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. Some jewelry inventory is melted and 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. Layaway plan and deferred revenue - Customers can 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 pawn inventory and all or a portion of previous payments are typically forfeited to the Company. Deposits and 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. Layaway payments from customers are included in customer deposits and prepayments in the accompanying consolidated balance sheets. Leased merchandise and revenue recognition - The Company provides merchandise, consisting primarily of furniture and mattresses, appliances, jewelry, electronics and automotive products, to customers of its merchant partners for lease under certain terms agreed to by the customer. The customer has the right to acquire the title either through an early buyout option or through payment of all required lease payments. The Company maintains ownership of the leased merchandise until all payment obligations are satisfied under the lease agreement. The customer has the right to cancel the lease at any time by returning the merchandise and making all scheduled payments due through the minimum lease holding period, which is typically 60 days. Leased merchandise contracts can typically be renewed for between six Lease income is recognized over the lease term and is recorded net of any sales taxes collected. Charges for late fees and insufficient fund fees are recognized as income when collected. Initial direct costs related to the Companyʼs lease agreements are added to the basis of the leased property and recognized over the lease term in proportion to the recognition of lease income. The Company typically charges the customer a non-refundable processing fee at lease inception and may also receive a discount from or pay a premium to certain merchant partners for leases originated at their locations, which are deferred and amortized using the straight-line method as adjustments to lease income over the contractual life of the related leased merchandise. Unamortized fees, discounts and premiums are recognized in full upon early buyout or charge-off. The Company accrues for lease income earned but not yet collected as accrued rent receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets. Alternatively, lease payments received in excess of the amount earned are recognized as deferred revenue, which is included in customer deposits and prepayments in the accompanying consolidated balance sheets. Customer payments are first applied to applicable sales tax and scheduled lease payments, then applied to any uncollected fees, such as late fees and insufficient fund fees. The Company collects sales taxes on behalf of the customer and remits all applicable sales taxes collected to the respective jurisdiction. Provision for lease losses - The Company records a provision for lease losses on an allowance method, which estimates the leased merchandise losses incurred but not yet identified by management as of the end of the accounting period. The allowance for lease losses is based primarily upon historical loss experience with consideration given to recent and forecasted business trends including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices. The Company charges off leased merchandise when a lease is 90 days or more contractually past due. If an account is deemed to be uncollectible prior to this date, the Company will charge off the leased merchandise at the point in time it is deemed uncollectible. Finance receivables and revenue recognition - The Company purchases and services retail finance receivables, the term of which typically ranges from six Interest income is recognized using the interest method over the life of the finance receivable for all loans for which the Company deems collection to be probable based on historical loan redemption statistics and stops accruing interest upon charge-off. Accrued interest, net of an allowance for uncollectible interest income is included in accounts receivable, net The Company offers customers an early payoff discount on most of its finance receivables, whereby the customer has between 90 and 105 days to pay the full principal balance without incurring any interest charge. If the borrower does not pay the full principal balance prior to the expiration of the early payoff discount period, interest charges are applied retroactively to the inception date of the loan. The Company accrues interest income during the early payoff discount period but records a reserve for loans expected to pay the full principal balance prior to the expiration of the early payoff discount period based on historical payment patterns. Provision for loan losses - Expected lifetime losses on finance receivables are recognized upon loan purchase, which requires the Company to make its best estimate of probable lifetime losses at the time of purchase. The Company segments its finance receivable portfolio into pools of receivables with similar risk characteristics which include loan product and monthly origination vintage and evaluates each pool for impairment. The Company calculates the allowance for loan losses based on historical loss information and incorporates observable and forecasted economic conditions over a reasonable and supportable forecast period covering the full contractual life of finance receivables. Incorporating observable and forecasted economic conditions could have a material impact on the measurement of the allowance to the extent that forecasted economic conditions change significantly. The Company may also consider other qualitative factors to address recent and forecasted business trends in estimating the allowance, as necessary, including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices. The allowance for loan losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end. |
Foreign currency transactions | Foreign currency transactions - The Company has pawn operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. 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 |
Store operating expenses | Operating expenses - Costs incurred in operating the Company’s pawn stores have been classified as operating expenses, which include salary and benefit expense of pawn store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the pawn stores. Additionally, costs incurred in operating AFF have been classified as operating expenses, which include salary and benefit expense of certain operations focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred. |
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 |
Business combinations | Business combinations - Business combination accounting requires the Company to determine the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination. The total consideration of the acquisition is allocated to the assets and liabilities in amounts equal to the estimated fair value of each asset and liability as of the acquisition date, and any remaining acquisition consideration is classified as goodwill. This allocation process requires extensive use of estimates and assumptions. When appropriate, the Company utilizes independent valuation experts to advise and assist in determining the fair value of the assets acquired and liabilities assumed in connection with a business acquisition, in determining appropriate amortization methods and periods for identified intangible assets and in determining the fair value of contingent consideration, which is reviewed at each subsequent reporting period with changes in the fair value of the contingent consideration recognized in the consolidated statements of income. See Note 3. |
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 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 historically assessed goodwill for impairment as of December 31 each year. In 2022, the Company changed the date of its annual goodwill impairment assessment to October 1 to allow for operational expediency. The Company believes the change in goodwill impairment testing date does not represent a material change to its method of applying an accounting principle in light of its internal controls and requirements to assess goodwill impairment upon certain triggering events. The Company’s reporting units, which are tested for impairment, are U.S. pawn, Latin America pawn and retail POS payment solutions. 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 quantitative impairment testing methodology. See Note 14. The Company’s other material indefinite-lived intangible assets consist of certain 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 an indefinite-lived intangible asset below its carrying amount. See Note 14. |
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. |
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 12. |
Advertising | Advertising - The Company expenses the costs of advertising when incurred. Advertising expense for the years ended December 31, 2022, 2021 and 2020, was $4.1 million, $1.0 million and $1.1 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 15. |
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, 2022 2021 2020 Numerator: Net income $ 253,495 $ 124,909 $ 106,579 Denominator: Weighted-average common shares for calculating basic earnings per share 47,213 40,975 41,502 Effect of dilutive securities: Stock options and restricted stock unit awards 117 49 98 Weighted-average common shares for calculating diluted earnings per share 47,330 41,024 41,600 Earnings per share: Basic $ 5.37 $ 3.05 $ 2.57 Diluted 5.36 3.04 2.56 |
Use of estimates | Use of estimates - The preparation of financial statements in conformity with GAAP 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 fees, allowances for lease and loan losses and related lease and loan loss provisions, valuation of acquired assets, assumed liabilities and contingent consideration of acquisitions, evaluation of goodwill and other intangible assets for impairment and current and deferred tax assets and liabilities. |
Reclassifications | Reclassification - For the purposes of comparability, certain prior year amounts in the consolidated balance sheets have been reclassified in order to conform to the current period presentation. |
Recent accounting pronouncements | Recent accounting pronouncements - In March 2020, the Financial Accounting Standards Board issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank-offered rates to alternative reference rates. ASU 2020-04 was effective beginning on March 12, 2020, and the Company could elect to apply the amendments prospectively through December 31, 2022. In December 2022, the Financial Accounting Standards Board issued ASU No 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” (“ASU 2022-06”). ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. As the Company no longer has any LIBOR based contracts (see Note 11), ASU 2020-04 and ASU 2022-06 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Numerator: Net income $ 253,495 $ 124,909 $ 106,579 Denominator: Weighted-average common shares for calculating basic earnings per share 47,213 40,975 41,502 Effect of dilutive securities: Stock options and restricted stock unit awards 117 49 98 Weighted-average common shares for calculating diluted earnings per share 47,330 41,024 41,600 Earnings per share: Basic $ 5.37 $ 3.05 $ 2.57 Diluted 5.36 3.04 2.56 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | The following table summarizes the consideration transferred in connection with the AFF Acquisition, net of cash acquired (in thousands except share and per share amounts): AFF Acquisition Shares of FirstCash Holdings, Inc. common stock issued 8,046,252 Closing common stock price per share at December 16, 2021 $ 62.83 Stock consideration $ 505,546 Cash consideration paid to AFF shareholders at closing 253,087 Cash consideration paid to extinguish AFF pre-existing debt 257,278 Present value of deferred consideration payable to AFF shareholders on December 31, 2022 23,873 Estimated fair value of Contingent Consideration (see Note 6) 127,420 Less cash acquired (48,263) Aggregate purchase consideration $ 1,118,941 |
Schedule of Preliminary Allocations of Purchase Price | The preliminary allocation of the aggregate purchase price for these individually immaterial pawn store acquisitions during 2022 (the “2022 Pawn Acquisitions”) is as follows (in thousands): 2022 Pawn Acquisitions Pawn loans $ 7,291 Accounts receivable, net 426 Inventories 11,523 Property and equipment 300 Goodwill (1) 55,455 Intangible assets 310 Current liabilities (2,329) Aggregate purchase price $ 72,976 (1) Substantially all of the goodwill is expected to be deductible for income tax purposes. December 31, 2022 December 31, 2021 Adjustments 2022 Accounts receivable $ 11,660 $ — $ 11,660 Finance receivables 225,261 — 225,261 Leased merchandise 139,649 — 139,649 Prepaid expenses and other current assets 4,474 (188) 4,286 Property and equipment 11,670 (9) 11,661 Operating lease right of use asset 491 — 491 Goodwill 503,106 (16,901) 486,205 Intangible assets 305,100 — 305,100 Accounts payable and accrued liabilities (28,357) (1,116) (29,473) Customer deposits and prepayments (11,014) — (11,014) Lease liability, current (10) — (10) Deferred tax liabilities (1) (42,608) 18,214 (24,394) Lease liability, non-current (481) — (481) Purchase price $ 1,118,941 $ — $ 1,118,941 (1) Measurement period adjustment is primarily a result of the seller finalizing the ending tax basis in the assets and liabilities acquired, which carried over to the Company. |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information reflects the consolidated results of operations of the Company as if the AFF Acquisition and the 2021 Pawn Acquisitions had occurred on January 1, 2020, after giving effect to certain adjustments (in thousands, except per share amounts): Year Ended Year Ended December 31, 2021 December 31, 2020 As Reported Pro Forma As Reported Pro Forma Total revenue $ 1,698,965 $ 2,305,860 $ 1,631,284 $ 2,024,055 Net income 124,909 156,257 106,579 60,059 Net income per share: Basic $ 3.05 $ 3.21 $ 2.57 $ 1.21 Diluted 3.04 3.20 2.56 1.21 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the year ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease expense $ 128,174 $ 125,439 $ 121,649 Variable lease expense (1) 16,979 16,021 14,444 Total operating lease expense $ 145,153 $ 141,460 $ 136,093 (1) 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, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 116,225 $ 114,463 $ 110,965 Leased assets obtained in exchange for new operating lease liabilities 95,132 110,531 104,576 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of December 31, 2022 (in thousands): 2023 $ 109,116 2024 86,941 2025 59,971 2026 39,707 2027 17,936 Thereafter 23,501 Total $ 337,172 Less amount of lease payments representing interest (41,113) Total present value of lease payments $ 296,059 |
Stockholders' Equity Equity (Ta
Stockholders' Equity Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 (dollars in thousands): Plan Announcement Date Plan Completion Date Dollar Amount Authorized Shares Purchased in 2022 Dollar Amount Purchased in 2022 Remaining Dollar Amount Authorized For Future Purchases January 28, 2021 March 28, 2022 $ 100,000 1,048,000 $ 72,217 $ — April 28, 2022 Currently active 100,000 1,156,000 85,647 14,353 October 27, 2022 Currently active 100,000 — — 100,000 Total 2,204,000 $ 157,864 $ 114,353 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments Fair Value, Assets Measured on Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities as of December 31, 2022 and 2021 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial liabilities: Contingent Consideration $ — $ — $ — $ — Estimated Fair Value December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial liabilities: Contingent Consideration (1) $ 109,549 $ — $ — $ 109,549 (1) The current portion of $95.6 million is included in accounts payable and accrued liabilities and the non-current portion of $14.0 million is included in other liabilities in the accompanying consolidated balance sheet as of December 31, 2021. |
Schedule of Fair Value, Changes in Assets and Liabilities Measured on Recurring Basis Level 3 Fair Value Measurement | The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the year ended December 31, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2022 2021 Contingent Consideration at beginning of period $ 109,549 $ — Contingent Consideration issued December 17, 2021 (see Note 3 ) — 127,420 Change in fair value (1) (109,549) (17,871) Contingent Consideration at end of period $ — $ 109,549 (1) The Company recognized a gain of $109.5 million and $17.9 million during the year ended December 31, 2022 and 2021, respectively, as a result of the change in fair value of the Contingent Consideration (see Note 3), which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. As further described in Note 3, $325.0 million of the potential $375.0 million in Contingent Consideration was not earned leaving the right to receive up to $50.0 million of additional consideration if AFF achieves certain adjusted EBITDA targets for the first half of 2023, and is the only remaining portion of Contingent Consideration as of December 31, 2022. |
Fair Value, by Balance Sheet Grouping | The Company’s financial assets and liabilities as of December 31, 2022 and 2021 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 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 117,330 $ 117,330 $ 117,330 $ — $ — Accounts receivable, net 57,792 57,792 — — 57,792 Pawn loans 390,617 390,617 — — 390,617 Finance receivables, net (1) 103,494 201,895 — — 201,895 $ 669,233 $ 767,634 $ 117,330 $ — $ 650,304 Financial liabilities: Revolving unsecured credit facilities $ 339,000 $ 339,000 $ — $ 339,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 932,000 — 932,000 — $ 1,389,000 $ 1,271,000 $ — $ 1,271,000 $ — (1) Finance receivables, gross as of December 31, 2022 was $196.0 million. See Note 7. Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 120,046 $ 120,046 $ 120,046 $ — $ — Accounts receivable, net 55,356 55,356 — — 55,356 Pawn loans 347,973 347,973 — — 347,973 Finance receivables, net (1) 181,021 233,000 — — 233,000 $ 704,396 $ 756,375 $ 120,046 $ — $ 636,329 Financial liabilities: Revolving unsecured credit facility $ 259,000 $ 259,000 $ — $ 259,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 1,058,000 — 1,058,000 — $ 1,309,000 $ 1,317,000 $ — $ 1,317,000 $ — (1) Finance receivables, gross as of December 31, 2021 was $220.3 million. See Note 7. |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net, originated in the retail POS payment solutions segment, consist of the following (in thousands): As of December 31, 2022 2021 Finance receivables, gross $ 195,987 $ 220,329 Fair value premium on non-PCD finance receivables (1) — 40,251 Non-credit discount on PCD finance receivables (2) — (3,521) Merchant partner discounts and premiums, net (3,517) (104) Unearned origination fees (4,143) (360) Finance receivables, amortized cost 188,327 256,595 Less allowance for loan losses (84,833) (75,574) Finance receivables, net $ 103,494 $ 181,021 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized as interest income on an effective yield basis over the lives of the related non-PCD finance receivables. (2) Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related PCD finance receivables. |
Schedule of Allowance for Credit Losses | Changes in the allowance for loan losses are as follows (in thousands): As of December 31, 2022 2021 Balance at beginning of year $ 75,574 $ — Provision for loan losses (1) 118,502 48,952 Initial allowance recognized for PCD loans (2) — 32,036 Charge-offs (114,535) (5,545) Recoveries 5,292 131 Balance at end of year $ 84,833 $ 75,574 (1) For the year ended December 31, 2021, includes $44.3 million as a result of the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition, which is recorded as provision for loan losses in the consolidated statements of income. (2) Represents the establishment of the initial allowance for expected lifetime credit losses for PCD finance receivables acquired in the AFF Acquisition, which is added to the acquisition date fair value to establish the initial amortized cost basis of the PCD loans. As this initial allowance for loan losses is added to the acquisition date fair value, there is no provision for loan losses recognized in the consolidated statements of income during 2021 for PCD loans. |
Financing Receivable, Past Due | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2022 and 2021, by origination year (in thousands): Origination Year 2022 2021 2020 Total As of December 31, 2022 Delinquency: 1 to 30 days past due $ 14,186 $ 2,795 $ — $ 16,981 31 to 60 days past due 8,048 1,822 — 9,870 61 to 90 days past due (1) 6,597 1,750 — 8,347 Total past due finance receivables 28,831 6,367 — 35,198 Current finance receivables 132,197 20,932 — 153,129 Finance receivables, amortized cost $ 161,028 $ 27,299 $ — 188,327 As of December 31, 2021 Delinquency: 1 to 30 days past due $ — $ 16,077 $ 2,260 $ 18,337 31 to 60 days past due — 10,024 1,648 11,672 61 to 90 days past due (1) — 7,898 1,478 9,376 Total past due finance receivables before fair value adjustments — 33,999 5,386 39,385 Current finance receivables before fair value adjustments — 160,998 19,482 180,480 Finance receivables before fair value adjustments $ — $ 194,997 $ 24,868 219,865 Fair value premium on non-PCD finance receivables 40,251 Non-credit discount on PCD finance receivables (3,521) Finance receivables, amortized cost $ 256,595 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. |
Leased Merchandise, Net (Tables
Leased Merchandise, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased merchandise, net, for the retail POS payment solutions segment, consists of the following (in thousands): As of December 31, 2022 2021 Leased merchandise (1) $ 335,038 $ 156,280 Processing fees (4,124) (440) Merchant partner discounts and premiums, net 2,456 310 Accumulated depreciation (100,879) (6,764) Leased merchandise, before allowance for lease losses 232,491 149,386 Less allowance for lease losses (79,189) (5,442) Leased merchandise, net $ 153,302 $ 143,944 (1) Acquired leased merchandise in the AFF Acquisition was recorded at fair value. See Note 3. |
Leased Merchandise, Allowance for Credit Loss | Changes in the allowance for lease losses are as follows (in thousands): As of December 31, 2022 2021 Balance at beginning of year $ 5,442 $ — Provision for lease losses (1) 139,502 5,442 Charge-offs (2) (70,114) — Recoveries 4,359 — Balance at end of year $ 79,189 $ 5,442 (1) During 2021, represents the provision for lease losses on leases originated from December 17, 2021 through December 31, 2021. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following (in thousands): As of December 31, 2022 2021 Land $ 141,795 $ 114,150 Buildings 249,658 199,100 Furniture, fixtures, equipment and improvements 516,801 468,118 908,254 781,368 Less accumulated depreciation (369,573) (318,842) Property and equipment, net $ 538,681 $ 462,526 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Accrued compensation $ 38,595 $ 33,546 Trade accounts payable 29,243 23,077 Sales, property, and payroll taxes payable 27,226 32,463 Accrued interest payable 24,276 9,375 Benefits liabilities and withholding payable 2,383 3,084 Acquisition purchase price amounts payable to sellers (1) 1,217 123,475 Income taxes payable 569 3,387 Other accrued liabilities 15,951 15,920 $ 139,460 $ 244,327 (1) As of December 31, 2021, includes the present value of the deferred consideration payable to AFF shareholders on December 31, 2022 of $23.9 million and the short-term portion of the estimated fair value of Contingent Consideration of $95.6 million. See Note 3 and Note 6. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | 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, 2022 2021 Revolving unsecured credit facility, maturing 2027 (1) $ 339,000 $ 259,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,475 492,499 5.625% senior unsecured notes due 2030 (3) 542,223 541,405 Total senior unsecured notes 1,035,698 1,033,904 Total long-term debt $ 1,374,698 $ 1,292,904 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of December 31, 2022 and 2021, deferred debt issuance costs of $6.5 million and $7.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. (3) As of December 31, 2022 and 2021, deferred debt issuance costs of $7.8 million and $8.6 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2030 in the accompanying consolidated balance sheets. |
Schedule of Maturities of Long-term Debt | As of December 31, 2022, annual maturities of the outstanding long-term debt for each of the five years after December 31, 2022 are as follows (in thousands): 2023 $ — 2024 — 2025 — 2026 — 2027 339,000 Thereafter 1,050,000 $ 1,389,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 consist of the following (in thousands): Year Ended December 31, 2022 2021 2020 Income before income taxes (1) : Domestic $ 253,560 $ 110,535 $ 98,111 Foreign 70,073 55,967 45,588 Income before income taxes $ 323,633 $ 166,502 $ 143,699 Current income taxes: U.S. Federal $ 23,034 $ 14,031 $ 14,951 Foreign 15,444 15,242 9,909 U.S. state and local 3,421 2,045 2,158 Current provision for income taxes 41,899 31,318 27,018 Deferred provision (benefit) for income taxes: U.S. Federal 26,732 11,008 4,485 Foreign (458) (1,542) 5,287 U.S. state and local 1,965 809 330 Total deferred provision for income taxes 28,239 10,275 10,102 Provision for income taxes $ 70,138 $ 41,593 $ 37,120 (1) Includes the allocation of certain administrative expenses and intercompany payments, such as royalties and interest, between domestic and foreign subsidiaries. |
Schedule of Deferred Tax Assets and Liabilities | The principal deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2022 2021 Deferred tax assets: Property and equipment in foreign jurisdictions $ 14,585 $ 11,452 Finance receivables 19,125 7,421 Accrued fees on forfeited pawn loans 8,168 6,645 Deferred cost of goods sold deduction 2,800 1,989 Accrued compensation, payroll taxes and employee benefits 3,699 4,294 U.S. state and certain foreign net operating losses 6,504 6,429 Other 5,167 3,811 Total deferred tax assets 60,048 42,041 Deferred tax liabilities: Intangible assets 150,397 126,283 Leased merchandise and property and equipment in domestic jurisdictions 40,950 24,035 Net operating lease asset 2,646 3,726 Other 3,929 2,052 Total deferred tax liabilities 197,922 156,096 Net deferred tax liabilities before valuation allowance (137,874) (114,055) Valuation allowance (6,504) (6,429) Net deferred tax liabilities $ (144,378) $ (120,484) Reported as: Deferred tax assets $ 7,381 $ 5,614 Deferred tax liabilities (151,759) (126,098) Net deferred tax liabilities $ (144,378) $ (120,484) |
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, 2022 2021 2020 U.S. federal statutory rate 21 % 21 % 21 % Tax at the U.S. federal statutory rate $ 67,963 $ 35,149 $ 30,177 U.S. state income tax, net of federal tax benefit of $1,131 , $599 and $522, respectively 4,255 2,255 1,965 Benefit from gain on revaluation of contingent acquisition consideration (4,580) — — Net incremental income tax expense from foreign earnings (1) 272 2,007 5,732 Non-deductible compensation expense 3,297 1,943 1,050 Global intangible low-taxed income tax — — (1,863) Other taxes and adjustments, net (1,069) 239 59 Provision for income taxes $ 70,138 $ 41,593 $ 37,120 Effective tax rate 21.7 % 25.0 % 25.8 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | Changes in the carrying value of goodwill by segment were as follows (in thousands): December 31, 2022 U.S. Latin America Retail POS Payment Solutions Segment Total Balance, beginning of year $ 861,793 $ 171,279 $ 503,106 $ 1,536,178 Acquisitions (see Note 3) 55,455 — — 55,455 Effect of foreign currency translation — 7,849 — 7,849 Other adjustments (1,200) — (16,901) (18,101) Balance, end of year $ 916,048 $ 179,128 $ 486,205 $ 1,581,381 December 31, 2021 Balance, beginning of year $ 802,148 $ 175,233 $ — $ 977,381 Acquisitions (see Note 3) 59,645 — 503,106 562,751 Effect of foreign currency translation — (3,954) — (3,954) Balance, end of year $ 861,793 $ 171,279 $ 503,106 $ 1,536,178 |
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, 2022 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Merchant relationships $ 194,000 $ (31,530) $ 162,470 $ 194,000 $ (962) $ 193,038 Developed technology 99,400 (20,708) 78,692 99,400 (828) 98,572 Customer relationships 26,294 (25,716) 578 26,111 (25,174) 937 AFF trade name 10,200 (5,314) 4,886 10,200 (213) 9,987 Lessee relationships 1,500 (1,201) 299 1,500 (48) 1,452 $ 331,394 $ (84,469) $ 246,925 $ 331,211 $ (27,225) $ 303,986 |
Schedule of Finite-Lived Intangible Assets | The following table details the remaining weighted-average amortization periods for the definite-lived intangible assets included in the table above: Weighted-Average As of December 31, 2022 Merchant relationships 2.8 Developed technology 2.0 Customer relationships 1.2 Trade name 0.5 Lessee relationships 0.2 Total definite-lived intangible assets 2.5 |
Goodwill Future Amortization Expense | Estimated future amortization expense is as follows (in thousands): 2023 $ 56,926 2024 49,843 2025 48,188 2026 45,250 2027 24,244 Thereafter 22,474 $ 246,925 |
Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets as of December 31, 2022 and 2021 consist of the following (in thousands): As of December 31, 2022 2021 Trade names $ 46,300 $ 46,300 Pawn licenses (1) 37,113 36,648 Other indefinite-lived intangibles — 1,250 $ 83,413 $ 84,198 |
Equity Compensation Plans and S
Equity Compensation Plans and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 (shares in thousands): 2022 2021 2020 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 383 $ 71.93 373 $ 77.40 357 $ 69.13 Performance-based grants (1) 120 69.78 105 58.68 238 78.40 Time-based grants 60 69.72 48 58.68 21 84.93 Performance-based vested — — (91) 72.70 (117) 48.25 Time-based vested (19) 70.33 (19) 67.86 (12) 76.84 Performance-based canceled (2) (109) 86.86 (18) 72.56 (114) 84.93 Time-based canceled — — (15) 72.49 — — Outstanding at end of year 435 $ 67.38 383 $ 71.93 373 $ 77.40 (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. Performance-based grants for 2020 include 114 shares which were subsequently cancelled in 2020 as described in footnote (2) below. (2) Performance-based canceled for 2020 represents cancellation of performance-based awards granted in January of 2020 that were subsequently replaced with a new performance-based award granted in December 2020. The grant date fair value of the December 2020 replacement performance-based awards was $72.37 per share. |
Schedule of Stock Options Activity | The following table summarizes stock option activity for the years ended December 31, 2022, 2021 and 2020 (shares in thousands): 2022 2021 2020 Weighted- Weighted- Weighted- Average Average Average Underlying Exercise Underlying Exercise Underlying Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year — $ — 10 $ 38.00 70 $ 38.86 Exercised — — (10) 38.00 (60) 39.00 Outstanding at end of year — — — — 10 38.00 Exercisable at end of year — — — — — — |
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, 2022 2021 2020 Gross compensation costs: Restricted stock unit awards $ 10,853 $ 5,150 $ 2,899 Stock options — — 15 Total gross compensation costs 10,853 5,150 2,914 Income tax benefits: Restricted stock unit awards (1,428) (205) (901) Exercise of stock options — — (94) Total income tax benefits (1,428) (205) (995) Net compensation expense $ 9,425 $ 4,945 $ 1,919 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 as well as separately identified segment assets (in thousands): Year Ended December 31, 2022 U.S. Latin Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 818,548 $ 447,523 $ — $ (4,935) (1) $ 1,261,136 Pawn loan fees 373,416 187,974 — — 561,390 Leased merchandise income — — 622,163 — 622,163 Interest and fees on finance receivables — — 181,280 — 181,280 Wholesale scrap jewelry sales 63,004 39,969 — — 102,973 Total revenue 1,254,968 675,466 803,443 (4,935) 2,728,942 Cost of revenue: Cost of retail merchandise sold 478,718 288,449 — (2,614) (1) 764,553 Depreciation of leased merchandise — — 354,104 (609) (1) 353,495 Provision for lease losses — — 140,118 (616) (1) 139,502 Provision for loan losses — — 118,502 — 118,502 Cost of wholesale scrap jewelry sold 54,893 33,411 — — 88,304 Total cost of revenue 533,611 321,860 612,724 (3,839) 1,464,356 Net revenue (loss) 721,357 353,606 190,719 (1,096) (1) 1,264,586 Expenses and other income: Operating expenses 407,039 193,254 128,616 — 728,909 Administrative expenses — — — 147,943 147,943 Depreciation and amortization 23,205 18,325 2,912 59,390 103,832 Interest expense — — — 70,708 70,708 Interest income — — — (1,313) (1,313) Gain on foreign exchange — — — (585) (585) Merger and acquisition expenses — — — 3,739 3,739 Gain on revaluation of contingent acquisition consideration — — — (109,549) (109,549) Other expenses (income), net — — — (2,731) (2,731) Total expenses and other income 430,244 211,579 131,528 167,602 940,953 Income (loss) before income taxes $ 291,113 $ 142,027 $ 59,191 $ (168,698) $ 323,633 As of December 31, 2022 U.S. Latin Retail POS Corporate/ Consolidated Pawn loans $ 282,089 $ 108,528 $ — $ — $ 390,617 Finance receivables, net — — 103,494 — 103,494 Inventories 202,594 85,745 — — 288,339 Leased merchandise, net — — 154,398 (1,096) (1) 153,302 Goodwill 916,048 179,128 486,205 — 1,581,381 Total assets 2,108,157 619,839 1,047,814 129,057 3,904,867 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Year Ended December 31, 2021 U.S. Latin Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 742,374 $ 391,875 $ — $ — $ 1,134,249 Pawn loan fees 305,350 170,432 — — 475,782 Leased merchandise income — — 22,720 — 22,720 Interest and fees on finance receivables — — 9,024 — 9,024 Wholesale scrap jewelry sales 27,163 30,027 — — 57,190 Total revenue 1,074,887 592,334 31,744 — 1,698,965 Cost of revenue: Cost of retail merchandise sold 416,039 247,425 — — 663,464 Depreciation of leased merchandise — — 12,826 — 12,826 Provision for lease losses — — 5,442 — 5,442 Provision for loan losses — — 48,952 — 48,952 Cost of wholesale scrap jewelry sold 22,886 26,243 — — 49,129 Total cost of revenue 438,925 273,668 67,220 — 779,813 Net revenue (loss) 635,962 318,666 (35,476) — 919,152 Expenses and other income: Operating expenses 380,895 179,020 4,917 — 564,832 Administrative expenses — — — 111,259 111,259 Depreciation and amortization 22,234 17,834 122 5,716 45,906 Interest expense — — — 32,386 32,386 Interest income — — — (696) (696) Loss on foreign exchange — — — 436 436 Merger and acquisition expenses — — — 15,449 15,449 Gain on revaluation of contingent acquisition consideration — — — (17,871) (17,871) Other expenses (income), net — — — 949 949 Total expenses and other income 403,129 196,854 5,039 147,628 752,650 Income (loss) before income taxes $ 232,833 $ 121,812 $ (40,515) $ (147,628) $ 166,502 As of December 31, 2021 U.S. Latin Retail POS Corporate/ Consolidated Pawn loans $ 256,311 $ 91,662 $ — $ — $ 347,973 Finance receivables, net — — 181,021 — 181,021 Inventories 197,486 65,825 — — 263,311 Leased merchandise, net — — 143,944 — 143,944 Goodwill 861,793 171,279 503,106 — 1,536,178 Total assets 1,944,487 562,661 1,178,729 150,575 3,836,452 Year Ended December 31, 2020 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 720,281 $ 355,237 $ — $ 1,075,518 Pawn loan fees 310,437 147,080 — 457,517 Interest and fees on finance receivables (1) 2,016 — — 2,016 Wholesale scrap jewelry sales 45,405 50,828 — 96,233 Total revenue 1,078,139 553,145 — 1,631,284 Cost of revenue: Cost of retail merchandise sold 415,938 225,149 — 641,087 Provision for loan losses (1) (488) — — (488) Cost of wholesale scrap jewelry sold 39,584 39,962 — 79,546 Total cost of revenue 455,034 265,111 — 720,145 Net revenue 623,105 288,034 — 911,139 Expenses and other income: Operating expenses 396,627 165,531 — 562,158 Administrative expenses — — 110,931 110,931 Depreciation and amortization 21,743 15,816 4,546 42,105 Interest expense — — 29,344 29,344 Interest income — — (1,540) (1,540) Loss on foreign exchange — — 884 884 Merger and acquisition expenses — — 1,316 1,316 Other expenses (income), net — — 10,505 10,505 Loss on extinguishment of debt — — 11,737 11,737 Total expenses and other income 418,370 181,347 167,723 767,440 Income (loss) before income taxes $ 204,735 $ 106,687 $ (167,723) $ 143,699 As of December 31, 2020 U.S. Latin America Corporate/ Consolidated Pawn loans $ 220,391 $ 87,840 $ — $ 308,231 Inventories 136,109 54,243 — 190,352 Goodwill 802,148 175,233 — 977,381 Total assets 1,718,975 540,473 112,749 2,372,197 (1) Effective June 30, 2020, the Company’s U.S. pawn segment ceased offering an unsecured consumer loan product in the U.S. |
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, net) by geographic area (in thousands): Year Ended December 31, 2022 2021 2020 Revenue: U.S. $ 2,053,476 $ 1,106,631 $ 1,078,139 Mexico 639,199 562,493 530,462 Other Latin America 36,267 29,841 22,683 $ 2,728,942 $ 1,698,965 $ 1,631,284 Long-lived assets: U.S. $ 449,201 $ 373,218 $ 286,079 Mexico 88,233 84,648 82,438 Other Latin America 10,662 13,191 14,968 $ 548,096 $ 471,057 $ 383,485 |
Organization and Nature of th_2
Organization and Nature of the Company (Details) | 12 Months Ended |
Dec. 31, 2022 numberOfBusinessLines segment state | |
Organization and Nature of the Company [Line Items] | |
Number of Business Lines | numberOfBusinessLines | 2 |
Number of reportable segments | segment | 3 |
Pawn Operations | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | 25 |
Retail POS Payment Solutions | |
Organization and Nature of the Company [Line Items] | |
Number of states in which entity operates | 50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accounts receivable, net | Accounts receivable, net | |
Cash associated with undistributed earnings of foreign subsidiaries | $ 37,400,000 | ||
Leased Merchandise, minimum lease holding period | 60 days | ||
Leased Merchandise, Depreciation over Life of Lease, Salvage Value | $ 0 | ||
Leased Merchandise, Threshold Period Past Due, Writeoff | 90 days | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $ 9,800,000 | $ 12,400,000 | |
Financing Receivable, Threshold Period Past Due, Writeoff | 90 days | ||
Advertising expense | $ 4,100,000 | $ 1,000,000 | $ 1,100,000 |
Mexico, Pesos | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Foreign currency exchange rate, translation | 2,010% | 2,030% | 2,150% |
United States of America, Dollars | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Foreign currency exchange rate, translation | 100% | 100% | 100% |
Guatemala, Quetzales | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Foreign currency exchange rate, translation | 770% | 770% | 770% |
Colombia, Pesos | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Foreign currency exchange rate, translation | 425,300% | 374,200% | 369,300% |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Leased Merchandise, Contract Range | 6 months | ||
Finance Receivable, Contract Range | 6 months | ||
Finance Receivable, Period for Early Payoff discount | 90 days | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Leased Merchandise, Contract Range | 24 months | ||
Finance Receivable, Contract Range | 24 months | ||
Finance Receivable, Period for Early Payoff discount | 105 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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net income | $ 253,495 | $ 124,909 | $ 106,579 |
Weighted-average common shares for calculating basic earnings per share | 47,213 | 40,975 | 41,502 |
Stock options and restricted stock unit awards | 117 | 49 | 98 |
Weighted-average common shares for calculating diluted earnings per share | 47,330 | 41,024 | 41,600 |
Basic (in dollars per share) | $ 5.37 | $ 3.05 | $ 2.57 |
Diluted (in dollars per share | $ 5.36 | $ 3.04 | $ 2.56 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 17, 2021 USD ($) shares | Dec. 31, 2022 USD ($) store $ / shares | Dec. 31, 2021 USD ($) store | Jun. 30, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Revenue since acquisition | $ 4,000 | $ 56,000 | |||
Transaction and integration costs | 1,200 | 11,900 | |||
Net earnings since acquisition | $ (200) | (41,000) | |||
AFF | |||||
Business Acquisition [Line Items] | |||||
Shares issued upon acquisition of American First Finance (shares) | shares | 8,046,252 | ||||
Business combination, percentage of stock held by shareholders | 83% | ||||
Business combination, percentage of stock held by selling party | 17% | ||||
Stock price, highest average 10-day target | $ / shares | $ 86.25 | ||||
Cash paid | $ 253,087 | ||||
Transaction and integration costs | $ 15,400 | ||||
AFF | EBITDA Targets | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 375,000 | ||||
AFF | 10 Day High Average Stock Price | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 75,000 | ||||
AFF | EBITDA Targets Not Met | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 325,000 | $ 250,000 | |||
AFF | Forecast | EBITDA Targets | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 50,000 | ||||
Pawn Store | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 73,000 | 79,500 | |||
Cash paid | 69,600 | 76,000 | |||
Liabilities incurred | 3,400 | $ 3,500 | |||
Payments for Previous Acquisition | $ 2,200 | ||||
United States | Pawn Store | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 30 | 46 | |||
Number of acquisitions | store | 6 | 3 | |||
Guatemala | Pawn Store | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 1 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Consideration (Details) - AFF - USD ($) $ / shares in Units, $ in Thousands | Dec. 17, 2021 | Dec. 31, 2022 | Dec. 16, 2021 |
Business Acquisition [Line Items] | |||
Shares issued upon acquisition of American First Finance (shares) | 8,046,252 | ||
Closing common stock price per share at December 16, 2021 | $ 62.83 | ||
Stock consideration | $ 505,546 | ||
Cash paid | 253,087 | ||
Cash consideration paid to extinguish AFF pre-existing debt | 257,278 | ||
Present value of deferred consideration payable to AFF shareholders on December 31, 2022 | $ 23,873 | ||
Estimated fair value of Contingent Consideration (see Note 6) | 127,420 | $ 0 | |
Less cash acquired | 48,263 | ||
Aggregate purchase consideration | $ 1,118,941 |
Acquisitions - Acquisitions Pur
Acquisitions - Acquisitions Purchase Price Allocation Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,581,381 | $ 1,536,178 | $ 977,381 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Pawn loans | 7,291 | ||
Fees and service charges receivable | 426 | ||
Inventory | 11,523 | ||
Property and equipment | 300 | ||
Goodwill | 55,455 | ||
Intangible assets | 310 | ||
Current liabilities | (2,329) | ||
Aggregate merger consideration | 72,976 | ||
AFF | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 11,660 | 11,660 | |
Finance receivables | 225,261 | 225,261 | |
Leased merchandise | 139,649 | 139,649 | |
Other current assets | 4,286 | 4,474 | |
Property and equipment | 11,661 | 11,670 | |
Operating lease right of use asset | 491 | 491 | |
Goodwill | 486,205 | 503,106 | |
Intangible assets | 305,100 | 305,100 | |
Accounts payable and accrued liabilities | (29,473) | (28,357) | |
Customer deposits and prepayments | (11,014) | (11,014) | |
Lease liability, current | (10) | (10) | |
Deferred tax liabilities (1) | (24,394) | (42,608) | |
Lease liability, non-current | (481) | (481) | |
Aggregate merger consideration | 1,118,941 | $ 1,118,941 | |
AFF | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Other current assets | (188) | ||
Property and equipment | (9) | ||
Goodwill | (16,901) | ||
Accounts payable and accrued liabilities | (1,116) | ||
Deferred tax liabilities (1) | 18,214 | ||
Aggregate merger consideration | $ 0 |
Acquisitions - Fair Value of Fi
Acquisitions - Fair Value of Finance Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Initial allowance recognized for PCD loans (2) | $ 0 | $ 32,036 |
AFF | Not Purchased With Credit Deterioration | ||
Business Acquisition [Line Items] | ||
Initial allowance recognized for PCD loans (2) | $ 44,300 |
Acquisitions - Pro Forma (Detai
Acquisitions - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Revenues | $ 2,728,942 | $ 1,698,965 | $ 1,631,284 |
Net income | $ 253,495 | $ 124,909 | $ 106,579 |
Basic (in dollars per share) | $ 5.37 | $ 3.05 | $ 2.57 |
Net income per diluted share (in dollars per share) | $ 5.36 | $ 3.04 | $ 2.56 |
AFF | |||
Business Acquisition [Line Items] | |||
Revenues | $ 1,698,965 | $ 1,631,284 | |
Net income | $ 124,909 | $ 106,579 | |
Basic (in dollars per share) | $ 3.05 | $ 2.57 | |
Net income per diluted share (in dollars per share) | $ 3.04 | $ 2.56 | |
AFF | Pro Forma | |||
Business Acquisition [Line Items] | |||
Revenues | $ 2,305,860 | $ 2,024,055 | |
Net income | $ 156,257 | $ 60,059 | |
Basic (in dollars per share) | $ 3.21 | $ 1.21 | |
Net income per diluted share (in dollars per share) | $ 3.20 | $ 1.21 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years |
Weighted average discount rate (as a percent) | 6.50% | 6.20% | 7% |
Foreign Currency Transaction Loss, before Tax | $ (0.6) | $ (1.2) | |
Foreign Currency Transaction Gain, before Tax | $ 1.3 | ||
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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 128,174 | $ 125,439 | $ 121,649 |
Variable lease expense | 16,979 | 16,021 | 14,444 |
Total operating lease expense | $ 145,153 | $ 141,460 | $ 136,093 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 109,116 |
2023 | 86,941 |
2024 | 59,971 |
2025 | 39,707 |
2026 | 17,936 |
Thereafter | 23,501 |
Total | 337,172 |
Less amount of lease payments representing interest | (41,113) |
Total present value of lease payments | $ 296,059 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 116,225 | $ 114,463 | $ 110,965 |
Leased assets obtained in exchange for new operating lease liabilities | $ 95,132 | $ 110,531 | $ 104,576 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 2,204,000 | 688,000 | |
Dollar Amount Purchased in 2022 | $ 157,864 | $ 49,600 | |
Stock repurchase program, average cost per share (in dollars per share) | $ 71.63 | $ 72.10 | |
Dollar Amount Authorized | $ 100,000 | ||
Remaining Dollar Amount Authorized For Future Purchases | 114,353 | ||
Payments of dividends | $ 59,571 | $ 47,533 | $ 44,752 |
January 28, 2021 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 1,048,000 | ||
Dollar Amount Purchased in 2022 | $ 72,217 | ||
Remaining Dollar Amount Authorized For Future Purchases | $ 0 | ||
April 28, 2022 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 1,156,000 | ||
Dollar Amount Purchased in 2022 | $ 85,647 | ||
Remaining Dollar Amount Authorized For Future Purchases | $ 14,353 | ||
October 27, 2022 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (shares) | 0 | ||
Dollar Amount Purchased in 2022 | $ 0 | ||
Remaining Dollar Amount Authorized For Future Purchases | $ 100,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 17, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Contingent Consideration (1) | $ 0 | $ 109,549 | $ 0 | |
Finance receivables, gross | 195,987 | 220,329 | ||
AFF | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Estimated fair value of Contingent Consideration (see Note 6) | 0 | $ 127,420 | ||
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 117,330 | 120,046 | ||
Contingent Consideration (1) | 0 | 109,549 | ||
Accounts Receivable, Fair Value Disclosure | 57,792 | 55,356 | ||
Total assets | 669,233 | 704,396 | ||
Total liabilities | 1,389,000 | 1,309,000 | ||
Carrying Value | Revolving unsecured credit facilities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 339,000 | 259,000 | ||
Carrying Value | Senior unsecured notes, outstanding principal | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 1,050,000 | 1,050,000 | ||
Carrying Value | Pawn Loans | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans receivable | 390,617 | 347,973 | ||
Carrying Value | Financing Receivable | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans receivable | 103,494 | 181,021 | ||
Estimate Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 117,330 | 120,046 | ||
Accounts Receivable, Fair Value Disclosure | 57,792 | 55,356 | ||
Total assets | 767,634 | 756,375 | ||
Total liabilities | 1,271,000 | 1,317,000 | ||
Estimate Value | Revolving unsecured credit facilities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 339,000 | 259,000 | ||
Estimate Value | Senior unsecured notes, outstanding principal | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 932,000 | 1,058,000 | ||
Estimate Value | Pawn Loans | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans receivable | 390,617 | 347,973 | ||
Estimate Value | Financing Receivable | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans receivable | 201,895 | 233,000 | ||
Estimate Value | Fair Value Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 117,330 | 120,046 | ||
Contingent Consideration (1) | 0 | 0 | ||
Accounts Receivable, Fair Value Disclosure | 0 | 0 | ||
Total assets | 117,330 | 120,046 | ||
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 | Financing Receivable | ||||
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 | ||
Contingent Consideration (1) | 0 | 0 | ||
Accounts Receivable, Fair Value Disclosure | 0 | 0 | ||
Total assets | 0 | 0 | ||
Total liabilities | 1,271,000 | 1,317,000 | ||
Estimate Value | Fair Value Level 2 | Revolving unsecured credit facilities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 339,000 | 259,000 | ||
Estimate Value | Fair Value Level 2 | Senior unsecured notes, outstanding principal | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt | 932,000 | 1,058,000 | ||
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 | Financing Receivable | ||||
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 | ||
Contingent Consideration (1) | 0 | 109,549 | ||
Accounts Receivable, Fair Value Disclosure | 57,792 | 55,356 | ||
Total assets | 650,304 | 636,329 | ||
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 | 390,617 | 347,973 | ||
Estimate Value | Fair Value Level 3 | Financing Receivable | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans receivable | $ 201,895 | $ 233,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2023 | Dec. 17, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability current | $ 95,600 | ||||
Other liabilities | $ 0 | 13,950 | |||
Gain on revaluation of contingent acquisition consideration | 109,549 | $ 17,871 | $ 0 | ||
AFF | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Estimated fair value of Contingent Consideration (see Note 6) | 0 | $ 127,420 | |||
AFF | EBITDA Targets Not Met | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 250,000 | 325,000 | |||
AFF | EBITDA Targets | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 375,000 | ||||
AFF | EBITDA Targets | Forecast | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 50,000 |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Finance receivables, gross | $ 195,987 | $ 220,329 | |
Fair value premium on non-PCD finance receivables | 0 | 40,251 | |
Non-credit discount on PCD finance receivables | 0 | 3,521 | |
Financing Receivable, Merchant partner discounts and premiums, net | (3,517) | (104) | |
Financing Receivable, Unearned Origination Fees | (4,143) | (360) | |
Finance receivables, amortized cost | 188,327 | 256,595 | |
Financing Receivable, Allowance for Credit Loss | (84,833) | (75,574) | $ 0 |
Finance receivables, net | $ 103,494 | $ 181,021 |
Finance Receivables, Net - Roll
Finance Receivables, Net - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 75,574 | $ 0 | |
Provision for loan losses (1) | 118,502 | 48,952 | $ (488) |
Initial allowance recognized for PCD loans (2) | 0 | 32,036 | |
Charge-offs | (114,535) | (5,545) | |
Recoveries | 5,292 | 131 | |
Balance at end of year | 84,833 | 75,574 | $ 0 |
Initial allowance recognized for PCD loans (2) | $ 0 | 32,036 | |
Not Purchased With Credit Deterioration | AFF | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Initial allowance recognized for PCD loans (2) | 44,300 | ||
Initial allowance recognized for PCD loans (2) | $ 44,300 |
Finance Receivables, Net - Cred
Finance Receivables, Net - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Finance receivables before fair value adjustments | $ 219,865 | |
Finance receivables, amortized cost | $ 188,327 | $ 256,595 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Finance Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | $ 188,327 | $ 256,595 |
Finance receivables before fair value adjustments | 219,865 | |
Fair value premium on non-PCD finance receivables | 0 | 40,251 |
Non-credit discount on PCD finance receivables | 0 | (3,521) |
Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 161,028 | |
Finance receivables before fair value adjustments | 0 | |
Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 27,299 | |
Finance receivables before fair value adjustments | 194,997 | |
Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 0 | |
Finance receivables before fair value adjustments | 24,868 | |
1 to 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 16,981 | |
Finance receivables before fair value adjustments | 18,337 | |
1 to 30 days past due | Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 14,186 | |
Finance receivables before fair value adjustments | 0 | |
1 to 30 days past due | Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 2,795 | |
Finance receivables before fair value adjustments | 16,077 | |
1 to 30 days past due | Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 0 | |
Finance receivables before fair value adjustments | 2,260 | |
31 to 60 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 9,870 | |
Finance receivables before fair value adjustments | 11,672 | |
31 to 60 days past due | Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 8,048 | |
Finance receivables before fair value adjustments | 0 | |
31 to 60 days past due | Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 1,822 | |
Finance receivables before fair value adjustments | 10,024 | |
31 to 60 days past due | Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 0 | |
Finance receivables before fair value adjustments | 1,648 | |
61 to 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 8,347 | |
Finance receivables before fair value adjustments | 9,376 | |
61 to 90 days past due | Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 6,597 | |
Finance receivables before fair value adjustments | 0 | |
61 to 90 days past due | Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 1,750 | |
Finance receivables before fair value adjustments | 7,898 | |
61 to 90 days past due | Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 0 | |
Finance receivables before fair value adjustments | 1,478 | |
Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 35,198 | |
Finance receivables before fair value adjustments | 39,385 | |
Past due | Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 28,831 | |
Finance receivables before fair value adjustments | 0 | |
Past due | Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 6,367 | |
Finance receivables before fair value adjustments | 33,999 | |
Past due | Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 0 | |
Finance receivables before fair value adjustments | 5,386 | |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 153,129 | |
Finance receivables before fair value adjustments | 180,480 | |
Current | Year 2022 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 132,197 | |
Finance receivables before fair value adjustments | 0 | |
Current | Year 2021 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | 20,932 | |
Finance receivables before fair value adjustments | 160,998 | |
Current | Year 2020 | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables, amortized cost | $ 0 | |
Finance receivables before fair value adjustments | $ 19,482 |
Leased Merchandise, Net (Detail
Leased Merchandise, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Leased Merchandise, Before Fees, Premiums, Discounts, Accumulated Depreciation, and Credit Loss | $ 335,038 | $ 156,280 | |
Loan Processing Fee | (4,124) | (440) | |
Leased Merchandise, Merchant partner discounts and premiums, net | 2,456 | 310 | |
Leased Merchandise, Accumulated Depreciation | (100,879) | (6,764) | |
Leased merchandise, before allowance for lease losses | 232,491 | 149,386 | |
Leased Merchandise, Allowance for Credit loss | (79,189) | (5,442) | $ 0 |
Leased merchandise, net | 153,302 | 143,944 | |
Provision for Lease Losses | 139,502 | 5,442 | $ 0 |
Leased Merchandise, Allowance for Credit Loss, Writeoff | (70,114) | 0 | |
Leased Merchandise, Allowance for Credit Loss, Recovery | $ 4,359 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 908,254 | $ 781,368 | |
Less accumulated depreciation | (369,573) | (318,842) | |
Property and equipment, net | 538,681 | 462,526 | |
Depreciation expense | 46,800 | 42,500 | $ 39,800 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 141,795 | 114,150 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 249,658 | 199,100 | |
Furniture, fixtures, equipment and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 516,801 | $ 468,118 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Business Acquisition, Accounts payable to sellers | $ 1,217 | $ 123,475 |
Accrued compensation | 38,595 | 33,546 |
Taxes Payable, Current | 27,226 | 32,463 |
Accounts Payable, Current | 29,243 | 23,077 |
Accrued interest payable | 24,276 | 9,375 |
Benefits liabilities and withholding payable | 2,383 | 3,084 |
Accrued Income Taxes, Current | 569 | 3,387 |
Other accrued liabilities | 15,951 | 15,920 |
Accounts payable and accrued liabilities | 139,460 | $ 244,327 |
AFF | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Present value of deferred consideration payable to AFF shareholders on December 31, 2022 | $ 23,873 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Aug. 26, 2020 |
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 339,000 | |||
Long-term Debt | 1,389,000 | |||
Total long-term debt | 1,374,698 | $ 1,292,904 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | 339,000 | 259,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 1,035,698 | 1,033,904 | ||
Senior Notes | 4.625% Senior Unsecured Notes due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 493,475 | 492,499 | ||
Debt Issuance Costs, Net | $ 6,500 | 7,500 | ||
Interest rate | 4.625% | 4.625% | ||
Senior Notes | 5.625% Senior Unsecured Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 542,223 | 541,405 | ||
Debt Issuance Costs, Net | $ 7,800 | $ 8,600 | $ 8,600 | |
Interest rate | 5.625% | 5.625% |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities for Long-term Debt (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 339,000 |
Thereafter | 1,050,000 |
Total long-term debt | $ 1,389,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2022 | Aug. 30, 2022 USD ($) | Sep. 30, 2022 | Aug. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 13, 2021 USD ($) | Aug. 26, 2020 USD ($) | May 30, 2017 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Leverage Ratio, Temporary Adjusted EBITDA | 3.25 | 3.5 | |||||||||
Line of Credit Facility, Leverage Ratio, Adjusted EBITDA | 3 | ||||||||||
Long-term line of credit | $ 339,000,000 | ||||||||||
Loss on extinguishment of debt | 0 | $ 0 | $ 11,737,000 | ||||||||
Redemption premium and other redemption costs on senior unsecured notes | 0 | 0 | 8,781,000 | ||||||||
Write off of Deferred Debt Issuance Cost | $ 2,900,000 | ||||||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term line of credit | 339,000,000 | 259,000,000 | |||||||||
Letters of credit outstanding, amount | 3,200,000 | ||||||||||
Remaining borrowing capacity | $ 247,800,000 | ||||||||||
Commitment fee percentage | 0.325% | ||||||||||
Interest rate at period end | 6.90% | 6.90% | |||||||||
Repayments of debt | $ 80,000,000 | ||||||||||
Line of Credit | Revolving Unsecured Uncommitted Credit Facility due 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 600,000,000 | ||||||||||
Long-term line of credit | 0 | ||||||||||
Remaining borrowing capacity | $ 600,000,000 | ||||||||||
Line of Credit | Revolving Unsecured Credit Facility due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | |||||||||
Line of Credit | Revolving Unsecured Credit Facility due 2027 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 590,000,000 | ||||||||||
Line of Credit | LIBOR | Revolving Unsecured Credit Facility due 2024 | |||||||||||
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% | ||||||||||
Line of Credit | Prime Rate | Revolving Unsecured Credit Facility due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Line of Credit | Mexican Central Bank Interbank Equilibrium Rate (TIIE) [Member] | Revolving Unsecured Uncommitted Credit Facility due 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Debt Instrument, Basis Spread on Variable Rate, Adjustment | 0.10% | ||||||||||
Senior Notes | 4.625% Senior Unsecured Notes due 2028 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 4.625% | 4.625% | 4.625% | ||||||||
Face Amount | $ 500,000,000 | ||||||||||
Total debt ratio threshold | 2.75 | 2.75 | |||||||||
Debt Issuance Costs, Net | $ 6,500,000 | 7,500,000 | |||||||||
Senior Notes | Senior notes 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.375% | ||||||||||
Face Amount | $ 300,000,000 | ||||||||||
Redemption price | 100% | ||||||||||
Redemption price (up to) | 40% | ||||||||||
Senior Notes | 5.625% Senior Unsecured Notes due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 5.625% | 5.625% | 5.625% | ||||||||
Face Amount | $ 550,000,000 | ||||||||||
Total debt ratio threshold | 3 | 3 | |||||||||
Redemption price | 100% | ||||||||||
Redemption price (up to) | 40% | ||||||||||
Debt Issuance Costs, Net | $ 7,800,000 | $ 8,600,000 | $ 8,600,000 | ||||||||
Debt Covenant, Total Debt Ratio | 2.7 | 2.7 | |||||||||
Minimum | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 0% | 0% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from continuing operations before income taxes | |||
Domestic | $ 253,560 | $ 110,535 | $ 98,111 |
Foreign | 70,073 | 55,967 | 45,588 |
Income before income taxes | 323,633 | 166,502 | 143,699 |
Current income taxes: | |||
Federal | 23,034 | 14,031 | 14,951 |
Foreign | 15,444 | 15,242 | 9,909 |
U.S. state and local | 3,421 | 2,045 | 2,158 |
Current provision for income taxes | 41,899 | 31,318 | 27,018 |
Deferred provision (benefit) for income taxes: | |||
Federal | 26,732 | 11,008 | 4,485 |
Foreign | (458) | (1,542) | 5,287 |
U.S. state and local | 1,965 | 809 | 330 |
Total deferred provision for income taxes | 28,239 | 10,275 | 10,102 |
Provision for income taxes | $ 70,138 | $ 41,593 | $ 37,120 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Location [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 246,100,000 | ||
Foreign Earnings Repatriated | 47,500,000 | $ 10,000,000 | |
Valuation allowance | $ 6,504,000 | 6,429,000 | |
U.S. federal statutory rate | 21% | ||
Income tax benefit, percent of likelihood of being realized upon settlement | 5,000% | ||
Unrecognized tax benefits | $ 0 | 0 | |
Income tax penalties and interest accrued | 0 | 0 | |
Income tax penalties and interest expense | $ 0 | $ 0 | $ 0 |
United States | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 21% | 21% | |
Mexico | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 30% | ||
Guatemala | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 25% | ||
EL Salvador | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 30% | ||
NETHERLANDS | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 0% | ||
COLOMBIA | |||
Entity Location [Line Items] | |||
U.S. federal statutory rate | 35% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Property and equipment in foreign jurisdictions | $ 14,585 | $ 11,452 |
Finance receivables | 19,125 | 7,421 |
Accrued fees on forfeited pawn loans | 8,168 | 6,645 |
Deferred cost of goods sold deduction | 2,800 | 1,989 |
Accrued compensation, payroll taxes and employee benefits | 3,699 | 4,294 |
U.S. state and certain foreign net operating losses | 6,504 | 6,429 |
Other | 5,167 | 3,811 |
Total deferred tax assets | 60,048 | 42,041 |
Deferred tax liabilities: | ||
Intangible assets | 150,397 | 126,283 |
Deferred Tax Liabilities, Leasing Arrangements | 2,646 | 3,726 |
Leased merchandise and property and equipment in domestic jurisdictions | 40,950 | 24,035 |
Other | 3,929 | 2,052 |
Total deferred tax liabilities | 197,922 | 156,096 |
Net deferred tax liabilities before valuation allowance | 137,874 | 114,055 |
Valuation allowance | (6,504) | (6,429) |
Net deferred tax liabilities | (144,378) | (120,484) |
Deferred tax assets | 7,381 | 5,614 |
Deferred tax liabilities | $ (151,759) | $ (126,098) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21% | ||
Tax at the U.S. federal statutory rate | $ 67,963 | $ 35,149 | $ 30,177 |
U.S. state income tax, net of federal tax benefit of $1,131, $599 and $522, respectively | 4,255 | 2,255 | 1,965 |
Federal Income tax provision (benefit) for state income taxes | 1,131 | 599 | 522 |
Benefit from gain on revaluation of contingent acquisition consideration | (4,580) | 0 | 0 |
Net incremental income tax expense from foreign earnings (1) | 272 | 2,007 | 5,732 |
Non-deductible compensation expense | 3,297 | 1,943 | 1,050 |
Global intangible low-taxed income tax | 0 | 0 | (1,863) |
Other taxes and adjustments, net | (1,069) | 239 | 59 |
Provision for income taxes | $ 70,138 | $ 41,593 | $ 37,120 |
Effective tax rate | 21.70% | 25% | 25.80% |
Foreign inflation index adjustment | $ 8,000 | $ 6,300 | $ 2,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Forward Contracts - Gold, Ounces | Dec. 31, 2022 oz $ / oz |
Guarantor Obligations [Line Items] | |
Investment contract weight | oz | 5,500 |
Derivative, average forward price | $ / oz | 1,892 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Roll-forward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance, beginning of year | $ 1,536,178,000 | $ 977,381,000 |
Merger and other acquisitions | 55,455,000 | 562,751,000 |
Effect of foreign currency translation | 7,849,000 | (3,954,000) |
Other adjustments | (18,101,000) | |
Balance, end of year | 1,581,381,000 | 1,536,178,000 |
Goodwill impairment | 0 | 0 |
United States | ||
Goodwill [Line Items] | ||
Other adjustments | (1,200,000) | |
Latin America Pawn | ||
Goodwill [Line Items] | ||
Other adjustments | 0 | |
Pawn Segment | United States | ||
Goodwill [Line Items] | ||
Balance, beginning of year | 861,793,000 | |
Merger and other acquisitions | 55,455,000 | 59,645,000 |
Effect of foreign currency translation | 0 | 0 |
Balance, end of year | 916,048,000 | 861,793,000 |
Pawn Segment | Latin America Pawn | ||
Goodwill [Line Items] | ||
Balance, beginning of year | 171,279,000 | |
Merger and other acquisitions | 0 | 0 |
Effect of foreign currency translation | 7,849,000 | (3,954,000) |
Balance, end of year | 179,128,000 | 171,279,000 |
Retail POS Payment Solutions | United States | ||
Goodwill [Line Items] | ||
Balance, beginning of year | 503,106,000 | 0 |
Merger and other acquisitions | 0 | 503,106,000 |
Effect of foreign currency translation | 0 | 0 |
Other adjustments | (16,901,000) | |
Balance, end of year | $ 486,205,000 | $ 503,106,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 331,394 | $ 331,211 | |
Accumulated Amortization | (84,469) | (27,225) | |
Net Carrying Amount | 246,925 | 303,986 | |
Amortization expenses of intangible assets | $ 57,100 | 3,400 | $ 2,300 |
Weighted average amortization period remaining, in years | 2 years 6 months | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 26,294 | 26,111 | |
Accumulated Amortization | (25,716) | (25,174) | |
Net Carrying Amount | $ 578 | 937 | |
Weighted average amortization period remaining, in years | 1 year 2 months 12 days | ||
Merchant relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 194,000 | 194,000 | |
Accumulated Amortization | (31,530) | (962) | |
Net Carrying Amount | $ 162,470 | 193,038 | |
Weighted average amortization period remaining, in years | 2 years 9 months 18 days | ||
Developed Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 99,400 | 99,400 | |
Accumulated Amortization | (20,708) | (828) | |
Net Carrying Amount | $ 78,692 | 98,572 | |
Weighted average amortization period remaining, in years | 2 years | ||
Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 10,200 | 10,200 | |
Accumulated Amortization | (5,314) | (213) | |
Net Carrying Amount | $ 4,886 | 9,987 | |
Weighted average amortization period remaining, in years | 6 months | ||
Lessee Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,500 | 1,500 | |
Accumulated Amortization | (1,201) | (48) | |
Net Carrying Amount | $ 299 | $ 1,452 | |
Weighted average amortization period remaining, in years | 2 months 12 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Goodwill Future Amortization (Details) - Goodwill $ in Thousands | Dec. 31, 2022 USD ($) |
2022 | $ 56,926 |
2023 | 49,843 |
2024 | 48,188 |
2025 | 45,250 |
2026 | 24,244 |
Thereafter | 22,474 |
Total future amortization | $ 246,925 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets,indefinite-lived | $ 0 | $ 0 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 83,413,000 | 84,198,000 |
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 | 37,113,000 | 36,648,000 |
Other indefinite-lived intangibles | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 0 | $ 1,250,000 |
Equity Compensation Plans and_2
Equity Compensation Plans and Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Additional Disclosures [Abstract] | |||
Options and warrants exercises in period, total intrinsic value | $ 0.4 | $ 1.8 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Shares issued in period | 0 | ||
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 | $ 1.5 | $ 6.6 | $ 9.4 |
Total intrinsic value for nonvested common stock awards outstanding | $ 37.9 | ||
Weighted-average period of recognition (years) | 1 year 4 months 24 days | ||
Total compensation cost not yet recognized, nonvested common stock awards | $ 11.5 | ||
Time Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (shares) | 60,000 | 48,000 | 21,000 |
Time Based Shares | Minimum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Vesting period | 3 years | 3 years | 3 years |
Time Based Shares | Maximum | |||
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 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Additional Disclosures [Abstract] | |||
Exercise price (in dollars per share) | $ 0 | $ 0 | $ 0 |
Stock Options and Warrants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
2020 Performance Based Awards | Minimum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 0% | ||
2020 Performance Based Awards | Maximum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 150% | ||
2021 Performance Based Awards | Minimum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 0% | ||
2021 Performance Based Awards | Maximum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 150% | ||
2022 Performance Based Awards | Minimum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 0% | ||
2022 Performance Based Awards | Maximum | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Target share award earned, percentage | 150% | ||
Prior to merger | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 3,007,000 |
Equity Compensation Plans and_3
Equity Compensation Plans and Share-Based Compensation - Restricted Stock Unit Award Activity (Details) - $ / shares shares in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 383 | 373 | 357 | |
Underlying Shares - Outstanding at end of year | 373 | 435 | 383 | 373 |
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 | $ 71.93 | $ 77.40 | $ 69.13 | |
Weighted-Average Exercise Price - Outstanding at end of year | $ 77.40 | $ 67.38 | $ 71.93 | $ 77.40 |
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 | 120 | 105 | 238 | |
Underlying Shares - Exercised | 0 | (91) | (117) | |
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 | $ 69.78 | $ 58.68 | $ 78.40 | |
Weighted-Average Exercise Price - Vested | $ 0 | $ 72.70 | $ 48.25 | |
Vesting period | 3 years | 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 | 60 | 48 | 21 | |
Underlying Shares - Exercised | (19) | (19) | (12) | |
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 | $ 69.72 | $ 58.68 | $ 84.93 | |
Weighted-Average Exercise Price - Vested | $ 70.33 | $ 67.86 | $ 76.84 | |
Performance-Based Canceled | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Underlying Shares - Exercised | (109) | (18) | (114) | |
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 - Vested | $ 86.86 | $ 72.56 | $ 84.93 | |
Grant date fair value of replacement performance-based awards | $ 72.37 | |||
Time Based Canceled | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Underlying Shares - Exercised | 0 | (15) | 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 - Vested | $ 0 | $ 72.49 | $ 0 |
Equity Compensation Plans and_4
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding [Roll Forward] | |||
Underlying Shares - Outstanding at beginning of year | 0 | 10 | 70 |
Underlying Shares - Exercised | 0 | (10) | (60) |
Underlying Shares - Outstanding at end of year | 0 | 0 | 10 |
Underlying Shares - Exercisable at end of year | 0 | 0 | 0 |
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 | $ 0 | $ 38 | $ 38.86 |
Weighted-Average Exercise Price - Exercised | 0 | 38 | 39 |
Weighted-Average Exercise Price - Outstanding at end of year | 0 | 0 | 38 |
Weighted-Average Exercise Price - Exercisable at end of year | $ 0 | $ 0 | $ 0 |
Equity Compensation Plans and_5
Equity Compensation Plans and Share-Based Compensation - Share-based Compensation Allocation of Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | $ 10,853 | $ 5,150 | $ 2,914 |
Income tax benefits: | (1,428) | (205) | (995) |
Net compensation expense | 9,425 | 4,945 | 1,919 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | 0 | 0 | 15 |
Income tax benefits: | 0 | 0 | (94) |
Nonvested “restricted” stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Gross compensation costs: | 10,853 | 5,150 | 2,899 |
Income tax benefits: | $ (1,428) | $ (205) | $ (901) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period for company contributions | 5 years | ||
First Cash | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee | 100% | ||
Employer matching contribution | 5% | ||
Rate of employer match | 50% | ||
Employer contribution amount | $ 4 | $ 3.5 | $ 3.3 |
First Cash | Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period until participation in 401(k) | 6 months |
Segment and Geographic Inform_3
Segment and Geographic Information - Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Revenues from External Customers and Assets [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Revenue: | |||
Retail merchandise sales | $ 1,261,136 | $ 1,134,249 | $ 1,075,518 |
Pawn loan fees | 561,390 | 475,782 | 457,517 |
Interest and fees on finance receivables | 181,280 | 9,024 | 2,016 |
Leased merchandise income | 622,163 | 22,720 | 0 |
Wholesale scrap jewelry sales | 102,973 | 57,190 | 96,233 |
Total revenue | 2,728,942 | 1,698,965 | 1,631,284 |
Cost of revenue: | |||
Cost of retail merchandise sold | 764,553 | 663,464 | 641,087 |
Depreciation of leased merchandise | 353,495 | 12,826 | 0 |
Provision for Lease Losses | 139,502 | 5,442 | 0 |
Provision for loan losses (1) | 118,502 | 48,952 | (488) |
Cost of wholesale scrap jewelry sold | 88,304 | 49,129 | 79,546 |
Total cost of revenue | 1,464,356 | 779,813 | 720,145 |
Net revenue | 1,264,586 | 919,152 | 911,139 |
Expenses and other income: | |||
Operating expenses | 728,909 | 564,832 | 562,158 |
Administrative expenses | 147,943 | 111,259 | 110,931 |
Depreciation and amortization | 103,832 | 45,906 | 42,105 |
Interest expense | 70,708 | 32,386 | 29,344 |
Interest income | (1,313) | (696) | (1,540) |
(Gain) loss on foreign exchange | (585) | 436 | 884 |
Merger and acquisition expenses | 3,739 | 15,449 | 1,316 |
Gain on revaluation of contingent acquisition consideration | (109,549) | (17,871) | 0 |
Loss on extinguishment of debt | 0 | 0 | 11,737 |
Total expenses and other income | 940,953 | 752,650 | 767,440 |
Income before income taxes | 323,633 | 166,502 | 143,699 |
Pawn loans | 390,617 | 347,973 | 308,231 |
Consumer loans, net | 181,021 | ||
Finance receivables, net | 103,494 | 181,021 | |
Inventories | 288,339 | 263,311 | 190,352 |
Leased merchandise, net | 153,302 | 143,944 | |
Goodwill | 1,581,381 | 1,536,178 | 977,381 |
Total assets | 3,904,867 | 3,836,452 | 2,372,197 |
Other Nonoperating Income (Expense) | (2,731) | 949 | 10,505 |
Corporate/ Eliminations | |||
Revenue: | |||
Retail merchandise sales | (4,935) | 0 | 0 |
Pawn loan fees | 0 | 0 | 0 |
Interest and fees on finance receivables | 0 | 0 | 0 |
Leased merchandise income | 0 | 0 | |
Wholesale scrap jewelry sales | 0 | 0 | 0 |
Total revenue | (4,935) | 0 | 0 |
Cost of revenue: | |||
Cost of retail merchandise sold | (2,614) | 0 | 0 |
Depreciation of leased merchandise | (609) | 0 | |
Provision for Lease Losses | (616) | 0 | |
Provision for loan losses (1) | 0 | 0 | 0 |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 |
Total cost of revenue | (3,839) | 0 | 0 |
Net revenue | (1,096) | 0 | 0 |
Expenses and other income: | |||
Operating expenses | 0 | 0 | 0 |
Administrative expenses | 147,943 | 111,259 | 110,931 |
Depreciation and amortization | 59,390 | 5,716 | 4,546 |
Interest expense | 70,708 | 32,386 | 29,344 |
Interest income | (1,313) | (696) | (1,540) |
(Gain) loss on foreign exchange | (585) | 436 | 884 |
Merger and acquisition expenses | 3,739 | 15,449 | 1,316 |
Gain on revaluation of contingent acquisition consideration | (109,549) | (17,871) | |
Loss on extinguishment of debt | 11,737 | ||
Total expenses and other income | 167,602 | 147,628 | 167,723 |
Income before income taxes | (168,698) | (147,628) | (167,723) |
Pawn loans | 0 | 0 | 0 |
Finance receivables, net | 0 | 0 | |
Inventories | 0 | 0 | 0 |
Leased merchandise, net | (1,096) | 0 | |
Goodwill | 0 | 0 | 0 |
Total assets | 129,057 | 150,575 | 112,749 |
Other Nonoperating Income (Expense) | (2,731) | 949 | 10,505 |
U.S. Pawn | |||
Revenue: | |||
Total revenue | 2,053,476 | 1,106,631 | 1,078,139 |
U.S. Pawn | Operating Segments | |||
Expenses and other income: | |||
Loss on extinguishment of debt | 0 | ||
U.S. Pawn | Pawn Segment | |||
Expenses and other income: | |||
Goodwill | 916,048 | 861,793 | |
U.S. Pawn | Pawn Segment | Operating Segments | |||
Revenue: | |||
Retail merchandise sales | 818,548 | 742,374 | 720,281 |
Pawn loan fees | 373,416 | 305,350 | 310,437 |
Interest and fees on finance receivables | 0 | 0 | 2,016 |
Leased merchandise income | 0 | 0 | |
Wholesale scrap jewelry sales | 63,004 | 27,163 | 45,405 |
Total revenue | 1,254,968 | 1,074,887 | 1,078,139 |
Cost of revenue: | |||
Cost of retail merchandise sold | 478,718 | 416,039 | 415,938 |
Depreciation of leased merchandise | 0 | 0 | |
Provision for Lease Losses | 0 | 0 | |
Provision for loan losses (1) | 0 | 0 | (488) |
Cost of wholesale scrap jewelry sold | 54,893 | 22,886 | 39,584 |
Total cost of revenue | 533,611 | 438,925 | 455,034 |
Net revenue | 721,357 | 635,962 | 623,105 |
Expenses and other income: | |||
Operating expenses | 407,039 | 380,895 | 396,627 |
Administrative expenses | 0 | 0 | 0 |
Depreciation and amortization | 23,205 | 22,234 | 21,743 |
Interest expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
(Gain) loss on foreign exchange | 0 | 0 | 0 |
Merger and acquisition expenses | 0 | 0 | 0 |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |
Total expenses and other income | 430,244 | 403,129 | 418,370 |
Income before income taxes | 291,113 | 232,833 | 204,735 |
Pawn loans | 282,089 | 256,311 | 220,391 |
Finance receivables, net | 0 | 0 | |
Inventories | 202,594 | 197,486 | 136,109 |
Leased merchandise, net | 0 | 0 | |
Goodwill | 916,048 | 861,793 | 802,148 |
Total assets | 2,108,157 | 1,944,487 | 1,718,975 |
Other Nonoperating Income (Expense) | 0 | 0 | 0 |
U.S. Pawn | Retail POS Payment Solutions | |||
Expenses and other income: | |||
Goodwill | 486,205 | 503,106 | 0 |
U.S. Pawn | Retail POS Payment Solutions | Operating Segments | |||
Revenue: | |||
Retail merchandise sales | 0 | 0 | |
Pawn loan fees | 0 | 0 | |
Interest and fees on finance receivables | 181,280 | 9,024 | |
Leased merchandise income | 622,163 | 22,720 | |
Wholesale scrap jewelry sales | 0 | 0 | |
Total revenue | 803,443 | 31,744 | |
Cost of revenue: | |||
Cost of retail merchandise sold | 0 | 0 | |
Depreciation of leased merchandise | 354,104 | 12,826 | |
Provision for Lease Losses | 140,118 | 5,442 | |
Provision for loan losses (1) | 118,502 | 48,952 | |
Cost of wholesale scrap jewelry sold | 0 | 0 | |
Total cost of revenue | 612,724 | 67,220 | |
Net revenue | 190,719 | (35,476) | |
Expenses and other income: | |||
Operating expenses | 128,616 | 4,917 | |
Administrative expenses | 0 | 0 | |
Depreciation and amortization | 2,912 | 122 | |
Interest expense | 0 | 0 | |
Interest income | 0 | 0 | |
(Gain) loss on foreign exchange | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |
Total expenses and other income | 131,528 | 5,039 | |
Income before income taxes | 59,191 | (40,515) | |
Pawn loans | 0 | 0 | |
Finance receivables, net | 103,494 | 181,021 | |
Inventories | 0 | 0 | |
Leased merchandise, net | 154,398 | 143,944 | |
Goodwill | 486,205 | 503,106 | |
Total assets | 1,047,814 | 1,178,729 | |
Other Nonoperating Income (Expense) | 0 | 0 | |
Latin America Pawn | Operating Segments | |||
Expenses and other income: | |||
Loss on extinguishment of debt | 0 | ||
Latin America Pawn | Pawn Segment | |||
Expenses and other income: | |||
Goodwill | 179,128 | 171,279 | |
Latin America Pawn | Pawn Segment | Operating Segments | |||
Revenue: | |||
Retail merchandise sales | 447,523 | 391,875 | 355,237 |
Pawn loan fees | 187,974 | 170,432 | 147,080 |
Interest and fees on finance receivables | 0 | 0 | 0 |
Leased merchandise income | 0 | 0 | |
Wholesale scrap jewelry sales | 39,969 | 30,027 | 50,828 |
Total revenue | 675,466 | 592,334 | 553,145 |
Cost of revenue: | |||
Cost of retail merchandise sold | 288,449 | 247,425 | 225,149 |
Depreciation of leased merchandise | 0 | 0 | |
Provision for Lease Losses | 0 | 0 | |
Provision for loan losses (1) | 0 | 0 | 0 |
Cost of wholesale scrap jewelry sold | 33,411 | 26,243 | 39,962 |
Total cost of revenue | 321,860 | 273,668 | 265,111 |
Net revenue | 353,606 | 318,666 | 288,034 |
Expenses and other income: | |||
Operating expenses | 193,254 | 179,020 | 165,531 |
Administrative expenses | 0 | 0 | 0 |
Depreciation and amortization | 18,325 | 17,834 | 15,816 |
Interest expense | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
(Gain) loss on foreign exchange | 0 | 0 | 0 |
Merger and acquisition expenses | 0 | 0 | 0 |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |
Total expenses and other income | 211,579 | 196,854 | 181,347 |
Income before income taxes | 142,027 | 121,812 | 106,687 |
Pawn loans | 108,528 | 91,662 | 87,840 |
Finance receivables, net | 0 | 0 | |
Inventories | 85,745 | 65,825 | 54,243 |
Leased merchandise, net | 0 | 0 | |
Goodwill | 179,128 | 171,279 | 175,233 |
Total assets | 619,839 | 562,661 | 540,473 |
Other Nonoperating Income (Expense) | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 2,728,942 | $ 1,698,965 | $ 1,631,284 |
Long-Lived Assets | 548,096 | 471,057 | 383,485 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,053,476 | 1,106,631 | 1,078,139 |
Long-Lived Assets | 449,201 | 373,218 | 286,079 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 639,199 | 562,493 | 530,462 |
Long-Lived Assets | 88,233 | 84,648 | 82,438 |
Other Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 36,267 | 29,841 | 22,683 |
Long-Lived Assets | $ 10,662 | $ 13,191 | $ 14,968 |
Uncategorized Items - fcfs-2022
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 46,527,000 |