Page | ||||
PART I. FINANCIAL INFORMATION | ||||
Item 1. | Financial Statements (Unaudited) | |||
Consolidated Balance Sheets | ||||
Consolidated Statements of Operations | ||||
Consolidated Statements of Comprehensive Income | ||||
Consolidated Statements of Equity | ||||
Consolidated Statements of Cash Flows | ||||
Notes to Consolidated Financial Statements | ||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |||
Item 4. | Controls and Procedures | |||
Part II. OTHER INFORMATION | ||||
Item 1. | Legal Proceedings | |||
Item 1A. | Risk Factors | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||
Item 3. | Defaults Upon Senior Securities | |||
Item 4. | Mine Safety Disclosure | |||
Item 5. | Other Information | |||
Item 6. | Exhibits | |||
Signatures | ||||
ITEM 1. | FINANCIAL STATEMENTS |
March 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Unrestricted cash and cash equivalents | $ | 48,855 | $ | 51,033 | |||
Restricted cash and cash equivalents | 18,180 | 20,547 | |||||
Loans and fees receivable: | |||||||
Loans and fees receivable, net (of $17,649 and $16,721 in deferred revenue and $19,919 and $21,474 in allowances for uncollectible loans and fees receivable at March 31, 2016 and December 31, 2015, respectively) | 151,661 | 141,949 | |||||
Loans and fees receivable, at fair value | 6,275 | 6,353 | |||||
Loans and fees receivable pledged as collateral under structured financings, at fair value | 17,461 | 20,353 | |||||
Rental merchandise, net of depreciation | 1,832 | 4,666 | |||||
Property at cost, net of depreciation | 4,948 | 5,686 | |||||
Investment in equity-method investee | 9,525 | 10,123 | |||||
Deposits | 620 | 825 | |||||
Prepaid expenses and other assets | 19,958 | 19,194 | |||||
Total assets | $ | 279,315 | $ | 280,729 | |||
Liabilities | |||||||
Accounts payable and accrued expenses | $ | 57,621 | $ | 51,722 | |||
Notes payable, at face value | 80,834 | 90,000 | |||||
Notes payable to related parties | 20,000 | 20,000 | |||||
Notes payable associated with structured financings, at fair value | 18,069 | 20,970 | |||||
Convertible senior notes | 64,910 | 64,783 | |||||
Income tax liability | 22,276 | 22,303 | |||||
Total liabilities | 263,710 | 269,778 | |||||
Commitments and contingencies (Note 9) | |||||||
Equity | |||||||
Common stock, no par value, 150,000,000 shares authorized: 15,331,727 shares issued and outstanding (including 1,459,233 loaned shares to be returned) at March 31, 2016; and 15,332,041 shares issued and outstanding (including 1,459,233 loaned shares to be returned) at December 31, 2015 | — | — | |||||
Additional paid-in capital | 210,881 | 211,083 | |||||
Accumulated other comprehensive loss | (300 | ) | (600 | ) | |||
Retained deficit | (194,971 | ) | (199,524 | ) | |||
Total shareholders’ equity | 15,610 | 10,959 | |||||
Noncontrolling interests | (5 | ) | (8 | ) | |||
Total equity | 15,605 | 10,951 | |||||
Total liabilities and equity | $ | 279,315 | $ | 280,729 |
For the Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Interest income: | |||||||
Consumer loans, including past due fees | $ | 18,148 | $ | 17,443 | |||
Other | 92 | 32 | |||||
Total interest income | 18,240 | 17,475 | |||||
Interest expense | (4,644 | ) | (4,557 | ) | |||
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | 13,596 | 12,918 | |||||
Fees and related income on earning assets | 7,887 | 13,219 | |||||
Net recovery of charge off of loans and fees receivable recorded at fair value | 4,911 | 10,372 | |||||
Provision for losses on loans and fees receivable recorded at net realizable value | (4,731 | ) | (3,168 | ) | |||
Net interest income, fees and related income on earning assets | 21,663 | 33,341 | |||||
Other operating income: | |||||||
Servicing income | 1,447 | 1,560 | |||||
Other income | 70 | 267 | |||||
Equity in income of equity-method investee | 1,002 | 1,075 | |||||
Total other operating income | 2,519 | 2,902 | |||||
Other operating expense: | |||||||
Salaries and benefits | 5,732 | 4,120 | |||||
Card and loan servicing | 8,988 | 10,271 | |||||
Marketing and solicitation | 855 | 486 | |||||
Depreciation, primarily related to rental merchandise | 4,156 | 12,846 | |||||
Other | (299 | ) | 7,172 | ||||
Total other operating expense | 19,432 | 34,895 | |||||
Income before income taxes | 4,750 | 1,348 | |||||
Income tax (expense) benefit | (198 | ) | 618 | ||||
Net income | 4,552 | 1,966 | |||||
Net loss attributable to noncontrolling interests | 1 | 1 | |||||
Net income attributable to controlling interests | $ | 4,553 | $ | 1,967 | |||
Net income attributable to controlling interests per common share—basic | $ | 0.33 | $ | 0.14 | |||
Net income attributable to controlling interests per common share—diluted | $ | 0.33 | $ | 0.14 |
For the Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income | $ | 4,552 | $ | 1,966 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustment | — | (443 | ) | ||||
Reclassifications of foreign currency translation adjustment to consolidated statements of operations | 300 | 1,535 | |||||
Income tax (expense) benefit related to other comprehensive income (loss) | — | (319 | ) | ||||
Comprehensive income | 4,852 | 2,739 | |||||
Comprehensive loss attributable to noncontrolling interests | 1 | 1 | |||||
Comprehensive income attributable to controlling interests | $ | 4,853 | $ | 2,740 |
Common Stock | ||||||||||||||||||||||||||
Shares Issued | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Deficit | Noncontrolling Interests | Total Equity | ||||||||||||||||||||
Balance at December 31, 2015 | 15,332,041 | $ | — | $ | 211,083 | $ | (600 | ) | $ | (199,524 | ) | $ | (8 | ) | $ | 10,951 | ||||||||||
Compensatory stock issuances, net of forfeitures | 122,667 | — | — | — | — | — | — | |||||||||||||||||||
Contributions from owners of noncontrolling interests | — | — | — | — | — | 4 | 4 | |||||||||||||||||||
Amortization of deferred stock-based compensation costs | — | — | 206 | — | — | — | 206 | |||||||||||||||||||
Redemption and retirement of shares | (122,981 | ) | — | (371 | ) | — | — | — | (371 | ) | ||||||||||||||||
Tax effects of stock-based compensation plans | — | — | (37 | ) | — | — | — | (37 | ) | |||||||||||||||||
Other comprehensive income | — | — | — | 300 | 4,553 | (1 | ) | 4,852 | ||||||||||||||||||
Balance at March 31, 2016 | 15,331,727 | $ | — | $ | 210,881 | $ | (300 | ) | $ | (194,971 | ) | $ | (5 | ) | $ | 15,605 |
For the Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Operating activities | |||||||
Net income | $ | 4,552 | $ | 1,966 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation of rental merchandise | 3,379 | 12,253 | |||||
Depreciation, amortization and accretion, net | 777 | 529 | |||||
Losses upon charge off of loans and fees receivable recorded at fair value | 1,682 | 1,739 | |||||
Provision for losses on loans and fees receivable | 4,731 | 3,168 | |||||
Interest expense from accretion of discount on convertible senior notes | 127 | 116 | |||||
Income from accretion of discount associated with receivables purchases | (9,610 | ) | (9,375 | ) | |||
Unrealized gain on loans and fees receivable and underlying notes payable held at fair value | (3,063 | ) | (869 | ) | |||
Income from equity-method investments | (1,002 | ) | (1,075 | ) | |||
Changes in assets and liabilities: | |||||||
Decrease (increase) in uncollected fees on earning assets | 76 | (16 | ) | ||||
Decrease in income tax liability | (64 | ) | (674 | ) | |||
Decrease in deposits | 205 | 563 | |||||
Increase (decrease) in accounts payable and accrued expenses | 6,403 | (3,344 | ) | ||||
Additions to rental merchandise | (546 | ) | (8,433 | ) | |||
Other | 1,123 | (5,720 | ) | ||||
Net cash provided by (used in) operating activities | 8,770 | (9,172 | ) | ||||
Investing activities | |||||||
Decrease in restricted cash | 2,352 | 5,033 | |||||
Proceeds from equity-method investee | 1,600 | 2,471 | |||||
Investments in earning assets | (77,041 | ) | (60,586 | ) | |||
Proceeds from earning assets | 73,704 | 72,745 | |||||
Purchases and development of property, net of disposals | (40 | ) | (359 | ) | |||
Net cash provided by investing activities | 575 | 19,304 | |||||
Financing activities | |||||||
Noncontrolling interests contributions (distributions), net | 4 | (2 | ) | ||||
Purchase and retirement of outstanding stock | (371 | ) | (54 | ) | |||
Proceeds from borrowings | 26,345 | 23,132 | |||||
Repayment of borrowings | (37,249 | ) | (40,974 | ) | |||
Net cash used in financing activities | (11,271 | ) | (17,898 | ) | |||
Effect of exchange rate changes on cash | (252 | ) | (764 | ) | |||
Net decrease in unrestricted cash | (2,178 | ) | (8,530 | ) | |||
Unrestricted cash and cash equivalents at beginning of period | 51,033 | 39,925 | |||||
Unrestricted cash and cash equivalents at end of period | $ | 48,855 | $ | 31,395 | |||
Supplemental cash flow information | |||||||
Cash paid for interest | $ | 5,894 | $ | 5,909 | |||
Net cash income tax payments | $ | 262 | $ | 62 | |||
Supplemental non-cash information | |||||||
Issuance of stock options and restricted stock | $ | 1,549 | $ | 234 |
1. | Description of Our Business |
2. | Significant Accounting Policies and Consolidated Financial Statement Components |
Balance at December 31, 2015 | Additions | Subtractions | Balance at March 31, 2016 | ||||||||||||
Loans and fees receivable, gross | $ | 180.1 | $ | 91.8 | $ | (82.7 | ) | $ | 189.2 | ||||||
Deferred revenue | (16.7 | ) | (10.5 | ) | 9.6 | (17.6 | ) | ||||||||
Allowance for uncollectible loans and fees receivable | (21.5 | ) | (4.7 | ) | 6.3 | (19.9 | ) | ||||||||
Loans and fees receivable, net | $ | 141.9 | $ | 76.6 | $ | (66.8 | ) | $ | 151.7 |
Balance at December 31, 2014 | Additions | Subtractions | Balance at March 31, 2015 | ||||||||||||
Loans and fees receivable, gross | $ | 141.6 | $ | 76.3 | $ | (77.7 | ) | $ | 140.2 | ||||||
Deferred revenue | (15.7 | ) | (10.5 | ) | 9.4 | (16.8 | ) | ||||||||
Allowance for uncollectible loans and fees receivable | (20.0 | ) | (3.2 | ) | 7.6 | (15.6 | ) | ||||||||
Loans and fees receivable, net | $ | 105.9 | $ | 62.6 | $ | (60.7 | ) | $ | 107.8 |
For the Three Months Ended March 31, 2016 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | ||||||||||||
Allowance for uncollectible loans and fees receivable: | ||||||||||||||||
Balance at beginning of period | $ | (1.2 | ) | $ | (1.7 | ) | $ | (18.6 | ) | $ | (21.5 | ) | ||||
Provision for loan losses | 0.2 | (0.6 | ) | (4.3 | ) | (4.7 | ) | |||||||||
Charge offs | 0.4 | 0.8 | 6.6 | 7.8 | ||||||||||||
Recoveries | (0.7 | ) | (0.3 | ) | (0.5 | ) | (1.5 | ) | ||||||||
Balance at end of period | $ | (1.3 | ) | $ | (1.8 | ) | $ | (16.8 | ) | $ | (19.9 | ) |
As of March 31, 2016 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | ||||||||||||
Allowance for uncollectible loans and fees receivable: | ||||||||||||||||
Balance at end of period individually evaluated for impairment | $ | — | $ | (0.1 | ) | $ | (0.8 | ) | $ | (0.9 | ) | |||||
Balance at end of period collectively evaluated for impairment | $ | (1.3 | ) | $ | (1.7 | ) | $ | (16.0 | ) | $ | (19.0 | ) | ||||
Loans and fees receivable: | ||||||||||||||||
Loans and fees receivable, gross | $ | 4.5 | $ | 76.4 | $ | 108.3 | $ | 189.2 | ||||||||
Loans and fees receivable individually evaluated for impairment | $ | — | $ | 0.1 | $ | 0.9 | $ | 1.0 | ||||||||
Loans and fees receivable collectively evaluated for impairment | $ | 4.5 | $ | 76.3 | $ | 107.4 | $ | 188.2 |
For the Three Months Ended March 31, 2015 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | ||||||||||||
Allowance for uncollectible loans and fees receivable: | ||||||||||||||||
Balance at beginning of period | $ | (2.7 | ) | $ | (1.2 | ) | $ | (16.1 | ) | $ | (20.0 | ) | ||||
Provision for loan losses | (0.5 | ) | (0.2 | ) | (2.5 | ) | (3.2 | ) | ||||||||
Charge offs | 1.4 | 0.5 | 6.5 | 8.4 | ||||||||||||
Recoveries | (0.1 | ) | (0.3 | ) | (0.4 | ) | (0.8 | ) | ||||||||
Balance at end of period | $ | (1.9 | ) | $ | (1.2 | ) | $ | (12.5 | ) | $ | (15.6 | ) |
As of December 31, 2015 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | ||||||||||||
Allowance for uncollectible loans and fees receivable: | ||||||||||||||||
Balance at end of period individually evaluated for impairment | $ | — | $ | (0.1 | ) | $ | (1.3 | ) | $ | (1.4 | ) | |||||
Balance at end of period collectively evaluated for impairment | $ | (1.2 | ) | $ | (1.6 | ) | $ | (17.3 | ) | $ | (20.1 | ) | ||||
Loans and fees receivable: | ||||||||||||||||
Loans and fees receivable, gross | $ | 5.2 | $ | 76.0 | $ | 98.9 | $ | 180.1 | ||||||||
Loans and fees receivable individually evaluated for impairment | $ | — | $ | 0.2 | $ | 1.5 | $ | 1.7 | ||||||||
Loans and fees receivable collectively evaluated for impairment | $ | 5.2 | $ | 75.8 | $ | 97.4 | $ | 178.4 |
March 31, 2016 | December 31, 2015 | ||||||
Current loans receivable | $ | 164.6 | $ | 150.0 | |||
Current fees receivable | 3.8 | 4.5 | |||||
Delinquent loans and fees receivable | 20.8 | 25.6 | |||||
Loans and fees receivable, gross | $ | 189.2 | $ | 180.1 |
Balance at March 31, 2016 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | ||||||||||||
30-59 days past due | $ | 0.2 | $ | 4.6 | $ | 3.2 | $ | 8.0 | ||||||||
60-89 days past due | 0.2 | 1.6 | 2.5 | 4.3 | ||||||||||||
90 or more days past due | 0.5 | 1.7 | 6.3 | 8.5 | ||||||||||||
Delinquent loans and fees receivable, gross | 0.9 | 7.9 | 12.0 | 20.8 | ||||||||||||
Current loans and fees receivable, gross | 3.6 | 68.5 | 96.3 | 168.4 | ||||||||||||
Total loans and fees receivable, gross | $ | 4.5 | $ | 76.4 | $ | 108.3 | $ | 189.2 | ||||||||
Balance of loans 90 or more days past due and still accruing interest and fees | $ | — | $ | 1.5 | $ | — | $ | 1.5 |
Balance at December 31, 2015 | Credit Cards | Auto Finance | Other Unsecured Lending Products | Total | |||||||||||
30-59 days past due | $ | 0.2 | $ | 6.9 | $ | 4.4 | $ | 11.5 | |||||||
60-89 days past due | 0.1 | 2.2 | 3.1 | 5.4 | |||||||||||
90 or more days past due | 0.4 | 1.8 | 6.5 | 8.7 | |||||||||||
Delinquent loans and fees receivable, gross | 0.7 | 10.9 | 14.0 | 25.6 | |||||||||||
Current loans and fees receivable, gross | 4.5 | 65.1 | 84.9 | 154.5 | |||||||||||
Total loans and fees receivable, gross | $ | 5.2 | $ | 76.0 | $ | 98.9 | $ | 180.1 | |||||||
Balance of loans 90 or more days past due and still accruing interest and fees | $ | — | $ | 1.5 | $ | — | $ | 1.5 |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Fees on credit products | $ | 799 | $ | 2,174 | |||
Changes in fair value of loans and fees receivable recorded at fair value | 1,898 | 1,231 | |||||
Changes in fair value of notes payable associated with structured financings recorded at fair value | 1,165 | (362 | ) | ||||
Rental revenue | 4,214 | 10,109 | |||||
Other | (189 | ) | 67 | ||||
Total fees and related income on earning assets | $ | 7,887 | $ | 13,219 |
3. | Segment Reporting |
Three months ended March 31, 2016 | Credit and Other Investments | Auto Finance | Total | |||||||||
Interest income: | ||||||||||||
Consumer loans, including past due fees | $ | 11,185 | $ | 6,963 | $ | 18,148 | ||||||
Other | 92 | — | 92 | |||||||||
Total interest income | 11,277 | 6,963 | 18,240 | |||||||||
Interest expense | (4,337 | ) | (307 | ) | (4,644 | ) | ||||||
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | $ | 6,940 | $ | 6,656 | $ | 13,596 | ||||||
Fees and related income on earning assets | $ | 7,829 | $ | 58 | $ | 7,887 | ||||||
Servicing income | $ | 1,192 | $ | 255 | $ | 1,447 | ||||||
Depreciation of rental merchandise | $ | (3,379 | ) | $ | — | $ | (3,379 | ) | ||||
Equity in income of equity-method investee | $ | 1,002 | $ | — | $ | 1,002 | ||||||
Income before income taxes | $ | 3,326 | $ | 1,424 | $ | 4,750 | ||||||
Income tax benefit (expense) | $ | 317 | $ | (515 | ) | $ | (198 | ) | ||||
Total assets | $ | 210,211 | $ | 69,104 | $ | 279,315 |
Three months ended March 31, 2015 | Credit and Other Investments | Auto Finance | Total | |||||||||
Interest income: | ||||||||||||
Consumer loans, including past due fees | $ | 10,720 | $ | 6,723 | $ | 17,443 | ||||||
Other | 32 | — | 32 | |||||||||
Total interest income | 10,752 | 6,723 | 17,475 | |||||||||
Interest expense | (4,251 | ) | (306 | ) | (4,557 | ) | ||||||
Net interest income before fees and related income on earning assets and provision for losses on loans and fees receivable | $ | 6,501 | $ | 6,417 | $ | 12,918 | ||||||
Fees and related income on earning assets | $ | 13,073 | $ | 146 | $ | 13,219 | ||||||
Servicing income | $ | 1,359 | $ | 201 | $ | 1,560 | ||||||
Depreciation of rental merchandise | $ | (12,253 | ) | $ | — | $ | (12,253 | ) | ||||
Equity in income of equity-method investee | $ | 1,075 | $ | — | $ | 1,075 | ||||||
(Loss) income before income taxes | $ | (579 | ) | $ | 1,927 | $ | 1,348 | |||||
Income tax benefit (expense) | $ | 1,248 | $ | (630 | ) | $ | 618 | |||||
Total assets | $ | 183,219 | $ | 66,550 | $ | 249,769 |
4. | Shareholders' Equity |
5. | Investment in Equity-Method Investee |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | 13,603 | $ | 14,470 | |||
Total assets | $ | 14,334 | $ | 15,237 | |||
Total liabilities | $ | 48 | $ | 54 | |||
Members’ capital | $ | 14,286 | $ | 15,183 |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Net interest income, fees and related income on earning assets | $ | 1,512 | $ | 1,617 | |||
Net income | $ | 1,360 | $ | 1,407 | |||
Net income attributable to our equity investment in investee | $ | 1,002 | $ | 1,075 |
6. | Fair Values of Assets and Liabilities |
Assets – As of March 31, 2016 (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount of Assets | ||||||||||||
Loans and fees receivable, net for which it is practicable to estimate fair value | $ | — | $ | — | $ | 170,430 | $ | 151,661 | ||||||||
Loans and fees receivable, at fair value | $ | — | $ | — | $ | 6,275 | $ | 6,275 | ||||||||
Loans and fees receivable pledged as collateral, at fair value | $ | — | $ | — | $ | 17,461 | $ | 17,461 |
Assets – As of December 31, 2015 (1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount of Assets | ||||||||||||
Loans and fees receivable, net for which it is practicable to estimate fair value | $ | — | $ | — | $ | 161,199 | $ | 141,949 | ||||||||
Loans and fees receivable, at fair value | $ | — | $ | — | $ | 6,353 | $ | 6,353 | ||||||||
Loans and fees receivable pledged as collateral, at fair value | $ | — | $ | — | $ | 20,353 | $ | 20,353 |
(1) | For cash, deposits and other short-term investments (including our investments in rental merchandise), the carrying amount is a reasonable estimate of fair value. |
Loans and Fees Receivable, at Fair Value | Loans and Fees Receivable Pledged as Collateral under Structured Financings, at Fair Value | Total | |||||||||
Balance at January 1, 2016 | $ | 6,353 | $ | 20,353 | $ | 26,706 | |||||
Total gains—realized/unrealized: | |||||||||||
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | — | 316 | 316 | ||||||||
Net revaluations of loans and fees receivable, at fair value | 1,582 | — | 1,582 | ||||||||
Settlements, net | (1,595 | ) | (3,208 | ) | (4,803 | ) | |||||
Impact of foreign currency translation | (65 | ) | — | (65 | ) | ||||||
Balance at March 31, 2016 | $ | 6,275 | $ | 17,461 | $ | 23,736 | |||||
Balance at January 1, 2015 | $ | 18,255 | $ | 34,905 | $ | 53,160 | |||||
Total gains—realized/unrealized: | |||||||||||
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | — | 1,215 | 1,215 | ||||||||
Net revaluations of loans and fees receivable, at fair value | 16 | — | 16 | ||||||||
Settlements, net | (4,675 | ) | (5,377 | ) | (10,052 | ) | |||||
Impact of foreign currency translation | (449 | ) | — | (449 | ) | ||||||
Balance at March 31, 2015 | $ | 13,147 | $ | 30,743 | $ | 43,890 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||
Fair Value Measurements | Fair Value at March 31, 2016 | Valuation Technique | Unobservable Input | Range (Weighted Average)(1) | |||||||
Loans and fees receivable, at fair value | $ | 6,275 | Discounted cash flows | Gross yield | 24.4% to 27.7% (25.6%) | ||||||
Principal payment rate | 2.6% to 3.0% (2.8%) | ||||||||||
Expected credit loss rate | 11.0% to 24.0% (15.7%) | ||||||||||
Servicing rate | 7.2% to 7.8% (7.6%) | ||||||||||
Discount rate | 16.1% to 16.2% (16.1%) | ||||||||||
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | 17,461 | Discounted cash flows | Gross yield | 25.3 | % | |||||
Principal payment rate | 2.7 | % | |||||||||
Expected credit loss rate | 11.6 | % | |||||||||
Servicing rate | 7.2 | % | |||||||||
Discount rate | 16.1 | % |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||
Fair Value Measurements | Fair Value at December 31, 2015 | Valuation Technique | Unobservable Input | Range (Weighted Average)(1) | |||||||
Loans and fees receivable, at fair value | $ | 6,353 | Discounted cash flows | Gross yield | 15.8% to 22.7% (20.0%) | ||||||
Principal payment rate | 2.1% to 3.0% (2.7%) | ||||||||||
Expected credit loss rate | 12.9% to 22.7% (16.7%) | ||||||||||
Servicing rate | 8.4% to 12.5% (10.9%) | ||||||||||
Discount rate | 16.0% to 16.2% (16.1%) | ||||||||||
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ | 20,353 | Discounted cash flows | Gross yield | 28.5 | % | |||||
Principal payment rate | 2.9 | % | |||||||||
Expected credit loss rate | 12.5 | % | |||||||||
Servicing rate | 12.9 | % | |||||||||
Discount rate | 16.0 | % |
Liabilities – As of March 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount of Liabilities | ||||||||||||
Liabilities not carried at fair value | ||||||||||||||||
CAR revolving credit facility | $ | — | $ | — | $ | 29,900 | $ | 29,900 | ||||||||
Amortizing debt facilities | $ | — | $ | — | $ | 50,934 | $ | 50,934 | ||||||||
Senior secured term loan | $ | — | $ | — | $ | 20,000 | $ | 20,000 | ||||||||
5.875% convertible senior notes | $ | — | $ | 42,093 | $ | — | $ | 64,910 | ||||||||
Liabilities carried at fair value | ||||||||||||||||
Economic sharing arrangement liability | $ | — | $ | — | $ | 34 | $ | 34 | ||||||||
Notes payable associated with structured financings, at fair value | $ | — | $ | — | $ | 18,069 | $ | 18,069 |
Liabilities - As of December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount of Liabilities | ||||||||||||
Liabilities not carried at fair value | ||||||||||||||||
CAR revolving credit facility | $ | — | $ | — | $ | 28,900 | $ | 28,900 | ||||||||
Amortizing debt facilities | $ | — | $ | — | $ | 61,100 | $ | 61,100 | ||||||||
Senior secured term loan | $ | — | $ | — | $ | 20,000 | $ | 20,000 | ||||||||
5.875% convertible senior notes | $ | — | $ | 42,734 | $ | — | $ | 64,783 | ||||||||
Liabilities carried at fair value | ||||||||||||||||
Economic sharing arrangement liability | $ | — | $ | — | $ | 42 | $ | 42 | ||||||||
Notes payable associated with structured financings, at fair value | $ | — | $ | — | $ | 20,970 | $ | 20,970 |
Notes Payable Associated with Structured Financings, at Fair Value | |||||||
2016 | 2015 | ||||||
Beginning balance, January 1 | $ | 20,970 | $ | 36,511 | |||
Total (gains) losses—realized/unrealized: | |||||||
Net revaluations of notes payable associated with structured financings, at fair value | (1,165 | ) | 362 | ||||
Repayments on outstanding notes payable, net | (1,736 | ) | (4,579 | ) | |||
Ending balance, March 31 | $ | 18,069 | $ | 32,294 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||
Fair Value Measurements | Fair Value at March 31, 2016 (in Thousands) | Valuation Technique | Unobservable Input | Weighted Average | |||||||
Notes payable associated with structured financings, at fair value | $ | 18,069 | Discounted cash flows | Gross yield | 25.3 | % | |||||
Principal payment rate | 2.7 | % | |||||||||
Expected credit loss rate | 11.6 | % | |||||||||
Discount rate | 16.1 | % |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||
Fair Value Measurements | Fair Value at December 31, 2015 (in Thousands) | Valuation Technique | Unobservable Input | Weighted Average | |||||||
Notes payable associated with structured financings, at fair value | $ | 20,970 | Discounted cash flows | Gross yield | 28.5 | % | |||||
Principal payment rate | 2.9 | % | |||||||||
Expected credit loss rate | 12.5 | % | |||||||||
Discount rate | 16.0 | % |
As of March 31, 2016 | Loans and Fees Receivable at Fair Value | Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value | ||||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | $ | 6,989 | $ | 22,947 | ||||
Aggregate fair value of loans and fees receivable that are reported at fair value | $ | 6,275 | $ | 17,461 | ||||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | $ | 9 | $ | 21 | ||||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ | 290 | $ | 756 |
As of December 31, 2015 | Loans and Fees Receivable at Fair Value | Loans and Fees Receivable Pledged as Collateral under Structured Financings at Fair Value | ||||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | $ | 8,560 | $ | 25,837 | ||||
Aggregate fair value of loans and fees receivable that are reported at fair value | $ | 6,353 | $ | 20,353 | ||||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | $ | 12 | $ | 31 | ||||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ | 374 | $ | 889 |
Notes Payable | Notes Payable Associated with Structured Financings, at Fair Value as of March 31, 2016 | Notes Payable Associated with Structured Financings, at Fair Value as of December 31, 2015 | ||||||
Aggregate unpaid principal balance of notes payable | $ | 105,220 | $ | 106,956 | ||||
Aggregate fair value of notes payable | $ | 18,069 | $ | 20,970 |
7. | Notes Payable |
Carrying Amounts at Fair Value as of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Amortizing securitization facility issued out of our upper-tier originated portfolio master trust (stated maturity of December 2021), outstanding face amount of $105.2 million ($107.0 million as of December 31, 2015) bearing interest at a weighted average 5.7% interest rate (5.6% as of December 31, 2015), which is secured by credit card receivables and restricted cash aggregating $18.1 million ($21.0 million as of December 31, 2015) in carrying amount | $ | 18.1 | $ | 21.0 |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Revolving credit facilities at a weighted average rate equal to 3.9% (3.7% at December 31, 2015) secured by the financial and operating assets of CAR with a combined aggregate carrying amount of $69.1 million ($69.4 million at December 31, 2015) | |||||||
Revolving credit facility (expiring October 4, 2017) (1) | $ | 29.9 | $ | 28.9 | |||
Amortizing facilities at a weighted average rate equal to 5.4% (5.3% at December 31, 2015) secured by certain receivables, rental streams and restricted cash with a combined aggregate carrying amount of $61.9 million ($69.6 million as of December 31, 2015) | |||||||
Amortizing debt facility (expiring July 14, 2017) (2) (3) | 14.1 | 23.0 | |||||
Amortizing debt facility (expiring August 21, 2016) (2) (3) | 10.1 | 9.2 | |||||
Amortizing debt facility (expiring August 1, 2016) (2) (3) | 2.5 | 4.0 | |||||
Amortizing debt facility (expiring October 29, 2017) (2) (3) | 24.2 | 24.9 | |||||
Other facilities | |||||||
Senior secured term loan to related parties (expiring November 22, 2016) that is secured by certain assets of the Company with an annual rate equal to 9.0% (4) | 20.0 | 20.0 | |||||
Total notes payable outstanding | $ | 100.8 | $ | 110.0 |
(1) | Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. |
(2) | Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. |
(3) | These notes reflect modifications to either extend the maturity date, increase the loaned amount or both. |
(4) | See below for additional information regarding this note. |
8. | Convertible Senior Notes |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
Face amount of 5.875% convertible senior notes | 93,280 | 93,280 | |||||
Discount | (28,370 | ) | (28,497 | ) | |||
Net carrying value | $ | 64,910 | $ | 64,783 | |||
Carrying amount of equity component included in additional paid-in capital | $ | 108,714 | $ | 108,714 | |||
Excess of instruments’ if-converted values over face principal amounts | $ | — | $ | — |
9. | Commitments and Contingencies |
10. | Net Income Attributable to Controlling Interests Per Common Share |
For the Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Numerator: | |||||||
Net income attributable to controlling interests | $ | 4,553 | $ | 1,967 | |||
Denominator: | |||||||
Basic (including unvested share-based payment awards) (1) | 13,898 | 13,923 | |||||
Effect of dilutive stock compensation arrangements (2) | 75 | 2 | |||||
Diluted (including unvested share-based payment awards) (1) | 13,973 | 13,925 | |||||
Net income attributable to controlling interests per common share—basic | $ | 0.33 | $ | 0.14 | |||
Net income attributable to controlling interests per common share—diluted | $ | 0.33 | $ | 0.14 |
(1) | Shares related to unvested share-based payment awards included in our basic and diluted share counts are 222,550 for the three months ended March 31, 2016, compared to 427,474 for the three months ended March 31, 2015. |
(2) | The effect of dilutive stock compensation arrangements is shown only for informational purposes where we are in a net loss position. In such situations, the effect of including outstanding options and restricted stock would be anti-dilutive, and they are thus excluded from all loss period calculations. |
11. | Stock-Based Compensation |
March 31, 2016 | ||||||||||||
Number of Shares | Weighted- Average Exercise Price | Weighted- Average of Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||
Outstanding at December 31, 2015 | 551,666 | $ | 2.80 | |||||||||
Issued | 686,000 | $ | 3.04 | |||||||||
Exercised | — | $ | — | |||||||||
Cancelled/Forfeited | — | $ | — | |||||||||
Outstanding at March 31, 2016 | 1,237,666 | $ | 2.94 | 4.2 | $ | 209,591 | ||||||
Exercisable at March 31, 2016 | 396,661 | $ | 2.55 | 2.9 | $ | 178,563 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Income | |||||||||||
For the Three Months Ended March 31, | Increases (Decreases) | ||||||||||
(In Thousands) | 2016 | 2015 | from 2015 to 2016 | ||||||||
Total interest income | $ | 18,240 | $ | 17,475 | $ | 765 | |||||
Interest expense | (4,644 | ) | (4,557 | ) | (87 | ) | |||||
Fees and related income on earning assets: | |||||||||||
Fees on credit products | 799 | 2,174 | (1,375 | ) | |||||||
Changes in fair value of loans and fees receivable recorded at fair value | 1,898 | 1,231 | 667 | ||||||||
Changes in fair value of notes payable associated with structured financings recorded at fair value | 1,165 | (362 | ) | 1,527 | |||||||
Rental revenue | 4,214 | 10,109 | (5,895 | ) | |||||||
Other | (189 | ) | 67 | (256 | ) | ||||||
Other operating income: | |||||||||||
Servicing income | 1,447 | 1,560 | (113 | ) | |||||||
Other income | 70 | 267 | (197 | ) | |||||||
Equity in income equity-method investee | 1,002 | 1,075 | (73 | ) | |||||||
Total | $ | 24,002 | $ | 29,039 | $ | (5,037 | ) | ||||
Net recovery of losses upon charge off of loans and fees receivable recorded at fair value | (4,911 | ) | (10,372 | ) | (5,461 | ) | |||||
Provision for losses on loans and fees receivable recorded at net realizable value | 4,731 | 3,168 | (1,563 | ) | |||||||
Other operating expenses: | |||||||||||
Salaries and benefits | 5,732 | 4,120 | (1,612 | ) | |||||||
Card and loan servicing | 8,988 | 10,271 | 1,283 | ||||||||
Marketing and solicitation | 855 | 486 | (369 | ) | |||||||
Depreciation, primarily related to rental merchandise | 4,156 | 12,846 | 8,690 | ||||||||
Other | (299 | ) | 7,172 | 7,471 | |||||||
Net income | 4,552 | 1,966 | 2,586 | ||||||||
Net loss attributable to noncontrolling interests | 1 | 1 | — | ||||||||
Net income attributable to controlling interests | 4,553 | 1,967 | 2,586 |
• | declines in rental revenue as we significantly reduced rent-to-own originations in the fourth quarter of 2015 and for which we have substantially discontinued new originations in 2016. We expect continued reductions in revenues associated with this product offering as existing rent-to-own contracts culminate with no new originations expected beyond the second quarter of 2016; |
• | reductions in fees on credit products, associated with general net declines in credit card receivables; |
• | the effects of changes in the fair values of credit card receivables recorded at fair value and notes payable associated with structured financings recorded at fair value as described below; and |
• | losses in our "Other" category associated with reserves related to investments in mobile technologies, marketplace lending and other financial technologies. |
• | reductions in card and loan servicing expenses in three months ended March 31, 2016 when compared to the three months ended March 31, 2015 based on lower originations for our rent-to-own products as well as continued net liquidations in our credit card portfolios which declined from $79.6 million outstanding to $47.1 million outstanding at March 31, 2015 and March 31, 2016, respectively. These declines have been offset by expenses related to growth in our point-of-sale and direct-to-consumer products which grew from $64.2 million outstanding to $112.3 million outstanding at March 31, 2015 and March 31, 2016, respectively; |
• | decreases in depreciation primarily associated with declines in originations under our rent-to-own program, totaling $3.4 million and $12.3 million for the three months ended March 31, 2016 and 2015, respectively; and |
• | decreases in other expenses (resulting in a net credit for the three months ended March 31, 2016) due to the reversal of a £3.4 million ($5.0 million) reserve in the three months ended March 31, 2016. This reserve related to a review in the U.K. by HM Revenue and Customs ("HMRC") associated with filings by one of our U.K. subsidiaries to reclaim VAT that it paid on its inputs and that it believed were and are eligible to be reclaimed. In February of 2016, we received correspondence from HMRC stating that it (1) had chosen to discontinue its review of our U.K. subsidiary’s VAT filings with no changes to the returns as filed by our U.K. subsidiary, and (2) would be refunding VAT refund claims made by our U.K. subsidiary that had been suspended during the HMRC review. We subsequently received substantially all of such refunds, and as such we reversed the £3.4 million ($5.0 million) of VAT review-related liabilities in the first quarter of 2016. |
• | increases in salaries and benefit costs for the three months ended March 31, 2016 when compared to the three months ended March 31, 2015 resulting from growth in our new credit product offerings and expanded sales activities; |
• | increases in marketing costs for the three months ended March 31, 2016 as we expanded our brand marketing in late 2015 and in the first quarter of 2016. Offsetting some of this increase are decreases in marketing costs as our new product offerings require less direct-to-consumer marketing expenses than under our historical credit card operations. We expect that increased origination and brand marketing efforts will result in increases in period over period costs for the remainder of 2016; and |
• | general increases in other expenses including customer acquisition, underwriting costs and third party costs associated with ongoing information technology upgrades. |
At or for the Three Months Ended | |||||||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||||||
Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | ||||||||||||||||
Period-end managed receivables | $155,425 | $152,528 | $151,055 | $142,338 | $140,660 | $157,145 | $186,564 | $200,147 | |||||||||||||||
Percent 30 or more days past due | 9.7 | % | 11.5 | % | 10.5 | % | 11.8 | % | 10.1 | % | 13.6 | % | 11.2 | % | 11.2 | % | |||||||
Percent 60 or more days past due | 7.1 | % | 7.9 | % | 7.2 | % | 8.8 | % | 7.5 | % | 9.8 | % | 8.3 | % | 8.1 | % | |||||||
Percent 90 or more days past due | 5.1 | % | 5.4 | % | 5.0 | % | 4.9 | % | 5.4 | % | 6.9 | % | 5.8 | % | 5.7 | % | |||||||
Average managed receivables | $152,831 | $152,983 | $143,946 | $139,401 | $146,792 | $173,553 | $194,272 | $206,657 | |||||||||||||||
Total yield ratio | 35.4 | % | 35.2 | % | 41.3 | % | 38.1 | % | 38.3 | % | 63.3 | % | 42.6 | % | 38.4 | % | |||||||
Combined gross charge-off ratio | 18.2 | % | 16.8 | % | 21.5 | % | 17.4 | % | 23.8 | % | 21.4 | % | 21.4 | % | 25.5 | % | |||||||
Adjusted charge-off ratio | 14.1 | % | 12.9 | % | 16.5 | % | 13.2 | % | 19.2 | % | 16.4 | % | 17.7 | % | 21.3 | % |
At or for the Three Months Ended | |||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||||||||||||||
Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sept. 30 | Jun. 30 | ||||||||||||||||||||||||
Period-end managed receivables | $ | 78,415 | $ | 77,833 | $ | 75,428 | $ | 78,342 | $ | 73,371 | $ | 69,832 | $ | 68,102 | $ | 64,000 | |||||||||||||||
Percent 30 or more days past due | 10.2 | % | 14.0 | % | 13.3 | % | 13.5 | % | 10.7 | % | 14.5 | % | 14.3 | % | 14.6 | % | |||||||||||||||
Percent 60 or more days past due | 4.5 | % | 5.5 | % | 5.3 | % | 5.6 | % | 4.4 | % | 5.5 | % | 5.7 | % | 5.1 | % | |||||||||||||||
Percent 90 or more days past due | 2.3 | % | 2.5 | % | 2.6 | % | 2.5 | % | 2.1 | % | 2.5 | % | 2.7 | % | 1.8 | % | |||||||||||||||
Average managed receivables | $ | 78,122 | $ | 76,413 | $ | 75,987 | $ | 77,182 | $ | 72,258 | $ | 68,418 | $ | 66,428 | $ | 62,475 | |||||||||||||||
Total yield ratio | 37.3 | % | 38.3 | % | 38.2 | % | 37.6 | % | 39.2 | % | 39.1 | % | 39.2 | % | 39.1 | % | |||||||||||||||
Combined gross charge-off ratio | 2.7 | % | 3.3 | % | 3.0 | % | 1.9 | % | 0.5 | % | 4.7 | % | 2.2 | % | 0.5 | % | |||||||||||||||
Recovery ratio | 1.3 | % | 1.6 | % | 1.3 | % | 0.6 | % | 1.5 | % | 3.3 | % | 1.5 | % | 2.1 | % |
Revolving credit facility (expiring October 4, 2017) that is secured by the financial and operating assets of our CAR operations | $ | 29.9 | |
Senior secured term loan from related parties (expiring November 22, 2016) that is secured by certain assets of the Company with an annual rate equal to 9.0% | 20.0 | ||
Total | $ | 49.9 |
• | During the three months ended March 31, 2016, we generated $8.8 million of cash flows from operations compared to the use of $9.2 million of cash flows from operations during the three months ended March 31, 2015. The increase in cash provided by operating activities was principally related to 1) reductions in purchases of rental merchandise associated with our point-of-sale finance operations, 2) cost reductions associated with card and loan servicing, 3) collections associated with reimbursements received in respect of one of our portfolios, and 4) the timing of payment associated with accrued liabilities. These increases in cash provided by operating activities were offset by decreases in collections associated with our credit card finance charge receivables in the three months ended March 31, 2016 relative to the same period in 2015, given diminished receivables levels. |
• | During the three months ended March 31, 2016, we generated $0.6 million of cash from our investing activities, compared to generating $19.3 million of cash from investing activities during the three months ended March 31, 2015. This decrease is primarily due to increasing levels of investments in our point-of-sale and direct-to-consumer assets relative to the same period in 2015 and the shrinking size of our liquidating credit card portfolios and corresponding payments from customers. Offsetting these declines are the subsequent cash returns on our increasing investments in point-of-sale and direct to consumer receivables as well as reductions in our restricted cash levels, both of which contributed positively to our cash generated from investing activities. |
• | During the three months ended March 31, 2016, we used $11.3 million of cash in financing activities, compared to our use of $17.9 million of cash in financing activities during the three months ended March 31, 2015. In both periods, the data reflect net repayments of debt facilities corresponding with net declines in our loans and fees receivable that serve as the underlying collateral for the facilities (principally credit card and auto loans and fees receivable). Offsetting our use of cash in financing activities for both periods are borrowings associated with our new credit products, net of repayments on those facilities. |
• | the availability of adequate financing to support growth; |
• | the extent to which federal, state, local and foreign governmental regulation of our various business lines and products limits or prohibits the operation of our businesses; |
• | current and future litigation and regulatory proceedings against us; |
• | the effect of adverse economic conditions on our revenues, loss rates and cash flows; |
• | competition from various sources providing similar financial products, or other alternative sources of credit, to consumers; |
• | the adequacy of our allowances for uncollectible loans and fees receivable and estimates of loan losses used within our underwriting and analyses; |
• | the possible impairment of assets; |
• | our ability to manage costs in line with the expansion or contraction of our various business lines; |
• | our relationship with the merchants that participate in our point-of-sale finance operations and the banks that provide certain services that are needed to operate our business lines; and |
• | theft and employee errors. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
• | the availability of funding on favorable terms; |
• | the level and success of our marketing efforts; |
• | the degree to which we lose business to competitors; |
• | the level of usage of our credit products by our customers; |
• | the availability of portfolios for purchase on attractive terms; |
• | levels of delinquencies and charge offs; |
• | the level of costs of soliciting new customers; |
• | our ability to employ and train new personnel; |
• | our ability to maintain adequate management systems, collection procedures, internal controls and automated systems; and |
• | general economic and other factors beyond our control. |
• | receivables not originated in compliance with law (or revised interpretations) could become unenforceable and uncollectible under their terms against the obligors; |
• | we may be required to credit or refund previously collected amounts; |
• | certain fees and finance charges could be limited, prohibited or restricted, which would reduce the profitability of certain accounts; |
• | certain of our collection methods could be prohibited, forcing us to revise our practices or adopt more costly or less effective practices; |
• | limitations on the content of marketing materials could be imposed that would result in reduced success for our marketing efforts; |
• | limitations on our ability to recover on charged-off receivables regardless of any act or omission on our part; |
• | some of our products and services could be banned in certain states or at the federal level; |
• | federal or state bankruptcy or debtor relief laws could offer additional protections to customers seeking bankruptcy protection, providing a court greater leeway to reduce or discharge amounts owed to us; and |
• | a reduction in our ability or willingness to lend to certain individuals, such as military personnel. |
• | inability to establish profitable strategic relationships with merchants; |
• | inability to raise sufficient capital to fund our anticipated growth in this area; and |
• | competition from larger and more established competitors, such as banks and finance companies. |
• | actual or anticipated fluctuations in our operating results; |
• | changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors; |
• | the overall financing environment, which is critical to our value; |
• | the operating and stock performance of our competitors; |
• | announcements by us or our competitors of new products or services or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
• | changes in interest rates; |
• | the announcement of enforcement actions or investigations against us or our competitors or other negative publicity relating to us or our industry; |
• | changes in GAAP, laws, regulations or the interpretations thereof that affect our various business activities and segments; |
• | general domestic or international economic, market and political conditions; |
• | changes in ownership by executive officers, directors and parties related to them who control a majority of our common stock; |
• | additions or departures of key personnel; and |
• | future sales of our common stock and the transfer or cancellation of shares of common stock pursuant to a share lending agreement. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs (1) | |||||||||
January 1 - January 31 | — | $ | — | — | 4,892,760 | |||||||
February 1- February 29 | — | $ | — | — | 4,892,760 | |||||||
March 1 - March 31 | 100,000 | $ | 3.00 | 100,000 | 4,792,760 | |||||||
Total | 100,000 | $ | 3.00 | 100,000 | 4,792,760 |
(1) | Because withholding tax-related stock repurchases are permitted outside the scope of our 5,000,000 share Board-authorized repurchase plan, these amounts exclude shares of stock returned to us by employees in satisfaction of withholding tax requirements on vested stock grants. There were 22,981 such shares returned to us during the three months ended March 31, 2016. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit Number | Description of Exhibit | Incorporated by Reference from Atlanticus’ SEC Filings Unless Otherwise Indicated | ||
31.1 | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) | Filed herewith | ||
31.2 | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) | Filed herewith | ||
32.1 | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 | Filed herewith | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith |
ATLANTICUS HOLDINGS CORPORATION | ||||
May 12, 2016 | By | /s/ WILLIAM R. McCAMEY | ||
William R. McCamey | ||||
Chief Financial Officer | ||||
(duly authorized officer and principal financial officer) |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the fourth fiscal period in the case of an annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DAVID G. HANNA | |
David G. Hanna | |
Chief Executive Officer and Chairman of the Board |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the fourth fiscal period in the case of an annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ WILLIAM R. McCAMEY | |
William R. McCamey | |
Chief Financial Officer |
/s/ DAVID G. HANNA | |
David G. Hanna | |
Chief Executive Officer and | |
Chairman of the Board | |
/s/ WILLIAM R. McCAMEY | |
William R. McCamey | |
Chief Financial Officer |
Document and Entity Information - USD ($) |
3 Months Ended | ||
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Mar. 31, 2016 |
May. 06, 2016 |
Jun. 30, 2015 |
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Document and Entity Information [Abstract] | |||
Trading Symbol | ATLC | ||
Entity Registrant Name | Atlanticus Holdings Corp | ||
Entity Central Index Key | 0001464343 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 13,797,058 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | Q1 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2016 | ||
Entity Public Float | $ 18,286,173 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Loans and fees receivable: | ||
Loans and fees receivable, deferred revenue | $ 17,600 | $ 16,700 |
Loans and Leases Receivable, Allowance | $ 19,900 | $ 21,500 |
Equity | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,331,727 | 15,332,041 |
Common stock, shares outstanding | 15,331,727 | 15,332,041 |
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 |
Loans and Fees Receivable [Member] | ||
Loans and fees receivable: | ||
Loans and fees receivable, deferred revenue | $ 17,649 | $ 16,721 |
Loans and Leases Receivable, Allowance | $ 19,919 | $ 21,474 |
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,552 | $ 1,966 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 0 | (443) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 300 | 1,535 |
Income tax (expense) benefit related to other comprehensive income (loss) | 0 | (319) |
Comprehensive income | 4,852 | 2,739 |
Comprehensive loss attributable to noncontrolling interests | 1 | 1 |
Comprehensive income attributable to controlling interests | $ 4,853 | $ 2,740 |
Description of Our Business |
3 Months Ended |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Our Business | Description of Our Business Our accompanying consolidated financial statements include the accounts of Atlanticus Holdings Corporation (the “Company”) and those entities we control. We are primarily focused on providing financial services. Through our subsidiaries, we offer an array of financial products and services to consumers who may have been declined under traditional financing options. As discussed further below, we reflect our business lines within two reportable segments: Credit and Other Investments; and Auto Finance. See also Note 3, “Segment Reporting,” for further details. Within our Credit and Other Investments segment, we originate consumer loans through multiple channels, including retail point-of-sale, direct solicitation and most recently through testing of domestic credit card originations through third-party financial institutions. These products are all offered through our Fortiva brand. In our Fortiva Retail Credit (our "point-of-sale" operations) channel, we partner with retailers and service providers in various industries across the United States ("U.S.") to provide credit to their customers for the purchase of goods and services. These services are often extended to customers who may have been declined under traditional financing options. We specialize in providing this "second look" credit service in various industries across the U.S. Additionally, we are able to market our general purpose Fortiva Personal Loans and Fortiva Credit Cards (collectively, our "direct-to-consumer" operations) directly to consumers through additional channels enabling us to reach consumers through a diverse origination platform which includes direct mail, Internet-based marketing and through partnerships. Using our infrastructure and technology platform, we also provide loan servicing activities, including underwriting, marketing, customer service and collections operations for third parties. Beyond these activities within our Credit and Other Investments segment, we continue to collect on portfolios of credit card receivables. These receivables include both receivables we originated through third-party financial institutions and portfolios of receivables we purchased from third-party financial institutions. One of our portfolios of credit card receivables is encumbered by non-recourse structured financing, and for this portfolio our principal remaining economic interest is the servicing compensation we receive as an offset against our servicing costs given that the likely future collections on the portfolio are insufficient to allow for full repayment of the financing. Additionally, we report within our Credit and Other Investments segment the income earned from an investment in an equity-method investee that holds credit card receivables for which we are the servicer. Lastly, we report within our Credit and Other Investments segment gains associated with investments previously made in consumer finance technology platforms. These include investments in companies engaged in mobile technologies, marketplace lending and other financial technologies. These investments are carried at the lower of cost or market valuation as of March 31, 2016. Some of these investees have raised, and continue to seek, capital at valuations substantially in excess of our associated book value. However, none of these companies are publicly-traded, there are no pending liquidity events, and ascribing value to these investments at this time would be speculative. Based on the performance and/or marketability of these investments in future periods, we could have material gains for our remaining ownership in these or other investment assets. Within our Auto Finance segment, our CAR subsidiary operations principally purchase and/or service loans secured by automobiles from or for, and also provide floor plan financing for, a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, used car business. We purchase auto loans at a discount and with dealer retentions or holdbacks that provide risk protection. Also within our Auto Finance segment, we are providing certain installment lending products in addition to our traditional loans secured by automobiles. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We operate primarily within one industry consisting of two reportable segments by which we manage our business. Our two reportable segments are: Credit and Other Investments, and Auto Finance. As of both March 31, 2016 and December 31, 2015, we did not have a material amount of long-lived assets located outside of the U.S., and only a negligible portion of our first quarter 2016 and 2015 revenues were generated outside of the U.S. We measure the profitability of our reportable segments based on their income after allocation of specific costs and corporate overhead; however, our segment results do not reflect any charges for internal capital allocations among our segments. Overhead costs are allocated based on headcounts and other applicable measures to better align costs with the associated revenues. Summary operating segment information (in thousands) is as follows:
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Shareholders' Equity |
3 Months Ended |
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Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Retired Shares During the three months ended March 31, 2016 and 2015, we repurchased and contemporaneously retired 122,981 and 21,807 shares of our common stock at an aggregate cost of $371,000 and $54,000, respectively, pursuant to both open market and private purchases and the return of stock by holders of equity incentive awards to pay tax withholding obligations. We had 1,459,233 loaned shares outstanding at March 31, 2016 and December 31, 2015, which were originally lent in connection with our November 2005 issuance of convertible senior notes. We retire lent shares as they are returned to us. |
Investments in Equity-Method Investees |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Equity-Method Investees | Investment in Equity-Method Investee Our equity-method investment outstanding at March 31, 2016 consists of our 66.7% interest in a joint venture formed to purchase a credit card receivable portfolio. In the following tables, we summarize (in thousands) combined balance sheet and results of operations data for our equity-method investee:
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Fair Values of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Valuations and Techniques for Assets Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The table below summarizes (in thousands) by fair value hierarchy the March 31, 2016 and December 31, 2015 fair values and carrying amounts of (1) our assets that are required to be carried at fair value in our consolidated financial statements and (2) our assets not carried at fair value, but for which fair value disclosures are required:
For those asset classes above that are required to be carried at fair value in our consolidated financial statements, gains and losses associated with fair value changes are detailed on our fees and related income on earning assets table within Note 2, “Significant Accounting Policies and Consolidated Financial Statement Components.” For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and March 31, 2015:
The unrealized gains and losses for assets within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. Impacts related to foreign currency translation are included as a component of other operating expense on the consolidated statements of operations. Net Revaluation of Loans and Fees Receivable. We record the net revaluation of loans and fees receivable (including those pledged as collateral) in the fees and related income on earning assets category in our consolidated statements of operations, specifically as changes in fair value of loans and fees receivable recorded at fair value. For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of March 31, 2016 and December 31, 2015:
(1) Our loans and fees receivable, pledged as collateral under structured financings, at fair value consist of a single portfolio with one set of assumptions. As such, no range is given. Valuations and Techniques for Liabilities Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the liability. The table below summarizes (in thousands) by fair value hierarchy the March 31, 2016 and December 31, 2015 fair values and carrying amounts of (1) our liabilities that are required to be carried at fair value in our consolidated financial statements and (2) our liabilities not carried at fair value, but for which fair value disclosures are required:
For our material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and 2015.
The unrealized gains and losses for liabilities within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. We provide below a brief description of the valuation techniques used for Level 3 liabilities. Net Revaluation of Notes Payable Associated with Structured Financings, at Fair Value. We record the net revaluations of notes payable associated with structured financings, at fair value, in the changes in fair value of notes payable associated with structured financings line item within the fees and related income on earning assets category of our consolidated statements of operations. For material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of March 31, 2016 and December 31, 2015:
Other Relevant Data Other relevant data (in thousands) as of March 31, 2016 and December 31, 2015 concerning certain assets and liabilities we carry at fair value are as follows:
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Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | Notes Payable Notes Payable Associated with Structured Financings, at Fair Value Scheduled (in millions) in the table below are (1) the carrying amounts of structured financing notes secured by certain credit card receivables and reported at fair value as of March 31, 2016 and December 31, 2015, (2) the outstanding face amounts of structured financing notes secured by certain credit card receivables and reported at fair value as of March 31, 2016, and (3) the carrying amounts of the credit card receivables and restricted cash that provide the exclusive means of repayment for the notes (i.e., lenders have recourse only to the specific credit card receivables and restricted cash underlying each respective facility and cannot look to our general credit for repayment) as of March 31, 2016 and December 31, 2015.
Contractual payment allocations within these credit cards receivable structured financings provide for a priority distribution of cash flows to us to service the credit card receivables, a distribution of cash flows to pay interest and principal due on the notes, and a distribution of all excess cash flows (if any) to us. The structured financing facility in the above table is amortizing down along with collections of the underlying receivables and there are no provisions within the debt agreement that allow for acceleration or bullet repayment of the facility prior to its scheduled expiration date. The aggregate carrying amount of the credit card receivables and restricted cash that provide security for the $18.1 million in fair value of the structured financing note in the above table is $18.1 million, which means that we have no aggregate exposure to pre-tax equity loss associated with the above structured financing arrangement at March 31, 2016. Beyond our role as servicer of the underlying assets within the credit cards receivable structured financings, we have provided no other financial or other support to the structures, and we have no explicit or implicit arrangements that could require us to provide financial support to the structures. Notes Payable, at Face Value and Notes Payable to Related Parties Other notes payable outstanding as of March 31, 2016 and December 31, 2015 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities:
On November 26, 2014, we and certain of our subsidiaries entered into a Loan and Security Agreement with Dove Ventures, LLC, a Nevada limited liability company (“Dove”). The agreement provides for a senior secured term loan facility in an amount of up to $40.0 million at any time outstanding, consisting of (i) an initial term loan of $20.0 million, and (ii) additional term loans available in the sole discretion of Dove and upon our request, provided that the aggregate amount of all outstanding term loans does not exceed $40.0 million. On November 26, 2014, Dove funded the initial term loan of $20.0 million. In November 2015, the agreement was amended to extend the maturity date of the term loan to November 22, 2016. All other terms remained unchanged. Our obligations under the agreement are guaranteed by certain subsidiary guarantors and secured by a pledge of certain assets of ours and the subsidiary guarantors. The loans bear interest at the rate of 9.0% per annum, payable monthly in arrears. The principal amount of these loans is payable in a single installment on November 22, 2016 (as amended). Future loans under the agreement can be used for additional repurchases of our outstanding notes and other purposes approved by Dove. The agreement includes customary affirmative and negative covenants, as well as customary representations, warranties and events of default. Subject to certain conditions, we can prepay the principal amounts of these loans without premium or penalty. Dove is a limited liability company owned by three trusts. David G. Hanna is the sole shareholder and the President of the corporation that serves as the sole trustee of one of the trusts, and David G. Hanna and members of his immediate family are the beneficiaries of this trust. Frank J. Hanna, III is the sole shareholder and the President of the corporation that serves as the sole trustee of the other two trusts, and Frank J. Hanna, III and members of his immediate family are the beneficiaries of these other two trusts. |
Convertible Senior Notes |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes | Convertible Senior Notes In May 2005, we issued $250.0 million aggregate principal amount of 3.625% convertible senior notes due 2025 (“3.625% convertible senior notes”), and in November 2005, we issued $300.0 million aggregate principal amount of 5.875% convertible senior notes due 2035 ("5.875% convertible senior notes"). The 5.875% convertible senior notes are (and, prior to redemption, the 3.625% convertible senior notes were) unsecured, subordinate to existing and future secured obligations and structurally subordinate to existing and future claims of our subsidiaries' creditors. These notes (net of repurchases since the issuance dates) are reflected within convertible senior notes on our consolidated balance sheets. No put rights exist under our 5.875% convertible senior notes. In May 2015 we redeemed the remainder of the outstanding 3.625% convertible senior notes. Subsequent to this redemption, only our 5.875% convertible senior notes remain outstanding. The following summarizes (in thousands) components of our consolidated balance sheets associated with our convertible senior notes:
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Commitments and Contingencies |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General Under our point-of-sale and direct-to-consumer finance products, we give consumers the ability to borrow up to the maximum credit limit assigned to each individual’s account. Our unfunded commitments under these products aggregated $115.2 million at March 31, 2016. We have never experienced a situation in which all of our customers have exercised their entire available line of credit at any given point in time, nor do we anticipate this will ever occur in the future. Moreover, there would be a concurrent increase in assets should there be any exercise of these lines of credit. We also have the effective right to reduce or cancel these available lines of credit at any time. Additionally our CAR operations provide floor-plan financing for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here used car business. The financings allow dealers and finance companies to borrow up to the maximum pre-approved credit limit allowed in order to finance ongoing inventory needs. These loans are secured by the underlying auto inventory and, in certain cases where we have other lending products outstanding with the dealer, are secured by the collateral under those lending arrangements as well, including any outstanding dealer reserves. As of March 31, 2016, CAR had unfunded outstanding floor-plan financing commitments totaling $9.9 million. Each draw against unused commitments is reviewed for conformity to pre-established guidelines. Under agreements with third-party originating and other financial institutions we have pledged security (collateral) related to their issuance of consumer credit and purchases thereunder, of which $7.5 million remains pledged to support various ongoing contractual obligations. Those obligations include, among other things, compliance with one of the European payment system’s operating regulations and by-laws. Under agreements with third-party originating and other financial institutions, we have agreed to indemnify the financial institutions for certain liabilities associated with the financial institutions’ activities on our behalf—such indemnification obligations generally being limited to instances in which we either (a) have been afforded the opportunity to defend against any potentially indemnifiable claims or (b) have reached agreement with the financial institutions regarding settlement of potentially indemnifiable claims. As of March 31, 2016, we have assessed the likelihood of any potential payments related to the aforementioned contingencies as remote. We will accrue liabilities related to these contingencies in any future period if and in which we assess the likelihood of an estimable payment as probable. Total System Services, Inc. provides certain services to Atlanticus Services Corporation in both the U.S. and the U.K. as a system of record provider under agreements that extend through October 2022 and April 2017, respectively. If Atlanticus Services Corporation were to terminate its U.S. or U.K. relationship with Total System Services, Inc. prior to the contractual termination period, it would incur significant penalties ($1.5 million and $1.7 million as of March 31, 2016, respectively). At December 31, 2015, we had an accrued liability of £3.4 million ($5.0 million) within our consolidated financial statements associated with a then-ongoing review by U.K. taxing authorities (HM Revenue and Customs or “HMRC”) of value-added tax ("VAT") filings made by one of our U.K. subsidiaries. In February of 2016, we received correspondence from HMRC stating that it (1) had chosen to discontinue its review of our U.K. subsidiary’s VAT filings with no changes to the returns as filed by our U.K. subsidiary, and (2) would be refunding VAT refund claims made by our U.K. subsidiary that had been suspended during the HMRC review. We subsequently received substantially all of such refunds, and as such we reversed the £3.4 million ($5.0 million) of VAT review-related liabilities in the first quarter of 2016. We also are subject to certain minimum payments under cancelable and non-cancelable lease arrangements. For further information regarding these commitments, see Note 8, "Leases" to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. Litigation We are involved in various legal proceedings that are incidental to the conduct of our business, none of which are material to us. |
Net Income (Loss) Attributable to Controlling Interests Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Controlling Interests Per Common Share | Net Income Attributable to Controlling Interests Per Common Share The following table sets forth the computations of net income per common share (in thousands, except per share data):
For the three months ended March 31, 2016 and 2015, there were no shares potentially issuable and thus includible in the diluted net income attributable to controlling interests per common share calculations pursuant to our 5.875% convertible senior notes. However, in future reporting periods during which our closing stock price is above the $24.61 conversion price for the 5.875% convertible senior notes, and depending on the closing stock price at conversion, the maximum potential dilution under the conversion provisions of such notes is 3.8 million shares, which could be included in diluted share counts in net income per common share calculations. See Note 8, “Convertible Senior Notes,” for a further discussion of these convertible securities. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation We currently have two stock-based compensation plans, the Employee Stock Purchase Plan (the “ESPP”) and the Amended and Restated 2014 Equity Incentive Plan (the “2014 Plan”). As of March 31, 2016, 34,781 shares remained available for issuance under the ESPP and 698,933 shares remained available for issuance under the 2014 Plan. Exercises and vestings under our stock-based compensation plans resulted in $37,000 in income tax-related charges to additional paid-in capital during the three months ended March 31, 2016 with $75,000 in such charges for the three months ended March 31, 2015. Restricted Stock and Restricted Stock Unit Awards During the three months ended March 31, 2016 and 2015, we granted 122,667 and 88,934 shares of restricted stock (net of any forfeitures), respectively, with aggregate grant date fair values of $0.4 million and $0.2 million, respectively. When we grant restricted stock, we defer the grant date value of the restricted stock and amortize that value (net of the value of anticipated forfeitures) as compensation expense with an offsetting entry to the additional paid-in capital component of our consolidated shareholders’ equity. Our restricted stock awards typically vest over a range of 12 to 60 months (or other term as specified in the grant) and is amortized to salaries and benefits expense ratably over applicable vesting periods. As of March 31, 2016, our unamortized deferred compensation costs associated with non-vested restricted stock awards were $0.4 million with a weighted-average remaining amortization period of 1.1 years. Stock Options We had expense of $117 thousand and $70 thousand related to stock option-related compensation costs during the three months ended March 31, 2016 and 2015, respectively. When applicable, we recognize stock option-related compensation expense for any awards with graded vesting on a straight-line basis over the vesting period for the entire award. Information related to options outstanding is as follows:
We had $1.3 million and $0.2 million of unamortized deferred compensation costs associated with non-vested stock options as of March 31, 2016 and 2015, respectively. |
Significant Accounting Policies and Consolidated Financial Statement Components (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”), under which we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes. |
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Loans and Fees Receivable | Loans and Fees Receivable Our loans and fees receivable include: (1) loans and fees receivable, net; (2) loans and fees receivable, at fair value; and (3) loans and fees receivable pledged as collateral under structured financings, at fair value. Components of our loans and fees receivable, net (in millions) are as follows:
As of March 31, 2016 and March 31, 2015, the weighted average remaining accretion period for the $17.6 million and $16.8 million, respectively, of deferred revenue reflected in the above tables was 11 months for both periods presented. A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows:
The components (in millions) of loans and fees receivable, gross as of the date of each of our consolidated balance sheets are as follows:
An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of March 31, 2016 and December 31, 2015 is as follows:
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Fees and Related Income on Earning Assets | Fees and Related Income on Earning Assets The components (in thousands) of our fees and related income on earning assets are as follows:
The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) charge off of loans and fees receivable recorded at fair value, net of recoveries on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations. |
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Income Tax, Policy [Policy Text Block] | Income Taxes We experienced an effective income tax expense rate of 4.2% for the three months ended March 31, 2016 compared to a negative effective income tax expense rate of 45.8% for the three months ended March 31, 2015. Our effective income tax expense rate for the three months ended March 31, 2016 differs from the statutory rate principally based on income of our U.K. subsidiary that is not subject to tax in the U.S. and the U.K. tax on which was fully offset by the release of U.K. valuation allowances. Our negative effective income tax expense rate for the three months ended March 31, 2015 resulted principally from a favorable effective settlement we reached with the Internal Revenue Service (“IRS”) in February 2015 relative to accruals for uncertain tax positions and interest accruals thereon associated with our 2012 income tax return. We report potential accrued interest and penalties related to both our accrued liabilities for uncertain tax positions and unpaid tax liabilities within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such accrued interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or our unpaid tax liabilities in a manner favorable to our accruals therefor. During the three months ended March 31, 2016, our income tax expense includes $0.2 million accrued for income tax-related interest and penalties. During the three months ended March 31, 2015, there was no effect of income tax-related interest and penalties on our income tax expense. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.3 million at March 31, 2016; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $2.9 million at March 31, 2016. The IRS is currently examining amended return claims we have made, which, if ultimately approved by the IRS, would eliminate the $7.3 million assessment and cause the reversal of the $2.9 million accrual we have made for interest and penalties thereon. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU is effective for us January 1, 2017. The impact of adoption of this authoritative guidance is not expected to result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which would require lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We have not yet determined the potential effects of adopting ASU 2016-02 on our consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance related to debt issuance costs. The amendment modifies the presentation of unamortized debt issuance costs to present such amounts as a direct deduction from the face amount of the debt, similar to unamortized debt discounts and premiums, rather than as an asset. Amortization of the debt issuance costs continues to be reported as interest expense. The guidance was effective for us beginning January 1, 2016. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. We have not yet determined the potential effects of the adoption of ASU 2014-09 on our consolidated financial statements. |
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Subsequent Events | Subsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after March 31, 2016, and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements. |
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Significant Accounting Policies and Consolidated Financial Statement Components | Significant Accounting Policies and Consolidated Financial Statement Components The following is a summary of significant accounting policies we follow in preparing our consolidated financial statements, as well as a description of significant components of our consolidated financial statements. Basis of Presentation and Use of Estimates We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”), under which we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, costs of funds, discount rates and the yields earned on credit card receivables, significantly affect the reported amount of credit card receivables that we report at fair value and our notes payable associated with structured financings, at fair value; these estimates likewise affect the changes in these amounts reflected within our fees and related income on earning assets line item on our consolidated statements of operations. Additionally, estimates of future credit losses have a significant effect on loans and fees receivable, net, as shown on our consolidated balance sheets, as well as on the provision for losses on loans and fees receivable within our consolidated statements of operations. We have eliminated all significant intercompany balances and transactions for financial reporting purposes. Loans and Fees Receivable Our loans and fees receivable include: (1) loans and fees receivable, net; (2) loans and fees receivable, at fair value; and (3) loans and fees receivable pledged as collateral under structured financings, at fair value. Components of our loans and fees receivable, net (in millions) are as follows:
As of March 31, 2016 and March 31, 2015, the weighted average remaining accretion period for the $17.6 million and $16.8 million, respectively, of deferred revenue reflected in the above tables was 11 months for both periods presented. A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows:
The components (in millions) of loans and fees receivable, gross as of the date of each of our consolidated balance sheets are as follows:
An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of March 31, 2016 and December 31, 2015 is as follows:
Income Taxes We experienced an effective income tax expense rate of 4.2% for the three months ended March 31, 2016 compared to a negative effective income tax expense rate of 45.8% for the three months ended March 31, 2015. Our effective income tax expense rate for the three months ended March 31, 2016 differs from the statutory rate principally based on income of our U.K. subsidiary that is not subject to tax in the U.S. and the U.K. tax on which was fully offset by the release of U.K. valuation allowances. Our negative effective income tax expense rate for the three months ended March 31, 2015 resulted principally from a favorable effective settlement we reached with the Internal Revenue Service (“IRS”) in February 2015 relative to accruals for uncertain tax positions and interest accruals thereon associated with our 2012 income tax return. We report potential accrued interest and penalties related to both our accrued liabilities for uncertain tax positions and unpaid tax liabilities within our income tax benefit or expense line item on our consolidated statements of operations. We likewise report the reversal of such accrued interest and penalties within the income tax benefit or expense line item to the extent that we resolve our liabilities for uncertain tax positions or our unpaid tax liabilities in a manner favorable to our accruals therefor. During the three months ended March 31, 2016, our income tax expense includes $0.2 million accrued for income tax-related interest and penalties. During the three months ended March 31, 2015, there was no effect of income tax-related interest and penalties on our income tax expense. In December 2014, we reached a settlement with the IRS concerning the tax treatment of net operating losses that we incurred in 2007 and 2008 and carried back to obtain refunds of federal income taxes paid in earlier years dating back to 2003. Our net unpaid income tax assessment associated with that settlement was $7.3 million at March 31, 2016; this amount excludes unpaid interest and penalties on the tax assessment, the accruals for which aggregated $2.9 million at March 31, 2016. The IRS is currently examining amended return claims we have made, which, if ultimately approved by the IRS, would eliminate the $7.3 million assessment and cause the reversal of the $2.9 million accrual we have made for interest and penalties thereon. Fees and Related Income on Earning Assets The components (in thousands) of our fees and related income on earning assets are as follows:
The above changes in the fair value of loans and fees receivable recorded at fair value category exclude the impact of charge offs associated with these receivables which are separately stated in Net recovery of (losses upon) charge off of loans and fees receivable recorded at fair value, net of recoveries on our consolidated statements of operations. See Note 6, “Fair Values of Assets and Liabilities,” for further discussion of these receivables and their effects on our consolidated statements of operations. Recent Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-07, Simplifying the Transition to the Equity Method of Accounting. The ASU eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively, as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that the cost of acquiring the additional interest in the investee should be combined with the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. No retroactive adjustment of the investment is required. The ASU also requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The ASU is effective for us January 1, 2017. The impact of adoption of this authoritative guidance is not expected to result in a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, which would require lessees to recognize assets and liabilities for most leases, changing certain aspects of current lessor accounting, among other things. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We have not yet determined the potential effects of adopting ASU 2016-02 on our consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance related to debt issuance costs. The amendment modifies the presentation of unamortized debt issuance costs to present such amounts as a direct deduction from the face amount of the debt, similar to unamortized debt discounts and premiums, rather than as an asset. Amortization of the debt issuance costs continues to be reported as interest expense. The guidance was effective for us beginning January 1, 2016. The impact of adoption of this authoritative guidance did not result in a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. Additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract is also required. In August 2015, the FASB delayed the effective date by one year and the guidance will now be effective for annual and interim periods beginning January 1, 2018 and early adoption is permitted. We do not plan to early adopt the guidance. We have not yet determined the potential effects of the adoption of ASU 2014-09 on our consolidated financial statements. Subsequent Events We evaluate subsequent events that occur after our consolidated balance sheet date but before our consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements; and (2) nonrecognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. We have evaluated subsequent events occurring after March 31, 2016, and based on our evaluation we did not identify any recognized or nonrecognized subsequent events that would have required further adjustments to our consolidated financial statements. |
Significant Accounting Policies and Consolidated Financial Statement Components (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of our aggregated categories of loans and fees receivable, net | Components of our loans and fees receivable, net (in millions) are as follows:
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Roll-forward of allowance for uncollectible loans and fees receivable, net | A roll-forward (in millions) of our allowance for uncollectible loans and fees receivable by class of receivable is as follows:
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Components of loans and fees receivable, net | The components (in millions) of loans and fees receivable, gross as of the date of each of our consolidated balance sheets are as follows:
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Delinquent loans and fees receivable, gross | An aging of our delinquent loans and fees receivable, gross (in millions) by class of receivable as of March 31, 2016 and December 31, 2015 is as follows:
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Components of fees and related income on earning assets | The components (in thousands) of our fees and related income on earning assets are as follows:
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of operating segment information |
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Investments in Equity-Method Investees (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized data of combined balance sheet and results of operations for our equity-method investees | In the following tables, we summarize (in thousands) combined balance sheet and results of operations data for our equity-method investee:
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Fair Values of Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured on a recurring basis at fair value | The table below summarizes (in thousands) by fair value hierarchy the March 31, 2016 and December 31, 2015 fair values and carrying amounts of (1) our assets that are required to be carried at fair value in our consolidated financial statements and (2) our assets not carried at fair value, but for which fair value disclosures are required:
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Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and March 31, 2015:
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Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs, quantitative information | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of March 31, 2016 and December 31, 2015:
(1) Our loans and fees receivable, pledged as collateral under structured financings, at fair value consist of a single portfolio with one set of assumptions. As such, no range is given. |
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Liabilities measured on a recurring basis at fair value | The table below summarizes (in thousands) by fair value hierarchy the March 31, 2016 and December 31, 2015 fair values and carrying amounts of (1) our liabilities that are required to be carried at fair value in our consolidated financial statements and (2) our liabilities not carried at fair value, but for which fair value disclosures are required:
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Reconciliation for Level 3 Liabilities measured at fair value on a recurring basis using significant unobservable inputs | For our material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and 2015.
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Level 3 liabilities measured at fair value on a recurring basis using significant unobservable inputs, quantitative information | For material Level 3 liabilities carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) quantitative information about the valuation techniques and the inputs used in the fair value measurement as of March 31, 2016 and December 31, 2015:
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Other relevant data concerning our assets and liabilities measured at fair value | Other relevant data (in thousands) as of March 31, 2016 and December 31, 2015 concerning certain assets and liabilities we carry at fair value are as follows:
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Notes Payable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of structured financing notes at fair value | Scheduled (in millions) in the table below are (1) the carrying amounts of structured financing notes secured by certain credit card receivables and reported at fair value as of March 31, 2016 and December 31, 2015, (2) the outstanding face amounts of structured financing notes secured by certain credit card receivables and reported at fair value as of March 31, 2016, and (3) the carrying amounts of the credit card receivables and restricted cash that provide the exclusive means of repayment for the notes (i.e., lenders have recourse only to the specific credit card receivables and restricted cash underlying each respective facility and cannot look to our general credit for repayment) as of March 31, 2016 and December 31, 2015.
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Schedule of structured financing notes at face value | Other notes payable outstanding as of March 31, 2016 and December 31, 2015 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities:
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Convertible Senior Notes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of consolidated balance sheets associated with convertible senior notes | The following summarizes (in thousands) components of our consolidated balance sheets associated with our convertible senior notes:
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Net Income (Loss) Attributable to Controlling Interests Per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computations of net income (loss) per common share | The following table sets forth the computations of net income per common share (in thousands, except per share data):
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Stock-Based Compensation Share Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Compensation Equity plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information related to options outstanding is as follows:
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Description of Our Business (Details) |
3 Months Ended |
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Mar. 31, 2016
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Significant Accounting Policies and Consolidated Financial Statement Components Loans and Fees Receivable, Net Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Accounting Policies [Abstract] | ||||
Deferred revenue | $ 17.6 | $ 16.8 | $ 16.7 | $ 15.7 |
Weighted average remaining accretion period of deferred revenue | 11 months | 11 months |
Significant Accounting Policies and Consolidated Financial Statement Components Components of loan and fees, receivable, net (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Current loans receivable | $ 164.6 | $ 150.0 | ||
Current fees receivable | 3.8 | 4.5 | ||
Delinquent loans and fees receivable | 20.8 | 25.6 | ||
Loans and fees receivable, gross | $ 189.2 | $ 180.1 | $ 140.2 | $ 141.6 |
Significant Accounting Policies and Consolidated Financial Statement Components Investments in Equity-Method Investees (Details) |
Mar. 31, 2016 |
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Limited Liability Company [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity-method investment, interests | 66.70% |
Significant Accounting Policies and Consolidated Financial Statement Components Rental Merchandise (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Leased Merchandise [Abstract] | ||
Depreciation of rental merchandise | $ 3,379 | $ 12,253 |
Significant Accounting Policies and Consolidated Financial Statement Components Fees and Related Income on Earning Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Accounting Policies [Abstract] | ||
Fees on credit products | $ 799 | $ 2,174 |
Changes in fair value of loans and fees receivable recorded at fair value | 1,898 | 1,231 |
Changes in fair value of notes payable associated with structured financings recorded at fair value | 1,165 | (362) |
Rental revenue | 4,214 | 10,109 |
Other | (189) | 67 |
Total fees and related income on earning assets | $ 7,887 | $ 13,219 |
Significant Accounting Policies and Consolidated Financial Statement Components Subsequent Events (Details) |
Nov. 30, 2005 |
May. 31, 2005 |
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Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Five [Member] | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% |
Shareholders' Equity (Details) - USD ($) |
3 Months Ended | ||
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Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
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Class of Stock [Line Items] | |||
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 | |
Stock Repurchased and Retired During Period, Value | $ 371,000 | ||
Treasury Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 122,981 | 21,807 | |
Aggregate cost of common stock repurchased | $ 371,000 | $ 54,000 |
Fair Values of Assets and Liabilities Reconciliation of Level 3 Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs [Abstract] | ||
Beginning Balance | $ 26,706 | $ 53,160 |
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | 316 | 1,215 |
Net revaluations of loans and fees receivable, at fair value | 1,582 | 16 |
Settlements, net | (4,803) | (10,052) |
Impact of foreign currency translation | (65) | (449) |
Ending Balance | 23,736 | 43,890 |
Loans and Fees Receivable, at Fair Value [Member] | ||
Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs [Abstract] | ||
Beginning Balance | 6,353 | 18,255 |
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | 0 | 0 |
Net revaluations of loans and fees receivable, at fair value | 1,582 | 16 |
Settlements, net | (1,595) | (4,675) |
Impact of foreign currency translation | (65) | (449) |
Ending Balance | 6,275 | 13,147 |
Loans and Fees Receivable Pledged as Collateral under Structured Financings, at Fair Value [Member] | ||
Reconciliation of Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs [Abstract] | ||
Beginning Balance | 20,353 | 34,905 |
Net revaluations of loans and fees receivable pledged as collateral under structured financings, at fair value | 316 | 1,215 |
Net revaluations of loans and fees receivable, at fair value | 0 | 0 |
Settlements, net | (3,208) | (5,377) |
Impact of foreign currency translation | 0 | 0 |
Ending Balance | $ 17,461 | $ 30,743 |
Fair Values of Assets and Liabilities Quantitative Information about Level 3 Assets Fair Value Measurements (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans and fees receivable, at fair value | $ 6,275 | $ 6,353 | |||
Loans and fees receivable pledged as collateral under structured financings, at fair value | $ 17,461 | $ 20,353 | |||
Gross yield | 25.30% | 28.50% | |||
Principal payment rate | 2.70% | 2.90% | |||
Expected credit loss rate | 11.60% | 12.50% | |||
Discount rate | 16.10% | 16.00% | |||
Loans And Fees Receivable [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans and fees receivable, at fair value | $ 6,275 | $ 6,353 | |||
Loans And Fees Receivable [Member] | Minimum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Gross yield | 24.40% | 15.80% | |||
Principal payment rate | 2.60% | 2.10% | |||
Expected credit loss rate | 11.00% | 12.90% | |||
Servicing rate | 7.20% | 8.40% | |||
Discount rate | 16.10% | 16.00% | |||
Loans And Fees Receivable [Member] | Maximum [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Gross yield | 27.70% | 22.70% | |||
Principal payment rate | 3.00% | 3.00% | |||
Expected credit loss rate | 24.00% | 22.70% | |||
Servicing rate | 7.80% | 12.50% | |||
Discount rate | 16.20% | 16.20% | |||
Loans And Fees Receivable [Member] | Weighted Average [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Gross yield | 25.60% | 20.00% | |||
Principal payment rate | 2.80% | 2.70% | |||
Expected credit loss rate | 15.70% | 16.70% | |||
Servicing rate | 7.60% | 10.90% | |||
Discount rate | 16.10% | 16.10% | |||
Loans and Fees Receivable Pledged as Collateral [Member] | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Loans and fees receivable, at fair value | $ 17,461 | $ 20,353 | |||
Gross yield | [1] | 25.30% | 28.50% | ||
Principal payment rate | [1] | 2.70% | 2.90% | ||
Expected credit loss rate | [1] | 11.60% | 12.50% | ||
Servicing rate | [1] | 7.20% | 12.90% | ||
Discount rate | [1] | 16.10% | 16.00% | ||
|
Fair Values of Assets and Liabilities Summary of Fair Value Hierarchy for Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CAR revolving credit facility | $ 29,900 | $ 28,900 | ||
Amortizing debt facilities | 50,934 | 61,100 | ||
Notes Payable, Related Parties | 20,000 | 20,000 | ||
Convertible Debt, Fair Value Disclosures | 64,910 | 64,783 | ||
Liabilities carried at fair value | ||||
Economic sharing arrangement liability | 34 | 42 | ||
Notes payable associated with structured financings, at fair value | 18,069 | 20,970 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CAR revolving credit facility | 0 | 0 | ||
Amortizing debt facilities | 0 | 0 | ||
Notes Payable, Related Parties | 0 | 0 | ||
Convertible Debt, Fair Value Disclosures | 0 | 0 | ||
Liabilities carried at fair value | ||||
Economic sharing arrangement liability | 0 | 0 | ||
Notes payable associated with structured financings, at fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CAR revolving credit facility | 0 | 0 | ||
Amortizing debt facilities | 0 | 0 | ||
Notes Payable, Related Parties | 0 | 0 | ||
Convertible Debt, Fair Value Disclosures | 42,093 | 42,734 | ||
Liabilities carried at fair value | ||||
Economic sharing arrangement liability | 0 | 0 | ||
Notes payable associated with structured financings, at fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
CAR revolving credit facility | 29,900 | 28,900 | ||
Amortizing debt facilities | 50,934 | 61,100 | ||
Notes Payable, Related Parties | 20,000 | 20,000 | ||
Convertible Debt, Fair Value Disclosures | 0 | 0 | ||
Liabilities carried at fair value | ||||
Economic sharing arrangement liability | 34 | 42 | ||
Notes payable associated with structured financings, at fair value | $ 18,069 | $ 20,970 | ||
Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Five [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% |
Fair Values of Assets and Liabilities Reconciliation of Level 3 Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 20,970 | $ 36,511 |
Total (gains) losses—realized/unrealized: | ||
Net revaluations of notes payable associated with structured financings, at fair value | (1,165) | 362 |
Repayments on outstanding notes payable, net | (1,736) | (4,579) |
Ending Balance | $ 18,069 | $ 32,294 |
Fair Values of Assets and Liabilities Quantitative Information about Level 3 Liabilities Fair Value Measurements (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Notes payable associated with structured financings, at fair value | $ 18,069 | $ 20,970 | |||
Gross yield | 25.30% | 28.50% | |||
Principal payment rate | 2.70% | 2.90% | |||
Expected credit loss rate | 11.60% | 12.50% | |||
Discount rate | 16.10% | 16.00% | |||
Loans And Fees Receivable [Member] | Minimum [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Gross yield | 24.40% | 15.80% | |||
Principal payment rate | 2.60% | 2.10% | |||
Expected credit loss rate | 11.00% | 12.90% | |||
Discount rate | 16.10% | 16.00% | |||
Fair Value Inputs Servicing Rate | 7.20% | 8.40% | |||
Loans And Fees Receivable [Member] | Maximum [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Gross yield | 27.70% | 22.70% | |||
Principal payment rate | 3.00% | 3.00% | |||
Expected credit loss rate | 24.00% | 22.70% | |||
Discount rate | 16.20% | 16.20% | |||
Fair Value Inputs Servicing Rate | 7.80% | 12.50% | |||
Loans And Fees Receivable [Member] | Weighted Average [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Gross yield | 25.60% | 20.00% | |||
Principal payment rate | 2.80% | 2.70% | |||
Expected credit loss rate | 15.70% | 16.70% | |||
Discount rate | 16.10% | 16.10% | |||
Fair Value Inputs Servicing Rate | 7.60% | 10.90% | |||
Loans and Fees Receivable Pledged as Collateral [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||||
Gross yield | [1] | 25.30% | 28.50% | ||
Principal payment rate | [1] | 2.70% | 2.90% | ||
Expected credit loss rate | [1] | 11.60% | 12.50% | ||
Discount rate | [1] | 16.10% | 16.00% | ||
Fair Value Inputs Servicing Rate | [1] | 7.20% | 12.90% | ||
|
Fair Values of Assets and Liabilities, Other Relevant Data (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
---|---|---|---|---|
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
CAR revolving credit facility | $ 29,900 | $ 28,900 | ||
Structured Financing Notes Payable [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance of notes payable | 105,220 | 106,956 | ||
Aggregate fair value of notes payable | 18,069 | 20,970 | ||
Loans and Fees Receivable, at Fair Value [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | 6,989 | 8,560 | ||
Aggregate fair value of loans and fees receivable that are reported at fair value | 6,275 | 6,353 | ||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | 9 | 12 | ||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | 290 | 374 | ||
Loans and Fees Receivable Pledged as Collateral under Structured Financings, at Fair Value [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Aggregate unpaid principal balance within loans and fees receivable that are reported at fair value | 22,947 | 25,837 | ||
Aggregate fair value of loans and fees receivable that are reported at fair value | 17,461 | 20,353 | ||
Aggregate fair value of receivables carried at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) | 21 | 31 | ||
Aggregate excess of balance of unpaid principal receivables within loans and fees receivable that are reported at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans and fees receivable | $ 756 | $ 889 | ||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||
Schedule of Fair Value Assets And Liabilities [Line Items] | ||||
Interest rate on notes | 5.875% | 5.875% |
Notes Payable Schedule of structured financing notes at fair value (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||
Debt Instrument [Line Items] | ||||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | $ 18,069,000 | $ 20,970,000 | ||
Weighted average interest rate | [1] | 5.40% | 5.30% | |
Credit card receivables and restricted cash carrying amount as security for notes payable | $ 18,100,000 | |||
Maximum Aggregate Exposure to Pretax Equity Loss Associated With Structured Financing at Fair Value | 0 | |||
Amortizing Securitization Facility Expiration Date December 1, 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 105,200,000.0 | $ 107,000,000.0 | ||
Weighted average interest rate | 5.70% | 5.60% | ||
Credit card receivables and restricted cash carrying amount as security for notes payable | $ 18,100,000.0 | $ 21,000,000 | ||
Maturity date | Dec. 01, 2021 | |||
Notes Payable to Banks [Member] | ||||
Debt Instrument [Line Items] | ||||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | $ 18,100,000 | |||
Notes Payable to Banks [Member] | Amortizing Securitization Facility Expiration Date December 1, 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total structured financing notes reported at fair value that are secured by credit card receivables and to which we are subordinated | $ 18,100,000 | $ 21,000,000 | ||
|
Notes Payable Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Notes payable associated with structured financings, at fair value | $ 18,069 | $ 20,970 |
Credit card receivables and restricted cash carrying amount as security for notes payable | 18,100 | |
Maximum Aggregate Exposure to Pretax Equity Loss Associated With Structured Financing at Fair Value | 0 | |
CAR revolving credit facility | $ 29,900 | $ 28,900 |
Notes Payable Schedule of structured financing notes at face value (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Notes Payable, Related Parties | $ 20,000 | $ 20,000 | ||||||||||||
Notes Payable | $ 100,800 | $ 110,000 | ||||||||||||
Weighted average interest rate | [1] | 5.40% | 5.30% | |||||||||||
Loans pledged as collateral | [1] | $ 61,900 | $ 69,600 | |||||||||||
Expiring October 2017 [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Secured Debt | [1],[2] | $ 24,200 | 24,900 | |||||||||||
Maturity date | [1],[3] | Oct. 29, 2017 | ||||||||||||
Amortizing debt facility expiring May 2016 [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Secured Debt | [1],[2] | $ 14,100 | 23,000 | |||||||||||
Maturity date | [1],[3] | Jul. 14, 2017 | ||||||||||||
Expiring August 2016 2 [Member] [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Secured Debt | [1],[2] | $ 10,100 | 9,200 | |||||||||||
Maturity date | [1],[3] | Aug. 21, 2016 | ||||||||||||
Expiring August 2016 [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Secured Debt | [1],[2] | $ 2,500 | $ 4,000 | |||||||||||
Maturity date | [1],[3] | Aug. 01, 2016 | ||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Weighted average interest rate | [3] | 3.90% | 3.70% | |||||||||||
Carrying amount of receivables as security for structured financing notes | [3],[4] | $ 69,100 | $ 69,400 | |||||||||||
Expiring October 2017 [Member] | ||||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Outstanding balance | [3],[4] | $ 29,900 | 28,900 | |||||||||||
Maturity date | [4] | Oct. 04, 2017 | ||||||||||||
Related Party Transaction [Domain] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Notes Payable, Related Party Max Facility Limit | $ 40,000 | |||||||||||||
Notes Payable, at Face Value [Abstract] | ||||||||||||||
Notes Payable, Related Parties | $ 20,000 | $ 20,000 | [5] | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.00% | 9.00% | [5] | |||||||||||
Related Party Transaction, Date | [2] | Nov. 22, 2016 | ||||||||||||
|
Convertible Senior Notes Narrative (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
---|---|---|---|---|
3.625% Convertible Senior Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 250,000,000.0 | |||
Interest rate on notes | 3.625% | |||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 93,280,000 | $ 93,280,000 | $ 300,000,000.0 | |
Interest rate on notes | 5.875% | 5.875% | ||
Conversion price for convertible senior notes (in dollars per share) | $ 24.61 |
Convertible Senior Notes Components of consolidated balance sheets associated with convertible senior notes (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
|
Debt Instrument [Line Items] | ||||
Discount | $ (28,370,000) | $ (28,497,000) | ||
Net carrying value | 64,910,000 | 64,783,000 | ||
Carrying amount of equity component included in additional paid-in capital | 108,714,000 | 108,714,000 | ||
Excess of instruments’ if-converted values over face principal amounts | 0 | 0 | ||
3.625% Convertible Senior Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 250,000,000.0 | |||
Interest rate on notes | 3.625% | |||
5.875% Convertible Senior Notes Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 93,280,000 | $ 93,280,000 | $ 300,000,000.0 | |
Interest rate on notes | 5.875% | 5.875% |
Convertible Senior Notes Accounting for Convertible Senior Notes (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
|
Debt Instrument [Line Items] | |||||
Interest expense from accretion of discount on convertible senior notes | $ 127,000 | $ 116,000 | |||
Own-share Lending Arrangement, Shares, Outstanding | 1,459,233 | 1,459,233 | |||
5.875% Convertible Senior Notes Due 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 93,280,000 | $ 93,280,000 | $ 300,000,000.0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | |||
Conversion price for convertible senior notes (in dollars per share) | $ 24.61 | ||||
3.625% Convertible Senior Notes Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 250,000,000.0 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% |
Commitments and Contingencies General (Details) £ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Mar. 31, 2016
GBP (£)
|
|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | $ 37,000 | $ 75,000 | |
Loss Contingency Accrual | 5,000,000 | £ 3.4 | |
Commitments to Car Operations [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks, liability | 9,900,000 | ||
Supply Commitment [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks, liability | 115,200,000 | ||
Deposits [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks, liability | 7,500,000 | ||
Penalty for Termination Prior to Contractual Termination Period [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks, liability | 1,500,000 | ||
Penalty (UK) for Termination Prior to Contractual Termination Period [Domain] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks, liability | $ 1,700,000 |
Net Income (Loss) Attributable to Controlling Interests Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||
Numerator: | |||||||
Net income attributable to controlling interests | $ 4,553 | $ 1,967 | |||||
Denominator: | |||||||
Basic (including unvested share-based payment awards) (in shares) | [1] | 13,898,000 | 13,923,000 | ||||
Effect of dilutive stock compensation arrangements (in shares) | [2] | 75,000 | 2,000 | ||||
Diluted (including unvested share-based payment awards) (in shares) | [1] | 13,973,000 | 13,925,000 | ||||
Net (loss) income attributable to controlling interests per common share-basic (in dollars per share) | $ 0.33 | $ 0.14 | |||||
Net (loss) income attributable to controlling interests per common share-diluted (in dollars per share) | $ 0.33 | $ 0.14 | |||||
Shares related to unvested share-based payments included in basic and diluted shares (in shares) | 222,550 | 427,474 | |||||
Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Five [Member] | |||||||
Denominator: | |||||||
Incremental Common Shares Attributable to Conversion of Debt Securities | 0 | 0 | |||||
|
Net Income (Loss) Attributable to Controlling Interests Per Common Share Antidilutive Securities (Details) - 5.875% Convertible Senior Notes Due 2035 [Member] - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Nov. 30, 2005 |
May. 31, 2005 |
|
Debt Instrument [Line Items] | ||||
Shares potentially issuable and includible in diluted net loss attributable to controlling interest per common share | 0 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | ||
Conversion price for convertible senior notes | $ 24.61 | |||
Maximum potential dilution in future periods under the conversion provisions of convertible senior notes | 3,800,000 |
Stock-Based Compensation (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
stock_compensation_plan
$ / shares
shares
|
Mar. 31, 2015
USD ($)
shares
|
Dec. 31, 2015
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock based compensation plans | stock_compensation_plan | 2 | ||
Employee Stock purchase plan, shares authorized | 34,781 | ||
Maximum aggregate number of shares of common stock issued | 698,933 | ||
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options | $ | $ 37,000 | $ 75,000 | |
Options outstanding | 1,237,666 | 551,666 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 2.94 | $ 2.80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 209,591 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 11 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 178,563 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 686,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 3.04 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | $ 0.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 0.00 | ||
Allocated Share-based Compensation Expense | $ | $ 117,000 | 70,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 396,661 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 2.55 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ | $ 1,300,000 | $ 200,000 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate restricted stock granted (in shares) | 122,667 | 88,934 | |
Aggregate grant date fair values of restricted stock | $ | $ 400,000 | $ 200,000 | |
Unamortized deferred compensation costs of non vested restricted stock | $ | $ 400,000 | ||
Weighted average remaining amortization period of non vested restricted stock | 1 year 1 month | ||
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 12 months | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 60 months |
Property (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property at cost, net of depreciation | $ 4,948 | $ 5,686 |
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
Rate
|
Mar. 31, 2015
Rate
|
|
Income Tax [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | (4.20%) | 45.80% |
Income Taxes Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Components of Income Tax Expense (Benefit) [Abstract] | ||
Income Tax Expense (Benefit) | $ (198) | $ 618 |
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 4.20% | (45.80%) |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (7.3) |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
||||||
Related Party Transaction [Line Items] | |||||||
Notes Payable, Related Parties | $ 20,000 | $ 20,000 | |||||
Related Party Transaction [Domain] | |||||||
Related Party Transaction [Line Items] | |||||||
Notes Payable, Related Parties | $ 20,000 | $ 20,000 | [1] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 9.00% | 9.00% | [1] | ||||
Related Party Transaction, Date | [2] | Nov. 22, 2016 | |||||
Notes Payable, Related Party Max Facility Limit | $ 40,000 | ||||||
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