Components of Company-Owned Loans and Finance Receivables |
The components of Company-owned loans and finance receivables at March 31, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands):
|
|
As of March 31, 2019 |
|
|
|
Short-term |
|
|
Line of Credit |
|
|
Installment Loans and |
|
|
|
|
|
|
|
Loans |
|
|
Accounts |
|
|
RPAs |
|
|
Total |
|
Current receivables |
|
$ |
27,872 |
|
|
$ |
207,395 |
|
|
$ |
636,278 |
|
|
$ |
871,545 |
|
Delinquent receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent payment amounts(1) |
|
|
— |
|
|
|
8,500 |
|
|
|
2,600 |
|
|
|
11,100 |
|
Receivables on non-accrual status |
|
|
21,276 |
|
|
|
3,084 |
|
|
|
50,252 |
|
|
|
74,612 |
|
Total delinquent receivables |
|
|
21,276 |
|
|
|
11,584 |
|
|
|
52,852 |
|
|
|
85,712 |
|
Total loans and finance receivables, gross |
|
|
49,148 |
|
|
|
218,979 |
|
|
|
689,130 |
|
|
|
957,257 |
|
Less: Allowance for losses |
|
|
(15,418 |
) |
|
|
(41,362 |
) |
|
|
(84,621 |
) |
|
|
(141,401 |
) |
Loans and finance receivables, net |
|
$ |
33,730 |
|
|
$ |
177,617 |
|
|
$ |
604,509 |
|
|
$ |
815,856 |
|
|
|
As of March 31, 2018 |
|
|
|
Short-term |
|
|
Line of Credit |
|
|
Installment Loans and |
|
|
|
|
|
|
|
Loans |
|
|
Accounts |
|
|
RPAs |
|
|
Total |
|
Current receivables |
|
$ |
39,339 |
|
|
$ |
152,114 |
|
|
$ |
543,435 |
|
|
$ |
734,888 |
|
Delinquent receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent payment amounts(1) |
|
|
— |
|
|
|
6,624 |
|
|
|
2,143 |
|
|
|
8,767 |
|
Receivables on non-accrual status |
|
|
26,519 |
|
|
|
2,185 |
|
|
|
45,000 |
|
|
|
73,704 |
|
Total delinquent receivables |
|
|
26,519 |
|
|
|
8,809 |
|
|
|
47,143 |
|
|
|
82,471 |
|
Total loans and finance receivables, gross |
|
|
65,858 |
|
|
|
160,923 |
|
|
|
590,578 |
|
|
|
817,359 |
|
Less: Allowance for losses |
|
|
(19,136 |
) |
|
|
(27,120 |
) |
|
|
(68,027 |
) |
|
|
(114,283 |
) |
Loans and finance receivables, net |
|
$ |
46,722 |
|
|
$ |
133,803 |
|
|
$ |
522,551 |
|
|
$ |
703,076 |
|
|
|
As of December 31, 2018 |
|
|
|
Short-term |
|
|
Line of Credit |
|
|
Installment Loans and |
|
|
|
|
|
|
|
Loans |
|
|
Accounts |
|
|
RPAs |
|
|
Total |
|
Current receivables |
|
$ |
37,558 |
|
|
$ |
213,896 |
|
|
$ |
672,538 |
|
|
$ |
923,992 |
|
Delinquent receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent payment amounts(1) |
|
|
— |
|
|
|
10,783 |
|
|
|
2,696 |
|
|
|
13,479 |
|
Receivables on non-accrual status |
|
|
30,167 |
|
|
|
2,884 |
|
|
|
52,732 |
|
|
|
85,783 |
|
Total delinquent receivables |
|
|
30,167 |
|
|
|
13,667 |
|
|
|
55,428 |
|
|
|
99,262 |
|
Total loans and finance receivables, gross |
|
|
67,725 |
|
|
|
227,563 |
|
|
|
727,966 |
|
|
|
1,023,254 |
|
Less: Allowance for losses |
|
|
(21,420 |
) |
|
|
(51,008 |
) |
|
|
(90,880 |
) |
|
|
(163,308 |
) |
Loans and finance receivables, net |
|
$ |
46,305 |
|
|
$ |
176,555 |
|
|
$ |
637,086 |
|
|
$ |
859,946 |
|
(1) |
Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information. |
|
Schedule of Changes in Allowance for Losses |
Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three months ended March 31, 2019 and 2018 were as follows (dollars in thousands):
|
|
Three Months Ended March 31, 2019 |
|
|
|
Short-term |
|
|
Line of Credit |
|
|
Installment Loans and |
|
|
|
|
|
|
|
Loans |
|
|
Accounts |
|
|
RPAs |
|
|
Total |
|
Allowance for losses for Company-owned loans and finance receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
21,420 |
|
|
$ |
51,008 |
|
|
$ |
90,880 |
|
|
$ |
163,308 |
|
Cost of revenue |
|
|
17,948 |
|
|
|
37,739 |
|
|
|
84,260 |
|
|
|
139,947 |
|
Charge-offs |
|
|
(29,476 |
) |
|
|
(51,222 |
) |
|
|
(111,840 |
) |
|
|
(192,538 |
) |
Recoveries |
|
|
5,375 |
|
|
|
3,837 |
|
|
|
21,076 |
|
|
|
30,288 |
|
Effect of foreign currency translation |
|
|
151 |
|
|
|
— |
|
|
|
245 |
|
|
|
396 |
|
Balance at end of period |
|
$ |
15,418 |
|
|
$ |
41,362 |
|
|
$ |
84,621 |
|
|
$ |
141,401 |
|
Liability for third-party lender-owned loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
1,964 |
|
|
$ |
— |
|
|
$ |
202 |
|
|
$ |
2,166 |
|
Decrease in liability |
|
|
(858 |
) |
|
|
— |
|
|
|
(44 |
) |
|
|
(902 |
) |
Balance at end of period |
|
$ |
1,106 |
|
|
$ |
— |
|
|
$ |
158 |
|
|
$ |
1,264 |
|
|
|
Three Months Ended March 31, 2018 |
|
|
|
Short-term |
|
|
Line of Credit |
|
|
Installment Loans and |
|
|
|
|
|
|
|
Loans |
|
|
Accounts |
|
|
RPAs |
|
|
Total |
|
Allowance for losses for Company-owned loans and finance receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
19,917 |
|
|
$ |
31,148 |
|
|
$ |
71,979 |
|
|
$ |
123,044 |
|
Cost of revenue |
|
|
21,167 |
|
|
|
25,383 |
|
|
|
62,851 |
|
|
|
109,401 |
|
Charge-offs |
|
|
(28,485 |
) |
|
|
(32,807 |
) |
|
|
(81,206 |
) |
|
|
(142,498 |
) |
Recoveries |
|
|
6,272 |
|
|
|
3,396 |
|
|
|
14,125 |
|
|
|
23,793 |
|
Effect of foreign currency translation |
|
|
265 |
|
|
|
— |
|
|
|
278 |
|
|
|
543 |
|
Balance at end of period |
|
$ |
19,136 |
|
|
$ |
27,120 |
|
|
$ |
68,027 |
|
|
$ |
114,283 |
|
Liability for third-party lender-owned loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
2,105 |
|
|
$ |
— |
|
|
$ |
153 |
|
|
$ |
2,258 |
|
Increase in liability |
|
|
(844 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(848 |
) |
Balance at end of period |
|
$ |
1,261 |
|
|
$ |
— |
|
|
$ |
149 |
|
|
$ |
1,410 |
|
|