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Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Summary of Discontinued Operations in Financial Statements

The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019(1)

 

 

2018

 

Revenue

 

$

 

 

$

83,772

 

 

$

141,453

 

Cost of Revenue

 

 

 

 

 

45,507

 

 

 

67,595

 

Gross Profit

 

 

 

 

 

38,265

 

 

 

73,858

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing

 

 

 

 

 

13,239

 

 

 

29,309

 

Operations and technology

 

 

 

 

 

43,338

 

 

 

34,116

 

General and administrative

 

 

 

 

 

3,011

 

 

 

1,917

 

Depreciation and amortization

 

 

 

 

 

889

 

 

 

990

 

Total Expenses

 

 

 

 

 

60,477

 

 

 

66,332

 

(Loss) Income from Operations

 

 

 

 

 

(22,212

)

 

 

7,526

 

Interest income, net

 

 

 

 

 

6

 

 

 

16

 

Foreign currency transaction loss, net

 

 

 

 

 

(1

)

 

 

(2

)

Impairment charges upon placement into administration

 

 

(393

)

 

 

(97,513

)

 

 

 

(Loss) Income before Income Taxes

 

 

(393

)

 

 

(119,720

)

 

 

7,540

 

(Benefit from) provision for income taxes

 

 

(93

)

 

 

(28,316

)

 

 

1,014

 

Net (loss) income from discontinued operations

 

$

(300

)

 

$

(91,404

)

 

$

6,526

 

 

(1)

Includes results of the U.K. businesses from January 1, 2019 to October 25, 2019

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands):

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Cash and cash equivalents

 

$

297,273

 

 

$

35,895

 

 

$

28,114

 

Restricted cash

 

 

71,927

 

 

 

45,069

 

 

 

22,169

 

Total cash, cash equivalents and restricted cash

 

$

369,200

 

 

$

80,964

 

 

$

50,283

 

Schedule of Property and Equipment Estimated Useful Lives Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives:

Computer hardware and software

 

3 to 5 years

Furniture, fixtures and equipment

 

3 to 7 years

Leasehold improvements (1)

 

3 to 10 years

 

(1)

Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years.

Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax

The following table sets forth the components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2019 and 2018(in thousands):

 

 

 

Foreign

 

 

 

 

 

 

 

currency

 

 

 

 

 

 

 

translation

 

 

 

 

 

 

 

gain (loss)

 

 

Total

 

Balance at December 31, 2017

 

$

(7,086

)

 

$

(7,086

)

Other comprehensive loss from continuing operations, before reclassifications and tax

 

 

(2,405

)

 

 

(2,405

)

Tax impact

 

 

519

 

 

 

519

 

Other comprehensive loss from discontinued operations, before reclassifications and tax

 

 

(6,009

)

 

 

(6,009

)

Tax impact

 

 

982

 

 

 

982

 

Australia and Canada liquidation (1)

 

 

2,343

 

 

 

2,343

 

Tax impact

 

 

(527

)

 

 

(527

)

Reclassification of certain deferred tax effects (2)

 

 

(1,622

)

 

 

(1,622

)

Balance at December 31, 2018

 

$

(13,805

)

 

$

(13,805

)

Other comprehensive loss from continuing operations, before reclassifications and tax

 

 

(671

)

 

 

(671

)

Tax impact

 

 

124

 

 

 

124

 

Other comprehensive gain from discontinued operations, before reclassifications and tax

 

 

1,551

 

 

 

1,551

 

Tax impact

 

 

(364

)

 

 

(364

)

Placement of U.K. businesses into administration(3)

 

 

13,188

 

 

 

13,188

 

Tax impact

 

 

(3,089

)

 

 

(3,089

)

Balance at December 31, 2019

 

$

(3,066

)

 

$

(3,066

)

 

(1)

Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the liquidation of the Company’s Australian and Canadian businesses.

(2)

Amount represents the reclassification of stranded tax effects from AOCI to retained earnings resulting from the change in the federal corporate income tax rate under the Tax Cuts and Jobs Act.

(3)

Amount represents the reclassification of foreign currency translation losses from AOCI to the consolidated statements of income due to the placement of the U.K. businesses into administration.

Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations

The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018 (in thousands, except per share amounts):

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

378,144

 

 

$

128,016

 

 

$

63,572

 

Net (loss) income from discontinued operations

 

 

(300

)

 

 

(91,404

)

 

 

6,526

 

Net Income

 

$

377,844

 

 

$

36,612

 

 

$

70,098

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Total weighted average basic shares

 

 

31,897

 

 

 

33,715

 

 

 

33,993

 

Shares applicable to stock-based compensation

 

 

405

 

 

 

683

 

 

 

1,183

 

Total weighted average diluted shares

 

 

32,302

 

 

 

34,398

 

 

 

35,176

 

Earnings per common share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

11.86

 

 

$

3.80

 

 

$

1.87

 

Discontinued operations

 

 

(0.01

)

 

 

(2.71

)

 

 

0.19

 

Earnings per common share – basic

 

$

11.85

 

 

$

1.09

 

 

$

2.06

 

Earnings per common share – diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

11.71

 

 

$

3.72

 

 

$

1.81

 

Discontinued operations

 

 

(0.01

)

 

 

(2.66

)

 

 

0.18

 

Earnings per common share – diluted

 

$

11.70

 

 

$

1.06

 

 

$

1.99

 

Summary of Impact of Adoption ASU 2016-13

The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2020 (in thousands):

 

 

 

Increase

 

 

 

(decrease)

 

Assets

 

 

 

 

Loans and finance receivables at fair value

 

$

124,933

 

Total assets

 

$

124,933

 

Liabilities and Stockholders' Equity

 

 

 

 

Accounts payable and accrued expenses

 

$

(4,486

)

Deferred tax liabilities, net

 

 

30,478

 

Total liabilities

 

 

25,992

 

Stockholders' equity:

 

 

 

 

Retained earnings

 

 

98,941

 

Total stockholders' equity

 

 

98,941

 

Total liabilities and stockholders' equity

 

$

124,933