Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-50058 | ||
Entity Registrant Name | PRA Group, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-3078675 | ||
Entity Address, Address Line One | 120 Corporate Boulevard | ||
Entity Address, City or Town | Norfolk | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23502 | ||
City Area Code | 888 | ||
Local Phone Number | 772-7326 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | PRAA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,409,925,939 | ||
Entity Common Stock, Shares Outstanding | 38,980,115 | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001185348 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Auditor Information [Abstract] | ||
Auditor Name | Ernst & Young LLP | KPMG LLP |
Auditor Location | Richmond, VA | Norfolk, VA |
Auditor Firm ID | 42 | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 83,376 | $ 87,584 |
Investments | 79,948 | 92,977 |
Finance receivables, net | 3,295,008 | 3,428,285 |
Income taxes receivable | 31,774 | 41,146 |
Deferred tax assets, net | 56,908 | 67,760 |
Right-of-use assets | 54,506 | 56,713 |
Property and equipment, net | 51,645 | 54,513 |
Goodwill | 435,921 | 480,263 |
Other assets | 86,588 | 57,002 |
Total assets | 4,175,674 | 4,366,243 |
Liabilities: | ||
Accounts payable | 7,329 | 3,821 |
Accrued expenses | 111,395 | 127,802 |
Income taxes payable | 25,693 | 19,276 |
Deferred tax liabilities, net | 42,918 | 36,630 |
Lease liabilities | 59,384 | 61,188 |
Interest-bearing deposits | 112,992 | 124,623 |
Borrowings | 2,494,858 | 2,608,714 |
Other liabilities | 34,355 | 59,352 |
Total liabilities | 2,888,924 | 3,041,406 |
Equity: | ||
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized, 38,980 shares issued and outstanding at December 31, 2022; 100,000 shares authorized, 41,008 shares issued and outstanding at December 31, 2021 | 390 | 410 |
Additional paid-in capital | 2,172 | 0 |
Retained earnings | 1,573,025 | 1,552,845 |
Accumulated other comprehensive loss | (347,926) | (266,909) |
Total stockholders' equity - PRA Group, Inc. | 1,227,661 | 1,286,346 |
Noncontrolling interests | 59,089 | 38,491 |
Total equity | 1,286,750 | 1,324,837 |
Total liabilities and equity | $ 4,175,674 | $ 4,366,243 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.01 | |
Preferred stock, shares authorized | 2,000,000 | |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 38,980,000 | 41,008,000 |
Common stock, shares outstanding | 38,980,000 | 41,008,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Portfolio income | $ 772,315 | $ 875,327 | $ 984,036 |
Changes in estimated recoveries | 168,904 | 197,904 | 69,297 |
Total portfolio revenue | 941,219 | 1,073,231 | 1,053,333 |
Other revenue | 25,305 | 22,501 | 12,081 |
Total revenues | 966,524 | 1,095,732 | 1,065,414 |
Operating expenses: | |||
Compensation and employee services | 285,537 | 301,981 | 295,150 |
Legal collection fees | 38,450 | 47,206 | 53,758 |
Legal collection costs | 76,757 | 78,330 | 101,635 |
Agency fees | 63,808 | 63,140 | 56,418 |
Outside fees and services | 92,355 | 92,615 | 84,087 |
Communication | 39,205 | 42,755 | 40,801 |
Rent and occupancy | 18,589 | 18,376 | 17,973 |
Depreciation and amortization | 15,243 | 15,256 | 18,465 |
Other operating expenses | 50,778 | 61,077 | 47,426 |
Total operating expenses | 680,722 | 720,736 | 715,713 |
Income from operations | 285,802 | 374,996 | 349,701 |
Other income and (expense): | |||
Interest Income (Expense), Net | (130,677) | (124,143) | (141,712) |
Foreign exchange gain/(loss), net | 985 | (809) | 2,005 |
Other | (1,325) | 282 | (1,049) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | 154,785 | 250,326 | 208,945 |
Income tax expense | 36,787 | 54,817 | 41,203 |
Net income | 117,998 | 195,509 | 167,742 |
Adjustment for net income attributable to noncontrolling interests | 851 | 12,351 | 18,403 |
Net income attributable to PRA Group, Inc. | $ 117,147 | $ 183,158 | $ 149,339 |
Net income per share attributable to PRA Group, Inc.: | |||
Basic (USD per share) | $ 2.96 | $ 4.07 | $ 3.28 |
Diluted (USD per share) | $ 2.94 | $ 4.04 | $ 3.26 |
Weighted average number of shares outstanding: | |||
Basic (shares) | 39,638 | 44,960 | 45,540 |
Diluted (shares) | 39,888 | 45,330 | 45,860 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 117,998 | $ 195,509 | $ 167,742 |
Currency translation adjustments | (105,292) | (56,219) | 20,056 |
Cash flow hedges | 33,175 | 27,978 | (20,261) |
Debt securities available-for-sale | (16) | (348) | 171 |
Other comprehensive loss | (72,133) | (28,589) | (34) |
Total comprehensive income | 45,865 | 166,920 | 167,708 |
Less comprehensive income attributable to noncontrolling interests | 9,735 | 4,880 | 3,141 |
Comprehensive income attributable to PRA Group, Inc. | $ 36,130 | $ 162,040 | $ 164,567 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Previously Reported | Change in Accounting Principle | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Previously Reported | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Previously Reported | Additional Paid-in Capital Change in Accounting Principle | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Previously Reported | Retained Earnings Change in Accounting Principle | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income Previously Reported | Accumulated Other Comprehensive (Loss)/Income Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interests | Noncontrolling Interests Previously Reported | Noncontrolling Interests Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning Balance, shares at Dec. 31, 2019 | 45,416 | ||||||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,227,013 | $ 454 | $ 67,321 | $ 1,362,631 | $ (261,018) | $ (261,018) | $ 57,625 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | $ 167,742 | $ 149,339 | $ 18,403 | ||||||||||||||||||
Currency translation adjustment | 20,056 | 35,317 | (15,261) | ||||||||||||||||||
Cash flow hedges | (20,261) | (20,261) | |||||||||||||||||||
Debt securities available-for-sale | 171 | 171 | |||||||||||||||||||
Distributions to noncontrolling interest | (30,276) | (30,276) | |||||||||||||||||||
Contributions from noncontrolling interests | 1,118 | 1,118 | |||||||||||||||||||
Vesting of nonvested shares, shares | 169 | ||||||||||||||||||||
Vesting of restricted stock | $ 2 | ||||||||||||||||||||
Share-based compensation expense | 0 | $ (2) | |||||||||||||||||||
APIC, Share-based Payment Arrangement, Recognition and Exercise | 14,387 | 14,387 | |||||||||||||||||||
Employee stock relinquished for payment of taxes | (3,299) | (3,299) | |||||||||||||||||||
Other | (3,125) | (3,125) | |||||||||||||||||||
Ending Balance, shares at Dec. 31, 2020 | 45,585 | 45,585 | |||||||||||||||||||
Ending balance at Dec. 31, 2020 | 1,358,837 | $ 1,373,526 | $ (14,689) | $ 456 | $ 456 | 48,585 | $ 75,282 | $ (26,697) | 1,523,978 | $ 1,511,970 | $ 12,008 | (245,791) | $ (245,791) | 31,609 | $ 31,609 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 195,509 | 183,158 | 12,351 | ||||||||||||||||||
Currency translation adjustment | (56,219) | (48,748) | (7,471) | ||||||||||||||||||
Cash flow hedges | 27,978 | 27,978 | |||||||||||||||||||
Debt securities available-for-sale | (348) | (348) | |||||||||||||||||||
Distributions to noncontrolling interest | (21,411) | (21,411) | |||||||||||||||||||
Contributions from noncontrolling interests | 23,413 | 23,413 | |||||||||||||||||||
Vesting of nonvested shares, shares | 264 | ||||||||||||||||||||
Vesting of restricted stock | 0 | $ 2 | (2) | ||||||||||||||||||
Repurchase and cancellation of common stock | (212,870) | $ (48) | (58,531) | (154,291) | |||||||||||||||||
Number of shares repurchased and retired | (4,841) | ||||||||||||||||||||
Share-based compensation expense | 15,940 | 15,940 | |||||||||||||||||||
Employee stock relinquished for payment of taxes | $ (5,992) | (5,992) | |||||||||||||||||||
Ending Balance, shares at Dec. 31, 2021 | 41,008 | 41,008 | |||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 1,324,837 | $ 410 | 0 | 1,552,845 | (266,909) | 38,491 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 117,998 | 117,147 | 851 | ||||||||||||||||||
Currency translation adjustment | (105,292) | (114,176) | 8,884 | ||||||||||||||||||
Cash flow hedges | 33,175 | 33,175 | |||||||||||||||||||
Debt securities available-for-sale | (16) | (16) | |||||||||||||||||||
Distributions to noncontrolling interest | (6,691) | (6,691) | |||||||||||||||||||
Contributions from noncontrolling interests | 17,554 | 17,554 | |||||||||||||||||||
Vesting of nonvested shares, shares | 303 | ||||||||||||||||||||
Vesting of restricted stock | 0 | $ 4 | (4) | ||||||||||||||||||
Repurchase and cancellation of common stock | (99,390) | $ (24) | (2,399) | (96,967) | |||||||||||||||||
Number of shares repurchased and retired | (2,331) | ||||||||||||||||||||
Share-based compensation expense | 13,047 | 13,047 | |||||||||||||||||||
Employee stock relinquished for payment of taxes | $ (8,472) | (8,472) | |||||||||||||||||||
Ending Balance, shares at Dec. 31, 2022 | 38,980 | 38,980 | |||||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 1,286,750 | $ 390 | $ 2,172 | $ 1,573,025 | $ (347,926) | $ 59,089 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 117,998 | $ 195,509 | $ 167,742 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation expense | 13,047 | 15,940 | 14,387 |
Depreciation and amortization | 15,243 | 15,256 | 18,465 |
Amortization of debt discount and issuance costs | 10,097 | 9,508 | 21,063 |
Changes in expected recoveries | (168,904) | (197,904) | (69,297) |
Deferred income taxes | 607 | 6,803 | (58,503) |
Net unrealized foreign currency transactions | 34,970 | 29,003 | 15,240 |
Fair value in earnings for equity securities | 437 | (386) | 977 |
Other operating activities | (191) | (211) | (893) |
Changes in operating assets and liabilities: | |||
Other assets | 7,096 | 195 | (4,644) |
Accounts payable | 3,960 | (1,323) | 914 |
Income taxes payable, net | 13,709 | (30,824) | 22,001 |
Accrued expenses | (2,449) | 19,586 | 7,767 |
Other liabilities | (24,492) | 23,691 | 6,496 |
Right of use assets/lease liabilities | 464 | 82 | (11) |
Net cash provided by operating activities | 21,592 | 84,925 | 141,704 |
Cash flows from investing activities: | |||
Purchases of property and equipment, net | (13,251) | (11,212) | (17,230) |
Purchases of finance receivables | (844,255) | (971,708) | (903,588) |
Recoveries applied to negative allowance | 974,846 | 1,185,954 | 1,037,659 |
Business acquisition, net of cash acquired | 0 | (647) | 0 |
Purchase of investments | (63,000) | (110,915) | (45,229) |
Proceeds from sales and maturities of investments | 66,113 | 68,904 | 43,391 |
Net cash provided by investing activities | 120,453 | 160,376 | 115,003 |
Cash flows from financing activities: | |||
Proceeds from lines of credit | 1,607,108 | 769,903 | 1,290,799 |
Principal payments on lines of credit | (1,598,608) | (1,163,075) | (1,557,186) |
Payments on convertible senior notes | 0 | 0 | (287,442) |
Proceeds from senior notes | 0 | 350,000 | 300,000 |
Proceeds from long-term debt | 0 | 0 | 55,000 |
Principal payments on long-term debt | (10,000) | (10,000) | (10,000) |
Repurchases of common stock | (111,371) | (200,887) | 0 |
Payments of origination costs and fees | (15,550) | (9,479) | (17,218) |
Tax withholdings related to share-based payments | (8,472) | (5,992) | (3,301) |
Distributions paid to noncontrolling interest | (6,691) | (21,411) | (30,276) |
Contributions from noncontrolling interest | 17,554 | 23,413 | 1,118 |
Net increase in interest-bearing deposits | 4,688 | 4,716 | 9,591 |
Other financing activities | 0 | 0 | (3,185) |
Net cash used in financing activities | (121,342) | (262,812) | (252,100) |
Effect of exchange rate on cash | (25,017) | (14,464) | (7,367) |
Net decrease cash and cash equivalents | (4,314) | (31,975) | (2,760) |
Cash and cash equivalents, beginning of the year | 89,072 | 121,047 | 123,807 |
Cash and cash equivalents, end of year | 84,758 | 89,072 | 121,047 |
Cash and cash equivalents per Consolidated Balance Sheets | 83,376 | 87,584 | 108,613 |
Restricted cash included in Other Assets per Consolidated Balance Sheets | 1,382 | 1,488 | 12,434 |
Total cash, cash equivalents and restricted cash | 84,758 | 89,072 | 121,047 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 116,932 | 112,277 | 117,986 |
Cash paid for income taxes | $ 21,860 | $ 77,817 | $ 80,856 |
General and Summary of Signific
General and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
General and Summary of Significant Accounting Policies | General and Summary of Significant Accounting Policies: Nature of operations: As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries. PRA Group, Inc., a Delaware corporation, is a global financial and business services company with operations in the Americas, Europe and Australia. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also provides fee-based services on class action claims recoveries and by servicing of consumer bankruptcy accounts in the United States ("U.S."). Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions. Change in accounting principle: Beginning January 1, 2021, the Company implemented Accounting Standards Update ("ASU") 2020-06 Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06") using a modified retrospective method. Reclassification of prior year presentation: Certain prior year amounts have been reclassified for consistency with the current year presentation. Fee income is now included within Other revenue on the Consolidated Income Statements. Consolidation: The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Company control, consist of entities that purchase and collect on portfolios of nonperforming loans. Investments in companies in which the Company has significant influence over operating and financing decisions, but does not own a majority of the voting equity interests, are accounted for in accordance with the equity method of accounting, which requires the Company to recognize its proportionate share of the entity’s net earnings. These investments are included in Other assets, with income or loss included in Other revenue. The Company performs on-going reassessments whether changes in the facts and circumstances regarding the Company’s involvement with an entity cause the Company’s consolidation conclusion to change. Foreign currency: Assets and liabilities have been translated to the reporting currency using the exchange rates in effect on the Consolidated Balance Sheets dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year, which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of international subsidiaries are recorded in Accumulated other comprehensive (loss)/income in the accompanying Consolidated Statements of Changes in Equity. Segments: The Company has determined that it has two operating segments that meet the aggregation criteria of Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280"), and, therefore, it has one reportable segment, accounts receivable management. This conclusion is based on similarities among the operating segments, including economic characteristics, the nature of the products and services, the nature of the production processes, the types or classes of customers for their products and services, the methods used to distribute their products and services and the nature of the regulatory environment. Revenues and long-lived assets by geographical location: Revenue for the years ended December 31, 2022, 2021 and 2020, and long-lived assets held at December 31, 2022 and 2021, both for the U.S., the Company's country of domicile, and outside of the U.S. were (amounts in thousands): 2022 2021 2020 2022 2021 Revenues (2) Long-Lived Assets United States $ 520,747 $ 651,991 $ 677,234 $ 79,865 $ 87,881 United Kingdom 181,725 175,383 132,749 12,141 7,264 Others (1) 264,052 268,358 255,431 14,145 16,081 Total $ 966,524 $ 1,095,732 $ 1,065,414 $ 106,151 $ 111,226 (1) None of the countries included in "Others" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers by product or service. Revenues are attributed to countries based on the location of the related operations. Long-lived assets consist of net property and equipment and right-of-use assets. The Company reports revenues earned from collection activities on finance receivables, fee-based services and investments. For additional information on the Company's investments, see Note 3 . Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Restricted cash: Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and included in Other assets on the Company's Consolidated Balance Sheets. Concentrations of credit risk: Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, derivative instruments and finance receivables. Accumulated other comprehensive loss: The Company records unrealized gains and losses on certain available-for-sale investments and foreign currency translation adjustments in other comprehensive income ("OCI"). Unrealized gains and losses on available for sale investments are reclassified to earnings as the gains or losses are realized upon sale of the securities. Translation gains or losses on foreign currency translation adjustments are reclassified to earnings upon the substantial sale or liquidation of investments in international operations. For the Company’s financial derivative instruments that are designated as hedging instruments, the change in fair value of the derivative is recorded in OCI. Investments: Debt Securities: The Company determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are carried at amortized cost. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Available-for-sale securities are carried at fair market value. Fair value is determined using quoted market prices. Unrealized gains and losses are included in comprehensive income and reported in stockholders' equity. The Company evaluates debt securities for impairment. When there has been a decline in fair value below the amortized cost, the Company recognizes an impairment if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost; or (3) it does not expect to recover the entire amortized cost of the security. If the Company identifies that the decline in fair value has resulted from credit losses, the credit loss component is recognized as an allowance on the Consolidated Balance Sheets with a corresponding charge to Other expense on the Consolidated Income Statements. The non-credit loss component remains in Other comprehensive loss until realized from a sale or subsequent impairment. Equity Securities: Investments in equity securities are measured at fair value with changes in unrealized gains and losses reported in earnings. Equity Method Investments: Equity investments that are not consolidated, but over which the Company exercises significant influence, are accounted for as equity method investments. Whether or not the Company exercises significant influence with respect to an investee company depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Income Statements; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Other revenue’’ in the Consolidated Income Statements. The Company’s carrying value in an equity method investee company is reflected in the caption ‘‘Investments’’ in the Company’s Consolidated Balance Sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s Consolidated Financial Statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Finance receivables and income recognition: The Company's financial assets (or a group of financial assets) are measured at amortized cost and presented at the net amount expected to be collected. Credit quality information : The Company acquires portfolios of accounts that have experienced deterioration of credit quality between origination and the Company's acquisition of the accounts. The amount paid for a portfolio reflects the Company's determination that it is probable the Company will be unable to collect all amounts due according to an account's contractual terms. The Company accounts for the portfolios in accordance with the guidance for purchased credit deteriorated ("PCD") assets. The initial allowance for credit losses is added to the purchase price rather than recorded as a credit loss expense. The Company has established a policy to write off the amortized cost of individual assets when it deems probable that it will not collect on an individual asset. Due to the deteriorated credit quality of the individual accounts, the Company may write off the unpaid principal balance of all accounts in a portfolio at the time of acquisition. However, when the Company has an expectation of collecting cash flows at the portfolio level, a negative allowance is established for expected recoveries at an amount not to exceed the amount paid for the financial portfolios. The negative allowance is recorded as an asset and presented as Finance receivables, net on the Company's Consolidated Balance Sheets. Portfolio segments : The Company develops systematic methodologies to determine its allowance for credit losses at the portfolio segment level. The Company’s nonperforming loan portfolio segments consist of two broad categories: Core and Insolvency. The Company’s Core portfolios contain loan accounts that are in default, which were purchased at a substantial discount to face value because either the credit originator and/or other third-party collection agencies have been unsuccessful in collecting the full balance owed. The Company’s Insolvency portfolios contain loan accounts that are in default and the customer is involved in a bankruptcy or insolvency proceeding and the accounts were purchased at a substantial discount to face value. Each of the two broad portfolio segments of purchased nonperforming loan portfolios consist of large numbers of homogeneous receivables with similar risk characteristics. Effective interest rate and accounting pools : Within each portfolio segment, the Company pools accounts with similar risk characteristics that are acquired in the same year. Similar risk characteristics generally include portfolio segment and geographic region. The initial effective interest rate of the pool is established based on the purchase price and expected recoveries of each individual purchase at the purchase date. During the year of acquisition, the annual pool is aggregated, and the blended effective interest rate will adjust to reflect new acquisitions and new cash flow estimates until the end of the year. The effective interest rate for a pool is fixed for the remaining life of the pool once the year has ended. Methodology : The Company develops its estimates of expected recoveries in the Consolidated Balance Sheets by applying discounted cash flow methodologies to its estimated remaining collections ("ERC") and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. Subsequent changes (favorable and unfavorable) in expected cash flows are recognized within Changes in expected recoveries in the Consolidated Income Statements by adjusting the present value of increases or decreases in ERC at a constant effective interest rate. Amounts included in the estimate of recoveries do not exceed the aggregate amount of the amortized cost basis previously written off or expected to be written off. The measurement of expected recoveries is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Development of the Company’s forecasts rely on both quantitative and qualitative factors. Qualitative factors can include both external and internal information and consider management’s view on available facts and circumstances at each reporting period. More specifically, external factors that may have an impact on the collectability, and subsequently on the overall profitability of acquired portfolios of nonperforming loans, would include new laws or regulations relating to collections, new interpretations of existing laws or regulations, and the overall condition of the economy. Internal factors that may have an impact on the collectability, and subsequently the overall profitability of acquired portfolios of nonperforming loans, would include necessary revisions to initial and post-acquisition operational scoring and modeling estimates, operational activities, expected impact of operational strategies and changes in productivity related to turnover and tenure of the Company's collection staff. Portfolio income : The recognition of income on expected recoveries is based on the constant effective interest rate established for a pool. Changes in expected recoveries : The activity consists of differences between actual recoveries compared to expected recoveries for the reporting period, as well as the net present value of increases or decreases in ERC at the constant effective interest rate. Agreements to acquire the aforementioned receivables include general representations and warranties from the sellers covering matters such as account holder death or insolvency and accounts settled or disputed prior to sale. The representation and warranty period permitting the return of these accounts from the Company to the seller is typically 90 to 180 days, with certain international agreements extending as long as 24 months. Any funds received from the seller as a return of purchase price are referred to as buybacks. Buyback funds are included in changes in expected recoveries when received. Fees paid to third parties other than the seller related to the direct acquisition of a portfolio of accounts are expensed when incurred. Fee income recognition: The Company recognizes revenue from its class action claims recovery services when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the amount is fixed or determinable, and collectability is reasonably assured. This revenue is included within Other revenue in the Company's Consolidated Income Statements. Property and equipment: Property and equipment, including improvements that significantly add to the productive capacity or extend useful life, are recorded at cost. Maintenance and repairs are expensed as incurred. Property and equipment are depreciated over their useful lives using the straight-line method of depreciation. Software and computer equipment are generally amortized or depreciated over three se. Building improvements are depreciated straight-line over ten n property is sold or retired, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in the Company's Consolidated Income Statements. Goodwill: Goodwill is not amortized but rather is reviewed for impairment annually or more frequently if indicators of potential impairment exist. The Company performs its annual assessment of goodwill as of October 1. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an impairment loss is recognized. The loss will be recorded at the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the respective reporting unit. Convertible Notes: The Company has outstanding 3.50% Convertible Notes due 2023 (the "2023 Notes" or "Convertible Notes") which are accounted for as a single liability measured at amortized cost. See Note 6 for additional information. Income taxes: The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is estimated using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company is subject to income taxes throughout the U.S. and in numerous international jurisdictions. The Company recognizes the financial statement benefits of a tax position if it is more likely than not to be sustained in the event of challenges by relevant taxing authorities based on the technical merit. The amounts of benefit to recognize in the financial statements are the largest benefits that have a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authorities. The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense when the more likely than not standards are not met. In preparation of the Consolidated Financial Statements, the Company exercises significant judgment in estimating the potential exposure to unresolved tax matters and applies a more likely than not criteria approach for recording tax benefits related to uncertain tax positions in the application of complex tax laws. While actual results could vary, the Company believes it has adequate tax accruals with respect to the ultimate outcome of such tax matters. The Company, establishes a valuation allowance in the period in which it determines that part or all of the deferred tax asset is not realizable. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings . Leases: The Company recognizes a liability for future lease payments and a right-of-use ("ROU") asset representing its right to use the underlying asset for the lease term on the balance sheet. The Company's operating lease portfolio primarily includes corporate offices and call centers. The majority of its leases have remaining lease terms of one year to 14 years, some of which include options to extend the leases for up to five years, and others include options to terminate the leases within one year. Exercises of lease renewal options are typically at the Company's sole discretion and are included in its ROU assets and lease liabilities based upon whether the Company is reasonably certain of exercising the renewal options. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Share-based compensation: Compensation expense associated with share equity awards are recognized in the income statement. The Company determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. The Company has certain share awards that include market conditions that affect vesting. The fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. The Company estimates a forfeiture rate for most equity share grants based on historical experience. Time-based equity share awards generally vest between one Note 11 for additional information. Derivatives: The Company periodically enters into derivative financial instruments, typically interest rate swap agreements, interest rate caps, and foreign currency contracts to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. The Company does not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed nor does it enter into or hold derivatives for trading or speculative purposes. All of the Company's outstanding derivative financial instruments are recognized in the balance sheet at their fair values. The effect on earnings from recognizing the fair values of these derivative financial instruments depends on their intended use, their hedge designation, and their effectiveness in offsetting changes in the fair values of the exposures they are hedging. Changes in the fair values of instruments designated to reduce or eliminate adverse fluctuations in the fair values of recognized assets and liabilities and unrecognized firm commitments are reported in earnings along with changes in the fair values of the hedged items. Changes in the effective portions of the fair values of instruments used to reduce or eliminate adverse fluctuations in cash flows of anticipated or forecasted transactions are reported in equity as a component of Accumulated other comprehensive loss. Amounts in Accumulated other comprehensive loss are reclassified to earnings when the related hedged items affect earnings or the anticipated transactions are no longer probable. Changes in the fair values of derivative instruments that are not designated as hedges or do not qualify for hedge accounting treatment are reported in earnings. The Company realizes gains and losses from derivative instruments in the same financial statement line item as the hedged item/forecasted transaction. Changes in unrealized gains and losses for derivatives not designated in a hedge accounting relationship are recorded directly in earnings each period and are also recorded in the same financial statement line item as the hedged item or forecasted transaction. Cash flows from the settlement of derivatives, including both economic hedges and those designated in hedge accounting relationships, appear in the Consolidated Statements of Cash Flows in the same categories as the cash flows of the hedged item. For derivative financial instruments accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which effectiveness of the hedge will be assessed. The Company formally assesses, both at inception and at each reporting period thereafter, whether the derivative financial instruments used in hedging transactions are effective in offsetting changes in fair value or cash flows of the related underlying exposures. The Company discontinues the use of hedge accounting prospectively when (1) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item; (2) the derivative instrument expires, is sold, terminated, or exercised; or (3) designating the derivative instrument as a hedge is no longer appropriate. See Note 9 for additional information. Use of estimates: The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates have been made by management with respect to the timing and amount of future cash collections of the Company's finance receivables portfolios. Actual results could differ from these estimates making it reasonably possible that a change in these estimates could occur within one year. Commitments and contingencies: The Company is subject to various claims and contingencies related to lawsuits, certain taxes and commitments under contractual and other obligations. The Company recognizes liabilities for commitments and contingencies when a loss is probable and estimable. The Company expenses related legal costs as incurred. See Note 14 for additional information. Estimated fair value of financial instruments: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company takes into consideration differing levels of inputs in the determination of fair values. Disclosure of the estimated fair values of financial instruments often requires the use of estimates. See Note 8 for additional information. Recent accounting pronouncements: Recently issued accounting standards adopted: Reference Rate Reform In January 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-01, "Reference Rate Reform (Topic 848): Overall" ("ASU 2021-01"). ASU 2021-01 expands the scope of Reference Rate Reform ("ASC 848") to include derivatives affected by the discounting transition for certain optional expedients and exceptions. ASU 2021-01 was effective immediately for a limited time through December 31, 2022. The Company assessed whether amendments and modifications to its swap agreements and borrowing agreements qualify for any optional expedients. During the first quarter of 2022, the Company elected certain optional expedients under ASC 848 to maintain cash flow hedge accounting for swap agreements with a combined notional amount of $422.8 million after interest rate swaps that were indexed to the Gross Domestic Product ("GDP") London Inter-Bank Offer Rate ("LIBOR") converted to the Sterling Overnight Index Average ("SONIA"), effective January 1, 2022. In the second quarter of 2022, the Company exited the relief provisions under ASC 848 after updating the hedged risk on these cash flow hedges to reflect SONIA-based cash flows expected to occur under the United Kingdom ("UK") Credit Agreement. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date ("ASU 2022-06"). ASU 2022-06 defers the sunset date from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Recently issued accounting standards not yet adopted: |
Finance Receivables, net
Finance Receivables, net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Finance Receivables, net | Finance Receivables, net: Finance receivables, net consisted of the following at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Amortized cost $ — $ — Negative allowance for expected recoveries 3,295,008 3,428,285 Balance at end of year $ 3,295,008 $ 3,428,285 Changes in the negative allowance for expected recoveries by portfolio segment for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Balance at beginning of year $ 2,989,932 $ 438,353 $ 3,428,285 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 771,977 78,019 849,996 Foreign currency translation adjustment (156,795) (20,536) (177,331) Recoveries applied to negative allowance (2) (795,489) (179,357) (974,846) Changes in expected recoveries (3) 126,582 42,322 168,904 Balance at end of year $ 2,936,207 $ 358,801 $ 3,295,008 2021 Core Insolvency Total Balance at beginning of year $ 3,019,477 $ 495,311 $ 3,514,788 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 863,379 108,901 972,280 Foreign currency translation adjustment (68,544) (2,189) (70,733) Recoveries applied to negative allowance (2) (1,002,400) (183,554) (1,185,954) Changes in expected recoveries (3) 178,020 19,884 197,904 Balance at end of year $ 2,989,932 $ 438,353 $ 3,428,285 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Face value $ 5,174,974 $ 455,644 $ 5,630,618 Noncredit discount (541,686) (28,279) (569,965) Allowance for credit losses at acquisition (3,861,311) (349,346) (4,210,657) Purchase price $ 771,977 $ 78,019 $ 849,996 2021 Core Insolvency Total Face value $ 5,917,827 $ 508,868 $ 6,426,695 Noncredit discount (696,983) (37,202) (734,185) Allowance for credit losses at acquisition (4,357,465) (362,765) (4,720,230) Purchase price $ 863,379 $ 108,901 $ 972,280 The initial negative allowance recorded on portfolio acquisitions for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Allowance for credit losses at acquisition $ (3,861,311) $ (349,346) $ (4,210,657) Writeoffs, net 3,861,311 349,346 4,210,657 Expected recoveries 771,977 78,019 849,996 Initial negative allowance for expected recoveries $ 771,977 $ 78,019 $ 849,996 2021 Core Insolvency Total Allowance for credit losses at acquisition $ (4,357,465) $ (362,765) $ (4,720,230) Writeoffs, net 4,357,465 362,765 4,720,230 Expected recoveries 863,379 108,901 972,280 Initial negative allowance for expected recoveries $ 863,379 $ 108,901 $ 972,280 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Recoveries (a) $ 1,521,504 $ 225,657 $ 1,747,161 Less - amounts reclassified to portfolio income 726,015 46,300 772,315 Recoveries applied to negative allowance $ 795,489 $ 179,357 $ 974,846 2021 Core Insolvency Total Recoveries (a) $ 1,818,635 $ 242,646 $ 2,061,281 Less - amounts reclassified to portfolio income 816,235 59,092 875,327 Recoveries applied to negative allowance $ 1,002,400 $ 183,554 $ 1,185,954 (a) Recoveries includes cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Changes in expected future recoveries $ 48,806 $ 13,405 $ 62,211 Recoveries received in excess of forecast 77,776 28,917 106,693 Changes in expected recoveries $ 126,582 $ 42,322 $ 168,904 2021 Core Insolvency Total Changes in expected future recoveries $ (35,432) $ (16,816) $ (52,248) Recoveries received in excess of forecast 213,452 36,700 250,152 Changes in expected recoveries $ 178,020 $ 19,884 $ 197,904 In order to estimate future cash collections, the Company considered historical performance, current economic forecasts, short-term and long-term growth and consumer habits in the various geographies in which the Company operates. The Company considered recent collection activity in its determination to adjust assumptions related to ERC for certain pools. Based on these considerations, the Company’s estimates incorporate changes in both amounts and in the timing of expected cash collections over the forecast period. For the year ended December 31, 2022, Changes in expected recoveries were a net positive $168.9 million. The changes were the net result of recoveries received in excess of forecast of $106.7 million reflecting cash collections overperformance during the year and a $62.2 million net positive adjustment to changes in expected future recoveries. The changes in expected |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments: Investments consisted of the following at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Debt securities Available-for-sale $ 66,813 $ 77,538 Equity securities Exchange traded funds — 1,746 Private equity funds 4,373 5,137 Mutual funds — 508 Equity method investments 8,762 8,048 Total investments $ 79,948 $ 92,977 Debt Securities Available-for-Sale Government securities : The Company's investments in government instruments, including bonds and treasury securities, are classified as available-for-sale and are stated at fair value. As of December 31, 2022, maturities for these securities are $62.5 million due within one year and $4.3 million due within one to five years. The amortized cost and estimated fair value of investments in debt securities at December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 67,049 $ 1 $ 237 $ 66,813 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 77,757 $ — $ 219 $ 77,538 Equity Securities Exchange traded funds: The Company invested in treasury bill exchange traded funds, which were accounted for as equity securities and carried at fair value. Gains and losses from these investments are included within Other income and (expense) in the Company's Consolidated Income Statements. The Company sold the majority of its investment in these funds in the third quarter of 2021 and its remaining investment in the third quarter of 2022. Private equity funds : Investments in private equity funds represent limited partnerships in which the Company has less than a 1% interest. Mutual funds: Mutual funds represented funds held in Brazil in a Brazilian real denominated mutual fund benchmarked to the U.S. dollar that invests primarily in Brazilian fixed income securities. The investments were carried at fair value based on quoted market prices. Gains and losses from these investments are included as a foreign exchange component of Other income and (expense) in the Company's Consolidated Income Statements. The Company sold its investment in these funds in the fourth quarter of 2022. Equity Method Investments The Company has an 11.7% in |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases: The Company leases office space and equipment under operating leases. The components of lease expense for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Operating lease expense $ 11,981 $ 12,256 Short-term lease expense 2,374 2,986 Sublease income (486) (196) Total lease expense $ 13,869 $ 15,046 Supplemental cash flow information and non-cash activity related to leases for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 11,852 $ 12,034 ROU assets obtained in exchange for operating lease obligations $ 8,882 $ 13,525 Lease term and discount rate information related to operating leases were as follows: 2022 2021 Weighted-average remaining lease terms (years) 8.0 8.6 Weighted-average discount rate 4.5 % 4.5 % Maturities of lease liabilities at December 31, 2022, are as follows for the years ending December 31, (amounts in thousands): Operating Leases 2023 $ 10,827 2024 10,086 2025 9,845 2026 8,740 2027 5,905 Thereafter 25,725 Total lease payments 71,128 Less: imputed interest 11,744 Total present value of lease liabilities $ 59,384 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill: The Company performs an annual review of goodwill as of October 1 of each year or more frequently if indicators of impairment exist. The Company performed an annual review of goodwill as of October 1, 2022 and concluded that no goodwill impairment was necessary. The changes in goodwill for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Balance at beginning of year $ 480,263 $ 492,989 Change in foreign currency translation adjustment (44,342) (12,726) Balance at end of year $ 435,921 $ 480,263 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings: The Company's borrowings consisted of the following as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Americas revolving credit (1) $ 186,867 $ 372,119 UK revolving credit 453,528 — Europe revolving credit 419,856 795,687 Term loan 450,000 460,000 Senior Notes 650,000 650,000 Convertible Notes 345,000 345,000 2,505,251 2,622,806 Less: Debt discount and issuance costs (10,393) (14,092) Total $ 2,494,858 $ 2,608,714 (1) Includes the North American revolving credit facility and an unsecured credit agreement with Banco de Occidente (the "Colombian revolving credit facility"). As of December 31, 2022 and 2021, the outstanding balance under the Colombian revolving credit facility was approximately $0.5 million an d $0.9 million, respectively. The following principal payments are due on the Company's borrowings at December 31, 2022 for the years ending December 31, (amounts in thousands): 2023 $ 355,251 2024 10,251 2025 310,000 2026 1,059,893 2027 419,856 Thereafter 350,000 Total $ 2,505,251 The Company determined that it was in compliance with the covenants of its financing arrangements as of December 31, 2022. North American Revolving Credit and Term Loan The Company has a credit agreement with Bank of America, N.A., as administrative agent, Bank of America, National Association, acting through its Canada branch, as the Canadian Administrative Agent, and a syndicate of lenders named therein (the "North American Credit Agreement"). The total credit facility under the North American Credit Agreement includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), which consists of (i) a fully-funded $450.0 million term loan, (ii) a $1.0 billion domestic revolving credit facility and (iii) a $75.0 million Canadian revolving credit facility. The facility includes an accordion feature for up to $500.0 million in additional commitments (at the option of the lender) and also provides for up to $25.0 million of letters of credit and a $25.0 million swingline loan sub-limit that would reduce amounts available for borrowing. The term and revolving loans accrue interest, at the option of the Company, at either the base rate, Canadian Dollar Offered Rate, or the Eurodollar rate for the applicable term plus 2.25% per annum, or 2.00% if the consolidated senior secured leverage ratio is less than or equal to 1.60 to 1.0. The revolving loans within the credit facilities are subject to a 0% floor. The revolving credit facilities also bear an unused line fee of 0.35% per annum, or 0.30% if the consolidated senior secured leverage ratio is less than or equal to 1.60 to 1.0, payable quarterly in arrears. The North American Credit Agreement matures on July 30, 2026. As of December 31, 2022, the unused portion of the North American Credit Agreement was $888.6 million. Con sidering borrowing base calculations as of December 31, 2022, the amount available to be drawn was $190.9 million. Borrowings under the North American Credit Agreement are guaranteed by the Company's U.S. and Canadian subsidiaries (provided that the Canadian subsidiary only guarantees borrowings under the Canadian revolving credit facility) and are secured by a first priority lien on substantially all of the Company's North American assets. The North American Credit Agreement contains event of default and restrictive covenants, including the following: • the ERC borrowing base is 35% for all eligible Core asset pools and 55% for all Insolvency eligible asset pools; • the Company's consolidated total leverage ratio not to exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter; • subject to no default or event of default, cash dividends and distributions during any fiscal year cannot exceed $20.0 million; and • the Company must maintain positive consolidated income from operations during any fiscal quarter. The outstanding balances and weighted average interest rates by type of borrowing under the credit facility as of December 31, 2022 and 2021 were as follows (dollar amounts in thousands): 2022 2021 Amount Outstanding Weighted Average Interest Rate Amount Outstanding Weighted Average Interest Rate Term loan $ 450,000 6.38 % $ 460,000 2.10 % Revolving credit facilities 186,365 6.33 371,220 2.14 UK Revolving Credit Facility On April 1, 2022, PRA Group Europe Holding I S.a r.l ("PRA Group Europe"), a wholly owned subsidiary of the Company, entered into a credit agreement (the "UK Credit Agreement") with PRA Group UK Limited ("PRA UK") and the Company, as guarantors, the lenders party thereto and MUFG Bank, Ltd., London Branch, as the administrative agent (the "Administrative Agent"). The UK Credit Agreement consists of an $800.0 million revolving credit facility (subject to a borrowing base), and an accordion feature for up to $200.0 million in additional commitments, subject to certain conditions. Borrowings, which are available in U.S. dollars, euro and pounds sterling, will accrue interest, for the applicable term at the risk free rate applicable to U.S. dollars (Secured Overnight Financing Rate) or sterling ( SONIA ) or, in the case of euro borrowings, Euribor plus an applicable margin of 2.50% per annum plus a credit adjustment spread of 0.10%. If the consolidated senior secured leverage ratio is greater than 1.60 to 1.0, the applicable margin will increase to 2.75%. The UK Credit Agreement also has a commitment fee of 0.30% per annum, payable quarterly in arrears. If the consolidated senior secured leverage ratio is greater than 1.60 to 1.0, the commitment fee increases to 0.35% per annum. The UK Credit Agreement matures on July 30, 2026. As of December 31, 2022, the unused portion of the UK Credit Agreement was $346.5 million. Considering borrowing base restrictions, as of December 31, 2022, the amount available to be drawn under the UK Credit Agreement w as $105.4 million . The UK Credit Agreement is secured by substantially all of the assets of PRA UK, all of the equity interests in PRA UK and PRA Group Europe, certain bank accounts of PRA Group Europe and certain intercompany loans extended by PRA Group Europe to PRA UK. The UK Credit Agreement contains events of default and restrictive covenants, including the following: • the borrowing base equals the sum of up to: (i) 35% of the ERC of PRA UK’s eligible asset pools; plus (ii) 55% of PRA UK’s Insolvency eligible asset pools; minus (iii) certain reserves to be established by the Administrative Agent; • the Company's consolidated leverage ratio not to exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's consolidated senior secured leverage ratio cannot exceed 2.25 to 1.0 as of the end of any fiscal quarter; and • the Company must maintain positive consolidated income from operations during any fiscal quarter. The outstanding balance and weighted average interest rate by type of borrowing under the UK Credit Agreement as of December 31, 2022 were as follows (dollar amounts in thousands): 2022 Amount Outstanding Weighted Average Interest Rate Revolving credit facility $ 453,528 5.54 % European Revolving Credit Facility On November 23, 2022, the Company's wholly-owned subsidiary, PRA Group Europe Holding S.a r.l. ("PRA Group Europe Holding"), and its Swiss Branch, PRA Group Europe Holding S.à r.l. ("PRA Group Holding"), Luxembourg, Zug Branch (together, the "Borrowers"), along with certain of its affiliates and the Company, as guarantors, replaced the prior $750.0 million multicurrency revolving credit agreement (the "Prior Facility Agreement") with a €730.0 million revolving credit facility (the "European Credit Agreement") with the lenders party thereto and DNB Bank ASA as facility agent and security agent (the "Agent"). The European Credit Agreement provides borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base) and an uncommitted accordion feature for up to €500.0 million, subject to certain conditions. Borrowings, which will be available in euro, Norwegian krone, Danish krone, Swedish krona, and Polish zloty, accrues interest at the Interbank Offered Rate plus 2.80% - 3.80% (as determined by the estimated remaining collections ratio ("ERC Ratio") as defined in the European Credit Agreement), bears an unused line fee, currently 1.085% per annum, or 35% of the margin, is subject to a 0% floor, is payable monthly in arrears and matures November 23, 2027. Additionally, the Company has a separate agreement with the Agent, for an overdraft facility in the aggregate amount of $40.0 million (subject to the borrowing base), which accrues interest (per currency) at the daily rates as published by the facility agent, bears a facility line fee of 0.125% per quarter, payable quarterly in arrears and matures November 23, 2027. As of December 31, 2022, the unused portion of the European Credit Agreement (including the overdraft facility) was $401.1 million. C onsidering borrowing base restrictions and other covenants as of December 31, 2022, the amount available to be drawn under the European Credit Agreement (including the overdraft facility) was $168.5 million. The European Credit Agreement is secured by a first perfected security interest in all of the equity interests in certain operating subsidiaries of the Borrowers, certain intercompany loans and certain shareholder loans extended by the Company to the Borrowers. Further, the Company guarantees all obligations and liabilities under the European Credit Facility. The European Credit Agreement contains event of default and restrictive covenants including the following: • the ERC Ratio cannot exceed 45%; • the Company's consolidated total leverage ratio not to exceed 3.50 to 1.0 as of the end of any fiscal quarter; • the Company's consolidated senior secured leverage ratio not to exceed 2.25 to 1.0 as of the end of any fiscal quarter; • the Company must maintain positive consolidated income from operations at the end of any fiscal quarter; • interest bearing deposits in AK Nordic AB cannot exceed SEK 1.2 billion; and • PRA Europe's cash collections must meet certain thresholds, measured on a quarterly basis. The outstanding balances and weighted average interest rates by type of borrowing under the European Credit Agreement and the Prior Facility Credit Agreement as of December 31, 2022 and 2021, respectively, were as follows (dollar amounts in thousands): 2022 2021 Amount Outstanding Weighted Average Interest Rate Amount Outstanding Weighted Average Interest Rate Revolving credit facilities $ 419,856 5.94 % $ 795,687 3.48 % Senior Notes due 2029 On September 22, 2021, the Company completed the private offering of $350.0 million in aggregate principal amount of its 5.00% Senior Notes due October 1, 2029 (the "2029 Notes"). The 2029 Notes were issued pursuant to an Indenture dated September 22, 2021 (the "2021 Indenture"), between the Company and Regions Bank, as trustee. The 2021 Indenture contains customary terms and covenants, including certain events of default after which the 2029 Notes may be due and payable immediately. The 2029 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the Notes is payable semi-annually, in arrears, on October 1 and April 1 of each year. On or after October 1, 2024, the Notes may be redeemed, at the Company's option in whole or in part at a price equal to 102.50% of the aggregate principal amount of the 2029 Notes being redeemed. The applicable redemption price changes if redeemed during the 12-months beginning October 1 of each year to 101.25% for 2025 and then 100% for 2026 and thereafter. In addition, on or before October 1, 2024, the Company may redeem up to 40% of the aggregate principal amount of the 2029 Notes at a redemption price of 105.00% plus accrued and unpaid interest, subject to the rights of holders of the 2029 Notes, with the net cash proceeds of a public offering of common stock of the Company, provided, that at least 60% in aggregate principal amount of the 2029 Notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering. In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2029 Notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2029 Notes at 100% of their principal amount. Senior Notes due 2025 On August 27, 2020, the Company completed the private offering of $300.0 million in aggregate principal amount of its 7.375% Senior Notes due September 1, 2025 (the "2025 Notes" and together with the 2029 Notes, the "Senior Notes"). The 2025 Notes were issued pursuant to an Indenture dated August 27, 2020 (the "2020 Indenture"), between the Company and Regions Bank, as a trustee. The 2020 Indenture contains customary terms and covenants, including certain events of default after which the 2025 Notes may be due and payable immediately. The 2025 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2025 Notes is payable semi-annually, in arrears, on September 1 and March 1 of each year. The 2025 Notes may be redeemed, in whole or in part, at a price equal to 103.688% of the aggregate principal amount of the 2025 Notes being redeemed. The applicable redemption price changes if redeemed during the 12-months beginning September 1 of each year to 101.844% for 2023 and then 100% for 2024 and thereafter. In the event of a change of control, the Company must offer to repurchase all of the 2025 Notes (unless otherwise redeemed) at a price equal to 101% of their aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2025 Notes at 100% of their principal amount plus accrued and unpaid interest. Convertible Senior Notes due 2023 On May 26, 2017, the Company completed the private offering of $345.0 million in aggregate principal amount of its 3.50% Convertible Senior Notes due June 1, 2023. The 2023 Notes were issued pursuant to an Indenture, dated May 26, 2017 (the "2017 Indenture"), between the Company and Regions Bank, as trustee. The 2017 Indenture contains customary terms and covenants, including certain events of default after which the 2023 Notes may be due and payable immediately. The 2023 Notes are senior unsecured obligations of the Company. Interest on the 2023 Notes is payable semi-annually, in arrears, on June 1 and December 1 of each year. The holders of the 2023 Notes have the right to convert all, or a portion of, the 2023 Notes upon occurrence of specific events prior to the close of business on the business day immediately preceding March 1, 2023, including: • if during any calendar quarter, the last reported sales price of the Company's common stock is greater than 130% of the conversion price for at least 20 trading days during the period of 30 consecutive trading days; • if the trading price of the 2023 Notes is less than 98% of the product of the last reported sales price of the Company's common stock and the conversion rate for a 10 consecutive trading day period; • the Company elects to issue to all, or substantially all, holders of its common stock any rights, options or warrants entitling them, for a period of more than 45 calendar days, to subscribe for or purchase shares at a price per share that is less than the average of the last reported sales price for the 10 consecutive trading day-period ending on the trading day immediately preceding the date of announcement of such issuance; • the Company elects to distribute to all, or substantially all, holders of its common stock the Company’s assets, debt securities or rights to purchase securities of the Company, which distribution has a share value exceeding 10% of the last reported sale price on the trading day preceding the announcement of such distribution; or • a transaction occurs that constitutes a fundamental change (as defined in the 2017 Indenture) or, the Company is party to a consolidation, merger, binding share exchange, or transfer or lease of all, or substantially all, of the Company’s assets. On or after March 1, 2023, the 2023 Notes will be convertible at any time. As of December 31, 2022, the Company does not believe that any of the conditions allowing holders of the 2023 Notes to convert their notes has occurred. Furthermore, the Company has the right, at its election, to redeem all or any part of the outstanding 2023 Notes at any time for cash, but only if the last reported sale price (as defined in the 2017 Indenture) of the Company's common stock exceeds 130% of the conversion price on each of at least 20 trading days during the 30 consecutive trading days ending on and including the trading day immediately before the date the Company sends the related redemption notice. The conversion rate for the 2023 Notes is initially 21.6275 shares per $1,000 principal amount of 2023 Notes, which is equivalent to an initial conversion price of approximately $46.24 per share of the Company's common stock and is subject to adjustment in certain circumstances pursuant to the 2017 Indenture. Upon conversion, holders of the 2023 Notes will receive cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The Company has made an irrevocable election to settle conversions by paying holders of the 2023 Notes cash up to the aggregate principal amount of the 2023 Notes and shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election, for the remaining amounts owed, if any. In accordance with authoritative guidance related to derivatives and hedging and EPS, only the conversion spread is included in the diluted EPS calculation, if dilutive. Under such method, the settlement of the conversion spread has a dilutive effect when the market conversion criteria is met. The Company determined that the fair value of the 2023 Notes at the date of issuance was approximately $298.8 million and designated the residual value of approximately $46.2 million as the equity component. Additionally, the Company allocated approximately $8.3 million of the $9.6 million issuance cost as debt issuance cost and the remaining $1.3 million as an equity issuance cost. The balances of the liability component of the Company's Convertible Notes outstanding as of December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Liability component - principal amount $ 345,000 $ 345,000 Unamortized debt issuance costs (748) (2,476) Liability component - net carrying amount $ 344,252 $ 342,524 The Company amortizes debt issuance costs over the life of the debt using an effective interest rate of 4.00%. Interest expense related to the Company's Convertible Notes for the years ended December 31, 2022, 2021 and 2020 was as follows (amounts in thousands): 2022 2021 2020 (1) Interest expense - stated coupon rate $ 12,075 $ 12,075 $ 17,064 Interest expense - amortization of debt discount — — 10,811 Interest expense - amortization of debt issuance costs 1,727 1,660 1,989 Total interest expense - Convertible Notes $ 13,802 $ 13,735 $ 29,864 (1) 2020 amounts include interest expense related to the Company's 3.00% Convertible Senior Notes due August 1, 2020, which were repaid in the third quarter of 2020. Interest Expense, net The Company incurs interest expense on its borrowings, interest-bearing deposits, and interest rate derivative agreements. The Company earns interest income on certain of its cash and cash equivalents, restricted cash and its interest rate derivative agreements. Interest expense, net, was as follows for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): 2022 2021 2020 Interest expense $ 132,905 $ 125,231 $ 142,727 Interest income (2,228) (1,088) (1,015) Interest expense, net $ 130,677 $ 124,143 $ 141,712 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | Property and Equipment, net: Property and equipment, at cost, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Software $ 71,775 $ 69,549 Computer equipment 24,685 25,457 Furniture and fixtures 17,751 20,034 Equipment 15,819 15,297 Leasehold improvements 22,486 17,606 Building and improvements 19,931 19,456 Land 1,407 1,407 Accumulated depreciation (123,141) (117,420) Assets in process 932 3,127 Property and equipment, net $ 51,645 $ 54,513 Depreciation expense relating to property and equipment for the years ended December 31, 2022, 2021 and 2020 was $14.9 million, $15.1 million and $15.6 million, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value: As defined by ASC Topic 820, "Fair Value Measurement and Disclosures" ("ASC 820"), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the consideration of differing levels of inputs in the determination of fair values. Those levels of input are summarized as follows: • Level 1: Quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3: Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments for which the determination of fair value requires significant management judgment or estimation. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Financial Instruments Not Required To Be Carried at Fair Value In accordance with the disclosure requirements of ASC Topic 825, "Financial Instruments" ("ASC 825"), the table below summarizes fair value estimates for the Company's financial instruments that are not required to be carried at fair value. The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying value of the Company. The carrying amounts in the table were recorded in the Consolidated Balance Sheets at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 83,376 $ 83,376 $ 87,584 $ 87,584 Finance receivables, net 3,295,008 3,167,813 3,428,285 3,317,658 Financial liabilities: Interest-bearing deposits 112,992 112,992 124,623 124,623 Revolving lines of credit 1,060,251 1,060,251 1,167,806 1,167,806 Term loan 450,000 450,000 460,000 460,000 Senior Notes 650,000 580,433 650,000 673,366 Convertible Notes 345,000 341,926 345,000 406,607 Disclosure of the estimated fair values of financial instruments often requires the use of estimates. The carrying amount and estimates of the fair value of the Company's debt obligations outlined above do not include any related debt issuance costs associated with the debt obligations. The Company uses the following methods and assumptions to estimate the fair value of financial instruments: Cash and cash equivalents: The carrying amount approximates fair value and quoted prices for identical assets in active markets. Accordingly, the Company estimates the fair value of cash and cash equivalents using Level 1 inputs. Finance receivables, net: The Company estimates the fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio acquisition decisions. Accordingly, the Company's fair value estimates use Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates. Interest-bearing deposits: The carrying amount approximates fair value due to the short-term nature of the deposits and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Revolving lines of credit: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Term loan: The carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Senior Notes and Convertible Notes: The fair value estimates for the Senior Notes and Convertible Notes incorporate quoted market prices that were obtained from secondary market broker quotes that were derived from a variety of inputs including client orders, information from their pricing vendors, modeling software, and actual trading prices when they occur. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Financial Instruments Required To Be Carried At Fair Value The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying Consolidated Balance Sheets at December 31, 2022 and 2021 (amounts in thousands): Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Government securities $ 66,813 $ — $ — $ 66,813 Derivative contracts (recorded in Other assets) — 37,792 — 37,792 Liabilities: Derivative contracts (recorded in Other liabilities) — 19,120 — 19,120 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Government securities $ 77,538 $ — $ — $ 77,538 Exchange traded funds 1,746 — — 1,746 Mutual funds 508 — — 508 Derivative contracts (recorded in Other assets) — 9,785 — 9,785 Liabilities: Derivative contracts (recorded in Other liabilities) — 25,978 — 25,978 Government securities: Fair value of the Company's investment in government instruments is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Exchange traded funds: Fair value of the Company's investment in exchange traded funds was estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Mutual funds: Fair value of the Company's investment in mutual funds was estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs. Derivative contracts: The estimated fair value of the derivative contracts is determined using industry standard valuation models. These models project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves and other factors. Accordingly, the Company uses Level 2 inputs for its fair value estimates. Investments measured using net asset value ("NAV") Private equity funds: This class of investments consists of private equity funds that invest primarily in loans and securities including single-family residential debt; corporate debt products; and financially-oriented, real estate-rich and other operating companies in the Americas, Western Europe, and Japan. These investments are subject to certain restrictions regarding transfers and withdrawals. The investments cannot be redeemed with the funds. Instead, the nature of the investments in this class is that distributions are received through the liquidation of the underlying assets of the fund. The investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over one was $4.4 million a nd $5.1 million as of December 31, 2022 and December 31, 2021, respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives: The following table summarizes the fair value of derivative instruments in the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 37,305 Other assets $ 6,251 Interest rate contracts Other liabilities — Other liabilities 14,879 Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 487 Other assets 3,534 Foreign currency contracts Other liabilities 19,120 Other liabilities 11,099 Derivatives Designated as Hedging Instruments: Changes in the fair value of derivative contracts designated as cash flow hedging instruments are recognized in OCI. As of December 31, 2022 and 2021, the notional amount of interest rate contracts designated as cash flow hedging instruments was $719.7 million and $869.1 million, respectively. Derivatives designated as cash flow hedging instruments were evaluated and remained highly effective at December 31, 2022 and have initia l terms of one Company estimates that approximate ly $14.9 million of net derivative gain inclu ded in OCI will be reclassified into earnings within the next 12 months. The following tables summarize the effects of derivatives designated as cash flow hedging instruments on the Consolidated Financial Statements for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): Gain or (loss) recognized in OCI, net of tax Derivatives designated as cash flow hedging instruments 2022 2021 2020 Interest rate contracts $ 32,650 $ 17,961 $ (28,101) Gain or (loss) reclassified from OCI into income Location of gain or (loss) reclassified from OCI into income 2022 2021 2020 Interest expense, net $ (976) $ (12,722) $ (10,027) Derivatives Not Designated as Hedging Instruments: The Company enters into foreign currency contracts to economically hedge the foreign currency re-measurement exposure related to certain balances that are denominated in currencies other than the functional currency of the entity. Changes in fair value of derivative contracts not designated as hedging instruments are recognized in earnings. As of December 31, 2022 and December 31, 2021, the notional amount of foreign currency contracts that are not designated as hedging instruments was $460.8 million a nd $1,061.7 million, respectively. The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s Consolidated Income Statements for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): Amount of gain or (loss) recognized in income Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2022 2021 2020 Foreign currency contracts Foreign exchange gain/(loss), net $ 38,808 $ 12,160 $ 24,009 Foreign currency contracts Interest expense, net (364) 406 (2,475) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): Gains and (losses) on cash flow hedges 2022 2021 Affected line in the Consolidated Income Statements Interest rate swaps $ (976) $ (12,722) Interest expense, net Income tax effect of item above 451 2,705 Income tax expense Total losses on cash flow hedges $ (525) $ (10,017) Changes in accumulated other comprehensive loss by component after tax, for the years ended December 31, 2022, 2021 and 2020 were as follows (amounts in thousands): Debt Securities Available for Sale Cash Flow Hedges Currency Translation Adjustment Accumulated Other Comprehensive Loss 1 Balance at December 31, 2019 $ (44) $ (13,088) $ (247,886) $ (261,018) Other comprehensive gain/(loss) before reclassifications 171 (28,101) 35,317 7,387 Reclassifications, net — 7,840 — 7,840 Net current period other comprehensive gain/(loss) 171 (20,261) 35,317 15,227 Balance at December 31, 2020 $ 127 $ (33,349) $ (212,569) $ (245,791) Other comprehensive (loss)/gain before reclassifications (348) 17,961 (48,748) (31,135) Reclassifications, net — 10,017 — 10,017 Net current period other comprehensive (loss)/gain (348) 27,978 (48,748) (21,118) Balance at December 31, 2021 $ (221) $ (5,371) $ (261,317) $ (266,909) Other comprehensive (loss)/gain before reclassifications (16) 32,650 (114,176) (81,542) Reclassifications, net — 525 — 525 Net current period other comprehensive (loss)/gain (16) 33,175 (114,176) (81,017) Balance at December 31, 2022 $ (237) $ 27,804 $ (375,493) $ (347,926) (1) For the years ended December 31, 2022, 2021 and 2020, net deferred taxes for unrealized (losses)/gains from cash flow hedges were $(9.2) million , $(3.1) million and $9.2 million, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation: The Company has a stockholder approved Omnibus Incentive Plan (the "Plan") that is intended to assist the Company in attracting and retaining selected individuals to serve as employees and directors, who are expected to contribute to the Company's success and to achieve long-term objectives that will benefit stockholders of the Company. The Plan enables the Company to award shares of the Company's common stock to select employees and directors, not to exceed 4,300,000 shares less one share for every one share granted under the 2013 Omnibus Incentive Plan after December 31, 2022. Total share-based compensation expense was $13.0 million, $15.9 million and $14.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company recognizes all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled . The total tax benefit realized from share-based compensation was approximately $6.0 million, $3.9 million and $2.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Nonvested Shares As of December 31, 2022, total future compensation expense related to nonvested share grants to individual employee plans and directors (not including nonvested shares granted under the Long-Term Incentive ("LTI") program discussed below), is estimated to be $14.4 million with a weighted average remaining lif e of 1.5 years. F or these shares, the Company assumed no forfeiture rates, ratable vesting over one The following summarizes all nonvested share activity, excluding those pursuant to the LTI program, from December 31, 2019 through December 31, 2022 (amounts in thousands, except per share amounts): Nonvested Shares Weighted-Average Balance at December 31, 2019 532 $ 30.97 Granted 256 38.69 Vested (219) 31.56 Canceled (14) 33.95 Balance at December 31, 2020 555 34.23 Granted 312 38.14 Vested (320) 33.80 Canceled (37) 36.06 Balance at December 31, 2021 510 36.76 Granted 351 41.64 Vested (269) 35.41 Canceled (36) 40.85 Balance at December 31, 2022 556 $ 40.23 The total grant date fair value of shares vested, excluding those granted under the LTI program, during the years ended December 31, 2022, 2021 and 2020, was $9.5 million, $10.8 million and $6.9 million, respectively. Long-Term Incentive Program Pursuant to the Plan, the Compensation Committee may grant time-vested and performance-based nonvested shares. All shares granted under the LTI program were granted to key employees of the Company. The following table summarizes all LTI share activity from December 31, 2019 through December 31, 2022 (amounts in thousands, except per share amounts): Nonvested LTI Shares Weighted-Average Balance at December 31, 2019 447 $ 33.03 Granted at target level 118 39.04 Adjustments for actual performance (131) 34.44 Vested (36) 33.50 Canceled (6) 33.77 Balance at December 31, 2020 392 34.30 Granted at target level 148 37.45 Adjustments for actual performance (10) 39.40 Vested (99) 39.40 Canceled (24) 35.31 Balance at December 31, 2021 407 34.01 Granted at target level 127 44.90 Adjustments for actual performance 64 28.28 Vested (222) 28.28 Canceled (21) 40.45 Balance at December 31, 2022 355 $ 40.07 The total grant date fair value of LTI shares vested during the years ended December 31, 2022, 2021 and 2020, was $6.3 million, $3.9 million and $1.2 million, respectively. At December 31, 2022, total future compensation expense, assuming the current estimated performance levels are achieved, related to nonvested shares granted under the LTI program is estimated to be approximately $3.8 million. The Company assumed a 5.0% forfeiture rate for these grants and the remaining shares have a weighted average remaining life of 1.2 years a |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share: Basic EPS are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS with the denominator adjusted for the dilutive effect of the conversion spread of the Convertible Notes and nonvested share awards, if they are dilutive. There has been no dilutive effect of the Convertible Notes since issuance through December 31, 2022. Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive. The dilutive effect of nonvested shares is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the vesting of nonvested shares would be used to purchase common shares at the average market price for the period. On February 25, 2022, the Company completed its $230.0 million share repurchase program and the Board of Directors approved a new share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its outstanding common stock. During the year ended December 31, 2022, the Company repurchased 2,331,364 shares of its common stock for approximately $99.4 million, at an average price of $42.63 per share. The Company's practice is to retire the shares it repurchases. The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands, except per share amounts): 2022 2021 2020 Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Basic EPS $ 117,147 39,638 $ 2.96 $ 183,158 44,960 $ 4.07 $ 149,339 45,540 $ 3.28 Dilutive effect of nonvested share awards — 250 (0.02) — 370 (0.03) — 320 (0.02) Diluted EPS $ 117,147 39,888 $ 2.94 $ 183,158 45,330 $ 4.04 $ 149,339 45,860 $ 3.26 There were no options outstanding, antidilutive or otherwise, as of December 31, 2022, 2021 and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The Company recognizes the current and deferred tax consequences of all transactions that have been recognized in the financial statements using the provisions of the enacted tax laws. Current tax expense represents our estimated taxes to be paid or refunded for the current period and includes income tax expense related to our uncertain tax positions. Under U.S. GAAP, the Company made an accounting policy election to treat the U.S. taxes due related to the global intangible low-taxed income ("GILTI") as a current-period expense when incurred. Deferred tax expenses are determined based on the differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The income tax expense recognized for the years ended December 31, 2022, 2021 and 2020 was comprised of the following (amounts in thousands): Federal State International Total For the year ended December 31, 2022: Current tax expense $ 8,797 $ 385 $ 26,998 $ 36,180 Deferred tax (benefit)/expense (2,848) (386) 3,841 607 Total income tax expense $ 5,949 $ (1) $ 30,839 $ 36,787 For the year ended December 31, 2021: Current tax expense $ 30,659 $ 5,397 $ 11,958 $ 48,014 Deferred tax benefit (3,056) (323) 10,182 6,803 Total income tax expense $ 27,603 $ 5,074 $ 22,140 $ 54,817 For the year ended December 31, 2020: Current tax expense $ 48,223 $ 12,416 $ 39,067 $ 99,706 Deferred tax benefit (32,699) (8,921) (16,883) (58,503) Total income tax expense $ 15,524 $ 3,495 $ 22,184 $ 41,203 A reconciliation of the Company's expected tax expense at the U.S. statutory federal tax rate to actual tax expense/(benefit) for the years ended December 31, 2022, 2021 and 2020 was as follows (amounts in thousands): 2022 2021 2020 Income tax expense at statutory federal rates $ 32,505 $ 52,568 $ 43,878 State tax expense, net of federal tax benefit (18) 4,303 2,449 Tax impact on international earnings, excluding uncertain tax positions 1,175 (4,449) (29,992) Uncertain tax positions on international earnings — — 23,917 Nondeductible compensation 3,025 2,212 — Other 100 183 951 Total income tax expense $ 36,787 $ 54,817 $ 41,203 The Company recognized a net deferred tax a sset of $14.0 million a nd $31.1 million as of December 31, 2022 and 2021, respectively. A valuation allowance for deferred tax assets is recognized and charged to earnings in the period if it is determined that it is more likely than not that the deferred tax asset will not be realized. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would have to be reversed, resulting in a positive adjustment to earnings in the period such determination was made. The determination for a valuation allowance is made on a jurisdiction-by-jurisdiction basis. The components of the net deferred tax were as follows (amounts in thousands): 2022 2021 Deferred tax assets: Employee compensation $ 5,177 $ 8,609 Net operating loss carryforward 126,549 121,035 Interest 11,042 10,160 Finance receivable revenue recognition - international — 2,351 Lease liability 10,667 11,811 Other — 4,873 Valuation allowance (68,929) (75,375) Total deferred tax asset 84,506 83,464 Deferred tax liabilities: Property and equipment (4,178) (5,075) Intangible assets and goodwill (5,118) (4,185) ROU asset (9,731) (10,884) Finance receivable revenue recognition - international (12,074) — Finance receivable revenue recognition - domestic (27,181) (32,189) Other (12,234) — Total deferred tax liability (70,516) (52,333) Net deferred tax asset $ 13,990 $ 31,131 At December 31, 2022 and 2021, the valuation allowance, relating mainly to net operating losses, capital losses and deferred interest expense in Norway, Poland, Luxembourg, Sweden and Switzerland was $68.9 million a nd $75.4 million, respectively. The decrease in the valuation allowance is primarily related to the recognition of net operating losses in Luxembourg. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the remaining net deferred tax assets. The Company's non-U.S. subsidiaries had $513.2 million an d $514.4 million of net operating loss carryforwards as of December 31, 2022 and 2021, respectively. There a re $282.4 million a nd $276.6 million of valuation allowances recorded to offset those losses as of December 31, 2022 and 2021, respectively. The net operating losses do not expire under most local laws and the remaining jurisdictions allow f or a seven orward period. As of December 31, 2022, the cumulative unremitted earnings of the Company's international subsidiaries were approximate ly $159.8 million. T he Company intends for predominantly all international earnings to be indefinitely reinvested in its international operations and, therefore, the recording of deferred tax liabilities for such unremitted earnings is not required. It is impracticable to determine the total amount of unrecognized deferred taxes with respect to these indefinitely reinvested earnings. Uncertain Tax Positions ASC 740 prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Under ASC 740, an entity should recognize a financial statement benefit for a tax position if it determines that it is more likely than not that the position will be sustained upon examination. The balance for unrecognized tax benefits (before tax effect) at December 31, 2022 and 2021, was $101.7 million and $114.3 million, respectively. The tax impact of the unrecognized tax benefits recorded in 2022 are included in the provision for income taxes. The following is a reconciliation of gross unrecognized tax benefits for the year ended December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Balance at beginning of year $ 114,294 $ 110,425 (Deductions)/additions, based on tax positions related to prior year (1) (12,591) 3,869 Balance at end of year $ 101,703 $ 114,294 (1) The 2022 deductions relate to international transactions, primarily due to foreign exchange rate fluctuations. The total amount of after-tax unrecognized tax benefits at December 31, 2022, that, if recognized, would affect the effective tax rate was $19.7 million. During the year ended December 31, 2022, the Company accrued potential interest of $1.5 million and penalties of $1.5 million related to unrecognized tax benefits. During the next 12 months it is possible that international tax reserves will be reduced for audit settlements. At this time, the Company is unable to predict the outcome of these audits. At December 31, 2022, the tax years subject to examination by the major federal, state and international taxing jurisdictions are 2014 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Employment Agreements: The Company has entered into employment agreements with each of its U.S. executive officers, which expire on December 31, 2023. Such agreements provide for base salary payments as well as potential discretionary bonuses that consider the Company's overall performance against its short and long-term financial and strategic objectives. The agreements also contain confidentiality and non-compete provisions. As of December 31, 2022, estimated future compensation under these agreements was approximately $6.8 million. Outside the U.S., the Company has entered into employment agreements with certain employees pursuant to local country regulations. Generally, these agreements do not have expiration dates. As a result it is impractical to estimate the amount of future compensation under these agreements. Accordingly, the future compensation under these agreements is not included in the $6.8 million total above. Forward Flow Agreements: The Company is party to several forward flow agreements that allow for the purchase of nonperforming loans at pre-established prices. The maximum remaining amount to be purchased under forward flow agreements at December 31, 2022 was approxima tely $792.2 million. Finance Receivables: Certain agreements for the purchase of finance receivables portfolios contain provisions that may, in limited circumstances, require the Company to refund a portion or all of the collections subsequently received by the Company on particular accounts. The potential refunds as of the balance sheet date are not considered to be significant. Litigation and Regulatory Matters: The Company and its subsidiaries are from time to time subject to a variety of routine legal and regulatory claims, inquiries and proceedings and regulatory matters, most of which are incidental to the ordinary course of its business. The Company initiates lawsuits against customers and is occasionally countersued by them in such actions. Also, customers, either individually, as members of a class action, or through a governmental entity on behalf of customers, may initiate litigation against the Company in which they allege that the Company has violated a state or federal law in the process of collecting on an account. From time to time, other types of lawsuits are brought against the Company. Additionally, the Company receives subpoenas and other requests or demands for information from regulators or governmental authorities who are investigating the Company's debt collection activities. The Company accrues for potential liability arising from legal proceedings and regulatory matters when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated. This determination is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company's best estimate of such losses for those cases for which such estimates can be made. The Company's estimate involves significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages), the number of unresolved issues in many of the proceedings (including issues regarding class certification and the scope of many of the claims), and the related uncertainty of the potential outcomes of these proceedings. In making determinations of the likely outcome of pending litigation, the Company considers many factors, including, but not limited to, the nature of the claims, the Company's experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative mechanisms, the matter's current status and the damages sought or demands made. Accordingly, the Company's estimate will change from time to time, and actual losses could be more than the current estimate. The Company believes that the estimate of the aggregate range of reasonably possible losses in excess of the amount accrued for its legal proceedings outstanding at December 31, 2022, where the range of loss can be estimated, was not material. In certain legal proceedings, the Company may have recourse to insurance or third-party contractual indemnities to cover all or portions of its litigation expenses, judgments, or settlements. Loss estimates and accruals for potential liability related to legal proceedings are typically exclusive of potential recoveries, if any, under the Company's insurance policies or third-party indemnities. The Company has not recorded any potential recoveries under the Company's insurance policies or third-party indemnities as of December 31, 2022. The matters described below fall outside of the normal parameters of the Company's routine legal proceedings. Consumer Financial Protection Bureau ("CFPB") Investigation In response to requests and civil investigative demands from the CFPB, the Company has provided certain documents and data regarding its debt collection practices to the CFPB. In December 2020, the CFPB advised the Company that the CFPB believes the Company may have violated certain provisions of the Company's Consent Order with the CFPB and applicable law and provided the Company with the opportunity to respond. The Company has discussed with the CFPB the possible resolution of the investigation. During the Company's discussions with the CFPB, the CFPB has taken positions with which the Company disagrees, including positions related to penalties, restitution and/or the adoption of new practices in the conduct of the Company's business. At this time, the Company believes accruals recorded reflect the anticipated outcome of the investigation. Multi-State Investigation On November 17, 2015, the Company received civil investigative demands from multiple state Attorneys General offices ("AGOs") broadly relating to its U.S. debt collection practices. The Company believes that it has fully cooperated with the investigations and discussed potential resolution of the investigations with the AGOs. In these discussions, the AGOs have taken positions with which the Company disagrees, including positions related to penalties, restitution and/or the adoption of new practices and controls in the conduct of the Company's business. Although the Company has settled certain claims with one of the states, it is possible that one or more of the remaining individual state AGOs may file claims against the Company if the Company is unable to resolve its differences with them. Iris Pounds v. Portfolio Recovery Associates, LLC On November 21, 2016, Plaintiffs filed a putative class action against the Company in Durham County, North Carolina alleging violations of the North Carolina Prohibited Practices by Collection Agencies Act. The purported class consists of all individuals against whom the Company had obtained a judgment by default in North Carolina on or after October 1, 2009. On December 9, 2016, the Company removed the matter to the United States District Court for the Middle District of North Carolina (the "District Court"). On March 28, 2018, the District Court entered an order remanding the matter to the North Carolina state court; the United States Court of Appeals for the Fourth Circuit denied the Company’s request for discretionary review on May 17, 2018. On January 11, 2019, the Company filed motions to compel arbitration with the North Carolina state court, which were denied. The North Carolina Court of Appeals affirmed the denial of the Company’s motion to compel arbitration. Thereafter, the matter was stayed pending a decision by the North Carolina Supreme Court in a related case, Pia Townes v. PRA , which raised issues of first impression regarding interpretation of a number of provisions of the statute at issue. The North Carolina Supreme Court affirmed the decision in Pia Townes v. PRA by an equally divided court, thereby rendering the decision of the Court of Appeals of no precedential value. Discovery in this matter is ongoing, and the Company is defending the matter vigorously. The range of loss, if any, cannot be estimated at this time due to the uncertainty surrounding liability, class certification, ultimate class size, and interpretation of the statute, including statutory damages. Telephone Consumer Protection Act ("TCPA") Litigation On January 25, 2017, the Company resolved the matter of In Re Portfolio Recovery Associates, LLC Telephone Consumer Protection Act Litigation , which consisted of a number of class actions and single plaintiff claims consolidated by order of the Panel for Multi-District Litigation ("MDL"). While the settlement disposed of a large number of claims, several hundred class members opted out ("Opt-Out Plaintiffs") of that settlement. Many of these Opt-Out Plaintiffs have been consolidated before the MDL appointed court, which is the U.S. District Court for the Southern District of California, and are pending a determination on cross-motions for summary judgment. On April 1, 2021, the U.S. Supreme Court defined "automatic telephone dialing system" in its Facebook v. Duguid |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans: The Company sponsors defined contribution plans primarily in the U.S. and Europe. The U.S. plan is organized as a 401(k) plan under which all employees over 18 years of age are eligible to make voluntary contributions to the plan up to 100% of their compensation, subject to IRS limitations, after completing six months of service, as defined in the plan. The Company makes matching contributions of up to 4% of an employee's salary. For the defined contribution plans in Europe, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Total compensation expense related to the Company's contributio ns was $7.2 million, $6.5 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event:On February 6, 2023, the Company completed the private offering of $400.0 million aggregate principal amount of 8.375% Senior Notes due 2028 ("2028 Notes"). The 2028 Notes will accrue at a rate of its 8.375% per annum payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 2023. The 2028 Notes will mature on February 1, 2028, subject to earlier repurchase or redemption. A portion of the funds received from the 2028 Notes were deposited into a newly-formed segregated deposit account and the Company will use such proceeds to retire all or any portion of the 2023 Notes or to satisfy any other obligations with respect to the 2023 Notes. The Company used the remainder of the net proceeds to repay a portion of its outstanding borrowings under the domestic revolving credit facility under the North America Credit Agreement. |
General and Summary of Signif_2
General and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions. |
Consolidation | Consolidation: The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Company control, consist of entities that purchase and collect on portfolios of nonperforming loans. Investments in companies in which the Company has significant influence over operating and financing decisions, but does not own a majority of the voting equity interests, are accounted for in accordance with the equity method of accounting, which requires the Company to recognize its proportionate share of the entity’s net earnings. These investments are included in Other assets, with income or loss included in Other revenue. The Company performs on-going reassessments whether changes in the facts and circumstances regarding the Company’s involvement with an entity cause the Company’s consolidation conclusion to change. |
Reclassification of prior year presentation and correction of immaterial errors | Reclassification of prior year presentation: Certain prior year amounts have been reclassified for consistency with the current year presentation. Fee income is now included within Other revenue on the Consolidated Income Statements. |
Foreign currency | Foreign currency: Assets and liabilities have been translated to the reporting currency using the exchange rates in effect on the Consolidated Balance Sheets dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year, which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of international subsidiaries are recorded in Accumulated other comprehensive (loss)/income in the accompanying Consolidated Statements of Changes in Equity. |
Segments | Segments: The Company has determined that it has two operating segments that meet the aggregation criteria of Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280"), and, therefore, it has one reportable segment, accounts receivable management. This conclusion is based on similarities among the operating segments, including economic characteristics, the nature of the products and services, the nature of the production processes, the types or classes of customers for their products and services, the methods used to distribute their products and services and the nature of the regulatory environment. |
Cash and cash equivalents | Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Restricted cash: Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and included in Other assets on the Company's Consolidated Balance Sheets. |
Concentrations of credit risk | Concentrations of credit risk: Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, derivative instruments and finance receivables. |
Accumulated other comprehensive income/(loss) | Accumulated other comprehensive loss: The Company records unrealized gains and losses on certain available-for-sale investments and foreign currency translation adjustments in other comprehensive income ("OCI"). Unrealized gains and losses on available for sale investments are reclassified to earnings as the gains or losses are realized upon sale of the securities. Translation gains or losses on foreign currency translation adjustments are reclassified to earnings upon the substantial sale or liquidation of investments in international operations. For the Company’s financial derivative instruments that are designated as hedging instruments, the change in fair value of the derivative is recorded in OCI. |
Investments | Investments: Debt Securities: The Company determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are carried at amortized cost. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Available-for-sale securities are carried at fair market value. Fair value is determined using quoted market prices. Unrealized gains and losses are included in comprehensive income and reported in stockholders' equity. The Company evaluates debt securities for impairment. When there has been a decline in fair value below the amortized cost, the Company recognizes an impairment if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost; or (3) it does not expect to recover the entire amortized cost of the security. If the Company identifies that the decline in fair value has resulted from credit losses, the credit loss component is recognized as an allowance on the Consolidated Balance Sheets with a corresponding charge to Other expense on the Consolidated Income Statements. The non-credit loss component remains in Other comprehensive loss until realized from a sale or subsequent impairment. Equity Securities: Investments in equity securities are measured at fair value with changes in unrealized gains and losses reported in earnings. Equity Method Investments: Equity investments that are not consolidated, but over which the Company exercises significant influence, are accounted for as equity method investments. Whether or not the Company exercises significant influence with respect to an investee company depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Income Statements; however, the Company’s share of the earnings or losses of the investee company is reflected in the caption ‘‘Other revenue’’ in the Consolidated Income Statements. The Company’s carrying value in an equity method investee company is reflected in the caption ‘‘Investments’’ in the Company’s Consolidated Balance Sheets. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s Consolidated Financial Statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. |
Finance receivables and income recognition | Finance receivables and income recognition: The Company's financial assets (or a group of financial assets) are measured at amortized cost and presented at the net amount expected to be collected. Credit quality information : The Company acquires portfolios of accounts that have experienced deterioration of credit quality between origination and the Company's acquisition of the accounts. The amount paid for a portfolio reflects the Company's determination that it is probable the Company will be unable to collect all amounts due according to an account's contractual terms. The Company accounts for the portfolios in accordance with the guidance for purchased credit deteriorated ("PCD") assets. The initial allowance for credit losses is added to the purchase price rather than recorded as a credit loss expense. The Company has established a policy to write off the amortized cost of individual assets when it deems probable that it will not collect on an individual asset. Due to the deteriorated credit quality of the individual accounts, the Company may write off the unpaid principal balance of all accounts in a portfolio at the time of acquisition. However, when the Company has an expectation of collecting cash flows at the portfolio level, a negative allowance is established for expected recoveries at an amount not to exceed the amount paid for the financial portfolios. The negative allowance is recorded as an asset and presented as Finance receivables, net on the Company's Consolidated Balance Sheets. Portfolio segments : The Company develops systematic methodologies to determine its allowance for credit losses at the portfolio segment level. The Company’s nonperforming loan portfolio segments consist of two broad categories: Core and Insolvency. The Company’s Core portfolios contain loan accounts that are in default, which were purchased at a substantial discount to face value because either the credit originator and/or other third-party collection agencies have been unsuccessful in collecting the full balance owed. The Company’s Insolvency portfolios contain loan accounts that are in default and the customer is involved in a bankruptcy or insolvency proceeding and the accounts were purchased at a substantial discount to face value. Each of the two broad portfolio segments of purchased nonperforming loan portfolios consist of large numbers of homogeneous receivables with similar risk characteristics. Effective interest rate and accounting pools : Within each portfolio segment, the Company pools accounts with similar risk characteristics that are acquired in the same year. Similar risk characteristics generally include portfolio segment and geographic region. The initial effective interest rate of the pool is established based on the purchase price and expected recoveries of each individual purchase at the purchase date. During the year of acquisition, the annual pool is aggregated, and the blended effective interest rate will adjust to reflect new acquisitions and new cash flow estimates until the end of the year. The effective interest rate for a pool is fixed for the remaining life of the pool once the year has ended. Methodology : The Company develops its estimates of expected recoveries in the Consolidated Balance Sheets by applying discounted cash flow methodologies to its estimated remaining collections ("ERC") and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. Subsequent changes (favorable and unfavorable) in expected cash flows are recognized within Changes in expected recoveries in the Consolidated Income Statements by adjusting the present value of increases or decreases in ERC at a constant effective interest rate. Amounts included in the estimate of recoveries do not exceed the aggregate amount of the amortized cost basis previously written off or expected to be written off. The measurement of expected recoveries is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Development of the Company’s forecasts rely on both quantitative and qualitative factors. Qualitative factors can include both external and internal information and consider management’s view on available facts and circumstances at each reporting period. More specifically, external factors that may have an impact on the collectability, and subsequently on the overall profitability of acquired portfolios of nonperforming loans, would include new laws or regulations relating to collections, new interpretations of existing laws or regulations, and the overall condition of the economy. Internal factors that may have an impact on the collectability, and subsequently the overall profitability of acquired portfolios of nonperforming loans, would include necessary revisions to initial and post-acquisition operational scoring and modeling estimates, operational activities, expected impact of operational strategies and changes in productivity related to turnover and tenure of the Company's collection staff. Portfolio income : The recognition of income on expected recoveries is based on the constant effective interest rate established for a pool. Changes in expected recoveries : The activity consists of differences between actual recoveries compared to expected recoveries for the reporting period, as well as the net present value of increases or decreases in ERC at the constant effective interest rate. Agreements to acquire the aforementioned receivables include general representations and warranties from the sellers covering matters such as account holder death or insolvency and accounts settled or disputed prior to sale. The representation and warranty period permitting the return of these accounts from the Company to the seller is typically 90 to 180 days, with certain international agreements extending as long as 24 months. Any funds received from the seller as a return of purchase price are referred to as buybacks. Buyback funds are included in changes in expected recoveries when received. Fees paid to third parties other than the seller related to the direct acquisition of a portfolio of accounts are expensed when incurred. |
Fee income recognition | Fee income recognition: The Company recognizes revenue from its class action claims recovery services when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the amount is fixed or determinable, and collectability is reasonably assured. This revenue is included within Other revenue in the Company's Consolidated Income Statements. |
Property and equipment | Property and equipment: Property and equipment, including improvements that significantly add to the productive capacity or extend useful life, are recorded at cost. Maintenance and repairs are expensed as incurred. Property and equipment are depreciated over their useful lives using the straight-line method of depreciation. Software and computer equipment are generally amortized or depreciated over three se. Building improvements are depreciated straight-line over ten n property is sold or retired, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in the Company's Consolidated Income Statements. |
Goodwill | Goodwill: Goodwill is not amortized but rather is reviewed for impairment annually or more frequently if indicators of potential impairment exist. The Company performs its annual assessment of goodwill as of October 1. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an impairment loss is recognized. The loss will be recorded at the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the respective reporting unit. |
Convertible senior notes | Convertible Notes: The Company has outstanding 3.50% Convertible Notes due 2023 (the "2023 Notes" or "Convertible Notes") which are accounted for as a single liability measured at amortized cost. See Note 6 |
Income taxes | Income taxes: The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is estimated using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company is subject to income taxes throughout the U.S. and in numerous international jurisdictions. The Company recognizes the financial statement benefits of a tax position if it is more likely than not to be sustained in the event of challenges by relevant taxing authorities based on the technical merit. The amounts of benefit to recognize in the financial statements are the largest benefits that have a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authorities. The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense when the more likely than not standards are not met. In preparation of the Consolidated Financial Statements, the Company exercises significant judgment in estimating the potential exposure to unresolved tax matters and applies a more likely than not criteria approach for recording tax benefits related to uncertain tax positions in the application of complex tax laws. While actual results could vary, the Company believes it has adequate tax accruals with respect to the ultimate outcome of such tax matters. The Company, establishes a valuation allowance in the period in which it determines that part or all of the deferred tax asset is not realizable. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings . |
Operating leases | Leases: The Company recognizes a liability for future lease payments and a right-of-use ("ROU") asset representing its right to use the underlying asset for the lease term on the balance sheet. The Company's operating lease portfolio primarily includes corporate offices and call centers. The majority of its leases have remaining lease terms of one year to 14 years, some of which include options to extend the leases for up to five years, and others include options to terminate the leases within one year. Exercises of lease renewal options are typically at the Company's sole discretion and are included in its ROU assets and lease liabilities based upon whether the Company is reasonably certain of exercising the renewal options. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Share-based compensation | Share-based compensation: Compensation expense associated with share equity awards are recognized in the income statement. The Company determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. The Company has certain share awards that include market conditions that affect vesting. The fair value of these shares is estimated using a lattice model. Compensation cost is not adjusted if the market condition is not met, as long as the requisite service is provided. The Company estimates a forfeiture rate for most equity share grants based on historical experience. Time-based equity share awards generally vest between one Note 11 for additional information. |
Derivatives | Derivatives: The Company periodically enters into derivative financial instruments, typically interest rate swap agreements, interest rate caps, and foreign currency contracts to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. The Company does not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed nor does it enter into or hold derivatives for trading or speculative purposes. All of the Company's outstanding derivative financial instruments are recognized in the balance sheet at their fair values. The effect on earnings from recognizing the fair values of these derivative financial instruments depends on their intended use, their hedge designation, and their effectiveness in offsetting changes in the fair values of the exposures they are hedging. Changes in the fair values of instruments designated to reduce or eliminate adverse fluctuations in the fair values of recognized assets and liabilities and unrecognized firm commitments are reported in earnings along with changes in the fair values of the hedged items. Changes in the effective portions of the fair values of instruments used to reduce or eliminate adverse fluctuations in cash flows of anticipated or forecasted transactions are reported in equity as a component of Accumulated other comprehensive loss. Amounts in Accumulated other comprehensive loss are reclassified to earnings when the related hedged items affect earnings or the anticipated transactions are no longer probable. Changes in the fair values of derivative instruments that are not designated as hedges or do not qualify for hedge accounting treatment are reported in earnings. The Company realizes gains and losses from derivative instruments in the same financial statement line item as the hedged item/forecasted transaction. Changes in unrealized gains and losses for derivatives not designated in a hedge accounting relationship are recorded directly in earnings each period and are also recorded in the same financial statement line item as the hedged item or forecasted transaction. Cash flows from the settlement of derivatives, including both economic hedges and those designated in hedge accounting relationships, appear in the Consolidated Statements of Cash Flows in the same categories as the cash flows of the hedged item. For derivative financial instruments accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective, and the manner in which effectiveness of the hedge will be assessed. The Company formally assesses, both at inception and at each reporting period thereafter, whether the derivative financial instruments used in hedging transactions are effective in offsetting changes in fair value or cash flows of the related underlying exposures. The Company discontinues the use of hedge accounting prospectively when (1) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item; (2) the derivative instrument expires, is |
Use of estimates | Use of estimates: The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates have been made by management with respect to the timing and amount of future cash collections of the Company's finance receivables portfolios. Actual results could differ from these estimates making it reasonably possible that a change in these estimates could occur within one year. |
Commitments and contingencies | Commitments and contingencies: The Company is subject to various claims and contingencies related to lawsuits, certain taxes and commitments under contractual and other obligations. The Company recognizes liabilities for commitments and contingencies when a loss is probable and estimable. The Company expenses related legal costs as incurred. See Note 14 for additional information. |
Estimated fair value of financial instruments | Estimated fair value of financial instruments: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company takes into consideration differing levels of inputs in the determination of fair values. Disclosure of the estimated fair values of financial instruments often requires the use of estimates. See Note 8 for additional information. |
Recent accounting pronouncements | Recent accounting pronouncements: Recently issued accounting standards adopted: Reference Rate Reform In January 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-01, "Reference Rate Reform (Topic 848): Overall" ("ASU 2021-01"). ASU 2021-01 expands the scope of Reference Rate Reform ("ASC 848") to include derivatives affected by the discounting transition for certain optional expedients and exceptions. ASU 2021-01 was effective immediately for a limited time through December 31, 2022. The Company assessed whether amendments and modifications to its swap agreements and borrowing agreements qualify for any optional expedients. During the first quarter of 2022, the Company elected certain optional expedients under ASC 848 to maintain cash flow hedge accounting for swap agreements with a combined notional amount of $422.8 million after interest rate swaps that were indexed to the Gross Domestic Product ("GDP") London Inter-Bank Offer Rate ("LIBOR") converted to the Sterling Overnight Index Average ("SONIA"), effective January 1, 2022. In the second quarter of 2022, the Company exited the relief provisions under ASC 848 after updating the hedged risk on these cash flow hedges to reflect SONIA-based cash flows expected to occur under the United Kingdom ("UK") Credit Agreement. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date ("ASU 2022-06"). ASU 2022-06 defers the sunset date from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Recently issued accounting standards not yet adopted: |
General and Summary of Signif_3
General and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Revenues and Long-lived Assets by Geographical Location | Revenue for the years ended December 31, 2022, 2021 and 2020, and long-lived assets held at December 31, 2022 and 2021, both for the U.S., the Company's country of domicile, and outside of the U.S. were (amounts in thousands): 2022 2021 2020 2022 2021 Revenues (2) Long-Lived Assets United States $ 520,747 $ 651,991 $ 677,234 $ 79,865 $ 87,881 United Kingdom 181,725 175,383 132,749 12,141 7,264 Others (1) 264,052 268,358 255,431 14,145 16,081 Total $ 966,524 $ 1,095,732 $ 1,065,414 $ 106,151 $ 111,226 (1) None of the countries included in "Others" comprise greater than 10% of the Company's consolidated revenues or long-lived assets. (2) Based on the Company’s financial statement information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers by product or service. |
Finance Receivables, net (Table
Finance Receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net consisted of the following at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Amortized cost $ — $ — Negative allowance for expected recoveries 3,295,008 3,428,285 Balance at end of year $ 3,295,008 $ 3,428,285 |
Schedule of Changes in Negative Allowance for Expected Recoveries | Changes in the negative allowance for expected recoveries by portfolio segment for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Balance at beginning of year $ 2,989,932 $ 438,353 $ 3,428,285 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 771,977 78,019 849,996 Foreign currency translation adjustment (156,795) (20,536) (177,331) Recoveries applied to negative allowance (2) (795,489) (179,357) (974,846) Changes in expected recoveries (3) 126,582 42,322 168,904 Balance at end of year $ 2,936,207 $ 358,801 $ 3,295,008 2021 Core Insolvency Total Balance at beginning of year $ 3,019,477 $ 495,311 $ 3,514,788 Initial negative allowance for expected recoveries - portfolio acquisitions (1) 863,379 108,901 972,280 Foreign currency translation adjustment (68,544) (2,189) (70,733) Recoveries applied to negative allowance (2) (1,002,400) (183,554) (1,185,954) Changes in expected recoveries (3) 178,020 19,884 197,904 Balance at end of year $ 2,989,932 $ 438,353 $ 3,428,285 (1) Initial negative allowance for expected recoveries - portfolio acquisitions Portfolio acquisitions for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Face value $ 5,174,974 $ 455,644 $ 5,630,618 Noncredit discount (541,686) (28,279) (569,965) Allowance for credit losses at acquisition (3,861,311) (349,346) (4,210,657) Purchase price $ 771,977 $ 78,019 $ 849,996 2021 Core Insolvency Total Face value $ 5,917,827 $ 508,868 $ 6,426,695 Noncredit discount (696,983) (37,202) (734,185) Allowance for credit losses at acquisition (4,357,465) (362,765) (4,720,230) Purchase price $ 863,379 $ 108,901 $ 972,280 The initial negative allowance recorded on portfolio acquisitions for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Allowance for credit losses at acquisition $ (3,861,311) $ (349,346) $ (4,210,657) Writeoffs, net 3,861,311 349,346 4,210,657 Expected recoveries 771,977 78,019 849,996 Initial negative allowance for expected recoveries $ 771,977 $ 78,019 $ 849,996 2021 Core Insolvency Total Allowance for credit losses at acquisition $ (4,357,465) $ (362,765) $ (4,720,230) Writeoffs, net 4,357,465 362,765 4,720,230 Expected recoveries 863,379 108,901 972,280 Initial negative allowance for expected recoveries $ 863,379 $ 108,901 $ 972,280 (2) Recoveries applied to negative allowance Recoveries applied to the negative allowance for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Recoveries (a) $ 1,521,504 $ 225,657 $ 1,747,161 Less - amounts reclassified to portfolio income 726,015 46,300 772,315 Recoveries applied to negative allowance $ 795,489 $ 179,357 $ 974,846 2021 Core Insolvency Total Recoveries (a) $ 1,818,635 $ 242,646 $ 2,061,281 Less - amounts reclassified to portfolio income 816,235 59,092 875,327 Recoveries applied to negative allowance $ 1,002,400 $ 183,554 $ 1,185,954 (a) Recoveries includes cash collections, buybacks and other cash-based adjustments. (3) Changes in expected recoveries Changes in expected recoveries for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Core Insolvency Total Changes in expected future recoveries $ 48,806 $ 13,405 $ 62,211 Recoveries received in excess of forecast 77,776 28,917 106,693 Changes in expected recoveries $ 126,582 $ 42,322 $ 168,904 2021 Core Insolvency Total Changes in expected future recoveries $ (35,432) $ (16,816) $ (52,248) Recoveries received in excess of forecast 213,452 36,700 250,152 Changes in expected recoveries $ 178,020 $ 19,884 $ 197,904 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments consisted of the following at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Debt securities Available-for-sale $ 66,813 $ 77,538 Equity securities Exchange traded funds — 1,746 Private equity funds 4,373 5,137 Mutual funds — 508 Equity method investments 8,762 8,048 Total investments $ 79,948 $ 92,977 |
Unrealized Gain (Loss) on Investments | The amortized cost and estimated fair value of investments in debt securities at December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 67,049 $ 1 $ 237 $ 66,813 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Aggregate Fair Value Available-for-sale Government securities $ 77,757 $ — $ 219 $ 77,538 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Operating lease expense $ 11,981 $ 12,256 Short-term lease expense 2,374 2,986 Sublease income (486) (196) Total lease expense $ 13,869 $ 15,046 Supplemental cash flow information and non-cash activity related to leases for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 11,852 $ 12,034 ROU assets obtained in exchange for operating lease obligations $ 8,882 $ 13,525 Lease term and discount rate information related to operating leases were as follows: 2022 2021 Weighted-average remaining lease terms (years) 8.0 8.6 Weighted-average discount rate 4.5 % 4.5 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at December 31, 2022, are as follows for the years ending December 31, (amounts in thousands): Operating Leases 2023 $ 10,827 2024 10,086 2025 9,845 2026 8,740 2027 5,905 Thereafter 25,725 Total lease payments 71,128 Less: imputed interest 11,744 Total present value of lease liabilities $ 59,384 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The changes in goodwill for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Balance at beginning of year $ 480,263 $ 492,989 Change in foreign currency translation adjustment (44,342) (12,726) Balance at end of year $ 435,921 $ 480,263 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's borrowings consisted of the following as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Americas revolving credit (1) $ 186,867 $ 372,119 UK revolving credit 453,528 — Europe revolving credit 419,856 795,687 Term loan 450,000 460,000 Senior Notes 650,000 650,000 Convertible Notes 345,000 345,000 2,505,251 2,622,806 Less: Debt discount and issuance costs (10,393) (14,092) Total $ 2,494,858 $ 2,608,714 (1) Includes the North American revolving credit facility and an unsecured credit agreement with Banco de Occidente (the "Colombian revolving credit facility"). As of December 31, 2022 and 2021, the outstanding balance under the Colombian revolving credit facility was approximately $0.5 million an d $0.9 million, respectively. |
Schedule of Maturities of Long-term Debt | The following principal payments are due on the Company's borrowings at December 31, 2022 for the years ending December 31, (amounts in thousands): 2023 $ 355,251 2024 10,251 2025 310,000 2026 1,059,893 2027 419,856 Thereafter 350,000 Total $ 2,505,251 |
Schedule of Line of Credit Facilities | The outstanding balances and weighted average interest rates by type of borrowing under the credit facility as of December 31, 2022 and 2021 were as follows (dollar amounts in thousands): 2022 2021 Amount Outstanding Weighted Average Interest Rate Amount Outstanding Weighted Average Interest Rate Term loan $ 450,000 6.38 % $ 460,000 2.10 % Revolving credit facilities 186,365 6.33 371,220 2.14 The outstanding balance and weighted average interest rate by type of borrowing under the UK Credit Agreement as of December 31, 2022 were as follows (dollar amounts in thousands): 2022 Amount Outstanding Weighted Average Interest Rate Revolving credit facility $ 453,528 5.54 % The outstanding balances and weighted average interest rates by type of borrowing under the European Credit Agreement and the Prior Facility Credit Agreement as of December 31, 2022 and 2021, respectively, were as follows (dollar amounts in thousands): 2022 2021 Amount Outstanding Weighted Average Interest Rate Amount Outstanding Weighted Average Interest Rate Revolving credit facilities $ 419,856 5.94 % $ 795,687 3.48 % |
Schedule of Liability and Equity Components | The balances of the liability component of the Company's Convertible Notes outstanding as of December 31, 2022 and 2021 were as follows (amounts in thousands): 2022 2021 Liability component - principal amount $ 345,000 $ 345,000 Unamortized debt issuance costs (748) (2,476) Liability component - net carrying amount $ 344,252 $ 342,524 |
Schedule of Debt Interest Expense | Interest expense related to the Company's Convertible Notes for the years ended December 31, 2022, 2021 and 2020 was as follows (amounts in thousands): 2022 2021 2020 (1) Interest expense - stated coupon rate $ 12,075 $ 12,075 $ 17,064 Interest expense - amortization of debt discount — — 10,811 Interest expense - amortization of debt issuance costs 1,727 1,660 1,989 Total interest expense - Convertible Notes $ 13,802 $ 13,735 $ 29,864 (1) 2020 amounts include interest expense related to the Company's 3.00% Convertible Senior Notes due August 1, 2020, which were repaid in the third quarter of 2020. |
Schedule of Interest Expense, Net | Interest expense, net, was as follows for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): 2022 2021 2020 Interest expense $ 132,905 $ 125,231 $ 142,727 Interest income (2,228) (1,088) (1,015) Interest expense, net $ 130,677 $ 124,143 $ 141,712 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, at Cost | Property and equipment, at cost, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Software $ 71,775 $ 69,549 Computer equipment 24,685 25,457 Furniture and fixtures 17,751 20,034 Equipment 15,819 15,297 Leasehold improvements 22,486 17,606 Building and improvements 19,931 19,456 Land 1,407 1,407 Accumulated depreciation (123,141) (117,420) Assets in process 932 3,127 Property and equipment, net $ 51,645 $ 54,513 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying and Estimated Fair Value Recorded in the Consolidated Balance Sheet | The carrying amounts in the table were recorded in the Consolidated Balance Sheets at December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents $ 83,376 $ 83,376 $ 87,584 $ 87,584 Finance receivables, net 3,295,008 3,167,813 3,428,285 3,317,658 Financial liabilities: Interest-bearing deposits 112,992 112,992 124,623 124,623 Revolving lines of credit 1,060,251 1,060,251 1,167,806 1,167,806 Term loan 450,000 450,000 460,000 460,000 Senior Notes 650,000 580,433 650,000 673,366 Convertible Notes 345,000 341,926 345,000 406,607 |
Summary of Fair Value Assets Measured on a Recurring Basis | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying Consolidated Balance Sheets at December 31, 2022 and 2021 (amounts in thousands): Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Government securities $ 66,813 $ — $ — $ 66,813 Derivative contracts (recorded in Other assets) — 37,792 — 37,792 Liabilities: Derivative contracts (recorded in Other liabilities) — 19,120 — 19,120 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Government securities $ 77,538 $ — $ — $ 77,538 Exchange traded funds 1,746 — — 1,746 Mutual funds 508 — — 508 Derivative contracts (recorded in Other assets) — 9,785 — 9,785 Liabilities: Derivative contracts (recorded in Other liabilities) — 25,978 — 25,978 |
Summary of Fair Value Liabilities Measured on a Recurring Basis | The carrying amounts in the following table are measured at fair value on a recurring basis in the accompanying Consolidated Balance Sheets at December 31, 2022 and 2021 (amounts in thousands): Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Government securities $ 66,813 $ — $ — $ 66,813 Derivative contracts (recorded in Other assets) — 37,792 — 37,792 Liabilities: Derivative contracts (recorded in Other liabilities) — 19,120 — 19,120 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Government securities $ 77,538 $ — $ — $ 77,538 Exchange traded funds 1,746 — — 1,746 Mutual funds 508 — — 508 Derivative contracts (recorded in Other assets) — 9,785 — 9,785 Liabilities: Derivative contracts (recorded in Other liabilities) — 25,978 — 25,978 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the fair value of derivative instruments in the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 37,305 Other assets $ 6,251 Interest rate contracts Other liabilities — Other liabilities 14,879 Derivatives not designated as hedging instruments: Foreign currency contracts Other assets 487 Other assets 3,534 Foreign currency contracts Other liabilities 19,120 Other liabilities 11,099 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables summarize the effects of derivatives designated as cash flow hedging instruments on the Consolidated Financial Statements for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): Gain or (loss) recognized in OCI, net of tax Derivatives designated as cash flow hedging instruments 2022 2021 2020 Interest rate contracts $ 32,650 $ 17,961 $ (28,101) Gain or (loss) reclassified from OCI into income Location of gain or (loss) reclassified from OCI into income 2022 2021 2020 Interest expense, net $ (976) $ (12,722) $ (10,027) |
Schedule of derivative instruments not designated as hedging instruments | The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s Consolidated Income Statements for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands): Amount of gain or (loss) recognized in income Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2022 2021 2020 Foreign currency contracts Foreign exchange gain/(loss), net $ 38,808 $ 12,160 $ 24,009 Foreign currency contracts Interest expense, net (364) 406 (2,475) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2022 and 2021 were as follows (amounts in thousands): Gains and (losses) on cash flow hedges 2022 2021 Affected line in the Consolidated Income Statements Interest rate swaps $ (976) $ (12,722) Interest expense, net Income tax effect of item above 451 2,705 Income tax expense Total losses on cash flow hedges $ (525) $ (10,017) Changes in accumulated other comprehensive loss by component after tax, for the years ended December 31, 2022, 2021 and 2020 were as follows (amounts in thousands): Debt Securities Available for Sale Cash Flow Hedges Currency Translation Adjustment Accumulated Other Comprehensive Loss 1 Balance at December 31, 2019 $ (44) $ (13,088) $ (247,886) $ (261,018) Other comprehensive gain/(loss) before reclassifications 171 (28,101) 35,317 7,387 Reclassifications, net — 7,840 — 7,840 Net current period other comprehensive gain/(loss) 171 (20,261) 35,317 15,227 Balance at December 31, 2020 $ 127 $ (33,349) $ (212,569) $ (245,791) Other comprehensive (loss)/gain before reclassifications (348) 17,961 (48,748) (31,135) Reclassifications, net — 10,017 — 10,017 Net current period other comprehensive (loss)/gain (348) 27,978 (48,748) (21,118) Balance at December 31, 2021 $ (221) $ (5,371) $ (261,317) $ (266,909) Other comprehensive (loss)/gain before reclassifications (16) 32,650 (114,176) (81,542) Reclassifications, net — 525 — 525 Net current period other comprehensive (loss)/gain (16) 33,175 (114,176) (81,017) Balance at December 31, 2022 $ (237) $ 27,804 $ (375,493) $ (347,926) (1) For the years ended December 31, 2022, 2021 and 2020, net deferred taxes for unrealized (losses)/gains from cash flow hedges were $(9.2) million , $(3.1) million and $9.2 million, respectively. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Nonvested Share Transactions | The following summarizes all nonvested share activity, excluding those pursuant to the LTI program, from December 31, 2019 through December 31, 2022 (amounts in thousands, except per share amounts): Nonvested Shares Weighted-Average Balance at December 31, 2019 532 $ 30.97 Granted 256 38.69 Vested (219) 31.56 Canceled (14) 33.95 Balance at December 31, 2020 555 34.23 Granted 312 38.14 Vested (320) 33.80 Canceled (37) 36.06 Balance at December 31, 2021 510 36.76 Granted 351 41.64 Vested (269) 35.41 Canceled (36) 40.85 Balance at December 31, 2022 556 $ 40.23 |
Summarization of Option Related Transactions | The following table summarizes all LTI share activity from December 31, 2019 through December 31, 2022 (amounts in thousands, except per share amounts): Nonvested LTI Shares Weighted-Average Balance at December 31, 2019 447 $ 33.03 Granted at target level 118 39.04 Adjustments for actual performance (131) 34.44 Vested (36) 33.50 Canceled (6) 33.77 Balance at December 31, 2020 392 34.30 Granted at target level 148 37.45 Adjustments for actual performance (10) 39.40 Vested (99) 39.40 Canceled (24) 35.31 Balance at December 31, 2021 407 34.01 Granted at target level 127 44.90 Adjustments for actual performance 64 28.28 Vested (222) 28.28 Canceled (21) 40.45 Balance at December 31, 2022 355 $ 40.07 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation Between the Computation of Basic EPS and Diluted EPS | The following table provides a reconciliation between the computation of basic EPS and diluted EPS for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands, except per share amounts): 2022 2021 2020 Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Net Income Attributable to PRA Group, Inc. Weighted Average Common Shares EPS Basic EPS $ 117,147 39,638 $ 2.96 $ 183,158 44,960 $ 4.07 $ 149,339 45,540 $ 3.28 Dilutive effect of nonvested share awards — 250 (0.02) — 370 (0.03) — 320 (0.02) Diluted EPS $ 117,147 39,888 $ 2.94 $ 183,158 45,330 $ 4.04 $ 149,339 45,860 $ 3.26 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense Recognized | The income tax expense recognized for the years ended December 31, 2022, 2021 and 2020 was comprised of the following (amounts in thousands): Federal State International Total For the year ended December 31, 2022: Current tax expense $ 8,797 $ 385 $ 26,998 $ 36,180 Deferred tax (benefit)/expense (2,848) (386) 3,841 607 Total income tax expense $ 5,949 $ (1) $ 30,839 $ 36,787 For the year ended December 31, 2021: Current tax expense $ 30,659 $ 5,397 $ 11,958 $ 48,014 Deferred tax benefit (3,056) (323) 10,182 6,803 Total income tax expense $ 27,603 $ 5,074 $ 22,140 $ 54,817 For the year ended December 31, 2020: Current tax expense $ 48,223 $ 12,416 $ 39,067 $ 99,706 Deferred tax benefit (32,699) (8,921) (16,883) (58,503) Total income tax expense $ 15,524 $ 3,495 $ 22,184 $ 41,203 |
Schedule of Reconciliation of Expected Tax Expense at The Statutory Federal Tax Rate to Actual Tax Expense | A reconciliation of the Company's expected tax expense at the U.S. statutory federal tax rate to actual tax expense/(benefit) for the years ended December 31, 2022, 2021 and 2020 was as follows (amounts in thousands): 2022 2021 2020 Income tax expense at statutory federal rates $ 32,505 $ 52,568 $ 43,878 State tax expense, net of federal tax benefit (18) 4,303 2,449 Tax impact on international earnings, excluding uncertain tax positions 1,175 (4,449) (29,992) Uncertain tax positions on international earnings — — 23,917 Nondeductible compensation 3,025 2,212 — Other 100 183 951 Total income tax expense $ 36,787 $ 54,817 $ 41,203 |
Summary of Components of Net Deferred Tax Liability | 2022 2021 2020 Income tax expense at statutory federal rates $ 32,505 $ 52,568 $ 43,878 State tax expense, net of federal tax benefit (18) 4,303 2,449 Tax impact on international earnings, excluding uncertain tax positions 1,175 (4,449) (29,992) Uncertain tax positions on international earnings — — 23,917 Nondeductible compensation 3,025 2,212 — Other 100 183 951 Total income tax expense $ 36,787 $ 54,817 $ 41,203 The Company recognized a net deferred tax a sset of $14.0 million a nd $31.1 million as of December 31, 2022 and 2021, respectively. A valuation allowance for deferred tax assets is recognized and charged to earnings in the period if it is determined that it is more likely than not that the deferred tax asset will not be realized. If the Company subsequently realizes deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would have to be reversed, resulting in a positive adjustment to earnings in the period such determination was made. The determination for a valuation allowance is made on a jurisdiction-by-jurisdiction basis. The components of the net deferred tax were as follows (amounts in thousands): 2022 2021 Deferred tax assets: Employee compensation $ 5,177 $ 8,609 Net operating loss carryforward 126,549 121,035 Interest 11,042 10,160 Finance receivable revenue recognition - international — 2,351 Lease liability 10,667 11,811 Other — 4,873 Valuation allowance (68,929) (75,375) Total deferred tax asset 84,506 83,464 Deferred tax liabilities: Property and equipment (4,178) (5,075) Intangible assets and goodwill (5,118) (4,185) ROU asset (9,731) (10,884) Finance receivable revenue recognition - international (12,074) — Finance receivable revenue recognition - domestic (27,181) (32,189) Other (12,234) — Total deferred tax liability (70,516) (52,333) Net deferred tax asset $ 13,990 $ 31,131 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of gross unrecognized tax benefits for the year ended December 31, 2022 and 2021 (amounts in thousands): 2022 2021 Balance at beginning of year $ 114,294 $ 110,425 (Deductions)/additions, based on tax positions related to prior year (1) (12,591) 3,869 Balance at end of year $ 101,703 $ 114,294 (1) The 2022 deductions relate to international transactions, primarily due to foreign exchange rate fluctuations. |
General and Summary of Signif_4
General and Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May 26, 2017 $ / shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Percentage of income tax positions likely to be realized | 50% | ||||
Optional extension period | 5 years | ||||
Requisite service period | 3 years | ||||
Possible change in estimates, in years | 1 year | ||||
Right-of-use assets | $ 54,506 | $ 56,713 | |||
Lease liabilities | 59,384 | 61,188 | |||
Recoveries received in excess of forecast | 106,693 | 250,152 | |||
Retained Earnings (Accumulated Deficit) | 1,573,025 | 1,552,845 | |||
Interest Income (Expense), Net | 130,677 | 124,143 | $ 141,712 | ||
Net income | $ 117,998 | $ 195,509 | $ 167,742 | ||
Accounting Standards Update 2021-01 Prospective | |||||
Accounting Policies [Line Items] | |||||
Accounting standards update, swap agreements, notional amount | $ 422,800 | ||||
Minimum | |||||
Accounting Policies [Line Items] | |||||
Remaining lease term | 1 year | ||||
Options and nonvested share awards vesting period, minimum, in years | 1 year | ||||
Minimum | Computer Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 3 years | ||||
Minimum | Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Minimum | Building Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 10 years | ||||
Maximum | |||||
Accounting Policies [Line Items] | |||||
Remaining lease term | 14 years | ||||
Options and nonvested share awards vesting period, minimum, in years | 3 years | ||||
Maximum | Computer Equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 5 years | ||||
Maximum | Furniture and Fixtures | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 10 years | ||||
Maximum | Building Improvements | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, useful life, in years | 39 years | ||||
Note Due 2023 | Convertible Debt | |||||
Accounting Policies [Line Items] | |||||
Stated percentage | 3.50% | ||||
Average share price of common stock (usd per share) | $ / shares | $ 46.24 |
General and Summary of Signif_5
General and Summary of Significant Accounting Policies (Revenue and Long-lived Assets by Geographical Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues (2) | $ 966,524 | $ 1,095,732 | $ 1,065,414 |
Long-Lived Assets | 106,151 | 111,226 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues (2) | 520,747 | 651,991 | 677,234 |
Long-Lived Assets | 79,865 | 87,881 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues (2) | 181,725 | 175,383 | 132,749 |
Long-Lived Assets | 12,141 | 7,264 | |
Others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues (2) | 264,052 | 268,358 | $ 255,431 |
Long-Lived Assets | $ 14,145 | $ 16,081 |
Finance Receivables, net (Rollf
Finance Receivables, net (Rollforward) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Amortized cost | $ 0 | $ 0 | |
Initial negative allowance for expected recoveries | 3,295,008 | 3,428,285 | |
Balance at end of period | $ 3,295,008 | $ 3,428,285 | $ 3,514,788 |
Finance Receivables, net Financ
Finance Receivables, net Finance Receivables, net (Allowance for Expected Recoveries) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of year | $ 3,428,285 | $ 3,514,788 | |
Initial negative allowance for expected recoveries - acquisitions | 849,996 | 972,280 | |
Foreign currency translation adjustment | (177,331) | (70,733) | |
Recoveries applied to negative allowance | (974,846) | (1,185,954) | |
Changes in estimated recoveries | 168,904 | 197,904 | $ 69,297 |
Balance at end of year | 3,295,008 | 3,428,285 | 3,514,788 |
Core | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of year | 2,989,932 | 3,019,477 | |
Initial negative allowance for expected recoveries - acquisitions | 771,977 | 863,379 | |
Foreign currency translation adjustment | (156,795) | (68,544) | |
Recoveries applied to negative allowance | (795,489) | (1,002,400) | |
Changes in estimated recoveries | 126,582 | 178,020 | |
Balance at end of year | 2,936,207 | 2,989,932 | 3,019,477 |
Insolvency | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of year | 438,353 | 495,311 | |
Initial negative allowance for expected recoveries - acquisitions | 78,019 | 108,901 | |
Foreign currency translation adjustment | (20,536) | (2,189) | |
Recoveries applied to negative allowance | (179,357) | (183,554) | |
Changes in estimated recoveries | 42,322 | 19,884 | |
Balance at end of year | $ 358,801 | $ 438,353 | $ 495,311 |
Finance Receivables, net (Portf
Finance Receivables, net (Portfolio Acquisitions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | $ 5,630,618 | $ 6,426,695 |
Noncredit discount | (569,965) | (734,185) |
Allowance for credit losses at acquisition | (4,210,657) | (4,720,230) |
Purchase price | 849,996 | 972,280 |
Core | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | 5,174,974 | 5,917,827 |
Noncredit discount | (541,686) | (696,983) |
Allowance for credit losses at acquisition | (3,861,311) | (4,357,465) |
Purchase price | 771,977 | 863,379 |
Insolvency | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Face value | 455,644 | 508,868 |
Noncredit discount | (28,279) | (37,202) |
Allowance for credit losses at acquisition | (349,346) | (362,765) |
Purchase price | $ 78,019 | $ 108,901 |
Finance Receivables, net Fina_2
Finance Receivables, net Finance Receivables, net (Initial Negative Allowance for Recoveries) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for credit losses at acquisition | $ (4,210,657) | $ (4,720,230) |
Writeoffs, net | 4,210,657 | 4,720,230 |
Expected recoveries | 849,996 | 972,280 |
Initial negative allowance for expected recoveries | 849,996 | 972,280 |
Core | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for credit losses at acquisition | (3,861,311) | (4,357,465) |
Writeoffs, net | 3,861,311 | 4,357,465 |
Expected recoveries | 771,977 | 863,379 |
Initial negative allowance for expected recoveries | 771,977 | 863,379 |
Insolvency | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for credit losses at acquisition | (349,346) | (362,765) |
Writeoffs, net | 349,346 | 362,765 |
Expected recoveries | 78,019 | 108,901 |
Initial negative allowance for expected recoveries | $ 78,019 | $ 108,901 |
Finance Receivables, net Fina_3
Finance Receivables, net Finance Receivables, net (Recoveries) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Recoveries | $ 1,747,161 | $ 2,061,281 | |
Less - amounts reclassified to portfolio income | 772,315 | 875,327 | $ 984,036 |
Expected recoveries | 974,846 | 1,185,954 | |
Core | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Recoveries | 1,521,504 | 1,818,635 | |
Less - amounts reclassified to portfolio income | 726,015 | 816,235 | |
Expected recoveries | 795,489 | 1,002,400 | |
Insolvency | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Recoveries | 225,657 | 242,646 | |
Less - amounts reclassified to portfolio income | 46,300 | 59,092 | |
Expected recoveries | $ 179,357 | $ 183,554 |
Finance Receivables, net (Chang
Finance Receivables, net (Changes in Estimated Future Recoveries) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Changes in expected future recoveries | $ 62,211 | $ (52,248) | |
Recoveries received in excess of forecast | 106,693 | 250,152 | |
Changes in estimated recoveries | 168,904 | 197,904 | $ 69,297 |
Core | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Changes in expected future recoveries | 48,806 | (35,432) | |
Recoveries received in excess of forecast | 77,776 | 213,452 | |
Changes in estimated recoveries | 126,582 | 178,020 | |
Insolvency | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Changes in expected future recoveries | 13,405 | (16,816) | |
Recoveries received in excess of forecast | 28,917 | 36,700 | |
Changes in estimated recoveries | $ 42,322 | $ 19,884 |
Finance Receivables, net (Narra
Finance Receivables, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Changes in estimated recoveries | $ 168,904 | $ 197,904 | $ 69,297 |
Recoveries received in excess of forecast | 106,693 | 250,152 | |
Decrease in present value of expected future recoveries | $ (62,211) | $ 52,248 |
Investments (Summary of Investm
Investments (Summary of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt securities | ||
Available-for-sale | $ 66,813 | $ 77,538 |
Equity securities | ||
Equity method investments | 8,762 | 8,048 |
Investments | 79,948 | 92,977 |
Level 1 | ||
Debt securities | ||
Available-for-sale | 66,813 | 77,538 |
Exchange traded funds | ||
Equity securities | ||
Equity securities | 1,746 | |
Exchange traded funds | Level 1 | ||
Equity securities | ||
Equity securities | 0 | |
Private equity funds | ||
Equity securities | ||
Equity securities | 4,373 | 5,137 |
Mutual funds | ||
Equity securities | ||
Equity securities | $ 0 | 508 |
Mutual funds | Level 1 | ||
Equity securities | ||
Equity securities | $ 508 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment [Line Items] | |||
Debt Securities, Available-for-Sale | $ 66,813 | $ 77,538 | |
Finance receivables, net | 3,295,008 | 3,428,285 | |
Cash and cash equivalents per Consolidated Balance Sheets | $ 83,376 | 87,584 | $ 108,613 |
Cost-method investment, ownership percentage | 1% | ||
Government securities | |||
Investment [Line Items] | |||
Debt Securities, Available-for-Sale | $ 66,813 | $ 77,538 | |
Available-for-sale, fair value, maturity, date, year one | 62,500 | ||
Available-for-sale, fair value, maturity date, after year one through five | $ 4,300 | ||
RCB Investimentos S.A. | RCB Investimentos S.A. | |||
Investment [Line Items] | |||
Ownership percentage | 11.70% |
Investments (Amortized Cost) (D
Investments (Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale | ||
Available-for-sale | $ 66,813 | $ 77,538 |
Government securities | ||
Available-for-sale | ||
Amortized Cost | 67,049 | 77,757 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 237 | 219 |
Available-for-sale | $ 66,813 | $ 77,538 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Rental expense | $ 13,869 | $ 15,046 |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 11,981 | $ 12,256 |
Short-term lease cost | 2,374 | 2,986 |
Total lease cost | 13,869 | 15,046 |
Cash paid for amounts included in the measurement of operating lease liabilities | 11,852 | 12,034 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 8,882 | $ 13,525 |
Weighted-average remaining lease term (years) | 8 years | 8 years 7 months 6 days |
Weighted-average discount rate | 4.50% | 4.50% |
Sublease Income | $ (486) | $ (196) |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2021 | $ 10,827 | |
2022 | 10,086 | |
2023 | 9,845 | |
2024 | 8,740 | |
2025 | 5,905 | |
Thereafter | 25,725 | |
Total lease payments | 71,128 | |
Less imputed interest | (11,744) | |
Total | $ 59,384 | $ 61,188 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 480,263 | $ 492,989 |
Change in foreign currency translation adjustment | (44,342) | (12,726) |
Balance at end of year | $ 435,921 | $ 480,263 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,505,251 | $ 2,622,806 |
Less: Debt discount and issuance costs | (10,393) | (14,092) |
Total | 2,494,858 | 2,608,714 |
Line of Credit | Americas revolving credit (1) | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 186,867 | 372,119 |
Line of Credit | Europe revolving credit | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 419,856 | 795,687 |
Line of Credit | UK Revolving Credit | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 453,528 | 0 |
Weighted average interest rate | 5.54% | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 450,000 | 460,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 650,000 | 650,000 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 345,000 | $ 345,000 |
Borrowings (Long term debt Matu
Borrowings (Long term debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2020 | $ 355,251 | |
2021 | 10,251 | |
2022 | 310,000 | |
2023 | 1,059,893 | |
2024 and thereafter | 419,856 | |
Total | 2,505,251 | $ 2,622,806 |
Long-Term Debt, Maturity, after Year Five | $ 350,000 |
Borrowings (North American Revo
Borrowings (North American Revolving Credit and Term Loan) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | May 26, 2017 | |
Interest Rate Floor | |||
Debt Instrument [Line Items] | |||
Basis spread variable rate (as a percent) | 0% | ||
North American Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total credit facility available | $ 1,500 | $ 1,500 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 | $ 1,500 | |
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement consolidated leverage ratio | 3.50 | 3.50 | |
Debt instrument, covenant, maximum cash dividends | $ 20 | ||
Credit agreement, consolidated senior secured leverage ratio | 2.25 | 2.25 | |
Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee under revolving credit | 0.30% | ||
Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee under revolving credit | 0.35% | ||
Credit Agreement | Eurodollar Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread variable rate (as a percent) | 2% | ||
Credit Agreement | Eurodollar Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread variable rate (as a percent) | 2.25% | ||
Convertible Debt | Note Due 2023 | |||
Debt Instrument [Line Items] | |||
Stated percentage | 3.50% | ||
Convertible Debt | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement, consolidated senior secured leverage ratio | 1.60 | 1.60 | |
Revolving Credit Facility | North American Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total credit facility available | $ 1,000 | $ 1,000 | |
Optional increase in borrowing capacity | 500 | 500 | |
Option for letters of credit | 25 | 25 | |
Option to reduce borrowing capacity | 25 | 25 | |
Unused portion | 888.6 | 888.6 | |
Current borrowing capacity | 190.9 | 190.9 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | 1,000 | |
Canadian Revolving Credit Facility | North American Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total credit facility available | 75 | 75 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | $ 75 | |
Eligible Core Asset Pool | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35% | ||
Eligible Insolvent Asset Pool | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Covenant, maximum borrowing as a percentage of insolvent asset pools | 55% |
Borrowings (Outstanding balance
Borrowings (Outstanding balances and weighted average interest rates) (Details) - Revolving Credit Facility - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Domestic Line of Credit [Member] | North American Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 186,365 | $ 371,220 |
Weighted average interest rate | 6.33% | 2.14% |
Foreign Line of Credit [Member] | European Revolving Facility and Term Loan | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 419,856 | $ 795,687 |
Weighted average interest rate | 5.94% | 3.48% |
Loans Payable | North American Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 450,000 | $ 460,000 |
Weighted average interest rate | 6.38% | 2.10% |
Borrowings (European Revolving
Borrowings (European Revolving Credit Facility and Term Loan) (Details) - European Revolving Facility and Term Loan € in Millions, $ in Millions, kr in Billions | 12 Months Ended | ||||
Nov. 23, 2022 USD ($) | Dec. 31, 2022 SEK (kr) | Dec. 31, 2022 USD ($) | Nov. 23, 2022 EUR (€) | Nov. 22, 2022 USD ($) | |
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum interest bearing deposits | kr | kr 1.2 | ||||
Covenant, loan-to-value | 45% | ||||
Current borrowing capacity | $ 401.1 | ||||
Credit agreement consolidated leverage ratio | 3.50 | ||||
Credit agreement, consolidated senior secured leverage ratio | 2.25 | ||||
Overdraft Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total credit facility available | $ 40 | ||||
Commitment fee percentage | 0.125% | ||||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total credit facility available | € 730 | $ 750 | |||
Long Term Line of Debt, Accordion Feature | € | € 500 | ||||
Unused commitment fee under revolving credit | 1.085% | ||||
Commitment fee as a percentage of margin | 35% | ||||
Line of Credit Facility, Unused Capacity, Floor | 0 | 0 | |||
Current borrowing capacity | $ 168.5 | ||||
Line of Credit | Interbank Offered Rate (IBOR) | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 2.80% | ||||
Line of Credit | Interbank Offered Rate (IBOR) | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread variable rate (as a percent) | 3.80% |
Borrowings (UK Revolving Credit
Borrowings (UK Revolving Credit Facility) (Details) - UK Credit Agreement $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||
Credit agreement, consolidated senior secured leverage ratio | 2.25 | 2.25 |
Unused portion | $ 346.5 | $ 346.5 |
Current borrowing capacity | $ 105.4 | $ 105.4 |
Credit agreement consolidated leverage ratio | 3.50 | 3.50 |
Eligible Core Asset Pool | ||
Line of Credit Facility [Line Items] | ||
Percentage of maximum level of borrowings of ERC of eligible asset pools | 35% | |
Eligible Insolvent Asset Pool | ||
Line of Credit Facility [Line Items] | ||
Covenant, maximum borrowing as a percentage of insolvent asset pools | 55% | |
Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 | $ 800 |
Optional increase in borrowing capacity | $ 200 | $ 200 |
Minimum | Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit agreement, consolidated senior secured leverage ratio | 1.60 | 1.60 |
Unused commitment fee under revolving credit | 0.30% | |
Maximum | Eurodollar Rate | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Debt Instrument, Basis Spread on Variable Rate, Credit Adjustment Spread | 0.10% | |
Maximum | Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Unused commitment fee under revolving credit | 0.35% | |
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Borrowings (Columbian Revolving
Borrowings (Columbian Revolving Credit Facility) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revolving Credit Facility | Colombian Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving lines of credit, carrying amount | $ 0.5 | $ 0.9 |
Borrowings (Senior Notes) (Deta
Borrowings (Senior Notes) (Details) $ / shares in Units, $ in Millions | Sep. 22, 2021 USD ($) | Aug. 27, 2020 USD ($) | May 26, 2017 USD ($) | May 26, 2017 USD ($) | May 26, 2017 USD ($) | May 26, 2017 USD ($) day | May 26, 2017 USD ($) consecutiveTradingDay | May 26, 2017 USD ($) $ / shares |
2025 Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 300 | |||||||
Stated percentage | 7.375% | |||||||
2025 Notes | Senior Notes | On Or After September 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 103.688% | |||||||
2025 Notes | Senior Notes | September 1, 2023 To October 31, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 101.844% | |||||||
2025 Notes | Senior Notes | September 1, 2024 And Thereafter | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 100% | |||||||
2025 Notes | Senior Notes | On Or Before September 1, 2022 | Change Of Control Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 101% | |||||||
Redemption price, percentage of aggregate principal amount | 100% | |||||||
2029 Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 350 | |||||||
Stated percentage | 5% | |||||||
2029 Notes | Senior Notes | On Or After September 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 102.50% | |||||||
2029 Notes | Senior Notes | September 1, 2023 To October 31, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 101.25% | |||||||
2029 Notes | Senior Notes | September 1, 2024 And Thereafter | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 100% | |||||||
2029 Notes | Senior Notes | On Or Before September 1, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 105% | |||||||
Redemption price, percentage of aggregate principal amount | 40% | |||||||
Redemption price, minimum percentage of aggregate principal amount outstanding | 60% | |||||||
Redemption period | 90 days | |||||||
2029 Notes | Senior Notes | On Or Before September 1, 2022 | Change Of Control Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 101% | |||||||
Note Due 2023 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 345 | $ 345 | $ 345 | $ 345 | $ 345 | $ 345 | ||
Stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||
Convertible, threshold percentage of stock price trigger | 130% | |||||||
Convertible, threshold trading days | day | 20 | |||||||
Convertible, threshold consecutive trading days | 30 | 30 | ||||||
Debt Instrument, Convertible, Threshold Percentage Used In Trading Price Calculation | 98% | 98% | 98% | 98% | 98% | 98% | ||
Debt Instrument, Convertible, Threshold Trading Days Used In Trading Price Calculation | 10 days | |||||||
Debt Instrument, Convertible, Share Subscription Or Sale Period | 45 days | |||||||
Debt Instrument, Convertible, Consecutive Trading Days Used In Share Price Calculation | 10 days | |||||||
Debt Instrument, Convertible, Distribution Share Value, Percentage In Excess Of Sale Price | 10% | 10% | 10% | 10% | 10% | 10% | ||
Conversion ratio | 21.6275 | |||||||
Average share price of common stock (usd per share) | $ / shares | $ 46.24 | |||||||
Convertible debt, estimated fair value | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | ||
Carrying amount | 46.2 | 46.2 | 46.2 | 46.2 | 46.2 | 46.2 | ||
Debt issuance costs, gross | $ 8.3 | 8.3 | $ 8.3 | $ 8.3 | $ 8.3 | $ 8.3 | ||
Debt and equity issuance costs | 9.6 | |||||||
Equity issuance costs | $ 1.3 |
Borrowings (Convertible Debt an
Borrowings (Convertible Debt and Additional information) (Details) - Note Due 2023 - Convertible Debt $ / shares in Units, $ in Millions | May 26, 2017 USD ($) | May 26, 2017 USD ($) | May 26, 2017 USD ($) | May 26, 2017 USD ($) day | May 26, 2017 USD ($) consecutiveTradingDay | May 26, 2017 USD ($) $ / shares | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||||||
Face amount | $ 345 | $ 345 | $ 345 | $ 345 | $ 345 | $ 345 | |
Stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |
Conversion ratio | 21.6275 | ||||||
Average share price of common stock (usd per share) | $ / shares | $ 46.24 | ||||||
Convertible debt, estimated fair value | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | $ 298.8 | |
Carrying amount | 46.2 | 46.2 | 46.2 | 46.2 | 46.2 | 46.2 | |
Debt issuance costs, gross | $ 8.3 | 8.3 | $ 8.3 | $ 8.3 | $ 8.3 | $ 8.3 | |
Debt and equity issuance costs | 9.6 | ||||||
Equity issuance costs | $ 1.3 | ||||||
Effective interest rate (as a percent) | 4% | ||||||
Convertible, threshold percentage of stock price trigger | 130% | ||||||
Convertible, threshold trading days | day | 20 | ||||||
Convertible, threshold consecutive trading days | 30 | 30 | |||||
Debt Instrument, Convertible, Threshold Percentage Used In Trading Price Calculation | 98% | 98% | 98% | 98% | 98% | 98% | |
Debt Instrument, Convertible, Threshold Trading Days Used In Trading Price Calculation | 10 days | ||||||
Debt Instrument, Convertible, Share Subscription Or Sale Period | 45 days | ||||||
Debt Instrument, Convertible, Consecutive Trading Days Used In Share Price Calculation | 10 days | ||||||
Debt Instrument, Convertible, Distribution Share Value, Percentage In Excess Of Sale Price | 10% | 10% | 10% | 10% | 10% | 10% |
Borrowings (Breakdown of Debt I
Borrowings (Breakdown of Debt Instrument) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2,505,251 | $ 2,622,806 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 345,000 | 345,000 |
Long-Term Debt, Total | 344,252 | 342,524 |
Debt Issuance Costs, Net | $ (748) | $ (2,476) |
Borrowings (Interest Expense) (
Borrowings (Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Interest expense - amortization of debt discount and issuance costs | $ 10,097 | $ 9,508 | $ 21,063 |
Interest expense | 132,905 | 125,231 | 142,727 |
Interest income | (2,228) | (1,088) | (1,015) |
Interest Income (Expense), Nonoperating, Net | 130,677 | 124,143 | 141,712 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest expense - stated coupon rate | 12,075 | 12,075 | 17,064 |
Interest expense - amortization of debt discount and issuance costs | 0 | 0 | 10,811 |
Interest expense - amortization of debt issuance costs | 1,727 | 1,660 | 1,989 |
Total interest expense - Convertible Notes | $ 13,802 | $ 13,735 | $ 29,864 |
Property and Equipment, net (Pr
Property and Equipment, net (Property and Equipment, at Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |||
Software | $ 71,775 | $ 69,549 | |
Computer equipment | 24,685 | 25,457 | |
Furniture and fixtures | 17,751 | 20,034 | |
Equipment | 15,819 | 15,297 | |
Leasehold improvements | 22,486 | 17,606 | |
Building and improvements | 19,931 | 19,456 | |
Land | 1,407 | 1,407 | |
Accumulated depreciation | (123,141) | (117,420) | |
Assets in process | 932 | 3,127 | |
Property and equipment, net | 51,645 | 54,513 | |
Depreciation and amortization expense | $ 14,900 | $ 15,100 | $ 15,600 |
Property and Equipment, net (Na
Property and Equipment, net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 14.9 | $ 15.1 | $ 15.6 |
Fair Value (Carrying And Estima
Fair Value (Carrying And Estimated Fair Value Recorded In The Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | |||
Cash and cash equivalents per Consolidated Balance Sheets | $ 83,376 | $ 87,584 | $ 108,613 |
Finance receivables, net, carrying amount | 3,295,008 | 3,428,285 | |
Financial liabilities: | |||
Interest-bearing deposits, carrying amount | 112,992 | 124,623 | |
Carrying Amount | |||
Assets: | |||
Cash and cash equivalents per Consolidated Balance Sheets | 83,376 | ||
Finance receivables, net, carrying amount | 3,295,008 | 3,428,285 | |
Financial liabilities: | |||
Interest-bearing deposits, carrying amount | 112,992 | 124,623 | |
Revolving lines of credit, carrying amount | 1,060,251 | 1,167,806 | |
Term loans, carrying amount | 450,000 | 460,000 | |
Convertible notes, carrying amount | 345,000 | 345,000 | |
Estimated Fair Value | |||
Assets: | |||
Cash and cash equivalents, estimated fair value | 83,376 | 87,584 | |
Finance receivables, net, estimated fair value | 3,167,813 | 3,317,658 | |
Financial liabilities: | |||
Interest-bearing deposits, estimated fair value | 112,992 | 124,623 | |
Revolving lines of credit, estimated fair value | 1,060,251 | 1,167,806 | |
Term loans, estimated fair value | 450,000 | 460,000 | |
Senior notes, estimated fair value | 580,433 | 673,366 | |
Convertible notes, estimated fair value | $ 341,926 | $ 406,607 |
Fair Value (Fair Value Assets a
Fair Value (Fair Value Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Debt Securities, Available-for-Sale | $ 66,813 | $ 77,538 |
Derivative contracts (recorded in Other assets) | 37,792 | 9,785 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 19,120 | 25,978 |
Level 1 | ||
Assets: | ||
Debt Securities, Available-for-Sale | 66,813 | 77,538 |
Derivative contracts (recorded in Other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 0 | 0 |
Level 2 | ||
Assets: | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Derivative contracts (recorded in Other assets) | 37,792 | 9,785 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 19,120 | 25,978 |
Level 3 | ||
Assets: | ||
Debt Securities, Available-for-Sale | 0 | 0 |
Derivative contracts (recorded in Other assets) | 0 | 0 |
Liabilities: | ||
Derivative contracts (recorded in Other liabilities) | 0 | 0 |
Exchange traded funds | ||
Assets: | ||
Equity securities | 1,746 | |
Exchange traded funds | Level 1 | ||
Assets: | ||
Equity securities | 0 | |
Exchange traded funds | Level 2 | ||
Assets: | ||
Equity securities | 0 | |
Exchange traded funds | Level 3 | ||
Assets: | ||
Equity securities | 0 | |
Mutual funds | ||
Assets: | ||
Equity securities | $ 0 | 508 |
Mutual funds | Level 1 | ||
Assets: | ||
Equity securities | 508 | |
Mutual funds | Level 2 | ||
Assets: | ||
Equity securities | 0 | |
Mutual funds | Level 3 | ||
Assets: | ||
Equity securities | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - Private equity funds - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds | $ 4.4 | $ 5.1 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 1 year | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity funds, liquidating investment, period | 5 years |
Derivatives (Schedule of Deriva
Derivatives (Schedule of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other assets) | $ 37,792 | $ 9,785 |
Derivative contracts (recorded in Other liabilities) | $ 19,120 | $ 25,978 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Interest rate contracts | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other assets) | $ 37,305 | $ 6,251 |
Derivative contracts (recorded in Other liabilities) | 0 | 14,879 |
Interest rate contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other assets) | 719,700 | |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts (recorded in Other assets) | 487 | 3,534 |
Derivative contracts (recorded in Other liabilities) | $ 19,120 | $ 11,099 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Designated as Hedging Instrument | Cash Flow Hedging | Minimum | ||
Derivative [Line Items] | ||
Initial term of derivative | 1 year | |
Designated as Hedging Instrument | Cash Flow Hedging | Maximum | ||
Derivative [Line Items] | ||
Initial term of derivative | 3 years | |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 869.1 | |
Net derivative gain (loss) included in OCI to be reclassified next 12 months | $ 14.9 | |
Not Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 460.8 | $ 1,061.7 |
Derivatives (Schedule of Effect
Derivatives (Schedule of Effects of Derivatives Designated as Cash Flow Hedging Instruments) (Details) - Interest rate contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in OCI, net of tax | $ 32,650 | $ 17,961 | $ (28,101) |
Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) reclassified from OCI into income | $ (976) | $ (12,722) | $ (10,027) |
Derivatives (Schedule of Effe_2
Derivatives (Schedule of Effects of Derivatives Not Designated as Hedging Instruments) (Details) - Foreign currency contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign exchange gain/(loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income | $ 38,808 | $ 12,160 | $ 24,009 |
Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in income | $ (364) | $ 406 | $ (2,475) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | $ (1,325) | $ 282 | $ (1,049) |
Income tax expense | 36,787 | 54,817 | 41,203 |
Net income | 117,998 | 195,509 | $ 167,742 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | (976) | (12,722) | |
Income tax expense | 451 | 2,705 | |
Net income | $ (525) | $ (10,017) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,324,837 | $ 1,358,837 | |
Other comprehensive (loss)/income before reclassifications, net | (81,542) | (31,135) | $ 7,387 |
Reclassifications, net | 525 | 10,017 | 7,840 |
Other comprehensive income/(loss) attributable to PRA Group, Inc. | (81,017) | (21,118) | 15,227 |
Ending balance | 1,286,750 | 1,324,837 | 1,358,837 |
Debt Securities Available-for-Sale | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (221) | 127 | (44) |
Other comprehensive (loss)/income before reclassifications, net | (16) | (348) | 171 |
Reclassifications, net | 0 | 0 | 0 |
Other comprehensive income/(loss) attributable to PRA Group, Inc. | (16) | (348) | 171 |
Ending balance | (237) | (221) | 127 |
Deferred taxes | (9,200) | (3,100) | 9,200 |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (5,371) | (33,349) | (13,088) |
Other comprehensive (loss)/income before reclassifications, net | 32,650 | 17,961 | (28,101) |
Reclassifications, net | 525 | 10,017 | 7,840 |
Other comprehensive income/(loss) attributable to PRA Group, Inc. | 33,175 | 27,978 | (20,261) |
Ending balance | 27,804 | (5,371) | (33,349) |
Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (261,317) | (212,569) | (247,886) |
Other comprehensive (loss)/income before reclassifications, net | (114,176) | (48,748) | 35,317 |
Reclassifications, net | 0 | 0 | 0 |
Other comprehensive income/(loss) attributable to PRA Group, Inc. | (114,176) | (48,748) | 35,317 |
Ending balance | (375,493) | (261,317) | (212,569) |
Accumulated Other Comprehensive (Loss)/Income | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (266,909) | (245,791) | (261,018) |
Ending balance | $ (347,926) | $ (266,909) | $ (245,791) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized | 4,300,000 | ||
Total share-based compensation expense | $ 13 | $ 15.9 | $ 14.4 |
Total tax benefit realized from share-based compensation | 6 | 3.9 | 2.4 |
Grant date fair value of shares vested | 9.5 | 10.8 | 6.9 |
Long-Term Incentive Programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future compensation cost related to stock option | $ 3.8 | ||
Weighted average remaining life of nonvested shares (in years) | 1 year 2 months 12 days | ||
Grant date fair value of shares vested | $ 6.3 | $ 3.9 | $ 1.2 |
Forfeiture rate for share awards granted under LTI Programs (as a percent) | 5% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 3 years | ||
Nonvested Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future compensation cost related to stock option | $ 14.4 | ||
Weighted average remaining life of nonvested shares (in years) | 1 year 6 months | ||
Nonvested Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 1 year | ||
Nonvested Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the amended plan vesting period (in years) | 3 years |
Share-Based Compensation (Nonve
Share-Based Compensation (Nonvested Share Transactions) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Nonvested Shares Outstanding | |||
Beginning balance, shares | 510 | 555 | 532 |
Granted, shares | 351 | 312 | 256 |
Vested, shares | (269) | (320) | (219) |
Cancelled, shares | (36) | (37) | (14) |
Ending balance, shares | 556 | 510 | 555 |
Weighted-Average Price at Grant Date | |||
Beginning balance (usd per share) | $ 36.76 | $ 34.23 | $ 30.97 |
Granted (usd per share) | 41.64 | 38.14 | 38.69 |
Vested (usd per share) | 35.41 | 33.80 | 31.56 |
Cancelled (usd per share) | 40.85 | 36.06 | 33.95 |
Ending balance (usd per share) | $ 40.23 | $ 36.76 | $ 34.23 |
Long-Term Incentive Programs | |||
Nonvested Shares Outstanding | |||
Beginning balance, shares | 407 | 392 | 447 |
Granted, shares | 127 | 148 | 118 |
Adjustments for actual performance, shares | 64 | (10) | (131) |
Vested, shares | (222) | (99) | (36) |
Cancelled, shares | (21) | (24) | (6) |
Ending balance, shares | 355 | 407 | 392 |
Weighted-Average Price at Grant Date | |||
Beginning balance (usd per share) | $ 34.01 | $ 34.30 | $ 33.03 |
Granted (usd per share) | 44.90 | 37.45 | 39.04 |
Adjustments for actual performance (usd per share) | 28.28 | 39.40 | 34.44 |
Vested (usd per share) | 28.28 | 39.40 | 33.50 |
Cancelled (usd per share) | 40.45 | 35.31 | 33.77 |
Ending balance (usd per share) | $ 40.07 | $ 34.01 | $ 34.30 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 25, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 2,331,364 | |||
Stock Repurchased During Period, Value | $ 99.4 | |||
Average price of shares repurchased and retired (usd per share) | $ 42.63 | |||
Antidilutive options outstanding (in shares) | 0 | 0 | 0 | |
July 2021 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchases authorized amount | $ 230 | |||
February 2022 Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchases authorized amount | $ 150 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net Income Attributable to PRA Group, Inc. | $ 117,147 | $ 183,158 | $ 149,339 |
Weighted Average Common Shares, Basic EPS | 39,638 | 44,960 | 45,540 |
Weighted Average Common Shares, Dilutive effect of nonvested share awards | 250 | 370 | 320 |
Weighted Average Common Shares, Diluted EPS | 39,888 | 45,330 | 45,860 |
Basic EPS (usd per share) | $ 2.96 | $ 4.07 | $ 3.28 |
Dilutive effect of nonvested share awards (usd per share) | (0.02) | (0.03) | (0.02) |
Diluted EPS (usd per share) | $ 2.94 | $ 4.04 | $ 3.26 |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense, Federal | $ 8,797 | $ 30,659 | $ 48,223 |
Current tax expense, State | 385 | 5,397 | 12,416 |
Current foreign tax expense | 26,998 | 11,958 | 39,067 |
Current tax expense, Total | 36,180 | 48,014 | 99,706 |
Deferred tax (benefit)/expense, Federal | (2,848) | (3,056) | (32,699) |
Deferred tax expense/(benefit), State | (386) | (323) | (8,921) |
Deferred Foreign Income Tax (benefit)/Expense | 3,841 | 10,182 | (16,883) |
Deferred tax (benefit)/expense, Total | 607 | 6,803 | (58,503) |
Total income tax expense, Federal | 5,949 | 27,603 | 15,524 |
Total income tax expense, State | (1) | 5,074 | 3,495 |
Foreign Income Tax Expense, Continuing Operations | 30,839 | 22,140 | 22,184 |
Total income tax expense | $ 36,787 | $ 54,817 | $ 41,203 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Net deferred tax asset | $ 13,990 | $ 31,131 | |
Net deferred tax liability | 31,100 | ||
Valuation allowance | 68,929 | 75,375 | |
Unremitted earnings of foreign subsidiaries | 159,800 | ||
Unrecognized tax benefits | 101,703 | 114,294 | $ 110,425 |
Unrecognized benefit, if recognized, effect on effective tax rate | 19,700 | ||
Accrued potential interest related to unrecognized tax benefits | 1,500 | ||
Penalties related to unrecognized tax benefits | 1,500 | ||
Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carryforward, foreign subsidiaries | 513,200 | 514,400 | |
Valuation allowance of operating loss carryforwards, foreign subsidiaries | 282,400 | 276,600 | |
Deferred Tax Liabilities Cost Recovery | (12,074) | 0 | |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Deferred Tax Liabilities Cost Recovery | $ (27,181) | $ (32,189) | |
Minimum | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carryforward, carryforward period | 7 years | ||
Maximum | Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Operating loss carryforward, carryforward period | 20 years |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Expected Tax Expense At Statutory Tax Rates to Actual Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at statutory federal rates | $ 32,505 | $ 52,568 | $ 43,878 |
State tax expense, net of federal tax benefit | (18) | 4,303 | 2,449 |
Tax impact on international earnings, excluding uncertain tax positions | 1,175 | (4,449) | (29,992) |
Uncertain tax positions on international earnings | 0 | 0 | 23,917 |
Nondeductible compensation | 3,025 | 2,212 | 0 |
Other | 100 | 183 | 951 |
Total income tax expense | $ 36,787 | $ 54,817 | $ 41,203 |
Income Taxes (Summary of Compon
Income Taxes (Summary of Components of Net Deferred Tax Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Employee compensation | $ 5,177 | $ 8,609 |
Net operating loss carryforward | 126,549 | 121,035 |
Interest | 11,042 | 10,160 |
Finance receivable revenue recognition - international | 0 | 2,351 |
Lease liability | 10,667 | 11,811 |
Other | 0 | 4,873 |
Valuation allowance | (68,929) | (75,375) |
Total deferred tax asset | 84,506 | 83,464 |
Deferred tax liabilities: | ||
Property and equipment | (4,178) | (5,075) |
Intangible assets and goodwill | (5,118) | (4,185) |
ROU asset | (9,731) | (10,884) |
Other | (12,234) | 0 |
Total deferred tax liability | (70,516) | (52,333) |
Net deferred tax asset | $ 13,990 | 31,131 |
Total deferred tax liability | $ 31,100 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 114,294 | $ 110,425 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (12,591) | |
Additions, based on tax positions related to prior year | 3,869 | |
Balance at end of year | $ 101,703 | $ 114,294 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future compensation under employment agreements | $ 6,800 |
Total future minimum lease payments | 71,128 |
Amount to be purchased under forward flow agreements | $ 792,200 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Minimum eligible age to make voluntary contributions | 18 years | ||
Employee contribution, percentage of employee's compensation | 100% | ||
Employer contribution, percentage of employee's compensation | 4% | ||
Total compensation expense related to contribution plan | $ 7.2 | $ 6.5 | $ 6.4 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Feb. 06, 2023 USD ($) |
Subsequent Event [Line Items] | |
Stock repurchases authorized amount | $ 400 |
Conversion ratio | 0.08375 |