Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ENVA | ||
Entity Registrant Name | Enova International, Inc. | ||
Entity Central Index Key | 1,529,864 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,293,100 | ||
Entity Public Float | $ 193,139,420 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 39,934 | $ 42,066 |
Restricted cash and cash equivalents | 26,306 | 7,379 |
Loans and finance receivables, net | 561,550 | 434,633 |
Income taxes receivable | 5,503 | |
Other receivables and prepaid expenses | 19,524 | 20,049 |
Property and equipment, net | 47,100 | 48,055 |
Goodwill | 267,010 | 267,008 |
Intangible assets, net | 5,404 | 6,540 |
Other assets | 11,051 | 9,304 |
Total assets | 977,879 | 840,537 |
Liabilities and Stockholders' Equity | ||
Accounts payable and accrued expenses | 71,671 | 72,141 |
Income taxes currently payable | 282 | |
Deferred tax liabilities, net | 14,316 | 20,519 |
Long-term debt | 649,911 | 541,909 |
Total liabilities | 736,180 | 634,569 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 33,364,525 and 33,151,088 shares issued and 33,293,100 and 33,121,594 outstanding as of December 31, 2016 and 2015, respectively | 0 | 0 |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | ||
Additional paid in capital | 18,446 | 9,924 |
Retained earnings | 235,455 | 200,853 |
Accumulated other comprehensive loss | (11,578) | (4,622) |
Treasury stock, at cost (71,425 and 29,494 shares as of December 31, 2016 and 2015, respectively) | (624) | (187) |
Total stockholders' equity | 241,699 | 205,968 |
Total liabilities and stockholders' equity | $ 977,879 | $ 840,537 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted cash and cash equivalents | $ 26,306 | $ 7,379 | |
Loans and finance receivables, gross | 660,495 | 501,955 | |
Allowance for loan losses | 98,945 | 67,322 | |
Long-term debt | [1] | $ 165,419 | |
Unamortized debt issuance cost | $ 11,400 | ||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 33,364,525 | 33,151,088 | |
Common stock, shares outstanding | 33,293,100 | 33,121,594 | |
Preferred stock, par value per share | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Treasury stock, shares | 71,425 | 29,494 | |
Variable Interest Entity, Primary Beneficiary | |||
Restricted cash and cash equivalents | $ 19,468 | ||
Loans and finance receivables, gross | 234,497 | ||
Allowance for loan losses | 17,731 | ||
Long-term debt | 165,419 | ||
Unamortized debt issuance cost | $ 1,869 | ||
[1] | The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | $ 745,569 | $ 652,600 | $ 809,837 | ||||||||
Cost of Revenue | 97,545 | 95,391 | 65,453 | 69,577 | 71,138 | 65,614 | 41,536 | 38,570 | 327,966 | 216,858 | 266,787 | ||||||||
Gross Profit | 104,893 | 100,552 | 107,082 | 105,076 | 104,279 | 99,613 | 104,744 | 127,106 | 417,603 | 435,742 | 543,050 | ||||||||
Expenses | |||||||||||||||||||
Marketing | 97,404 | 116,882 | 127,862 | ||||||||||||||||
Operations and technology | 85,202 | 74,012 | 73,573 | ||||||||||||||||
General and administrative | 97,956 | 102,073 | 107,875 | ||||||||||||||||
Depreciation and amortization | 15,564 | 18,388 | 18,732 | ||||||||||||||||
Total Expenses | 296,126 | 311,355 | 328,042 | ||||||||||||||||
Income from Operations | 121,477 | 124,387 | 215,008 | ||||||||||||||||
Interest expense, net | (65,603) | (52,883) | (38,474) | ||||||||||||||||
Foreign currency transaction gain (loss), net | 1,562 | (985) | (35) | ||||||||||||||||
Income before Income Taxes | 57,436 | 70,519 | 176,499 | ||||||||||||||||
Provision for income taxes | 22,834 | 26,527 | 64,828 | ||||||||||||||||
Net Income | $ 8,714 | $ 7,837 | $ 8,188 | $ 9,863 | $ 4,181 | $ 4,417 | $ 10,864 | $ 24,530 | $ 34,602 | $ 43,992 | $ 111,671 | ||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ 1.04 | $ 1.33 | $ 3.38 | ||||||||||||||||
Diluted | $ 0.26 | $ 0.23 | $ 0.25 | $ 0.30 | $ 0.13 | $ 0.13 | $ 0.33 | $ 0.74 | $ 1.03 | $ 1.33 | $ 3.38 | ||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 33,192 | 33,006 | 33,000 | ||||||||||||||||
Diluted | 33,767 | [1] | 33,558 | [1] | 33,335 | [1] | 33,187 | [1] | 33,061 | [1] | 33,022 | [1] | 33,015 | [1] | 33,008 | [1] | 33,462 | 33,026 | 33,008 |
[1] | See Note 2 for Basis of Presentation. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||||||||||
Net Income | $ 8,714 | $ 7,837 | $ 8,188 | $ 9,863 | $ 4,181 | $ 4,417 | $ 10,864 | $ 24,530 | $ 34,602 | $ 43,992 | $ 111,671 | |
Other comprehensive loss, net of tax: | ||||||||||||
Foreign currency translation loss | [1] | (6,956) | (1,451) | (6,272) | ||||||||
Total other comprehensive loss, net of tax | (6,956) | (1,451) | (6,272) | |||||||||
Comprehensive Income | $ 27,646 | $ 42,541 | $ 105,399 | |||||||||
[1] | Net of tax benefit of $3,939, $592 and $4,011 for the years ended December 31, 2016, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Tax benefit of foreign currency translation loss | $ 3,939 | $ 592 | $ 4,011 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | |
Balance at Dec. 31, 2013 | $ 173,048 | $ 169,947 | $ 3,101 | ||||
Balance, in shares at Dec. 31, 2013 | 33,000,000 | ||||||
Stock-based compensation expense | 294 | $ 294 | |||||
Net equity transactions with Cash America | (2,373) | (2,373) | |||||
Net income | 111,671 | 111,671 | |||||
Dividend paid to Cash America ($3.71 per share) | (122,384) | (122,384) | |||||
Foreign currency translation loss, net of tax | (6,272) | [1] | (6,272) | ||||
Balance at Dec. 31, 2014 | 153,984 | 294 | 156,861 | (3,171) | |||
Balance, in shares at Dec. 31, 2014 | 33,000,000 | ||||||
Stock-based compensation expense | 9,630 | 9,630 | |||||
Shares issued under stock-based plans | 151,000 | ||||||
Net income | 43,992 | 43,992 | |||||
Foreign currency translation loss, net of tax | (1,451) | [1] | (1,451) | ||||
Purchases of treasury shares, at cost | (187) | $ (187) | |||||
Treasury Stock Shares Acquired | (29,000) | ||||||
Balance at Dec. 31, 2015 | $ 205,968 | 9,924 | 200,853 | (4,622) | $ (187) | ||
Balance, in shares at Dec. 31, 2015 | 33,151,088 | 33,151,000 | (29,000) | ||||
Stock-based compensation expense | $ 8,522 | 8,522 | |||||
Shares issued under stock-based plans | 214,000 | ||||||
Net income | 34,602 | 34,602 | |||||
Foreign currency translation loss, net of tax | (6,956) | [1] | (6,956) | ||||
Purchases of treasury shares, at cost | (437) | $ (437) | |||||
Treasury Stock Shares Acquired | (42,000) | ||||||
Balance at Dec. 31, 2016 | $ 241,699 | $ 18,446 | $ 235,455 | $ (11,578) | $ (624) | ||
Balance, in shares at Dec. 31, 2016 | 33,364,525 | 33,365,000 | (71,000) | ||||
[1] | Net of tax benefit of $3,939, $592 and $4,011 for the years ended December 31, 2016, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2014$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Dividend paid, per share | $ 3.71 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net Income | $ 34,602 | $ 43,992 | $ 111,671 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,564 | 18,388 | 18,732 |
Amortization of deferred loan costs and debt discount | 6,913 | 3,371 | 1,949 |
Cost of revenue | 327,966 | 216,858 | 266,787 |
Non-cash affiliate interest expense | 7,629 | ||
Stock-based compensation expense | 8,522 | 9,630 | 664 |
Fair value changes in contingent purchase consideration | 3,300 | ||
Deferred income taxes, net | (2,201) | (1,399) | 12,145 |
Other | (151) | 984 | (199) |
Changes in operating assets and liabilities: | |||
Finance and service charges on loans and finance receivables | (16,232) | (467) | 3,695 |
Other receivables and prepaid expenses | 843 | (3,804) | (7,607) |
Accounts payable and accrued expenses | 8,462 | 8,673 | 7,705 |
Current income taxes payable | 5,785 | (12,305) | 6,764 |
Net cash provided by operating activities | 393,373 | 283,921 | 429,935 |
Cash Flows from Investing Activities | |||
Loans and finance receivables originated or acquired | (1,308,197) | (1,172,169) | (1,298,008) |
Loans and finance receivables repaid | 858,048 | 849,358 | 1,006,762 |
Change in restricted cash | (20,126) | (7,868) | |
Acquisitions, net of cash acquired | (17,735) | ||
Purchases of property and equipment | (14,396) | (32,241) | (13,284) |
Investment in unconsolidated investee | (703) | ||
Other investing activities | 95 | 618 | 4 |
Net cash used in investing activities | (484,576) | (372,169) | (313,097) |
Cash Flows from Financing Activities | |||
Borrowings under revolving line of credit | 58,400 | 63,400 | |
Borrowings under securitization facility | 280,075 | ||
Repayments under securitization facility | (114,656) | ||
Issuance of long-term debt | 493,810 | ||
Dividend paid to Cash America | (122,384) | ||
Debt issuance costs paid | (6,702) | (1,596) | (16,330) |
Treasury shares purchased | (437) | (187) | |
Net equity transactions with Cash America | (2,373) | ||
Net cash provided by (used in) financing activities | 99,880 | 56,617 | (79,039) |
Effect of exchange rates on cash | (10,809) | (1,409) | (10,173) |
Net (decrease) increase in cash and cash equivalents | (2,132) | (33,040) | 27,626 |
Cash and cash equivalents at beginning of year | 42,066 | 75,106 | 47,480 |
Cash and cash equivalents at end of period | 39,934 | 42,066 | 75,106 |
Affiliated Entity | |||
Cash Flows from Financing Activities | |||
Repayments line of credit | $ (431,762) | ||
Revolving line of credit | |||
Cash Flows from Financing Activities | |||
Repayments line of credit | $ (116,800) | $ (5,000) |
Nature of the Company
Nature of the Company | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Company | 1. Nature of the Company The Company operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. As of December 31, 2016, the Company offered or arranged loans to consumers under the names “CashNetUSA” and “NetCredit” in 33 states in the United States, under the names “QuickQuid,” “Pounds to Pocket” and “On Stride Financial” in the United Kingdom, and under the name “Simplic” in Brazil. The Company also offered financing to small businesses in all 50 states and Washington D.C. in the United States under the names “Headway Capital” and “The Business Backer.” During 2016 the Company also launched “Enova Decisions” its analytics as a service business that leverages existing tools and technologies in order to help companies make decisions about their own customers. The Company originates, guarantees or purchases consumer loans. Consumer loans provide customers with cash in their bank account, typically in exchange for an obligation to repay the amount advanced plus fees and/or interest. Consumer loans include short-term loans, line of credit accounts and installment loans. The Company provides financing to small businesses through either a line of credit account or a receivables purchase agreement product (“RPAs”). RPAs represent a right to receive future receivables from a small business. Small businesses receive funds in exchange for a portion of the business’ future receivables at an agreed upon discount. In contrast, lending is a commitment to repay principal and interest. “Loans and finance receivables” include consumer loans, small business loans and RPAs. Short-term loans include unsecured short-term loans written by the Company or by a third-party lender through the Company’s credit services organization and credit access business programs (“CSO programs” as further described below) that the Company guarantees. Line of credit accounts include draws made through the Company’s line of credit product. Installment loans are longer-term multi-payment loans that generally require the outstanding principal balance to be paid down in multiple installments and are written by the Company or by a third-party lender through the CSO programs. Through the Company’s CSO programs the Company provides services related to a third-party lender’s consumer loan products in some markets by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws. Services offered under the CSO programs include credit-related services such as arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents (“CSO loans”). Under the CSO programs, the Company guarantees consumer loan payment obligations to the third-party lender in the event that the customer defaults on the loan. CSO loans are not included in the Company’s financial statements, but the Company has established a liability for the estimated losses in support of the guarantee on these loans in its consolidated balance sheets. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation On September 7, 2011, Cash America International, Inc. (“Cash America,” now known as FirstCash, Inc. due to its merger with First Cash Financial Services, Inc. on September 1, 2016) formed a new company, Enova International, Inc. On September 13, 2011, Cash America contributed to the Company all of the stock of its wholly-owned subsidiary, Enova Online Services, Inc., in exchange for 33 million shares of the Company’s common stock. On November 13, 2014, Cash America completed the tax-free spin-off of approximately 80% of the Company’s outstanding common stock (the “Spin-off). Following the Spin-off, the Company became an independent, publicly traded company, and the Company’s shares of common stock are listed on the New York Stock Exchange under the symbol “ENVA.” The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The financial statements include goodwill and intangible assets arising from businesses previously acquired. Prior to the Spin-off, the financial statements also included the allocation of certain assets and liabilities that were historically held at the Cash America corporate level but which were specifically identifiable or allocable to the Company. Certain transactions with Cash America, such as stock-based compensation and foreign currency transactions were considered to be effectively settled as net equity transactions with parent in “Retained earnings” in the consolidated balance sheets at the time the transaction was recorded. Prior to May 30, 2014, all intercompany transactions between the Company and Cash America were considered to be effectively settled in the financial statements at the time the transaction was recorded. In addition, the historical financial statements include allocations of costs relating to certain functions historically provided by Cash America, including corporate services such as executive oversight, insurance and risk management, government relations, internal audit, treasury, licensing, and to a limited extent finance, accounting, tax, legal, human resources, compensation and benefits, compliance and support for certain information systems related to financial reporting. The expense allocations were determined on a basis that Cash America and the Company consider to be reasonable reflections of the utilization of services provided by Cash America. Also see Note 15 for additional information on the Company’s relationship with Cash America. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future, or if the Company had been a separate company during the periods presented. The Company consolidates any variable interest entity (“VIE”) where it has determined the Company is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Use of Estimates The preparation of these financial statements in conformity with accounting principles generally accepted in the United States (“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 dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, allowance for losses on loans and finance receivables, goodwill, long-lived and intangible assets, income taxes, contingencies and litigation. Management bases its estimates on historical experience, empirical data and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates. Out-of-Period Adjustment In a review of its revenue recognition policy during 2015, the Company determined that certain fees on its line of credit product should be deferred over the period the draw is outstanding rather than recognized as revenue when assessed. The Company recorded a $2.5 million reduction to revenue in the fourth quarter of 2015 as an out-of-period adjustment. This adjustment included a $2.8 million reduction of revenue associated with periods prior to 2015. The Company believes this adjustment was not material to any of the prior years’ financial statements. Foreign Currency Translations The functional currencies for the Company’s subsidiaries that serve or have served residents of the United Kingdom, Australia, Canada and Brazil are the British pound, the Australian dollar, the Canadian dollar and the Brazilian real, respectively. The assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rates in effect at each balance sheet date, and the resulting adjustments are recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) as a separate component of stockholders’ equity. Revenue and expenses are translated at the monthly average exchange rates occurring during each period. Cash and Cash Equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. Restricted Cash The Company includes funds to be used for future debt payments relating to its securitization transactions and escrow deposits in restricted cash and cash equivalents. Revenue Recognition The Company recognizes revenue based on the financing products and services it offers. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the borrower. For short-term loans that the Company offers, interest and finance charges are recognized on an effective yield basis over the term of the loan. For line of credit accounts, interest is recognized over the reporting period based upon the balance outstanding and the contractual interest rate, draw fees are recognized on an effective yield basis over the estimated outstanding period of the draw, and minimum fees are recognized when assessed to the customer. For installment loans, interest is recognized on an effective yield basis over the term of the loan. For RPAs, revenue is recognized on an effective yield basis over the projected delivery term of the agreements and fees are recognized when assessed. CSO fees are recognized on an effective yield basis over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Direct costs associated with originating loans and purchasing RPAs, such as third-party customer acquisition costs, are deferred and amortized against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Short-term loans, line of credit accounts, installment loans, RPAs, unpaid and accrued interest and fees and deferred origination costs are included in “Loans and finance receivables, net” in the consolidated balance sheets. Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. The Company does not accrue interest on the delinquent payment portion of the loan but does continue to accrue interest on the remaining portion of the loan. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew a short-term loan or installment loan or extend the due date on a short-term loan. In order to renew or extend a short-term loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. If a short-term loan is renewed, but the customer fails to pay that loan’s current finance charge as of the due date, the unpaid finance charge is classified as delinquent. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling average of loss rates by stage of collection. For line of credit account and installment loan and RPA portfolios, the Company generally uses a migration analysis to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge-off of a loan. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration analysis. The Company fully reserves for loans once the loan or a portion of the loan has been classified as delinquent for 60 consecutive days and generally charges off loans between 60 – 65 days delinquent. If a loan is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans classified as delinquent generally have an age of one to 64 days from the date any portion of the loan became delinquent, as defined above. Recoveries on loans previously charged to the allowance are credited to the allowance when collected. Property and Equipment Property and equipment is recorded at cost. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the consolidated statements of income. Costs associated with repair and maintenance activities are expensed as incurred. Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 1 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. Software Development Costs The Company applies Accounting Standards Codification (“ASC”) 350-40, Internal Use Software (“ASC 350-40”), to its software purchase and development activities. Under ASC 350-40, eligible internal and external costs incurred for the development of computer software applications, as well as for upgrades and enhancements that result in additional functionality of the applications, are capitalized to “Property and equipment” on the consolidated balance sheets. Internal and external training and maintenance costs are charged to expense as incurred or over the related service period. When a software application is placed in service, the Company begins amortizing the related capitalized software costs using the straight-line method based on its estimated useful life, which currently ranges from two to five years. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with ASC 350, Intangibles—Goodwill and Other (“ASC 350”), the Company tests goodwill and intangible assets with an indefinite life for potential impairment annually as of June 30 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, its overall financial performance, cash flow from operating activities, market capitalization and stock price. If the Company determines that the two-step quantitative impairment test is required, it uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. The Company completed its annual assessment of goodwill as of June 30, 2016 and determined that the fair value of its goodwill exceeded carrying value, and, as a result, no impairment existed at that date. A 10% decrease in the estimated fair value for the June 2015 assessment would not have resulted in a goodwill impairment. Although no goodwill impairment was noted, there can be no assurances that future goodwill impairments will not occur. As of December 31, 2016, the Company had $267.0 million of goodwill, all of which is expected to be deductible for tax purposes. Long-Lived Assets Other Than Goodwill An evaluation of the recoverability of property and equipment and intangible assets subject to amortization is performed whenever the facts and circumstances indicate that the carrying value may be impaired. An impairment loss is recognized if the future undiscounted cash flows associated with the asset and the estimated fair value of the asset are less than the asset’s corresponding carrying value. The amount of the impairment loss, if any, is the excess of the asset’s carrying value over its estimated fair value. The Company amortizes intangible assets subject to amortization on the basis of their expected periods of benefit, generally three to five years. The costs of start-up activities and organization costs are charged to expense as incurred. Hedging and Derivatives Activity The Company periodically uses foreign currency forward contracts, which are considered derivative instruments, to minimize the effects of foreign currency risk in the United Kingdom related to the operations of the Company. The forward contracts are not designated as hedges as defined by ASC 815, Derivatives and Hedging; therefore, any changes in the fair value of the forward contracts are recognized in “Foreign currency transaction gain (loss), net” in the consolidated statements of income. See Note 14. Investment in Unconsolidated Investee The Company accounts for its investments in unconsolidated investees in accordance with ASC 325, Investments—Other Investments are recorded on a cost basis. The Company evaluates investments for impairment if an event occurs or circumstances change that would more likely than not reduce the fair value of the investment below carrying value. If an impairment of an investment is determined to be other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary-impairment is identified. The Company’s investments in unconsolidated investees are held in “Other assets” on the consolidated balance sheets. As of December 31, 2016, the Company owned a $6.7 million investment in the preferred stock of a privately-held developing financial services entity. The entity is not currently profitable and has historically funded its operations through a series of capital contributions from investors. The Company’s impairment evaluation of this investment as of December 31, 2016 determined that an impairment loss was not probable as of that date. The Company will continue to evaluate the impairment risk of this entity by monitoring and assessing the entity’s ability to raise capital or generate profits to fund its future operations. Marketing Expenses Marketing expenses consist of online marketing costs such as sponsored search and advertising on social networking sites, and offline marketing costs such as television, radio and direct mail advertising. In addition, marketing expenses include lead purchase costs paid to marketers in exchange for providing information or applications from potential customers interested in using the Company’s services. Marketing costs directly related to loan originations are deferred and amortized against revenue. Online marketing and lead purchase costs not directly resulting in loan and RPA originations are expensed as incurred. The production costs associated with offline marketing are expensed as incurred. Other marketing costs are expensed as incurred. The Company also had an agreement with an independent third party pursuant to which the Company paid a portion of the net revenue received from the customers referred to the Company by such third party. Prior to the Spin-off, the Company had an arrangement with Cash America pursuant to which the Company paid either a lead purchase fee or a portion of the net revenue received from the customers referred to the Company by Cash America. These referral fees were included in “Marketing” in the consolidated statements of income. Operations and Technology Expenses Operations and technology expenses include all expenses related to the direct operations and technology infrastructure related to loan underwriting and processing. This includes call center and operations personnel costs, software maintenance expense, underwriting data from third-party vendors, and telephony costs. General and Administrative Expenses General and Administrative expenses primarily include the Company’s corporate personnel costs, as well as legal, occupancy, and other related costs. In addition, prior to the Spin-off, general and administrative expenses included expense allocations for certain corporate service functions historically provided by Cash America, such as executive oversight, insurance and risk management, government relations, internal audit, treasury, licensing, and to a limited extent finance, accounting, tax, legal, human resources, compensation and benefits, compliance and support for certain information systems related to financial reporting. Cash America allocated these expenses to the Company based on the Company’s share of Cash America’s corporate services expenses incurred for the consolidated entity. Stock-Based Compensation The Company accounts for its stock-based employee compensation plans in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company recognizes compensation expense based on the grant date fair value over the remaining vesting periods for stock-based awards. During the periods prior to the Spin-off, certain employees received stock-based compensation in the form of restricted stock units from Cash America. These awards are reflected in stock-based compensation or as a net equity transaction with Cash America in the Company’s statement of stockholders’ equity. See Note 13. Income Taxes The provision for income taxes is based on income before income taxes as reported for financial statement purposes. Deferred income taxes are provided for in accordance with the assets and liability method of accounting for income taxes in order to recognize the tax effects of temporary differences between financial statement and income tax accounting. Prior to the Spin-off, the Company’s operations were included as part of consolidated and unitary tax returns with Cash America and its affiliated companies. With the exception of certain entities outside of the United States, prior to the Spin-off, the Company settled its current tax balances with Cash America on a quarterly basis through an adjustment to its affiliate line of credit with Cash America. The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 requires that a more-likely-than-not threshold (greater than 50 percent) be met before the benefit of a tax position may be recognized in the consolidated financial statements and prescribes how such benefit should be measured. It also provides guidance on recognition adjustment, classification, accrual of interest and penalties, accounting in interim periods, disclosure and transition. The Company performs an evaluation of the recoverability of its deferred tax assets on a quarterly basis. The Company establishes a valuation allowance if it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company analyzes several factors, including the nature and frequency of operating losses, the Company’s carryforward period for any losses, the reversal of future taxable temporary differences, the expected occurrence of future income or loss and the feasibility of available tax planning strategies to protect against the loss of deferred tax assets. See Note 10 for further discussion. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2016 2015 2014 Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 34,602 $ 43,992 $ 111,671 Denominator: Total weighted average basic shares 33,192 33,006 33,000 Shares applicable to stock-based compensation 270 20 8 Total weighted average diluted shares 33,462 33,026 33,008 Earnings per share – basic $ 1.04 $ 1.33 $ 3.38 Earnings per share – diluted $ 1.03 $ 1.33 $ 3.38 For the years ended December 31, 2016, 2015 and 2014, 1,622,331, 1,700,296 and 1,425,196 shares of common stock underlying stock options, respectively, and 464,500, 368,111 and no shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes The Company adopted In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In April 2015, the FASB issued ASU 2015‑05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Internal-Use Software In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and subsequent measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Accounting Standards to be Adopted in Future Periods In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805) – Clarifying the Definition of a Business In October 2016, the FASB issued ASU 2016-17 Consolidation (Topic 810): Interests Held through Related Parties that are Under Common Control , In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , including adoption in an interim period In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers consolidated financial statements |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions On June 23, 2015, the Company completed the purchase of certain assets and assumed certain liabilities of a company operating as The Business Backer, LLC, which purchases discounted future accounts receivables from small businesses throughout the United States through RPAs, which provide working capital for small businesses. The total consideration of $26.4 million was comprised of $17.7 million in cash at closing, a $3.0 million promissory note (included in “Accounts payable and accrued expenses” in the consolidated balance sheets) and estimated contingent consideration of $5.7 million based on future earn-out opportunities. The contingent purchase consideration was recorded at its estimated fair value at the date of acquisition based upon the Company’s assessment of the probable earnings attributable to the business as defined in the purchase agreement. To the extent operating results exceed the Company’s estimate, additional contingent consideration would be due, however the total consideration paid may not exceed $71 million. The contingent purchase consideration is revalued each reporting period with changes in fair value of the contingent consideration obligations recognized as a gain or loss on fair value remeasurement in the Company’s consolidated statements of income. The fair value of the contingent purchase consideration was remeasured as of December 31, 2016 and a gain from the fair value remeasurement of $3.3 million was recognized. During the three months ended December 31, 2015, the Company identified measurement period adjustments that impacted the estimated fair value of the assets and liabilities assumed on June 23, 2015 as a result of new information obtained about the facts and circumstances that existed as of the acquisition date. This purchase was not material to the Company’s consolidated financial statements. The operating results of the purchased assets, which were not material, have been included in the Company’s consolidated financial statements from the date of acquisition. |
Loans and Finance Receivables,
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables | 4. Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the years ended December 31, 2016, 2015 and 2014 was as follows (dollars in thousands): Year Ended December 31, 2016 2015 2014 Short-term loans $ 196,255 $ 204,893 $ 257,169 Line of credit accounts 220,462 185,521 305,118 Installment loans and RPAs 327,375 260,507 246,700 Total loans and finance receivables revenue 744,092 650,921 808,987 Other 1,477 1,679 850 Total Revenue $ 745,569 $ 652,600 $ 809,837 The components of Company-owned loans and finance receivables at December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,516 $ 130,576 $ 413,638 $ 579,730 Delinquent receivables: Delinquent payment amounts (1) — 4,560 2,110 6,670 Receivables on non-accrual status 27,489 9,047 37,559 74,095 Total delinquent receivables 27,489 13,607 39,669 80,765 Total loans and finance receivables, gross 63,005 144,183 453,307 660,495 Less: Allowance for losses (17,770 ) (26,594 ) (54,581 ) (98,945 ) Loans and finance receivables, net $ 45,235 $ 117,589 $ 398,726 $ 561,550 As of December 31, 2015 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 37,951 $ 92,732 $ 317,231 $ 447,914 Delinquent receivables: Delinquent payment amounts (1) — 3,072 1,510 4,582 Receivables on non-accrual status 20,842 5,051 23,566 49,459 Total delinquent receivables 20,842 8,123 25,076 54,041 Total loans and finance receivables, gross 58,793 100,855 342,307 501,955 Less: Allowance for losses (14,652 ) (15,727 ) (36,943 ) (67,322 ) Loans and finance receivables, net $ 44,141 $ 85,128 $ 305,364 $ 434,633 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 2 “Significant Accounting Policies-Current and Delinquent Loans and Finance Receivables” for additional information. Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for estimated losses on the Company’s guarantees of third-party lender-owned loans through the CSO programs for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands): Year Ended December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Cost of revenue 69,202 88,489 170,035 327,726 Charge-offs (85,599 ) (92,044 ) (182,471 ) (360,114 ) Recoveries 20,362 14,422 29,804 64,588 Effect of foreign currency translation (847 ) — 270 (577 ) Balance at end of period $ 17,770 $ 26,594 $ 54,581 $ 98,945 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,298 $ — $ 458 $ 1,756 Increase (decrease) in liability 418 — (178 ) 240 Balance at end of period $ 1,716 $ — $ 280 $ 1,996 Year Ended December 31, 2015 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,324 $ 19,749 $ 30,875 $ 64,948 Cost of revenue 62,571 43,547 110,560 216,678 Charge-offs (83,316 ) (68,075 ) (129,537 ) (280,928 ) Recoveries 21,374 20,694 25,585 67,653 Effect of foreign currency translation (301 ) (188 ) (540 ) (1,029 ) Balance at end of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,575 $ — $ 1 $ 1,576 (Decrease) increase in liability (277 ) — 457 180 Balance at end of period $ 1,298 $ — $ 458 $ 1,756 Year Ended December 31, 2014 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 20,466 $ 29,244 $ 32,608 $ 82,318 Cost of revenue 70,382 92,461 104,415 267,258 Charge-offs (105,129 ) (119,428 ) (129,466 ) (354,023 ) Recoveries 28,785 17,943 23,619 70,347 Effect of foreign currency translation (180 ) (471 ) (301 ) (952 ) Balance at end of period $ 14,324 $ 19,749 $ 30,875 $ 64,948 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,047 $ — $ — $ 2,047 (Decrease) increase in liability (472 ) — 1 (471 ) Balance at end of period $ 1,575 $ — $ 1 $ 1,576 In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of December 31, 2016 and 2015, the amount of consumer loans guaranteed by the Company was $32.2 million and $34.1 million, respectively, representing amounts due under consumer loans originated by third-party lenders under the CSO programs. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company of $2.0 million and $1.7 million as of December 31, 2016 and 2015, respectively, is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment As an online financial services provider, a significant amount of capital is invested in developing computer software and systems infrastructure. Major classifications of property and equipment at December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 Cost Accumulated Depreciation Net Computer software $ 72,277 $ (48,680 ) $ 23,597 Furniture, fixtures and equipment 30,974 (22,159 ) 8,815 Leasehold improvements 24,267 (9,579 ) 14,688 Total $ 127,518 $ (80,418 ) $ 47,100 As of December 31, 2015 Cost Accumulated Depreciation Net Computer software $ 64,705 $ (40,462 ) $ 24,243 Furniture, fixtures and equipment 26,517 (17,918 ) 8,599 Leasehold improvements 23,277 (8,064 ) 15,213 Total $ 114,499 $ (66,444 ) $ 48,055 The Company capitalized internal software development costs of $8.1 million, $9.8 million and $8.6 million during 2016, 2015 and 2014, respectively. The Company recognized depreciation expense of $14.4 million, $17.9 million and $18.7 million during 2016, 2015 and 2014, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Other Intangible Assets Goodwill is tested for impairment at least annually. See Note 2 for further discussion. Goodwill Changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015 were as follows (dollars in thousands): Balance as of January 1, 2015 $ 255,862 Acquisitions 11,158 Effect of foreign currency translation (12 ) Balance as of December 31, 2015 $ 267,008 Effect of foreign currency translation 2 Balance as of December 31, 2016 $ 267,010 Acquisitions represent the original goodwill allocation and final adjustments to purchase price allocations during the measurement period subsequent to the acquisition date. The impact of final purchase price allocation adjustments on the Company’s results of operations and financial position were immaterial. Acquired Intangible Assets Acquired intangible assets that are subject to amortization as of December 31, 2016 and 2015, were as follows (dollars in thousands): As of December 31, 2016 Cost Accumulated Amortization Net Customer relationships $ 3,533 $ (2,973 ) $ 560 Lead provider and broker relationships 5,689 (3,449 ) 2,240 Trademarks 2,590 (546 ) 2,044 Non-competition agreements 800 (240 ) 560 Total $ 12,612 $ (7,208 ) $ 5,404 As of December 31, 2015 Cost Accumulated Amortization Net Customer relationships $ 3,532 $ (2,812 ) $ 720 Lead provider and broker relationships 5,689 (2,809 ) 2,880 Trademarks 2,592 (372 ) 2,220 Non-competition agreements 800 (80 ) 720 Total $ 12,613 $ (6,073 ) $ 6,540 Non-competition agreements are amortized over the applicable terms of the contract. Customer, lead provider and broker relationships are generally amortized over three to five years based on the pattern of economic benefits provided. Trademarks are generally amortized over three to 20 years on a straight-line basis. Amortization Amortization expense for acquired intangible assets was $1.1 million, $0.5 million and $45 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. Estimated future amortization expense for the years ended December 31, is as follows (dollars in thousands): YEAR AMOUNT 2017 $ 1,080 2018 1,070 2019 1,070 2020 590 2021 110 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 7. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses at December 31, 2016, 2015 were as follows (dollars in thousands): As of December 31, 2016 2015 Trade accounts payable $ 25,420 $ 25,665 Accrued payroll and fringe benefits 14,165 8,401 Deferred finish out allowance 8,939 8,835 Deferred fees on third-party consumer loans 6,869 9,465 Accrued interest payable 5,043 4,266 Accrual for consumer loan payments rejected for non-sufficient funds 3,680 5,029 Promissory note 3,000 3,000 Contingent consideration 2,358 5,658 Liability for losses on third-party lender owned consumer loans 1,996 1,756 Other accrued liabilities 201 66 Total $ 71,671 $ 72,141 |
Marketing Expenses
Marketing Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Marketing Expenses [Abstract] | |
Marketing Expenses | 8. Marketing Expenses Marketing expenses for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands): Year Ended December 31, 2016 2015 2014 Advertising $ 66,184 $ 80,526 $ 74,999 Customer procurement expense including lead purchase costs 30,551 29,327 42,843 Customer referral and revenue sharing expense 669 7,029 10,020 Total $ 97,404 $ 116,882 $ 127,862 See Note 2 for further discussion. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 9. Long-term debt The Company’s long-term debt instruments and balances outstanding as of December 31, 2016 2015 December 31, 2016 2015 Securitization notes $ 165,419 $ — Revolving line of credit — 58,400 Senior Notes 495,622 494,867 Subtotal 661,041 553,267 Less: Long-term debt issuance costs (11,130 ) (11,358 ) Total long-term debt $ 649,911 $ 541,909 Consumer Loan Securitization 2016-1 Facility On January 15, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (as amended, the “2016-1 Securitization Facility”) with certain purchasers, Jefferies Funding LLC, as administrative agent (the “Administrative Agent”) and Bankers Trust Company, as indenture trustee and securities intermediary (the “Indenture Trustee”). The 2016-1 Securitization Facility securitizes unsecured consumer installment loans (“Receivables”) that have been, or will be, originated or acquired under the Company’s NetCredit brand and that meet specified eligibility criteria. Under the 2016-1 Securitization Facility, Receivables are sold to EFR 2016-1, LLC, a wholly-owned special purpose subsidiary (the “Issuer”), and serviced by another subsidiary. The Issuer issued an initial term note of $107.4 million (the “Initial Term Note”), which was secured by $134 million in unsecured consumer loans, and variable funding notes (the “Variable Funding Notes”) with an aggregate availability of $20 million per month; the 2016-1 Securitization Facility has been amended to increase the availability to $40 million until December 31, 2016, and $30 million thereafter, as discussed below 2016-1 Securitization Facility has been amended to increase the maximum principal amount to $275 million, as discussed below At the end of each month during the nine-month revolving period, the Receivables funded by the Variable Funding Notes have been and will be refinanced through the creation of two Term Notes, which Term Notes have been and will be issued to the holders of the Variable Funding Notes. The non-recourse Securitization Notes mature at various dates, the latest of which will be October 15, 2020 (the “Final Maturity Date”). The Securitization Notes are issued pursuant to an indenture, dated as of January 15, 2016 (the “Closing Date”). The Securitization Notes bear interest at an annual rate equal to the one month London Interbank Offered Rate (“LIBOR”) (subject to a floor of 1%) plus 7.75%, which rate is initially 8.75%. In addition, the Issuer paid certain customary upfront closing fees and will pay customary annual commitment and other fees to the purchasers under the 2016-1 Securitization Facility. The Issuer is permitted to voluntarily prepay any outstanding Securitization Notes, subject to an optional redemption premium. Interest and principal payments on outstanding Securitization Notes will be made monthly. Any remaining amounts outstanding will be payable no later than the Final Maturity Date. The Securitization Notes are supported by the expected cash flows from the underlying Receivables. The holders of the Securitization Notes have no recourse to the Company if the cash flows from the underlying Receivables are not sufficient to pay all of the principal and interest on the Securitization Notes. Additionally, the Receivables will be held by the Issuer at least until the obligations under the Securitization Notes are extinguished. For so long as they are held by the Issuer, the outstanding Receivables will not be available to satisfy the debts and other obligations of the Company. All amounts due under the Securitization Notes are secured by all of the Issuer’s assets, which include the Receivables transferred to the Issuer, related rights under the Receivables, specified bank accounts, and certain other related collateral. The 2016-1 Securitization Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters and other subjects; and default and termination provisions which provide for the acceleration of the Securitization Notes under the 2016-1 Securitization Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables, defaults under other material indebtedness and certain regulatory matters. On July 26, 2016, the Company and certain of its subsidiaries entered into a First Omnibus Amendment (the “First Amendment”) of the 2016-1 Facility that was established on the Closing Date, pursuant to various agreements with certain purchasers, the Administrative Agent and the Indenture Trustee. The agreements evidencing the 2016-1 Facility, all dated as of the Closing Date, include (i) an Indenture between the Issuer and the Indenture Trustee, (ii) a Note Purchase Agreement among the Issuer, NetCredit Loan Services, LLC (f/k/a Enova Lending Services, LLC), as the Master Servicer, the Administrative Agent and certain purchasers, and (iii) a Receivables Purchase Agreement between the Company and Enova Finance 5, LLC. The First Amendment effected a variety of minor technical changes to the Indenture, the Note Purchase Agreement, the Receivables Purchase Agreement and the servicing agreement for the 2016-1 Facility. These changes include revised procedures under the Note Purchase Agreement for the disbursement to the Issuer of proceeds from draws under the Variable Funding Notes and clarification of modifications that the servicer is permitted to effect to the terms of consumer installment loans that have been transferred into the EFR 2016-1 Facility. On August 17, 2016, the Company and one of its subsidiaries entered into an Amendment to the Receivables Purchase Agreement. This amendment modified an eligibility criterion for receivables that the Company sells under the Agreement. On September 12, 2016, the Company and certain of its subsidiaries entered into a Second Omnibus Amendment (the “Second Amendment”) to amend the Indenture and Receivables Purchase Agreement. The Second Amendment authorized the Company to include in the 2016-1 Facility receivables originated by a state-chartered bank and acquired by a subsidiary of the Company from that bank, and it adjusted the Investment Pool Cumulative Net Loss Trigger for the Initial Term Note Investment Pool (as such terms are defined in the Indenture), which was the seasoned pool of receivables securitized under the 2016-1 Facility on the Closing Date. On October 20, 2016, the Company and certain of its subsidiaries entered into a and Receivables Purchase Agreement. (as such terms are defined in the Indenture) On November 14, 2016, the Company and certain of its subsidiaries entered into a and Receivables Purchase Agreement On December 14, 2016, the Company and certain of its subsidiaries entered into a Fifth Amendment (the “Fifth Amendment”) to amend the Indenture and Receivables Purchase Agreement. The Fifth Amendment adjusted the Investment Pool Cumulative Delinquency Trigger for the Initial Term Notes (as such terms are defined in the Indenture), with an effective date of November 30, 2016, expanded the categories of receivables that could be financed through the securitization facility and made certain other minor changes. These changes provide the Company with additional flexibility under the securitization facility. As of December 31, 2016, the carrying amount of the 2016-1 Securitization Facility was $151.4 million, which included unamortized issuance costs of $1.9 million. The issuance costs are being amortized to interest expense over a period of four years. The total interest expense recognized was $13.5 million of which $3.2 million represented the non-cash amortization of the issuance costs for the year ended December 31, 2016. 2016-2 Facility On December 1, 2016, the Company and certain of its subsidiaries entered into a receivables securitization (the “2016-2 Facility”) with Redpoint Capital Asset Funding, LLC, as lender (the “Lender”). The 2016-2 Facility securitizes unsecured consumer installment loans (“Redpoint Receivables”) that have been and will be originated or acquired under the Company’s NetCredit brand by several of the Company’s subsidiaries (the “Originators”) and that meet specified eligibility criteria, including that the annual percentage rate for each securitized consumer loan is greater than or equal to 90%. The average annual percentage rate for loans securitized under the 2016-2 Facility in 2016 was approximately 135%. Under the 2016-2 Facility, Redpoint Receivables are sold to a wholly-owned special purpose subsidiary of the Company (the “Debtor”) and serviced by another subsidiary of the Company. The Debtor has issued a revolving note with an initial maximum principal balance of $20.0 million (the “Initial Facility Size”), which is required to be secured by $25.0 million in unsecured consumer loans. The Initial Facility Size may be increased under the 2016-2 Facility to $40 million. The 2016-2 Facility is non-recourse to the Company and matures on December 1, 2019. The 2016-2 Facility is governed by a loan and security agreement, dated as of December 1, 2016, between the Lender and the Debtor. The 2016-2 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which rate per annum is initially 12.50%. In addition, the Debtor paid certain customary upfront closing fees to the Lender. Interest payments on the 2016-2 Facility will be made monthly. Subject to certain exceptions, the Debtor is not permitted to prepay the 2016-2 Facility prior to October 1, 2018. Following such date, the Debtor is permitted to voluntarily prepay the 2016-2 Facility without penalty. Any remaining amounts outstanding will be payable no later than December 1, 2019. All amounts due under the 2016-2 Facility are secured by all of the Debtor’s assets, which include the Redpoint Receivables transferred to the Debtor, related rights under the Redpoint Receivables, a bank account and certain other related collateral. The 2016-2 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Redpoint Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the 2016-2 Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables and defaults under other material indebtedness of the Debtor. As of December 31, 2016, the carrying amount of the 2016-2 Facility was $12.1 million. In connection with the issuance of the 2016-2 Facility, the Company incurred debt issuance costs of approximately $0.2 million. The unamortized balance of these costs as of December 31, 2016 is included in “Other assets” in the consolidated balance sheets. These costs are being amortized to interest expense over a period of 36 months, the term of the 2016-2 Facility. The total interest expense recognized was $0.1 million for the year ended December 31, 2016. $35.0 Million Revolving Credit Facility On May 14, 2014, the Company and its domestic subsidiaries as guarantors entered into a credit agreement among the Company, the guarantors, Jefferies Finance LLC as administrative agent and Jefferies Group LLC as lender (the “Credit Agreement”). The Credit Agreement provided for an unsecured revolving credit facility of up to $75.0 million, including a multi-currency sub-facility that gives the Company the ability to borrow up to $25.0 million that may be specified in foreign currencies subject to the terms and conditions of the Credit Agreement. On March 25, 2015, an amendment to the Credit Agreement reduced the Company’s unsecured revolving line of credit to $65.0 million (from $75.0 million) and increased an additional senior secured indebtedness basket to the greater of $20.0 million or 2.75% of consolidated total assets (as defined in the credit agreement) (from $15.0 million or 2% of consolidated total assets). In addition, the March 25, 2015 amendment revised certain definitions and provisions relating to limitations on indebtedness, investments, dispositions, fundamental changes and burdensome agreements to allow certain of the Company’s foreign subsidiaries, which opt to become guarantors of its obligations under the credit agreement, to be treated as domestic subsidiaries for purposes of those provisions. On November 5, 2015 the Company and certain of its domestic subsidiaries, as guarantors, entered into an amendment to the Credit Agreement, which further reduced the Company’s unsecured revolving line of credit to $60.0 million (from $65.0 million) and increased the maximum allowable leverage ratio as defined in the Credit Agreement to 3.75 to 1.00 (from 3.00 to 1.00) solely for the fiscal quarters ending December 31, 2015 and March 31, 2016. In addition, the November 5, 2015 amendment (i) revised certain definitions and provisions to clarify the treatment of securitization subsidiaries as defined in the credit, and (ii) clarified the treatment of operating leases under the credit agreement in light of contemplated changes to accounting treatment concerning such operating leases. On December 29, 2015, the Company and certain of its domestic subsidiaries, as guarantors, entered into an amendment to the Credit Agreement, which temporarily increased the Company’s revolving line of credit to $75 million, an increase of $15.0 million ($5.0 million on December 29, 2015 and $10.0 million on January 4, 2016). Once the Company received the proceeds from the consumer loan securitization financing in January 2016, it repaid the outstanding balance on the revolving line of credit in full and, in accordance with the terms of the amendment, the revolving commitment amount was reduced to $40.0 million. On June 30, 2016, the Company and certain of its domestic subsidiaries, as guarantors, entered into a fourth amendment to the Credit Agreement, which increased the maximum allowable leverage ratio (as defined in the credit agreement) for the fiscal quarter ended June 30, 2016 to 4.00 to 1.00 (from 3.00 to 1.00) and for the fiscal quarters ended September 30, 2016 and December 31, 2016 to 3.50 to 1.00 (in each case, from 3.00 to 1.00). On September 30, 2016, the Company and certain of its domestic subsidiaries, as guarantors, entered into a fifth amendment to the Credit Agreement, which increased the maximum allowable leverage ratio (as defined in the credit agreement) for the fiscal quarters ended September 30, 2016 and thereafter to 4.25 to 1.00 (from 3.50 to 1.00) and decreased the Company’s unsecured revolving line of credit by $5.0 million from $40.0 million to $35.0 million. Interest on the amounts borrowed will be charged, at the Company’s option, at either LIBOR for one week or one-, two-, three- or six-month periods, as selected by the Company, plus a margin varying from 2.50% to 3.75% or at the agent’s base rate plus a margin varying from 1.50% to 2.75%. The margin for the borrowings under the Credit Agreement is dependent on the Company’s cash flow leverage ratios. The weighted average interest rate (including margin) on the revolving line of credit was 4.18% at December 31, 2015. The Company is also required to pay a fee on the unused portion of the line of credit ranging from 0.25% to 0.50% (0.50% as of each of December 31, 2016 and 2015) based on the Company’s cash flow leverage ratios. The Credit Agreement will mature on June 30, 2017. The Company had no outstanding borrowings as of December 31, 2016 and $58.4 million of outstanding borrowings as of December 31, 2015. The Credit Agreement also includes a sub-limit of up to $20.0 million for standby or commercial letters of credit that is guaranteed by the Company’s domestic subsidiaries. In the event that an amount is paid by the issuing bank under a letter of credit, it will be due and payable by the Company on demand. Pursuant to the terms of the Credit Agreement, the Company agrees to pay fees equal to the LIBOR margin per annum on the undrawn amount of each outstanding standby letter of credit plus a one-time commercial letter of credit fee of 0.20% of the face amount of each commercial letter of credit plus 0.25% per annum on the average daily amount of the total letter of credit exposure. The Company had outstanding letters of credit of $6.6 million under its Credit Agreement as of December 31, 2016 and 2015. In connection with the issuance of the Credit Agreement, the Company incurred debt issuance costs of approximately $1.6 million, which primarily consisted of underwriting fees and legal expenses. The unamortized balance of these costs as of December 31, 2016 is included in “Other assets” in the consolidated balance sheets. These costs are being amortized to interest expense over a period of 37 months, the term of the Credit Agreement. $500.0 Million 9.75% Senior Unsecured Notes On May 30, 2014, the Company issued and sold $500.0 million in aggregate principal amount of 9.75% Senior Notes due 2021 (the “Senior Notes”). The Senior Notes bear interest at a rate of 9.75% annually on the principal amount payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2014. The Senior Notes were sold at a discount of the principal amount to yield 10.0% to maturity and will mature on June 1, 2021. The Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by all of the Company’s domestic subsidiaries, except for designated securitization subsidiaries. The Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. As required by a registration rights agreement that the Company entered into with the initial purchaser when the Senior Notes were issued, the Company completed an exchange offer in April 2015. All of the unregistered Senior Notes have been exchanged for identical new notes registered under the Securities Act. The Senior Notes are governed by an indenture (the “Senior Notes Indenture”), dated May 30, 2014, between the Company, the Company’s domestic subsidiaries, as guarantors, and the trustee. The Senior Notes Indenture contains certain covenants that, among other things, limit the Company’s, and certain of its subsidiaries’, ability to incur additional debt, acquire or create new subsidiaries, create liens, engage in certain transactions with affiliates and consolidate or merge with or into other companies. The Senior Notes Indenture provides for customary events of default, including non-payment and failure to comply with covenants or other agreements in the Senior Notes Indenture. The Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to June 1, 2017 at 100% of the aggregate principal amount of Senior Notes redeemed plus the applicable “make whole” redemption price specified in the Senior Notes Indenture, plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after June 1, 2017 at a premium specified in the Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to June 1, 2017, at its option, the Company may redeem up to 35% of the aggregate principal amount of the Senior Notes at a redemption price equal to 109.75% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the Senior Notes Indenture. If a change of control occurs, as that term is defined in the Senior Notes Indenture, the holders of the Senior Notes will have the right, subject to certain conditions, to require the Company to repurchase their Senior Notes at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest, if any, as of the date of repurchase. The Spin-off did not constitute a change of control under the Senior Notes Indenture. The Company used all of the net proceeds of the Senior Notes offering, or $479.0 million, to repay all of its intercompany indebtedness due to Cash America, which was $361.4 million as of May 30, 2014, and the remaining net proceeds were used to pay a significant portion of the $122.4 million in cash dividends to Cash America. As of December 31, 2016 and 2015, the carrying amount of the Senior Notes was $486.4 million and $483.5 million, respectively, which included an unamortized discount of $4.4 million and $5.1 million, respectively and unamortized issuance costs of $9.3 million and $11.4 million, respectively. The discount and issuance costs are being amortized to interest expense over a period of seven years, through the maturity date of June 1, 2021. For each of the years ended December 31, 2016 and 2015 the total interest expense recognized was $51.6 million of which $0.7 million represented the non-cash amortization of the discount and $2.1 million represented the non-cash amortization of the issuance costs. Weighted-average interest rates on long-term debt were 10.71% and 10.59% during 2016 and 2015, respectively. As of December 31, 2016 and 2015, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements. As of December 31, 2016, required principal payments under the terms of the long-term debt for each of the five years after December 31, 2016 are as follows (dollars in thousands): YEAR Amount 2017 $ — 2018 — 2019 — 2020 — 2021 500,000 (1) Thereafter — Securitization 165,419 (2) Total $ 665,419 (1) (2) The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 2015 Deferred tax assets: Loans and finance receivables, net $ 38,275 $ 28,629 Compensation and benefits 7,397 4,210 Translation adjustments 6,726 3,898 Accrued rent and deferred finish out allowance 4,372 5,560 Foreign net operating loss carryforward 1,449 968 Other 1,960 1,785 Total deferred tax assets $ 60,179 $ 45,050 Deferred tax liabilities: Amortizable intangible assets $ 60,762 $ 52,882 Property and equipment 11,443 11,359 Other 483 108 Total deferred tax liabilities $ 72,688 $ 64,349 Net deferred tax liabilities before valuation allowance $ (12,509 ) $ (19,299 ) Valuation allowance (1,807 ) (1,220 ) Net deferred tax liabilities $ (14,316 ) $ (20,519 ) The components of the provision for income taxes and the income to which it relates for the years ended December 31, 2016, 2015 and 2014 are shown below (dollars in thousands): Year Ended December 31, 2016 2015 2014 Income before income taxes: Domestic $ 57,422 $ 70,519 $ 176,494 International 14 — 5 Income before income taxes $ 57,436 $ 70,519 $ 176,499 Current provision: Federal $ 22,656 $ 25,601 $ 51,144 International 94 114 46 State and local 2,347 2,211 1,753 Total current provision for income taxes $ 25,097 $ 27,926 $ 52,943 Deferred provision (benefit): Federal $ (2,152 ) $ (1,360 ) $ 11,363 International — — — State and local (111 ) (39 ) 522 Total deferred provision (benefit) for income taxes $ (2,263 ) $ (1,399 ) $ 11,885 Total provision for income taxes $ 22,834 $ 26,527 $ 64,828 The effective tax rate on income differs from the federal statutory rate of 35% for the following reasons (dollars in thousands): Year Ended December 31, 2016 2015 2014 Tax provision computed at the federal statutory income tax rate $ 20,103 $ 24,682 $ 61,781 State and local income taxes, net of federal tax benefits 1,401 1,408 1,329 Share based compensation 1,656 — — Other (326 ) 437 1,718 Total provision $ 22,834 $ 26,527 $ 64,828 Effective tax rate 39.8 % 37.6 % 36.7 % The Company has foreign net operating loss carryforwards from Brazilian operations of $1.4 million as of December 31, 2016, $2.8 million as of December 31, 2015, and $1.6 million as of December 31, 2014. These net operating loss carryforwards are subject to annual limitations and have an unlimited carryforward period. The Company has recorded a full valuation allowance related to the foreign net operating loss carryforwards, as well as other foreign deferred tax assets, as they are not more likely than not to be utilized. The following table summarizes the valuation account activity for the years ended December 31, 2016, 2015 and 2014 (in thousands): Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 1,220 $ 670 $ 171 Additions 587 550 499 Deductions — — — Balance at end of period $ 1,807 $ 1,220 $ 670 The balance of unrecognized tax benefits as of December 31, 2016 was $351 thousand ($320 thousand net of the federal benefit of state matters), which if recognized would favorably affect the effective tax rate in any future periods. There were no unrecognized tax benefits as of December 31, 2015 and 2014. The Company does not believe it is reasonably possible that, within the next twelve months, unrecognized domestic tax benefits will change by a significant amount. The Company records interest and penalties related to tax matters as income tax expense in the consolidated statement of income. The Company recorded no expense for interest and penalties related to tax matters as of December 31, 2016. A reconciliation of the activity related to unrecognized tax benefits follows for the fiscal years indicated (in thousands): Year Ended December 31, 2016 Balance at beginning of period $ — Additions based on tax positions related to the current year 118 Additions for tax positions of prior years 233 Balance at end of period $ 351 The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The IRS audits for tax years 2011 through 2014 were concluded with no adjustments to the financial statements. The 2015 tax year is open to examination by the IRS. The years open to examination by state, local, and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three to four years from the date the tax return is filed. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Leases The Company leases its headquarters in Chicago, Illinois, a call center facility in Gurnee, Illinois, and office space in Blue Ash, Ohio and London, United Kingdom under operating leases with remaining terms ranging from three to ten years with certain rights to extend for additional periods. The operating expenses and real estate taxes are not included in the table below. Future minimum rentals due under non-cancelable leases as of December 31, 2016 are as follows for each of the years ending December 31 (dollars in thousands): YEAR AMOUNT 2017 $ 6,432 2018 5,986 2019 6,865 2020 6,611 2021 6,621 Thereafter 32,498 Total $ 65,013 The total future minimum lease obligation excludes non-cancelable sublease rental income of $0.4 million. Rent expense was $5.8 million, $6.8 million and $3.7 million for the years ended December 31, 2016, 2015 or 2014, respectively. Headquarters Relocation The Company provided notice in the second quarter of 2014 to the landlord at 200 W. Jackson Boulevard in Chicago, Illinois that it was accelerating the lease expiration date for approximately 86,000 rentable square feet effective June 30, 2015. As a result, the Company recognized an expense of $1.4 million in the year ended December 31, 2014 related to a lease termination penalty, which was included as “General and administrative expense” in the consolidated statement of income. In July 2014, the Company entered into a lease agreement for its current headquarters office space at 175 W. Jackson Boulevard in Chicago as part of its plans to relocate from its former headquarters. In the second quarter of 2015, the Company ceased using the 200 W. Jackson location and, as a result, recognized additional expense of $3.7 million for the year ended December 31, 2015, which was also included as “General and administrative expense” and consisted of a lease exit liability of $2.9 million for the remaining lease payments, net of estimated sublease income of $1.7 million, and $0.8 million for the removal of property and restoration costs related to the 200 W. Jackson lease. The Company does not expect to incur further material costs related to the relocation. The following table is a summary of the exit and disposal activity and liability balances as a result of the headquarters relocation (in thousands): Lease Termination Costs Other Exit Costs Total Balance at January 1, 2015 $ 707 $ — $ 707 Additions 2,861 808 3,669 Payments (2,143 ) (604 ) (2,747 ) Balance at December 31, 2015 $ 1,425 $ 204 $ 1,629 Balance at January 1, 2016 $ 1,425 $ 204 $ 1,629 Payments (1,132 ) — (1,132 ) Adjustments 344 (69 ) 275 Balance at December 31, 2016 $ 637 $ 135 $ 772 Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans and is required to purchase any defaulted loans it has guaranteed. As of December 31, 2016 and 2015, the amount of consumer loans guaranteed by the Company was $32.2 million and $34.1 million, respectively, representing amounts due under consumer loans originated by third-party lenders under the CSO programs. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company of $2.0 million and $1.7 million, as of December 31, 2016 and 2015, respectively, is included in “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. Litigation On March 8, 2013, Flemming Kristensen, on behalf of himself and others similarly situated, filed a purported class action lawsuit in the U.S. District Court of Nevada against the Company and other unaffiliated lenders and lead providers. The lawsuit alleges that the lead provider defendants sent unauthorized text messages to consumers on behalf of the Company and the other lender defendants in violation of the Telephone Consumer Protection Act. The complaint seeks class certification, statutory damages, an injunction against “wireless spam activities,” and attorneys’ fees and costs. The Company filed an answer to the complaint denying all liability. On March 26, 2014, the Court granted class certification. On July 20, 2015, the court granted the Company’s motion for summary judgment, denied Plaintiff’s motion for summary judgment and, on July 21, 2015, entered judgment in favor of the Company. Plaintiff filed a motion for reconsideration, which was denied. On May 3, 2016, Plaintiff filed a notice of appeal of the order granting summary judgment for the Company, the judgment in favor of the company, and the order denying Plaintiff’s motion to reconsider, and appellate briefing is now complete. Neither the likelihood of an unfavorable appellate decision nor the ultimate liability, if any, with respect to this matter can be determined at this time, and the Company is currently unable to estimate a range of reasonably possible losses, as defined by ASC 450-20-20, Contingencies–Loss Contingencies–Glossary, for this litigation. The Company believes that the Plaintiff’s claims in the complaint are without merit and intends to vigorously defend this lawsuit. The Company is also a defendant in certain routine litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans Effective on July 1, 2012, the Company established the Enova International, Inc. 401(k) Savings Plan (the “401(k) Plan”), which is open to substantially all employees of the Company and its subsidiaries. New employees are automatically enrolled in this plan unless they elect not to participate. Also effective July 1, 2012, the Company established the Enova International, Inc. Nonqualified Savings Plan (the “NQSP”) for certain members of Company management. Participants may contribute up to 75% of their earnings to the 401(k) Plan subject to regulatory and other plan restrictions. NQSP participants may contribute up to 80% of their annual bonus and up to 50% of their other eligible compensation to the NQSP. Prior to January 1, 2015, the Company made matching cash contributions of 50% of each participant’s contributions, based on participant contributions of up to 5% of compensation. Effective January 1, 2015, the Company makes matching contributions of 100% of the first 1% of pay and 50% of the next 5% of pay that each employee contributes to the 401(k) Plan. Company contributions made prior to January 1, 2015 vest at the rate of 20% each year after one year of service; thus a participant is 100% vested after five years of service. The Company’s matching contributions subsequent to January 1, 2015 will fully vest after a participant’s second year of service with the Company. The Company’s consolidated contributions to the 401(k) Plan and the NQSP were $2.2 million, $1.4 million and $1.0 million for the years ended December 31, 2016, 2015 and 2014, respectively. Effective on January 1, 2012, the Company established the Enova International, Inc. Supplemental Executive Retirement Plan (“SERP”) in which certain officers and certain other employees of the Company participate. Under this defined contribution plan, the Company makes an annual supplemental cash contribution to the SERP based on the objectives of the plan as approved by the Company’s Management Development and Compensation Committee of the Board of Directors. The Company recorded compensation expense of $0.2 million, $0.4 million and $0.2 million for SERP contributions for the years ended December 31, 2016, 2015 and 2014, respectively. The NQSP and the SERP are non-qualified deferred compensation plans. Benefits under the NQSP and the SERP are unfunded. As of December 31, 2016, 2015 and 2014, the Company held securities in rabbi trusts to pay benefits under these plans. These securities are classified as trading securities, and the unrealized gains and losses on these securities are netted with the costs of the plans in “General and administrative expenses” in the consolidated statements of income. Amounts included in the consolidated balance sheets relating to the NQSP and the SERP were as follows (dollars in thousands): As of December 31, 2016 2015 Prepaid expenses and other assets $ 1,590 $ 1,075 Accounts payable and accrued expenses $ 1,860 $ 1,434 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation Enova Awards Under the Enova International, Inc. 2014 First Amended and Restated Long-Term Incentive Plan (the “Enova LTIP”), the Company is authorized to issue 8,000,000 shares of Common Stock pursuant to “Awards” granted as incentive stock options (intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended), nonqualified stock options, restricted stock units (“RSUs”), restricted stock, performance shares, stock appreciation rights or other stock-based awards. Since 2014, nonqualified stock options and RSU awards are the only stock-based awards granted under the Plan. As of December 31, 2016, there were 3,171,604 shares available for future grants under the Enova LTIP. During the year ended December 31, 2016, the Company received 41,931 shares of its common stock valued at approximately $437,000 as partial payment of taxes required to be withheld upon issuance of shares under RSUs. Restricted Stock Units During the years ended December 31, 2016 2015 and 2014 In accordance with ASC 718, the grant date fair value of RSUs is generally based on the Company’s closing stock price on the day before the grant date and is amortized to expense over the vesting periods. The agreements relating to awards provide that the vesting and payment of awards would be accelerated if there is a change in control of the Company. The following table summarizes the Company’s restricted stock unit activity during 2016, 2015 2014 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 Units Weighted Average Fair Value at Date of Grant Units Weighted Average Fair Value at Date of Grant Units Weighted Average Fair Value at Date of Grant Outstanding at beginning of year 641,878 $ 20.55 549,707 $ 23.04 — $ — Units granted 1,189,136 6.67 356,064 18.39 549,707 23.04 Shares issued (213,437 ) 19.65 (151,088 ) 22.62 — — Units forfeited (258,520 ) 15.65 (112,805 ) 23.04 — — Outstanding at end of year 1,359,057 9.49 641,878 20.55 549,707 23.04 Compensation expense related to these RSUs totaling $5.2 million ($3.1 million net of related taxes), $4.9 million ($3.1 million net of related taxes) and $0.1 million ($89 thousand net of related taxes) was recognized for the years ended December 31, 2016 2015 2014 2016 2016 On May 21, 2015, in connection with the resignation of a certain executive, the Company entered into an employment agreement pursuant to which the executive would become vested on January 1, 2016 in 50% of his RSU Award granted under the RSU award agreement rather than 25% as previously agreed under the RSU award agreement. The acceleration of the vesting was a modification of the plan and required that the fair value be reestablished on the date of the modification. The modification resulted in additional expense in 2015 of approximately $0.3 million. Stock Options During the years ended December 31, 2016 2015 2014 Stock options granted under the Enova LTIP become exercisable in equal increments on the first, second and third anniversaries of their date of grant, and expire on the 7th anniversary of their date of grant. Exercise prices of these stock options are equal to the closing stock price on the day before the grant date. In accordance with ASC 718, compensation expense on stock options is based on the fair value of the stock options on the day before the grant date and is amortized to expense over the vesting periods. For the year ended December 31, 2016, the Company estimated the fair value of the stock option grants using the Black-Scholes option-pricing model based on the following assumptions: risk-free interest rate of 1.2%, expected term (life) of options of 4.5 years, expected volatility of 49.1% and no expected dividends. Determining the fair value of stock-based awards at their respective grant dates requires considerable judgment, including estimating expected volatility and expected term (life). The Company based its expected volatility on a weighted average of the historical volatility of the Company and the historical volatility of comparable public companies over the option’s expected term. The Company calculated its expected term based on the simplified method, which is the mid-point between the weighted-average graded-vesting term and the contractual term. The simplified method was chosen as a means to determine expected term as the Company has limited historical option exercise experience as a public company. The Company derived the risk-free rate from a weighted-average yield for the three-and five-year zero-coupon U.S. Treasury Strips. The Company estimates forfeitures at the grant date based on its historical forfeiture rate, which is based on activity of cash-based long-term incentive units granted and outstanding prior to the Spin-off, and will revise the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes the Company’s stock option activity during 2016, 2015 2014 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 Units Weighted Average Exercise Price Units Weighted Average Exercise Price Units Weighted Average Exercise Price Outstanding at beginning of year 1,891,153 $ 21.44 1,425,196 $ 23.04 — $ — Options granted 337,081 6.29 785,294 19.19 1,425,196 23.04 Options exercised — — — — — — Options forfeited (641,178 ) 22.01 (319,337 ) 23.04 — — Outstanding at end of year 1,587,056 $ 17.98 1,891,153 $ 21.44 1,425,196 $ 23.04 Options vested at end of year 734,896 21.67 475,127 23.05 — — The weighted average fair value of options granted in 2016 2016, 2015 2014 2016 2016 On May 21, 2015, in connection with the resignation of a certain executive, the Company entered into an employment agreement pursuant to which the executive would become vested on January 1, 2016 in 66.6% of his stock options granted under the stock options award agreement rather than 33.3% as previously agreed under the stock option award agreement. The acceleration of the vesting was a modification of the plan and required that the fair value be reestablished on the date of the modification. The modification resulted in additional expense in 2015 of approximately $0.3 million. Cash America Awards In 2013, Cash America’s Board of Directors approved a grant of RSUs that vested over a two-year period to the Company’s Chief Executive Officer under the Cash America LTIP. In conjunction with the Spin-off on November 13, 2014, the vesting of this grant was accelerated, and each vested RSU entitled the holder to receive a share of common stock of Cash America as well as 0.915 shares of the Company’s common stock. In accordance with ASC 718, the grant date fair value of RSUs was based on Cash America’s closing stock price on the day before the grant date and was amortized to expense over the vesting periods. The following table summarizes the Cash America RSU activity during 2014: Year Ended December 31, 2014 Units Weighted Average Fair Value at Date of Grant Outstanding at beginning of year 14,260 $ 48.19 Units granted — — Shares issued (14,260 ) (1) 48.19 Units forfeited — — Outstanding at end of year — $ — Units vested at end of year — — (1) Amount does not include 13,048 shares of common stock of the Company that were delivered by Cash America to the Company’s Chief Executive Officer in connection with his RSUs that vested on November 13, 2014. In connection with the Spin-off, such RSU awards were payable by Cash America in both shares of Cash America common stock and Enova common stock. Compensation expense related to Cash America RSUs totaling $0.4 million ($0.2 million net of related taxes) was recognized for the year ended December 31, 2014. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 14. Derivative Instruments The Company periodically uses derivative instruments to manage risk from changes in market conditions that may affect the Company’s financial performance. The Company primarily uses derivative instruments to manage its primary market risks, which are interest rate risk and foreign currency exchange rate risk. The Company periodically uses forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction gain (loss), net” in the Company’s consolidated statements of income. As of December 31, 2016, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. The Company’s derivative instruments are presented in its financial statements on a net basis. The Company had no outstanding derivative instruments as of December 31, . Non-designated derivatives: As of December 31, 2015 Gross Amounts Gross Amounts Net Amounts of Assets of Recognized Offset in the Presented in the Notional Financial Consolidated Consolidated Balance Forward currency exchange contracts Amount Instruments Balance Sheets (1) Sheets (2) Assets $ 58,723 $ 151 $ — $ 151 Liabilities $ — $ — $ — $ — (1) As of December 31, 2015, the Company had no gross amounts of recognized derivative instruments that the Company makes an accounting policy election not to offset. In addition, there was no financial collateral related to the Company’s derivatives. The Company has no assets or liabilities that are subject to an enforceable master netting agreement or similar arrangement. (2) Represents the fair value of forward currency contracts, which is recorded in “Accounts payable and accrued expenses” in the consolidated balance sheets. The following table presents information on the effect of derivative instruments on the consolidated results of operations and AOCI for years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Gains (Losses) Gains (Losses) Gains (Losses) Reclassified From Recognized in Income Recognized in AOCI AOCI into Income Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 2016 2015 2014 2016 2015 2014 Non-designated derivatives: Forward currency exchange contracts (1) $ 3,020 $ 4,525 $ 287 $ — $ — $ — $ — $ — $ — Total $ 3,020 $ 4,525 $ 287 $ — $ — $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the hedged portion of the foreign intercompany balances. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions A current officer of the Company has an ongoing ownership interest in the small business from which the Company acquired certain assets and assumed certain liabilities in June 2015 (see Note 3 for additional information). In the normal course of business, the Company attains certain customer relationships from the small business by entering into transactions with the customers to obtain additional RPA financing. In these transactions, the Company satisfies the customer’s existing RPA balance with the small business which terminates such customer’s responsibilities to the small business. During the years ended December 31, 2016 and 2015, the Company paid $0.4 million and $7.7 million, respectively, to the small business to satisfy customers’ existing RPA balances. Pursuant to the acquisition, a subsidiary of the Company issued a promissory note to the small business in the amount of $3.0 million (the “Promissory Note”) and granted the company an opportunity to earn certain contingent purchase consideration (see Note 3 for additional information), both of which are guaranteed by the Company. The Promissory Note accrues interest at a rate of 4.0% per annum and will mature on June 23, 2018. The Company incurred interest expense related to the Promissory Note of $0.1 million in each of the years ended December 31, 2016 and 2015. In addition, as a condition precedent to the acquisition, a subsidiary of the Company executed a Transition Services Agreement with the small business from which the Company acquired certain assets whereby it agreed to provide certain transition services to the business for three years following the acquisition. During the year ended December 31, 2016 and 2015, the Company was paid $34 thousand and $0.1 million, respectively, for such services. The subsidiary of the Company also entered into a short-term employee leasing agreement whereby it leased employees at cost from the small business until such employees could be formally hired, under which the Company paid a total of $0.2 million during the year ended December 31, 2015; no additional payments will be made under this agreement. Prior to the Spin-off, Cash America provided certain corporate service functions, such as executive oversight, insurance and risk management, government relations, internal audit, treasury, licensing, and to a limited extent finance, accounting, tax, legal, human resources, compensation and benefits, compliance and support for certain information systems related to financial reporting. The costs of such services were allocated to the Company based on the Company’s share of Cash America’s corporate services expenses incurred for the consolidated entity. Actual corporate services costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. The Company believes that the expenses in these financial statements were reported on a basis that fairly represents the utilization of the services provided. These financial statements do not necessarily reflect the financial position or results of operations that would have existed if the Company had been operated as a stand-alone entity during the periods covered and may not be indicative of future results of operations and financial position. General and administrative expenses include allocations by Cash America of $9.1 million for the year ended December 31, 2014. The Company also paid $46.0 million for the year ended December 31, 2014 to Cash America for its share of income taxes as though the Company had been taxed separately from Cash America and had prepared separate tax returns. After the Spin-off, Cash America charged the Company a transition services fee related to utilization of financial reporting systems and accounts payable processing that is included in general and administrative expenses. The Company recorded $0.4 million in expense for these services for the year ended December 31, 2015. The Company transitioned to its own financial reporting system in late 2015 and the transition services agreement with Cash America ended on December 31, 2015. Prior to the Spin-off, the Company paid Cash America compensation for loans made to or arranged for customers who were referred from Cash America. The Company paid $1.2 million for the year ended December 31, 2014, pursuant to this arrangement. In addition, the Company administered the consumer loan underwriting model utilized by Cash America’s Retail Services Division in exchange for the reimbursement of the Company’s direct third-party costs incurred in providing the service. The Company received $0.6 million for the year ended December 31, 2014 pursuant to this arrangement. The Company and Cash America entered into a new agreement in conjunction with the Spin-off for the Company to continue providing this service. The Company received $1.0 and $1.2 million for the years ended December 31, 2016 and 2015, respectively pursuant to this new agreement. Prior to the issuance of the Senior Notes on May 30, 2014, all payments the Company owed Cash America, offset by any credits or fees Cash America owed the Company in connection with the transactions above, were made through the Affiliate Line of Credit agreement. Since May 30, 2014, amounts due to Cash America have been settled a month in arrears. The balance due from Cash America of $0.1 million as of each of December 31, 2016 and 2015 is included in “Other receivables and prepaid expenses” in the consolidated balance. On December 8, 2016, Cash America completed the sale of its entire holding in the Company and no longer has any ownership interest in the Company. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 16. Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from sources other than its traditional capital market sources, the Company has established a securitization program through the 2016-1 and 2016-2 Securitization Facilities. The Company transferred certain consumer loan receivables to wholly owned, bankruptcy-remote special purpose subsidiaries (VIEs), which issue term notes backed by the underlying consumer loan receivables and are serviced by another wholly owned subsidiary. The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. The Company parenthetically discloses on its consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and the VIE liabilities if the VIE’s creditors have no recourse against the Company’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with the Company’s securitization entities were as follows (dollars in thousands): December 31, 2016 2015 Assets Restricted cash and cash equivalents $ 19,468 $ — Loans and finance receivables, net 216,766 — Other receivables and prepaid expenses 3 — Other assets 2,459 — Total assets $ 238,696 $ — Liabilities Accounts payable and accrued expenses $ 1,350 $ — Long-term debt 163,550 — Total liabilities $ 164,900 $ — |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 17. Supplemental Disclosures of Cash Flow Information The following table sets forth certain cash and non-cash activities for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Year Ended December 31, 2016 2015 2014 Cash paid during the year for: Interest $ 59,609 $ 49,390 $ 24,807 Income taxes paid 19,213 40,759 46,353 Non-cash investing and financing activities: Loans and finance receivables renewed $ 310,425 $ 253,279 $ 290,956 Liabilities assumed in acquisitions — 8,658 — Affiliate interest expense — — 7,629 |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 18. Operating Segment Information The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil and has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services. The Company has aggregated all components of its business into a single operating segment based on the similarities of the economic characteristics, the nature of the products and services, the nature of the production and distribution methods, the type of customer and the nature of the regulatory environment. During 2016, the Company changed the presentation of its operational information to report shared corporate services separately from its domestic and international operations. Corporate services expenses, which were previously allocated between domestic and international based on revenue, are included under the “Corporate Services” heading in the following tables. For comparison purposes, income (loss) from operations and depreciation and amortization expenses for the prior period have been conformed to the current presentation. Corporate Services primarily includes personnel, occupancy and other operating expenses for shared functions, such as executive management, technology, analytics, business development, legal and licensing, compliance, risk management, internal audit, human resources, payroll, treasury, finance, accounting, and tax. Corporate Services assets primarily include: corporate property and equipment, nonqualified savings plan assets, marketable securities, restricted cash and prepaid expenses. The following tables present information on the Company’s domestic and international operations as of and for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands). Year Ended December 31, 2016 2015 2014 Revenue Domestic $ 622,991 $ 510,242 $ 474,715 International 122,578 142,358 335,122 Total revenue $ 745,569 $ 652,600 $ 809,837 Income from operations Domestic $ 204,084 $ 183,582 $ 177,435 International 19,787 42,787 144,487 Corporate services (102,394 ) (101,982 ) (106,914 ) Total income from operations $ 121,477 $ 124,387 $ 215,008 Depreciation and amortization Domestic $ 6,005 $ 7,920 $ 8,706 International 2,167 2,254 2,448 Corporate services 7,392 8,214 7,578 Total depreciation and amortization $ 15,564 $ 18,388 $ 18,732 Expenditures for property and equipment Domestic $ 6,955 $ 6,268 $ 7,398 International 3,158 3,797 870 Corporate services 4,283 22,176 5,016 Total expenditures for property and equipment $ 14,396 $ 32,241 $ 13,284 December 31, 2016 2015 Property and equipment, net Domestic $ 19,734 $ 15,410 International 5,410 6,193 Corporate services 21,956 26,452 Total property and equipment, net $ 47,100 $ 48,055 Assets Domestic $ 823,390 $ 681,050 International 96,606 103,470 Corporate services 57,883 56,017 Total assets $ 977,879 $ 840,537 Geographic Information The following table presents the Company’s revenue by geographic region for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Year Ended December 31, 2016 2015 2014 Revenue United States $ 622,991 $ 510,242 $ 474,715 United Kingdom 103,478 129,703 325,014 Other international countries 19,100 12,655 10,108 Total revenue $ 745,569 $ 652,600 $ 809,837 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $47.1 million and $48.1 million at December 31, 2016 and 2015, respectively. The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 19. Fair Value Measurements Recurring Fair Value Measurements In accordance with ASC 820, certain of the Company’s assets and liabilities, which are carried at fair value, are classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. During the years ended December 31, 2016 and 2015, there were no transfers of assets or liabilities in or out of Level 1, Level 2 or Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values. The Company’s financial assets that are measured at fair value on a recurring basis as of December 31, 2016 and 2015 are as follows (dollars in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities) Nonqualified savings plan assets (1) 1,590 1,590 — — Contingent consideration (2,358 ) — — (2,358 ) Total $ (768 ) $ 1,590 $ — $ (2,358 ) December 31, Fair Value Measurements Using 2015 Level 1 Level 2 Level 3 Financial assets (liabilities) Forward currency exchange contracts $ 151 $ — $ 151 $ — Nonqualified savings plan assets (1) 1,075 1,075 — — Contingent consideration (5,658 ) — — (5,658 ) Total $ (4,432 ) $ 1,075 $ 151 $ (5,658 ) (1) The non-qualified savings plan assets have an offsetting liability of a greater amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. The Company measures the fair value of its forward currency exchange contracts under Level 2 inputs as defined by ASC 820. For these forward currency exchange contracts, current market rates are used to determine fair value. The significant inputs used in these models are derived from observable market rates. The fair value of the nonqualified savings plan assets are measured under a Level 1 input. These assets are publicly traded equity securities for which market prices are readily observable. The Company determined the fair value of the liability for the contingent consideration based on a probability-weighted discounted cash flow analysis. This analysis reflects the contractual terms of the purchase agreement and utilizes assumptions with regard to future earnings, probabilities of achieving such future earnings, the timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future earnings and probabilities of achieving such future earnings would result in a higher fair value measurement while an increase in the discount rate would result in a lower fair value measurement. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in the fair value hierarchy. The changes in the fair value of the contingent consideration, which is a Level 3 liability measured at fair value on a recurring basis, are summarized in the table below for the years ended December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2014 $ — $ — Issuance of contingent consideration (see Note 3) 5,658 5,658 Balance at December 31, 2015 $ 5,658 $ 5,658 Remeasurement of contingent consideration (see Note 3) (3,300 ) (3,300 ) Balance at December 31, 2016 $ 2,358 $ 2,358 Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At December 31, 2016 and 2015, there were no assets or liabilities recorded at fair value on a nonrecurring basis. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of December 31, 2016 and 2015 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,934 $ 39,934 $ — $ — Short-term loans and line of credit accounts, net (1) 162,824 — — 162,824 Installment loans and RPAs, net (1) 398,726 — — 430,895 Restricted cash 26,306 26,306 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,493 $ 66,240 $ — $ 600,422 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,996 $ — $ — $ 1,996 Promissory note 3,000 — — 3,111 Securitization Notes 165,419 — 168,216 — Senior Notes 495,622 — 495,940 — Total $ 666,037 $ — $ 664,156 $ 5,107 December 31, Fair Value Measurements Using 2015 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 42,066 $ 42,066 $ — $ — Short-term loans and line of credit accounts, net (1) 129,269 — — 129,269 Installment loans and RPAs, net (1) 305,364 — — 283,700 Restricted cash 7,379 7,379 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 490,781 $ 49,445 $ — $ 419,672 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,756 $ — $ — $ 1,756 Promissory note 3,000 — — 2,984 Credit agreement borrowings 58,400 — — 58,400 Senior Notes 494,867 — 374,500 — Total $ 558,023 $ — $ 374,500 $ 63,140 (1) Short-term loans, line of credit accounts and installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) See Note 2 for additional information related to the investment in unconsolidated investee. Cash and cash equivalents and restricted cash The carrying amount of restricted cash and cash equivalents approximates fair value. Short-term loans, line of credit accounts, installment loans and RPAs are carried in the consolidated balance sheet net of the allowance for estimated losses, which is calculated by applying historical loss rates combined with recent default trends to the gross receivable balance. Short-term loans and line of credit accounts have relatively short maturity periods that are generally 12 months or less. The unobservable inputs used to calculate the fair value of these receivables include historical loss rates, recent default trends and estimated remaining loan term; therefore, the carrying value approximates the fair value. The fair value of installment loans and RPAs is estimated using discounted cash flow analyses, which consider interest rates on loans and discounts offered for receivables with similar terms to customers with similar credit quality, the timing of expected payments, estimated customer default rates and/or valuations of comparable portfolios. As of December 31, 2016, the fair value of the Company’s installment loans and RPAs was greater than the carrying value of these loans and finance receivables, and as of December 31, 2015, the fair value of the Company’s installment loans and RPAs was lower than the carrying value of these loans and finance receivables. This variance is a result of a change in the valuation technique used for certain portions of the installment loan and RPA portfolio. Unsecured installment loans typically have terms between two and 60 months. RPAs typically have estimated delivery terms between six and 18 months. In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans the Company arranges for consumers on the third-party lenders’ behalf and is required to purchase any defaulted loans it has guaranteed. The estimated fair value of the liability for estimated losses on consumer loans guaranteed by the Company was $2.0 million and $1.7 million as of December 31, 2016 and 2015, respectively. The Company measures the fair value of its liability for third-party lender-owned consumer loans under Level 3 inputs. The fair value of these liabilities is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value of these liabilities approximates the fair value. The Company measures the fair value of the Promissory Note using Level 3 inputs. The fair value of the Promissory Note is estimated using a discounted cash flow analysis. As of December 31, 2016, the Promissory Note had a higher fair value than the carrying value. As of December 31, 2015, the Promissory Note had a lower fair value than the carrying value. The Company measures the fair value of its Securitization Notes using Level 2 inputs. The fair value of the Company’s Securitization Notes is estimated based on quoted prices in markets that are not active. As of December 31, 2016, the Company’s Securitization Notes had a higher fair value than the carrying value. The Company measures the fair value of its Credit Agreement borrowings using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s). As of December 31, 2015, the fair value of the Company’s Credit Agreement borrowings approximated the carrying value. The Company measures the fair value of its Senior Notes using Level 2 inputs. The fair value of the Senior Notes is estimated based on quoted prices in markets that are not active. As of December 31, 2016, the Company’s Senior Notes had a higher fair value than the carrying value based on the price of the last trade of the Senior Notes. As of December 31, 2015, the Company’s Senior Notes had a lower fair value than the carrying value. The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. As of December 31, 2016 the Company estimated the fair value of its investment to be approximately equal to the book value. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | 20. Condensed Consolidating Financial Statements The Company’s Senior Notes are unconditionally guaranteed by certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”) and are not secured by its other subsidiaries (the “Non-Guarantor Subsidiaries”). The Guarantor Subsidiaries are 100% owned, all guarantees are full and unconditional, and all guarantees are joint and several. As a result of the guarantee arrangements, we are required to present the following condensed consolidating financial statements. The condensed consolidating financial statements reflect the investments in subsidiaries of the Company using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed consolidating financial statements of Enova International, Inc. (the “Parent”), its Guarantor Subsidiaries and Non-Guarantor Subsidiaries as of December 31, 2016 and 2015 and for the year ended December 31, 2016 and 2015 are shown on the following pages. CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (dollars in thousand) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 36,057 $ 3,877 $ — $ 39,934 Restricted cash — 6,838 19,468 — 26,306 Loans and finance receivables, net — 335,161 226,390 — 561,550 Income taxes receivable — — — — — Other receivables and prepaid expenses 127 19,095 302 — 19,524 Property and equipment, net — 46,507 593 — 47,100 Goodwill — 267,010 — — 267,010 Intangible assets, net — 5,400 4 — 5,404 Investment in subsidiaries 294,647 25,131 — (319,778 ) — Intercompany receivable 363,941 — — (363,941 ) — Other assets 597 7,995 2,459 — 11,051 Total assets $ 659,312 $ 749,194 $ 253,093 $ (683,719 ) $ 977,879 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 4,310 $ 65,714 $ 1,647 $ — $ 71,671 Intercompany payables — 295,764 68,179 (363,943 ) — Income taxes currently payable (72,704 ) 73,006 (20 ) — 282 Deferred tax liabilities, net (354 ) 15,156 (486 ) — 14,316 Long-term debt 486,361 — 163,550 — 649,911 Total liabilities 417,613 449,640 232,870 (363,943 ) 736,180 Commitments and contingencies Stockholders' equity 241,699 299,554 20,223 (319,777 ) 241,699 Total liabilities and stockholders' equity $ 659,312 $ 749,194 $ 253,093 $ (683,720 ) $ 977,879 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (dollars in thousand) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 40,927 $ 1,139 $ — $ 42,066 Restricted cash — 7,379 — — 7,379 Loans and finance receivables, net — 430,862 3,771 — 434,633 Income taxes receivable 37,201 (31,709 ) 11 — 5,503 Other receivables and prepaid expenses 162 19,791 96 — 20,049 Property and equipment, net — 47,821 234 — 48,055 Goodwill — 267,008 — — 267,008 Intangible assets, net — 6,532 8 — 6,540 Investment in subsidiaries 233,632 14,177 — (247,809 ) — Intercompany receivable 480,112 — 794 (480,906 ) — Other assets 2,284 7,020 — — 9,304 Total assets $ 753,391 $ 809,808 $ 6,053 $ (728,715 ) $ 840,537 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 5,514 $ 66,220 $ 407 $ — $ 72,141 Intercompany payables — 480,906 — (480,906 ) — Deferred tax liabilities, net — 20,562 (43 ) — 20,519 Long-term debt 541,909 — — — 541,909 Total liabilities 547,423 567,688 364 (480,906 ) 634,569 Commitments and contingencies Stockholders' equity 205,968 242,120 5,689 (247,809 ) 205,968 Total liabilities and stockholders' equity $ 753,391 $ 809,808 $ 6,053 $ (728,715 ) $ 840,537 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 653,517 $ 95,646 $ (3,594 ) $ 745,569 Cost of Revenue — 260,996 66,970 — 327,966 Gross Profit — 392,521 28,676 (3,594 ) 417,603 Expenses Marketing — 95,972 1,432 — 97,404 Operations and technology — 80,999 4,203 — 85,202 General and administrative 315 95,840 5,395 (3,594 ) 97,956 Depreciation and amortization — 15,464 100 — 15,564 Total Expenses 315 288,275 11,130 (3,594 ) 296,126 Income (Loss) from Operations (315 ) 104,246 17,546 — 121,477 Interest expense, net (53,512 ) 562 (12,653 ) — (65,603 ) Foreign currency transaction gain 1,569 (7 ) — — 1,562 Income (Loss) before Income Taxes and Equity in Net Earnings of Subsidiaries (52,258 ) 104,801 4,893 — 57,436 Provision for income taxes (20,776 ) 41,665 1,945 — 22,834 Income (loss) before Equity in Net Earnings of Subsidiaries (31,482 ) 63,136 2,948 — 34,602 Net earnings of subsidiaries 66,084 2,948 — (69,032 ) — Net Income (Loss) $ 34,602 $ 66,084 $ 2,948 $ (69,032 ) $ 34,602 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (6,956 ) (8,269 ) 1,331 6,938 (6,956 ) Total other comprehensive (loss) gain, net of tax (6,956 ) (8,269 ) 1,331 6,938 (6,956 ) Comprehensive Income (Loss) $ 27,646 $ 57,815 $ 4,279 $ (62,094 ) $ 27,646 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2015 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 650,295 $ 2,305 $ — $ 652,600 Cost of Revenue — 215,637 1,221 — 216,858 Gross Profit — 434,658 1,084 — 435,742 Expenses Marketing — 116,330 552 — 116,882 Operations and technology — 71,993 2,019 — 74,012 General and administrative 673 100,642 758 — 102,073 Depreciation and amortization — 18,350 38 — 18,388 Total Expenses 673 307,315 3,367 — 311,355 Income (Loss) from Operations (673 ) 127,343 (2,283 ) — 124,387 Interest expense, net (52,816 ) (71 ) 4 — (52,883 ) Foreign currency transaction loss 532 (1,516 ) (1 ) — (985 ) Income (Loss) before Income Taxes and Equity in Net Earnings of Subsidiaries (52,957 ) 125,756 (2,280 ) — 70,519 Provision for income taxes (19,921 ) 47,306 (858 ) — 26,527 Income (loss) before Equity in Net Earnings of Subsidiaries (33,036 ) 78,450 (1,422 ) — 43,992 Net earnings of subsidiaries 77,028 (1,422 ) — (75,606 ) — Net Income (Loss) $ 43,992 $ 77,028 $ (1,422 ) $ (75,606 ) $ 43,992 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (1,451 ) (245 ) (866 ) 1,111 (1,451 ) Total other comprehensive (loss) gain, net of tax (1,451 ) (245 ) (866 ) 1,111 (1,451 ) Comprehensive Income (Loss) $ 42,541 $ 76,783 $ (2,288 ) $ (74,495 ) $ 42,541 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 59,337 $ 296,876 $ 37,859 $ (699 ) $ 393,373 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (1,293,273 ) (14,924 ) — (1,308,197 ) Securitized loans transferred — 359,000 (359,000 ) — — Loans and finance receivables repaid — 669,088 188,960 — 858,048 Change in restricted cash — (658 ) (19,468 ) — (20,126 ) Purchases of property and equipment — (14,007 ) (389 ) — (14,396 ) Capital contributions to subsidiaries — (10,255 ) — 10,255 — Other investing activities — 95 — — 95 Net cash used in investing activities — (290,010 ) (204,821 ) 10,255 (484,576 ) Cash Flows from Financing Activities Payments for (proceeds from) member's equity — (699 ) 10,255 (9,556 ) — Debt issuance costs paid (500 ) — (6,202 ) — (6,702 ) Treasury shares purchased (437 ) — — — (437 ) Repayments under revolving line of credit, net (58,400 ) — — — (58,400 ) Borrowings under securitization facility — — 280,075 — 280,075 Repayments under securitization facility — — (114,656 ) — (114,656 ) Net cash provided by (used in) financing activities (59,337 ) (699 ) 169,472 (9,556 ) 99,880 Effect of exchange rates on cash — (11,037 ) 228 — (10,809 ) Net decrease in cash and cash equivalents — (4,870 ) 2,738 — (2,132 ) Cash and cash equivalents at beginning of year — 40,927 1,139 — 42,066 Cash and cash equivalents at end of period $ — $ 36,057 $ 3,877 $ — $ 39,934 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2015 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 31,259 $ 331,954 $ (2,695 ) $ (76,597 ) $ 283,921 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (1,167,107 ) (5,062 ) — (1,172,169 ) Loans and finance receivables repaid — 849,638 (280 ) — 849,358 Acquisitions — (17,735 ) — — (17,735 ) Purchases of property and equipment — (31,977 ) (264 ) — (32,241 ) Capital contributions to subsidiaries (87,876 ) (7,255 ) — 95,131 — Other investing activities — 618 — — 618 Net cash used in investing activities (87,876 ) (373,818 ) (5,606 ) 95,131 (372,169 ) Cash Flows from Financing Activities Payments for (proceeds from) member's equity — 11,279 7,255 (18,534 ) — Debt issuance costs paid (1,596 ) — — — (1,596 ) Treasury shares purchased (187 ) — — — (187 ) Borrowings under revolving line of credit, net 58,400 — — — 58,400 Net cash provided by (used in) financing activities 56,617 11,279 7,255 (18,534 ) 56,617 Effect of exchange rates on cash — (855 ) (554 ) — (1,409 ) Net decrease in cash and cash equivalents — (31,440 ) (1,600 ) — (33,040 ) Cash and cash equivalents at beginning of year — 72,367 2,739 — 75,106 Cash and cash equivalents at end of period $ — $ 40,927 $ 1,139 $ — $ 42,066 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | 21. Quarterly Financial Data (Unaudited) The Company’s operations are subject to seasonal fluctuations. Demand has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to customers’ receipt of income tax refunds in the United States. Typically, the Company’s cost of revenue, which represents its loan loss provision, is lowest as a percentage of revenue in the first quarter of each year. The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015 (in thousands, except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter 2016 Total Revenue $ 174,653 $ 172,535 $ 195,943 $ 202,438 Cost of Revenue 69,577 65,453 95,391 97,545 Gross Profit $ 105,076 $ 107,082 $ 100,552 $ 104,893 Net Income $ 9,863 $ 8,188 $ 7,837 $ 8,714 Diluted earnings per share $ 0.30 $ 0.25 $ 0.23 $ 0.26 Diluted weighted average common shares (1) 33,187 33,335 33,558 33,767 2015 Total Revenue $ 165,676 $ 146,280 $ 165,227 $ 175,417 Cost of Revenue 38,570 41,536 65,614 71,138 Gross Profit $ 127,106 $ 104,744 $ 99,613 $ 104,279 Net Income $ 24,530 $ 10,864 $ 4,417 $ 4,181 Diluted earnings per share $ 0.74 $ 0.33 $ 0.13 $ 0.13 Diluted weighted average common shares (1) 33,008 33,015 33,022 33,061 (1) See Note 2 for Basis of Presentation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events Subsequent events have been reviewed through the date these financial statements were available to be issued. |
Significant Accounting Polici32
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On September 7, 2011, Cash America International, Inc. (“Cash America,” now known as FirstCash, Inc. due to its merger with First Cash Financial Services, Inc. on September 1, 2016) formed a new company, Enova International, Inc. On September 13, 2011, Cash America contributed to the Company all of the stock of its wholly-owned subsidiary, Enova Online Services, Inc., in exchange for 33 million shares of the Company’s common stock. On November 13, 2014, Cash America completed the tax-free spin-off of approximately 80% of the Company’s outstanding common stock (the “Spin-off). Following the Spin-off, the Company became an independent, publicly traded company, and the Company’s shares of common stock are listed on the New York Stock Exchange under the symbol “ENVA.” The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The financial statements include goodwill and intangible assets arising from businesses previously acquired. Prior to the Spin-off, the financial statements also included the allocation of certain assets and liabilities that were historically held at the Cash America corporate level but which were specifically identifiable or allocable to the Company. Certain transactions with Cash America, such as stock-based compensation and foreign currency transactions were considered to be effectively settled as net equity transactions with parent in “Retained earnings” in the consolidated balance sheets at the time the transaction was recorded. Prior to May 30, 2014, all intercompany transactions between the Company and Cash America were considered to be effectively settled in the financial statements at the time the transaction was recorded. In addition, the historical financial statements include allocations of costs relating to certain functions historically provided by Cash America, including corporate services such as executive oversight, insurance and risk management, government relations, internal audit, treasury, licensing, and to a limited extent finance, accounting, tax, legal, human resources, compensation and benefits, compliance and support for certain information systems related to financial reporting. The expense allocations were determined on a basis that Cash America and the Company consider to be reasonable reflections of the utilization of services provided by Cash America. Also see Note 15 for additional information on the Company’s relationship with Cash America. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future, or if the Company had been a separate company during the periods presented. The Company consolidates any variable interest entity (“VIE”) where it has determined the Company is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with accounting principles generally accepted in the United States (“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 dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, allowance for losses on loans and finance receivables, goodwill, long-lived and intangible assets, income taxes, contingencies and litigation. Management bases its estimates on historical experience, empirical data and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates. |
Out-of-Period Adjustment | Out-of-Period Adjustment In a review of its revenue recognition policy during 2015, the Company determined that certain fees on its line of credit product should be deferred over the period the draw is outstanding rather than recognized as revenue when assessed. The Company recorded a $2.5 million reduction to revenue in the fourth quarter of 2015 as an out-of-period adjustment. This adjustment included a $2.8 million reduction of revenue associated with periods prior to 2015. The Company believes this adjustment was not material to any of the prior years’ financial statements. |
Foreign Currency Translations | Foreign Currency Translations The functional currencies for the Company’s subsidiaries that serve or have served residents of the United Kingdom, Australia, Canada and Brazil are the British pound, the Australian dollar, the Canadian dollar and the Brazilian real, respectively. The assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rates in effect at each balance sheet date, and the resulting adjustments are recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) as a separate component of stockholders’ equity. Revenue and expenses are translated at the monthly average exchange rates occurring during each period. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers deposits in banks and short-term investments with original maturities of 90 days or less as cash and cash equivalents. |
Restricted Cash | Restricted Cash The Company includes funds to be used for future debt payments relating to its securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the financing products and services it offers. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the borrower. For short-term loans that the Company offers, interest and finance charges are recognized on an effective yield basis over the term of the loan. For line of credit accounts, interest is recognized over the reporting period based upon the balance outstanding and the contractual interest rate, draw fees are recognized on an effective yield basis over the estimated outstanding period of the draw, and minimum fees are recognized when assessed to the customer. For installment loans, interest is recognized on an effective yield basis over the term of the loan. For RPAs, revenue is recognized on an effective yield basis over the projected delivery term of the agreements and fees are recognized when assessed. CSO fees are recognized on an effective yield basis over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Direct costs associated with originating loans and purchasing RPAs, such as third-party customer acquisition costs, are deferred and amortized against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Short-term loans, line of credit accounts, installment loans, RPAs, unpaid and accrued interest and fees and deferred origination costs are included in “Loans and finance receivables, net” in the consolidated balance sheets. |
Current and Delinquent Loans and Finance Receivables | Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Short-term loans are considered delinquent when payment of an amount due is not made as of the due date. If a line of credit account or installment loan customer misses one payment, that payment is considered delinquent and the balance of the loan is considered current. The Company does not accrue interest on the delinquent payment portion of the loan but does continue to accrue interest on the remaining portion of the loan. If a line of credit account or installment loan customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew a short-term loan or installment loan or extend the due date on a short-term loan. In order to renew or extend a short-term loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. If a short-term loan is renewed, but the customer fails to pay that loan’s current finance charge as of the due date, the unpaid finance charge is classified as delinquent. The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan. |
Allowance and Liability for Estimated Losses on Loans and Finance Receivables | Allowance and Liability for Estimated Losses on Loans and Finance Receivables The Company monitors the performance of its loan and finance receivable portfolios and maintains either an allowance or liability for estimated losses on loans and finance receivables (including revenue, fees and/or interest) at a level estimated to be adequate to absorb losses inherent in the portfolio. The allowance for losses on the Company’s owned loans and finance receivables reduces the outstanding loans and finance receivables balance in the consolidated balance sheets. The liability for estimated losses related to loans guaranteed under its CSO programs is initially recorded at fair value and is included in “Accounts payable and accrued expenses” in the consolidated balance sheets. In determining the allowance or liability for estimated losses on loans and finance receivables, the Company applies a documented systematic methodology. In calculating the allowance or liability for receivable losses, outstanding loans and finance receivables are divided into discrete groups of short-term loans, line of credit accounts, installment loans and RPAs and are analyzed as current or delinquent. Increases in either the allowance or the liability, net of charge-offs and recoveries, are recorded as a “Cost of revenue” in the consolidated statements of income. The allowance or liability for short-term loans classified as current is based on historical loss rates adjusted for recent default trends for current loans. For delinquent short-term loans, the allowance or liability is based on a six-month rolling average of loss rates by stage of collection. For line of credit account and installment loan and RPA portfolios, the Company generally uses a migration analysis to estimate losses inherent in the portfolio. The allowance or liability calculation under the migration analysis is based on historical charge-off experience and the loss emergence period, which represents the average amount of time between the first occurrence of a loss event and the charge-off of a loan. The factors the Company considers to assess the adequacy of the allowance or liability include past due performance, historical behavior of monthly vintages, underwriting changes and recent trends in delinquency in the migration analysis. The Company fully reserves for loans once the loan or a portion of the loan has been classified as delinquent for 60 consecutive days and generally charges off loans between 60 – 65 days delinquent. If a loan is deemed uncollectible before it is fully reserved, it is charged off at that point. Loans classified as delinquent generally have an age of one to 64 days from the date any portion of the loan became delinquent, as defined above. Recoveries on loans previously charged to the allowance are credited to the allowance when collected. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the consolidated statements of income. Costs associated with repair and maintenance activities are expensed as incurred. Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 1 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Software Development Costs | Software Development Costs The Company applies Accounting Standards Codification (“ASC”) 350-40, Internal Use Software (“ASC 350-40”), to its software purchase and development activities. Under ASC 350-40, eligible internal and external costs incurred for the development of computer software applications, as well as for upgrades and enhancements that result in additional functionality of the applications, are capitalized to “Property and equipment” on the consolidated balance sheets. Internal and external training and maintenance costs are charged to expense as incurred or over the related service period. When a software application is placed in service, the Company begins amortizing the related capitalized software costs using the straight-line method based on its estimated useful life, which currently ranges from two to five years. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with ASC 350, Intangibles—Goodwill and Other (“ASC 350”), the Company tests goodwill and intangible assets with an indefinite life for potential impairment annually as of June 30 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In assessing the qualitative factors, the Company considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, its overall financial performance, cash flow from operating activities, market capitalization and stock price. If the Company determines that the two-step quantitative impairment test is required, it uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. The Company completed its annual assessment of goodwill as of June 30, 2016 and determined that the fair value of its goodwill exceeded carrying value, and, as a result, no impairment existed at that date. A 10% decrease in the estimated fair value for the June 2015 assessment would not have resulted in a goodwill impairment. Although no goodwill impairment was noted, there can be no assurances that future goodwill impairments will not occur. As of December 31, 2016, the Company had $267.0 million of goodwill, all of which is expected to be deductible for tax purposes. |
Long-Lived Assets Other Than Goodwill | Long-Lived Assets Other Than Goodwill An evaluation of the recoverability of property and equipment and intangible assets subject to amortization is performed whenever the facts and circumstances indicate that the carrying value may be impaired. An impairment loss is recognized if the future undiscounted cash flows associated with the asset and the estimated fair value of the asset are less than the asset’s corresponding carrying value. The amount of the impairment loss, if any, is the excess of the asset’s carrying value over its estimated fair value. The Company amortizes intangible assets subject to amortization on the basis of their expected periods of benefit, generally three to five years. The costs of start-up activities and organization costs are charged to expense as incurred. |
Hedging and Derivatives Activity | Hedging and Derivatives Activity The Company periodically uses foreign currency forward contracts, which are considered derivative instruments, to minimize the effects of foreign currency risk in the United Kingdom related to the operations of the Company. The forward contracts are not designated as hedges as defined by ASC 815, Derivatives and Hedging; therefore, any changes in the fair value of the forward contracts are recognized in “Foreign currency transaction gain (loss), net” in the consolidated statements of income. See Note 14. |
Investment in Unconsolidated Investee | Investment in Unconsolidated Investee The Company accounts for its investments in unconsolidated investees in accordance with ASC 325, Investments—Other Investments are recorded on a cost basis. The Company evaluates investments for impairment if an event occurs or circumstances change that would more likely than not reduce the fair value of the investment below carrying value. If an impairment of an investment is determined to be other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary-impairment is identified. The Company’s investments in unconsolidated investees are held in “Other assets” on the consolidated balance sheets. As of December 31, 2016, the Company owned a $6.7 million investment in the preferred stock of a privately-held developing financial services entity. The entity is not currently profitable and has historically funded its operations through a series of capital contributions from investors. The Company’s impairment evaluation of this investment as of December 31, 2016 determined that an impairment loss was not probable as of that date. The Company will continue to evaluate the impairment risk of this entity by monitoring and assessing the entity’s ability to raise capital or generate profits to fund its future operations. |
Marketing Expenses | Marketing Expenses Marketing expenses consist of online marketing costs such as sponsored search and advertising on social networking sites, and offline marketing costs such as television, radio and direct mail advertising. In addition, marketing expenses include lead purchase costs paid to marketers in exchange for providing information or applications from potential customers interested in using the Company’s services. Marketing costs directly related to loan originations are deferred and amortized against revenue. Online marketing and lead purchase costs not directly resulting in loan and RPA originations are expensed as incurred. The production costs associated with offline marketing are expensed as incurred. Other marketing costs are expensed as incurred. The Company also had an agreement with an independent third party pursuant to which the Company paid a portion of the net revenue received from the customers referred to the Company by such third party. Prior to the Spin-off, the Company had an arrangement with Cash America pursuant to which the Company paid either a lead purchase fee or a portion of the net revenue received from the customers referred to the Company by Cash America. These referral fees were included in “Marketing” in the consolidated statements of income. |
Operations and Technology Expenses | Operations and Technology Expenses Operations and technology expenses include all expenses related to the direct operations and technology infrastructure related to loan underwriting and processing. This includes call center and operations personnel costs, software maintenance expense, underwriting data from third-party vendors, and telephony costs. |
General and Administrative Expenses | General and Administrative Expenses General and Administrative expenses primarily include the Company’s corporate personnel costs, as well as legal, occupancy, and other related costs. In addition, prior to the Spin-off, general and administrative expenses included expense allocations for certain corporate service functions historically provided by Cash America, such as executive oversight, insurance and risk management, government relations, internal audit, treasury, licensing, and to a limited extent finance, accounting, tax, legal, human resources, compensation and benefits, compliance and support for certain information systems related to financial reporting. Cash America allocated these expenses to the Company based on the Company’s share of Cash America’s corporate services expenses incurred for the consolidated entity. |
Stock Based Compensation | Stock-Based Compensation The Company accounts for its stock-based employee compensation plans in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company recognizes compensation expense based on the grant date fair value over the remaining vesting periods for stock-based awards. During the periods prior to the Spin-off, certain employees received stock-based compensation in the form of restricted stock units from Cash America. These awards are reflected in stock-based compensation or as a net equity transaction with Cash America in the Company’s statement of stockholders’ equity. See Note 13. |
Income Taxes | Income Taxes The provision for income taxes is based on income before income taxes as reported for financial statement purposes. Deferred income taxes are provided for in accordance with the assets and liability method of accounting for income taxes in order to recognize the tax effects of temporary differences between financial statement and income tax accounting. Prior to the Spin-off, the Company’s operations were included as part of consolidated and unitary tax returns with Cash America and its affiliated companies. With the exception of certain entities outside of the United States, prior to the Spin-off, the Company settled its current tax balances with Cash America on a quarterly basis through an adjustment to its affiliate line of credit with Cash America. The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 requires that a more-likely-than-not threshold (greater than 50 percent) be met before the benefit of a tax position may be recognized in the consolidated financial statements and prescribes how such benefit should be measured. It also provides guidance on recognition adjustment, classification, accrual of interest and penalties, accounting in interim periods, disclosure and transition. The Company performs an evaluation of the recoverability of its deferred tax assets on a quarterly basis. The Company establishes a valuation allowance if it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company analyzes several factors, including the nature and frequency of operating losses, the Company’s carryforward period for any losses, the reversal of future taxable temporary differences, the expected occurrence of future income or loss and the feasibility of available tax planning strategies to protect against the loss of deferred tax assets. See Note 10 for further discussion. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the year. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2016 2015 2014 Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 34,602 $ 43,992 $ 111,671 Denominator: Total weighted average basic shares 33,192 33,006 33,000 Shares applicable to stock-based compensation 270 20 8 Total weighted average diluted shares 33,462 33,026 33,008 Earnings per share – basic $ 1.04 $ 1.33 $ 3.38 Earnings per share – diluted $ 1.03 $ 1.33 $ 3.38 For the years ended December 31, 2016, 2015 and 2014, 1,622,331, 1,700,296 and 1,425,196 shares of common stock underlying stock options, respectively, and 464,500, 368,111 and no shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. |
Adopted Accounting Standards | Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes The Company adopted In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In April 2015, the FASB issued ASU 2015‑05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Internal-Use Software In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and subsequent measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Accounting Standards to be Adopted in Future Periods In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805) – Clarifying the Definition of a Business In October 2016, the FASB issued ASU 2016-17 Consolidation (Topic 810): Interests Held through Related Parties that are Under Common Control , In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , including adoption in an interim period In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers consolidated financial statements |
Derivative Instruments Policy | The Company periodically uses forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction gain (loss), net” in the Company’s consolidated statements of income. As of December 31, 2016, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil. |
Significant Accounting Polici33
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 1 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations | The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the years ended December 31, 2016 2015 2014 Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 34,602 $ 43,992 $ 111,671 Denominator: Total weighted average basic shares 33,192 33,006 33,000 Shares applicable to stock-based compensation 270 20 8 Total weighted average diluted shares 33,462 33,026 33,008 Earnings per share – basic $ 1.04 $ 1.33 $ 3.38 Earnings per share – diluted $ 1.03 $ 1.33 $ 3.38 |
Loans and Finance Receivables34
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Revenue Generated from Loans and Finance Receivables | Revenue generated from the Company’s loans and finance receivables for the years ended December 31, 2016, 2015 and 2014 was as follows (dollars in thousands): Year Ended December 31, 2016 2015 2014 Short-term loans $ 196,255 $ 204,893 $ 257,169 Line of credit accounts 220,462 185,521 305,118 Installment loans and RPAs 327,375 260,507 246,700 Total loans and finance receivables revenue 744,092 650,921 808,987 Other 1,477 1,679 850 Total Revenue $ 745,569 $ 652,600 $ 809,837 |
Components of Company-Owned Loans and Finance Receivables | The components of Company-owned loans and finance receivables at December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 35,516 $ 130,576 $ 413,638 $ 579,730 Delinquent receivables: Delinquent payment amounts (1) — 4,560 2,110 6,670 Receivables on non-accrual status 27,489 9,047 37,559 74,095 Total delinquent receivables 27,489 13,607 39,669 80,765 Total loans and finance receivables, gross 63,005 144,183 453,307 660,495 Less: Allowance for losses (17,770 ) (26,594 ) (54,581 ) (98,945 ) Loans and finance receivables, net $ 45,235 $ 117,589 $ 398,726 $ 561,550 As of December 31, 2015 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Current receivables $ 37,951 $ 92,732 $ 317,231 $ 447,914 Delinquent receivables: Delinquent payment amounts (1) — 3,072 1,510 4,582 Receivables on non-accrual status 20,842 5,051 23,566 49,459 Total delinquent receivables 20,842 8,123 25,076 54,041 Total loans and finance receivables, gross 58,793 100,855 342,307 501,955 Less: Allowance for losses (14,652 ) (15,727 ) (36,943 ) (67,322 ) Loans and finance receivables, net $ 44,141 $ 85,128 $ 305,364 $ 434,633 (1) Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 2 “Significant Accounting Policies-Current and Delinquent Loans and Finance Receivables” for additional information. |
Schedule of Changes in Allowance for Losses | Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for estimated losses on the Company’s guarantees of third-party lender-owned loans through the CSO programs for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands): Year Ended December 31, 2016 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Cost of revenue 69,202 88,489 170,035 327,726 Charge-offs (85,599 ) (92,044 ) (182,471 ) (360,114 ) Recoveries 20,362 14,422 29,804 64,588 Effect of foreign currency translation (847 ) — 270 (577 ) Balance at end of period $ 17,770 $ 26,594 $ 54,581 $ 98,945 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,298 $ — $ 458 $ 1,756 Increase (decrease) in liability 418 — (178 ) 240 Balance at end of period $ 1,716 $ — $ 280 $ 1,996 Year Ended December 31, 2015 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 14,324 $ 19,749 $ 30,875 $ 64,948 Cost of revenue 62,571 43,547 110,560 216,678 Charge-offs (83,316 ) (68,075 ) (129,537 ) (280,928 ) Recoveries 21,374 20,694 25,585 67,653 Effect of foreign currency translation (301 ) (188 ) (540 ) (1,029 ) Balance at end of period $ 14,652 $ 15,727 $ 36,943 $ 67,322 Liability for third-party lender-owned loans: Balance at beginning of period $ 1,575 $ — $ 1 $ 1,576 (Decrease) increase in liability (277 ) — 457 180 Balance at end of period $ 1,298 $ — $ 458 $ 1,756 Year Ended December 31, 2014 Short-term Line of Credit Installment Loans and Loans Accounts RPAs Total Allowance for losses for Company-owned loans and finance receivables: Balance at beginning of period $ 20,466 $ 29,244 $ 32,608 $ 82,318 Cost of revenue 70,382 92,461 104,415 267,258 Charge-offs (105,129 ) (119,428 ) (129,466 ) (354,023 ) Recoveries 28,785 17,943 23,619 70,347 Effect of foreign currency translation (180 ) (471 ) (301 ) (952 ) Balance at end of period $ 14,324 $ 19,749 $ 30,875 $ 64,948 Liability for third-party lender-owned loans: Balance at beginning of period $ 2,047 $ — $ — $ 2,047 (Decrease) increase in liability (472 ) — 1 (471 ) Balance at end of period $ 1,575 $ — $ 1 $ 1,576 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Classifications of Property and Equipment | Major classifications of property and equipment at December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 Cost Accumulated Depreciation Net Computer software $ 72,277 $ (48,680 ) $ 23,597 Furniture, fixtures and equipment 30,974 (22,159 ) 8,815 Leasehold improvements 24,267 (9,579 ) 14,688 Total $ 127,518 $ (80,418 ) $ 47,100 As of December 31, 2015 Cost Accumulated Depreciation Net Computer software $ 64,705 $ (40,462 ) $ 24,243 Furniture, fixtures and equipment 26,517 (17,918 ) 8,599 Leasehold improvements 23,277 (8,064 ) 15,213 Total $ 114,499 $ (66,444 ) $ 48,055 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015 were as follows (dollars in thousands): Balance as of January 1, 2015 $ 255,862 Acquisitions 11,158 Effect of foreign currency translation (12 ) Balance as of December 31, 2015 $ 267,008 Effect of foreign currency translation 2 Balance as of December 31, 2016 $ 267,010 |
Summary of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization as of December 31, 2016 and 2015, were as follows (dollars in thousands): As of December 31, 2016 Cost Accumulated Amortization Net Customer relationships $ 3,533 $ (2,973 ) $ 560 Lead provider and broker relationships 5,689 (3,449 ) 2,240 Trademarks 2,590 (546 ) 2,044 Non-competition agreements 800 (240 ) 560 Total $ 12,612 $ (7,208 ) $ 5,404 As of December 31, 2015 Cost Accumulated Amortization Net Customer relationships $ 3,532 $ (2,812 ) $ 720 Lead provider and broker relationships 5,689 (2,809 ) 2,880 Trademarks 2,592 (372 ) 2,220 Non-competition agreements 800 (80 ) 720 Total $ 12,613 $ (6,073 ) $ 6,540 |
Summary of Estimated Future Amortization Expense | Estimated future amortization expense for the years ended December 31, is as follows (dollars in thousands): YEAR AMOUNT 2017 $ 1,080 2018 1,070 2019 1,070 2020 590 2021 110 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses at December 31, 2016, 2015 were as follows (dollars in thousands): As of December 31, 2016 2015 Trade accounts payable $ 25,420 $ 25,665 Accrued payroll and fringe benefits 14,165 8,401 Deferred finish out allowance 8,939 8,835 Deferred fees on third-party consumer loans 6,869 9,465 Accrued interest payable 5,043 4,266 Accrual for consumer loan payments rejected for non-sufficient funds 3,680 5,029 Promissory note 3,000 3,000 Contingent consideration 2,358 5,658 Liability for losses on third-party lender owned consumer loans 1,996 1,756 Other accrued liabilities 201 66 Total $ 71,671 $ 72,141 |
Marketing Expenses (Tables)
Marketing Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketing Expenses [Abstract] | |
Schedule of Marketing Expenses | Marketing expenses for the years ended December 31, 2016, 2015 and 2014 were as follows (dollars in thousands): Year Ended December 31, 2016 2015 2014 Advertising $ 66,184 $ 80,526 $ 74,999 Customer procurement expense including lead purchase costs 30,551 29,327 42,843 Customer referral and revenue sharing expense 669 7,029 10,020 Total $ 97,404 $ 116,882 $ 127,862 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Instruments and Balances Outstanding | The Company’s long-term debt instruments and balances outstanding as of December 31, 2016 2015 December 31, 2016 2015 Securitization notes $ 165,419 $ — Revolving line of credit — 58,400 Senior Notes 495,622 494,867 Subtotal 661,041 553,267 Less: Long-term debt issuance costs (11,130 ) (11,358 ) Total long-term debt $ 649,911 $ 541,909 |
Schedule of Maturities of Long-term Debt | As of December 31, 2016, required principal payments under the terms of the long-term debt for each of the five years after December 31, 2016 are as follows (dollars in thousands): YEAR Amount 2017 $ — 2018 — 2019 — 2020 — 2021 500,000 (1) Thereafter — Securitization 165,419 (2) Total $ 665,419 (1) (2) The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows (dollars in thousands): As of December 31, 2016 2015 Deferred tax assets: Loans and finance receivables, net $ 38,275 $ 28,629 Compensation and benefits 7,397 4,210 Translation adjustments 6,726 3,898 Accrued rent and deferred finish out allowance 4,372 5,560 Foreign net operating loss carryforward 1,449 968 Other 1,960 1,785 Total deferred tax assets $ 60,179 $ 45,050 Deferred tax liabilities: Amortizable intangible assets $ 60,762 $ 52,882 Property and equipment 11,443 11,359 Other 483 108 Total deferred tax liabilities $ 72,688 $ 64,349 Net deferred tax liabilities before valuation allowance $ (12,509 ) $ (19,299 ) Valuation allowance (1,807 ) (1,220 ) Net deferred tax liabilities $ (14,316 ) $ (20,519 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes and the income to which it relates for the years ended December 31, 2016, 2015 and 2014 are shown below (dollars in thousands): Year Ended December 31, 2016 2015 2014 Income before income taxes: Domestic $ 57,422 $ 70,519 $ 176,494 International 14 — 5 Income before income taxes $ 57,436 $ 70,519 $ 176,499 Current provision: Federal $ 22,656 $ 25,601 $ 51,144 International 94 114 46 State and local 2,347 2,211 1,753 Total current provision for income taxes $ 25,097 $ 27,926 $ 52,943 Deferred provision (benefit): Federal $ (2,152 ) $ (1,360 ) $ 11,363 International — — — State and local (111 ) (39 ) 522 Total deferred provision (benefit) for income taxes $ (2,263 ) $ (1,399 ) $ 11,885 Total provision for income taxes $ 22,834 $ 26,527 $ 64,828 |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate on income differs from the federal statutory rate of 35% for the following reasons (dollars in thousands): Year Ended December 31, 2016 2015 2014 Tax provision computed at the federal statutory income tax rate $ 20,103 $ 24,682 $ 61,781 State and local income taxes, net of federal tax benefits 1,401 1,408 1,329 Share based compensation 1,656 — — Other (326 ) 437 1,718 Total provision $ 22,834 $ 26,527 $ 64,828 Effective tax rate 39.8 % 37.6 % 36.7 % |
Summary of Valuation Account Activity | The following table summarizes the valuation account activity for the years ended December 31, 2016, 2015 and 2014 (in thousands): Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 1,220 $ 670 $ 171 Additions 587 550 499 Deductions — — — Balance at end of period $ 1,807 $ 1,220 $ 670 |
Reconciliation of Activity Related to Unrecognized Tax Benefits | A reconciliation of the activity related to unrecognized tax benefits follows for the fiscal years indicated (in thousands): Year Ended December 31, 2016 Balance at beginning of period $ — Additions based on tax positions related to the current year 118 Additions for tax positions of prior years 233 Balance at end of period $ 351 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rentals Due Under Non-Cancelable Leases | Future minimum rentals due under non-cancelable leases as of December 31, 2016 are as follows for each of the years ending December 31 (dollars in thousands): YEAR AMOUNT 2017 $ 6,432 2018 5,986 2019 6,865 2020 6,611 2021 6,621 Thereafter 32,498 Total $ 65,013 |
Exit and Disposal Activity and Liability Balances | The following table is a summary of the exit and disposal activity and liability balances as a result of the headquarters relocation (in thousands): Lease Termination Costs Other Exit Costs Total Balance at January 1, 2015 $ 707 $ — $ 707 Additions 2,861 808 3,669 Payments (2,143 ) (604 ) (2,747 ) Balance at December 31, 2015 $ 1,425 $ 204 $ 1,629 Balance at January 1, 2016 $ 1,425 $ 204 $ 1,629 Payments (1,132 ) — (1,132 ) Adjustments 344 (69 ) 275 Balance at December 31, 2016 $ 637 $ 135 $ 772 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Amounts Included in Consolidated Balance Sheets Relating to NQSP and SERP | Amounts included in the consolidated balance sheets relating to the NQSP and the SERP were as follows (dollars in thousands): As of December 31, 2016 2015 Prepaid expenses and other assets $ 1,590 $ 1,075 Accounts payable and accrued expenses $ 1,860 $ 1,434 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Enova LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s restricted stock unit activity during 2016, 2015 2014 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 Units Weighted Average Fair Value at Date of Grant Units Weighted Average Fair Value at Date of Grant Units Weighted Average Fair Value at Date of Grant Outstanding at beginning of year 641,878 $ 20.55 549,707 $ 23.04 — $ — Units granted 1,189,136 6.67 356,064 18.39 549,707 23.04 Shares issued (213,437 ) 19.65 (151,088 ) 22.62 — — Units forfeited (258,520 ) 15.65 (112,805 ) 23.04 — — Outstanding at end of year 1,359,057 9.49 641,878 20.55 549,707 23.04 |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity during 2016, 2015 2014 Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 Units Weighted Average Exercise Price Units Weighted Average Exercise Price Units Weighted Average Exercise Price Outstanding at beginning of year 1,891,153 $ 21.44 1,425,196 $ 23.04 — $ — Options granted 337,081 6.29 785,294 19.19 1,425,196 23.04 Options exercised — — — — — — Options forfeited (641,178 ) 22.01 (319,337 ) 23.04 — — Outstanding at end of year 1,587,056 $ 17.98 1,891,153 $ 21.44 1,425,196 $ 23.04 Options vested at end of year 734,896 21.67 475,127 23.05 — — |
Cash America LTIP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock Unit Activity | The following table summarizes the Cash America RSU activity during 2014: Year Ended December 31, 2014 Units Weighted Average Fair Value at Date of Grant Outstanding at beginning of year 14,260 $ 48.19 Units granted — — Shares issued (14,260 ) (1) 48.19 Units forfeited — — Outstanding at end of year — $ — Units vested at end of year — — (1) Amount does not include 13,048 shares of common stock of the Company that were delivered by Cash America to the Company’s Chief Executive Officer in connection with his RSUs that vested on November 13, 2014. In connection with the Spin-off, such RSU awards were payable by Cash America in both shares of Cash America common stock and Enova common stock. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table presents information related to the Company’s derivative instruments as of December 31, 2015 (dollars in thousands): Non-designated derivatives: As of December 31, 2015 Gross Amounts Gross Amounts Net Amounts of Assets of Recognized Offset in the Presented in the Notional Financial Consolidated Consolidated Balance Forward currency exchange contracts Amount Instruments Balance Sheets (1) Sheets (2) Assets $ 58,723 $ 151 $ — $ 151 Liabilities $ — $ — $ — $ — (1) As of December 31, 2015, the Company had no gross amounts of recognized derivative instruments that the Company makes an accounting policy election not to offset. In addition, there was no financial collateral related to the Company’s derivatives. The Company has no assets or liabilities that are subject to an enforceable master netting agreement or similar arrangement. (2) Represents the fair value of forward currency contracts, which is recorded in “Accounts payable and accrued expenses” in the consolidated balance sheets. |
Effect Of Derivative Instruments | The following table presents information on the effect of derivative instruments on the consolidated results of operations and AOCI for years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Gains (Losses) Gains (Losses) Gains (Losses) Reclassified From Recognized in Income Recognized in AOCI AOCI into Income Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2014 2016 2015 2014 2016 2015 2014 Non-designated derivatives: Forward currency exchange contracts (1) $ 3,020 $ 4,525 $ 287 $ — $ — $ — $ — $ — $ — Total $ 3,020 $ 4,525 $ 287 $ — $ — $ — $ — $ — $ — (1) The gains (losses) on these derivatives substantially offset the (losses) gains on the hedged portion of the foreign intercompany balances. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Summary of Carrying Amounts of Consolidated VIE Assets and Liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with the Company’s securitization entities were as follows (dollars in thousands): December 31, 2016 2015 Assets Restricted cash and cash equivalents $ 19,468 $ — Loans and finance receivables, net 216,766 — Other receivables and prepaid expenses 3 — Other assets 2,459 — Total assets $ 238,696 $ — Liabilities Accounts payable and accrued expenses $ 1,350 $ — Long-term debt 163,550 — Total liabilities $ 164,900 $ — |
Supplemental Disclosures of C46
Supplemental Disclosures of Cash Flow information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash and Non-Cash Activities | The following table sets forth certain cash and non-cash activities for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Year Ended December 31, 2016 2015 2014 Cash paid during the year for: Interest $ 59,609 $ 49,390 $ 24,807 Income taxes paid 19,213 40,759 46,353 Non-cash investing and financing activities: Loans and finance receivables renewed $ 310,425 $ 253,279 $ 290,956 Liabilities assumed in acquisitions — 8,658 — Affiliate interest expense — — 7,629 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Domestic and International Operations | The following tables present information on the Company’s domestic and international operations as of and for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands). Year Ended December 31, 2016 2015 2014 Revenue Domestic $ 622,991 $ 510,242 $ 474,715 International 122,578 142,358 335,122 Total revenue $ 745,569 $ 652,600 $ 809,837 Income from operations Domestic $ 204,084 $ 183,582 $ 177,435 International 19,787 42,787 144,487 Corporate services (102,394 ) (101,982 ) (106,914 ) Total income from operations $ 121,477 $ 124,387 $ 215,008 Depreciation and amortization Domestic $ 6,005 $ 7,920 $ 8,706 International 2,167 2,254 2,448 Corporate services 7,392 8,214 7,578 Total depreciation and amortization $ 15,564 $ 18,388 $ 18,732 Expenditures for property and equipment Domestic $ 6,955 $ 6,268 $ 7,398 International 3,158 3,797 870 Corporate services 4,283 22,176 5,016 Total expenditures for property and equipment $ 14,396 $ 32,241 $ 13,284 December 31, 2016 2015 Property and equipment, net Domestic $ 19,734 $ 15,410 International 5,410 6,193 Corporate services 21,956 26,452 Total property and equipment, net $ 47,100 $ 48,055 Assets Domestic $ 823,390 $ 681,050 International 96,606 103,470 Corporate services 57,883 56,017 Total assets $ 977,879 $ 840,537 |
Summary of Company's Revenue by Geographical Region | The following table presents the Company’s revenue by geographic region for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): Year Ended December 31, 2016 2015 2014 Revenue United States $ 622,991 $ 510,242 $ 474,715 United Kingdom 103,478 129,703 325,014 Other international countries 19,100 12,655 10,108 Total revenue $ 745,569 $ 652,600 $ 809,837 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets that are measured at fair value on a recurring basis as of December 31, 2016 and 2015 are as follows (dollars in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets (liabilities) Nonqualified savings plan assets (1) 1,590 1,590 — — Contingent consideration (2,358 ) — — (2,358 ) Total $ (768 ) $ 1,590 $ — $ (2,358 ) December 31, Fair Value Measurements Using 2015 Level 1 Level 2 Level 3 Financial assets (liabilities) Forward currency exchange contracts $ 151 $ — $ 151 $ — Nonqualified savings plan assets (1) 1,075 1,075 — — Contingent consideration (5,658 ) — — (5,658 ) Total $ (4,432 ) $ 1,075 $ 151 $ (5,658 ) (1) The non-qualified savings plan assets have an offsetting liability of a greater amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Fair Value Measurement for Contingent Consideration | The changes in the fair value of the contingent consideration, which is a Level 3 liability measured at fair value on a recurring basis, are summarized in the table below for the years ended December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration Total Balance at December 31, 2014 $ — $ — Issuance of contingent consideration (see Note 3) 5,658 5,658 Balance at December 31, 2015 $ 5,658 $ 5,658 Remeasurement of contingent consideration (see Note 3) (3,300 ) (3,300 ) Balance at December 31, 2016 $ 2,358 $ 2,358 |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of December 31, 2016 and 2015 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,934 $ 39,934 $ — $ — Short-term loans and line of credit accounts, net (1) 162,824 — — 162,824 Installment loans and RPAs, net (1) 398,726 — — 430,895 Restricted cash 26,306 26,306 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 634,493 $ 66,240 $ — $ 600,422 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,996 $ — $ — $ 1,996 Promissory note 3,000 — — 3,111 Securitization Notes 165,419 — 168,216 — Senior Notes 495,622 — 495,940 — Total $ 666,037 $ — $ 664,156 $ 5,107 December 31, Fair Value Measurements Using 2015 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 42,066 $ 42,066 $ — $ — Short-term loans and line of credit accounts, net (1) 129,269 — — 129,269 Installment loans and RPAs, net (1) 305,364 — — 283,700 Restricted cash 7,379 7,379 — — Investment in unconsolidated investee (2)(3) 6,703 — — 6,703 Total $ 490,781 $ 49,445 $ — $ 419,672 Financial liabilities: Liability for estimated losses on consumer loans guaranteed by the Company $ 1,756 $ — $ — $ 1,756 Promissory note 3,000 — — 2,984 Credit agreement borrowings 58,400 — — 58,400 Senior Notes 494,867 — 374,500 — Total $ 558,023 $ — $ 374,500 $ 63,140 (1) Short-term loans, line of credit accounts and installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. (3) See Note 2 for additional information related to the investment in unconsolidated investee. |
Condensed Consolidating Finan49
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 (dollars in thousand) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 36,057 $ 3,877 $ — $ 39,934 Restricted cash — 6,838 19,468 — 26,306 Loans and finance receivables, net — 335,161 226,390 — 561,550 Income taxes receivable — — — — — Other receivables and prepaid expenses 127 19,095 302 — 19,524 Property and equipment, net — 46,507 593 — 47,100 Goodwill — 267,010 — — 267,010 Intangible assets, net — 5,400 4 — 5,404 Investment in subsidiaries 294,647 25,131 — (319,778 ) — Intercompany receivable 363,941 — — (363,941 ) — Other assets 597 7,995 2,459 — 11,051 Total assets $ 659,312 $ 749,194 $ 253,093 $ (683,719 ) $ 977,879 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 4,310 $ 65,714 $ 1,647 $ — $ 71,671 Intercompany payables — 295,764 68,179 (363,943 ) — Income taxes currently payable (72,704 ) 73,006 (20 ) — 282 Deferred tax liabilities, net (354 ) 15,156 (486 ) — 14,316 Long-term debt 486,361 — 163,550 — 649,911 Total liabilities 417,613 449,640 232,870 (363,943 ) 736,180 Commitments and contingencies Stockholders' equity 241,699 299,554 20,223 (319,777 ) 241,699 Total liabilities and stockholders' equity $ 659,312 $ 749,194 $ 253,093 $ (683,720 ) $ 977,879 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (dollars in thousand) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ — $ 40,927 $ 1,139 $ — $ 42,066 Restricted cash — 7,379 — — 7,379 Loans and finance receivables, net — 430,862 3,771 — 434,633 Income taxes receivable 37,201 (31,709 ) 11 — 5,503 Other receivables and prepaid expenses 162 19,791 96 — 20,049 Property and equipment, net — 47,821 234 — 48,055 Goodwill — 267,008 — — 267,008 Intangible assets, net — 6,532 8 — 6,540 Investment in subsidiaries 233,632 14,177 — (247,809 ) — Intercompany receivable 480,112 — 794 (480,906 ) — Other assets 2,284 7,020 — — 9,304 Total assets $ 753,391 $ 809,808 $ 6,053 $ (728,715 ) $ 840,537 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $ 5,514 $ 66,220 $ 407 $ — $ 72,141 Intercompany payables — 480,906 — (480,906 ) — Deferred tax liabilities, net — 20,562 (43 ) — 20,519 Long-term debt 541,909 — — — 541,909 Total liabilities 547,423 567,688 364 (480,906 ) 634,569 Commitments and contingencies Stockholders' equity 205,968 242,120 5,689 (247,809 ) 205,968 Total liabilities and stockholders' equity $ 753,391 $ 809,808 $ 6,053 $ (728,715 ) $ 840,537 |
Consolidating Statements of Income and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 653,517 $ 95,646 $ (3,594 ) $ 745,569 Cost of Revenue — 260,996 66,970 — 327,966 Gross Profit — 392,521 28,676 (3,594 ) 417,603 Expenses Marketing — 95,972 1,432 — 97,404 Operations and technology — 80,999 4,203 — 85,202 General and administrative 315 95,840 5,395 (3,594 ) 97,956 Depreciation and amortization — 15,464 100 — 15,564 Total Expenses 315 288,275 11,130 (3,594 ) 296,126 Income (Loss) from Operations (315 ) 104,246 17,546 — 121,477 Interest expense, net (53,512 ) 562 (12,653 ) — (65,603 ) Foreign currency transaction gain 1,569 (7 ) — — 1,562 Income (Loss) before Income Taxes and Equity in Net Earnings of Subsidiaries (52,258 ) 104,801 4,893 — 57,436 Provision for income taxes (20,776 ) 41,665 1,945 — 22,834 Income (loss) before Equity in Net Earnings of Subsidiaries (31,482 ) 63,136 2,948 — 34,602 Net earnings of subsidiaries 66,084 2,948 — (69,032 ) — Net Income (Loss) $ 34,602 $ 66,084 $ 2,948 $ (69,032 ) $ 34,602 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (6,956 ) (8,269 ) 1,331 6,938 (6,956 ) Total other comprehensive (loss) gain, net of tax (6,956 ) (8,269 ) 1,331 6,938 (6,956 ) Comprehensive Income (Loss) $ 27,646 $ 57,815 $ 4,279 $ (62,094 ) $ 27,646 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2015 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ 650,295 $ 2,305 $ — $ 652,600 Cost of Revenue — 215,637 1,221 — 216,858 Gross Profit — 434,658 1,084 — 435,742 Expenses Marketing — 116,330 552 — 116,882 Operations and technology — 71,993 2,019 — 74,012 General and administrative 673 100,642 758 — 102,073 Depreciation and amortization — 18,350 38 — 18,388 Total Expenses 673 307,315 3,367 — 311,355 Income (Loss) from Operations (673 ) 127,343 (2,283 ) — 124,387 Interest expense, net (52,816 ) (71 ) 4 — (52,883 ) Foreign currency transaction loss 532 (1,516 ) (1 ) — (985 ) Income (Loss) before Income Taxes and Equity in Net Earnings of Subsidiaries (52,957 ) 125,756 (2,280 ) — 70,519 Provision for income taxes (19,921 ) 47,306 (858 ) — 26,527 Income (loss) before Equity in Net Earnings of Subsidiaries (33,036 ) 78,450 (1,422 ) — 43,992 Net earnings of subsidiaries 77,028 (1,422 ) — (75,606 ) — Net Income (Loss) $ 43,992 $ 77,028 $ (1,422 ) $ (75,606 ) $ 43,992 Other comprehensive (loss) gain, net of tax: Foreign currency translation (loss) gain (1,451 ) (245 ) (866 ) 1,111 (1,451 ) Total other comprehensive (loss) gain, net of tax (1,451 ) (245 ) (866 ) 1,111 (1,451 ) Comprehensive Income (Loss) $ 42,541 $ 76,783 $ (2,288 ) $ (74,495 ) $ 42,541 |
Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2016 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 59,337 $ 296,876 $ 37,859 $ (699 ) $ 393,373 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (1,293,273 ) (14,924 ) — (1,308,197 ) Securitized loans transferred — 359,000 (359,000 ) — — Loans and finance receivables repaid — 669,088 188,960 — 858,048 Change in restricted cash — (658 ) (19,468 ) — (20,126 ) Purchases of property and equipment — (14,007 ) (389 ) — (14,396 ) Capital contributions to subsidiaries — (10,255 ) — 10,255 — Other investing activities — 95 — — 95 Net cash used in investing activities — (290,010 ) (204,821 ) 10,255 (484,576 ) Cash Flows from Financing Activities Payments for (proceeds from) member's equity — (699 ) 10,255 (9,556 ) — Debt issuance costs paid (500 ) — (6,202 ) — (6,702 ) Treasury shares purchased (437 ) — — — (437 ) Repayments under revolving line of credit, net (58,400 ) — — — (58,400 ) Borrowings under securitization facility — — 280,075 — 280,075 Repayments under securitization facility — — (114,656 ) — (114,656 ) Net cash provided by (used in) financing activities (59,337 ) (699 ) 169,472 (9,556 ) 99,880 Effect of exchange rates on cash — (11,037 ) 228 — (10,809 ) Net decrease in cash and cash equivalents — (4,870 ) 2,738 — (2,132 ) Cash and cash equivalents at beginning of year — 40,927 1,139 — 42,066 Cash and cash equivalents at end of period $ — $ 36,057 $ 3,877 $ — $ 39,934 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2015 (in thousands) Guarantor Non-Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Cash Flows from Operating Activities $ 31,259 $ 331,954 $ (2,695 ) $ (76,597 ) $ 283,921 Cash Flows from Investing Activities Loans and finance receivables originated or acquired — (1,167,107 ) (5,062 ) — (1,172,169 ) Loans and finance receivables repaid — 849,638 (280 ) — 849,358 Acquisitions — (17,735 ) — — (17,735 ) Purchases of property and equipment — (31,977 ) (264 ) — (32,241 ) Capital contributions to subsidiaries (87,876 ) (7,255 ) — 95,131 — Other investing activities — 618 — — 618 Net cash used in investing activities (87,876 ) (373,818 ) (5,606 ) 95,131 (372,169 ) Cash Flows from Financing Activities Payments for (proceeds from) member's equity — 11,279 7,255 (18,534 ) — Debt issuance costs paid (1,596 ) — — — (1,596 ) Treasury shares purchased (187 ) — — — (187 ) Borrowings under revolving line of credit, net 58,400 — — — 58,400 Net cash provided by (used in) financing activities 56,617 11,279 7,255 (18,534 ) 56,617 Effect of exchange rates on cash — (855 ) (554 ) — (1,409 ) Net decrease in cash and cash equivalents — (31,440 ) (1,600 ) — (33,040 ) Cash and cash equivalents at beginning of year — 72,367 2,739 — 75,106 Cash and cash equivalents at end of period $ — $ 40,927 $ 1,139 $ — $ 42,066 |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Data | The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015 (in thousands, except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter 2016 Total Revenue $ 174,653 $ 172,535 $ 195,943 $ 202,438 Cost of Revenue 69,577 65,453 95,391 97,545 Gross Profit $ 105,076 $ 107,082 $ 100,552 $ 104,893 Net Income $ 9,863 $ 8,188 $ 7,837 $ 8,714 Diluted earnings per share $ 0.30 $ 0.25 $ 0.23 $ 0.26 Diluted weighted average common shares (1) 33,187 33,335 33,558 33,767 2015 Total Revenue $ 165,676 $ 146,280 $ 165,227 $ 175,417 Cost of Revenue 38,570 41,536 65,614 71,138 Gross Profit $ 127,106 $ 104,744 $ 99,613 $ 104,279 Net Income $ 24,530 $ 10,864 $ 4,417 $ 4,181 Diluted earnings per share $ 0.74 $ 0.33 $ 0.13 $ 0.13 Diluted weighted average common shares (1) 33,008 33,015 33,022 33,061 (1) See Note 2 for Basis of Presentation. |
Significant Accounting Polici51
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 13, 2014 | Sep. 13, 2011 | |
Significant Accounting Policies [Line Items] | |||||||
Common stock, shares issued | 33,151,088 | 33,364,525 | 33,151,088 | ||||
Spin off percentage | 80.00% | ||||||
Reduction to revenue out of period adjustment | $ 2,500,000 | $ 2,800,000 | |||||
Days for delinquent loans to be charged off | 60 days | ||||||
Goodwill impairment loss | $ 0 | $ 0 | |||||
Goodwill | 267,008,000 | 267,010,000 | $ 267,008,000 | $ 255,862,000 | |||
Cost method investments | $ 6,700,000 | ||||||
Deferred income tax assets valuation allowance percentage | 50.00% | ||||||
Current deferred tax assets | 29,000,000 | 29,000,000 | |||||
Noncurrent deferred tax liabilities | 49,500,000 | 49,500,000 | |||||
Net deferred tax liabilities | 20,519,000 | $ 14,316,000 | 20,519,000 | ||||
Unamortized debt issuance cost | $ 11,400,000 | $ 11,400,000 | |||||
Stock options | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stock options not included in computation of diluted earnings per share | 1,622,331 | 1,700,296 | 1,425,196 | ||||
Restricted stock units | |||||||
Significant Accounting Policies [Line Items] | |||||||
Stock options not included in computation of diluted earnings per share | 464,500 | 368,111 | 0 | ||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalent maturity period | 90 days | ||||||
Delinquent loans expiry period (in days) | 64 days | ||||||
Expected period of life of intangible assets | 5 years | ||||||
Maximum | Software Development Costs | |||||||
Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 5 years | ||||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Delinquent loans expiry period (in days) | 1 day | ||||||
Expected period of life of intangible assets | 3 years | ||||||
Minimum | Software Development Costs | |||||||
Significant Accounting Policies [Line Items] | |||||||
Property and equipment, useful life | 2 years | ||||||
Cash America International Inc. | |||||||
Significant Accounting Policies [Line Items] | |||||||
Common stock, shares issued | 33,000,000 |
Significant Accounting Polici52
Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended | |
Dec. 31, 2016 | ||
Computer Hardware and Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 1 year | |
Computer Hardware and Software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 5 years | |
Furniture, Fixtures and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Furniture, Fixtures and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 7 years | |
Leasehold Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | [1] |
Leasehold Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 10 years | [1] |
[1] | Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Significant Accounting Polici53
Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2016 | ||
Leasehold Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 10 years | [1] |
[1] | Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. |
Significant Accounting Polici54
Significant Accounting Policies - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share - (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Numerator: | |||||||||||||||||||
Net income | $ 8,714 | $ 7,837 | $ 8,188 | $ 9,863 | $ 4,181 | $ 4,417 | $ 10,864 | $ 24,530 | $ 34,602 | $ 43,992 | $ 111,671 | ||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Total weighted average basic shares | 33,192 | 33,006 | 33,000 | ||||||||||||||||
Shares applicable to stock-based compensation | 270 | 20 | 8 | ||||||||||||||||
Total weighted average diluted shares | 33,767 | [1] | 33,558 | [1] | 33,335 | [1] | 33,187 | [1] | 33,061 | [1] | 33,022 | [1] | 33,015 | [1] | 33,008 | [1] | 33,462 | 33,026 | 33,008 |
Earnings per share – basic | $ 1.04 | $ 1.33 | $ 3.38 | ||||||||||||||||
Earnings per share – diluted | $ 0.26 | $ 0.23 | $ 0.25 | $ 0.30 | $ 0.13 | $ 0.13 | $ 0.33 | $ 0.74 | $ 1.03 | $ 1.33 | $ 3.38 | ||||||||
[1] | See Note 2 for Basis of Presentation. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 23, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Date of acquisition | Jun. 23, 2015 | |||
Business acquisition, asset acquired | $ 26,400 | |||
Business acquisition, payment in cash | 17,700 | $ 17,735 | ||
Business Combination, promissory note | 3,000 | $ 3,000 | $ 3,000 | 3,000 |
Estimated contingent consideration payable | 5,700 | 5,658 | 2,358 | $ 5,658 |
Changes in contingent purchase consideration | (500) | $ 3,300 | ||
Decrease of finance receivables | 600 | |||
Increase in intangible assets | 3,300 | |||
Decrease in goodwill | $ 2,700 | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Total consideration paid | $ 71,000 |
Loans and Finance Receivables56
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total loans and finance receivables revenue | $ 744,092 | $ 650,921 | $ 808,987 | ||||||||
Other | 1,477 | 1,679 | 850 | ||||||||
Total Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | 745,569 | 652,600 | 809,837 |
Short-term Loans | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total loans and finance receivables revenue | 196,255 | 204,893 | 257,169 | ||||||||
Line of Credit Accounts | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total loans and finance receivables revenue | 220,462 | 185,521 | 305,118 | ||||||||
Installment Loans and RPAs | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Total loans and finance receivables revenue | $ 327,375 | $ 260,507 | $ 246,700 |
Loans and Finance Receivables57
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Components of Company-Owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Current receivables | $ 579,730 | $ 447,914 | |||
Delinquent payment amounts | [1] | 6,670 | 4,582 | ||
Receivables on non-accrual status | 74,095 | 49,459 | |||
Total delinquent receivables | 80,765 | 54,041 | |||
Total loans and finance receivables, gross | 660,495 | 501,955 | |||
Less: Allowance for losses | (98,945) | (67,322) | $ (64,948) | $ (82,318) | |
Loans and finance receivables, net | 561,550 | 434,633 | |||
Short-term Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current receivables | 35,516 | 37,951 | |||
Receivables on non-accrual status | 27,489 | 20,842 | |||
Total delinquent receivables | 27,489 | 20,842 | |||
Total loans and finance receivables, gross | 63,005 | 58,793 | |||
Less: Allowance for losses | (17,770) | (14,652) | (14,324) | (20,466) | |
Loans and finance receivables, net | 45,235 | 44,141 | |||
Line of Credit Accounts | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current receivables | 130,576 | 92,732 | |||
Delinquent payment amounts | [1] | 4,560 | 3,072 | ||
Receivables on non-accrual status | 9,047 | 5,051 | |||
Total delinquent receivables | 13,607 | 8,123 | |||
Total loans and finance receivables, gross | 144,183 | 100,855 | |||
Less: Allowance for losses | (26,594) | (15,727) | (19,749) | (29,244) | |
Loans and finance receivables, net | 117,589 | 85,128 | |||
Installment Loans and RPAs | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current receivables | 413,638 | 317,231 | |||
Delinquent payment amounts | [1] | 2,110 | 1,510 | ||
Receivables on non-accrual status | 37,559 | 23,566 | |||
Total delinquent receivables | 39,669 | 25,076 | |||
Total loans and finance receivables, gross | 453,307 | 342,307 | |||
Less: Allowance for losses | (54,581) | (36,943) | $ (30,875) | $ (32,608) | |
Loans and finance receivables, net | $ 398,726 | $ 305,364 | |||
[1] | Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment. See Note 2 “Significant Accounting Policies-Current and Delinquent Loans and Finance Receivables” for additional information. |
Loans and Finance Receivables58
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Schedule of Changes in Allowance for Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for losses for Company-owned loans and finance receivables | |||
Balance at beginning of period | $ 67,322 | $ 64,948 | $ 82,318 |
Cost of revenue | 327,726 | 216,678 | 267,258 |
Charge-offs | (360,114) | (280,928) | (354,023) |
Recoveries | 64,588 | 67,653 | 70,347 |
Effect of foreign currency translation | (577) | (1,029) | (952) |
Balance at end of period | 98,945 | 67,322 | 64,948 |
Liability for third-party lender-owned loans | |||
Balance at beginning of period | 1,756 | 1,576 | 2,047 |
(Decrease) increase in liability | 240 | 180 | (471) |
Balance at end of period | 1,996 | 1,756 | 1,576 |
Short-term Loans | |||
Allowance for losses for Company-owned loans and finance receivables | |||
Balance at beginning of period | 14,652 | 14,324 | 20,466 |
Cost of revenue | 69,202 | 62,571 | 70,382 |
Charge-offs | (85,599) | (83,316) | (105,129) |
Recoveries | 20,362 | 21,374 | 28,785 |
Effect of foreign currency translation | (847) | (301) | (180) |
Balance at end of period | 17,770 | 14,652 | 14,324 |
Liability for third-party lender-owned loans | |||
Balance at beginning of period | 1,298 | 1,575 | 2,047 |
(Decrease) increase in liability | 418 | (277) | (472) |
Balance at end of period | 1,716 | 1,298 | 1,575 |
Line of Credit Accounts | |||
Allowance for losses for Company-owned loans and finance receivables | |||
Balance at beginning of period | 15,727 | 19,749 | 29,244 |
Cost of revenue | 88,489 | 43,547 | 92,461 |
Charge-offs | (92,044) | (68,075) | (119,428) |
Recoveries | 14,422 | 20,694 | 17,943 |
Effect of foreign currency translation | (188) | (471) | |
Balance at end of period | 26,594 | 15,727 | 19,749 |
Installment Loans and RPAs | |||
Allowance for losses for Company-owned loans and finance receivables | |||
Balance at beginning of period | 36,943 | 30,875 | 32,608 |
Cost of revenue | 170,035 | 110,560 | 104,415 |
Charge-offs | (182,471) | (129,537) | (129,466) |
Recoveries | 29,804 | 25,585 | 23,619 |
Effect of foreign currency translation | 270 | (540) | (301) |
Balance at end of period | 54,581 | 36,943 | 30,875 |
Liability for third-party lender-owned loans | |||
Balance at beginning of period | 458 | 1 | |
(Decrease) increase in liability | (178) | 457 | 1 |
Balance at end of period | $ 280 | $ 458 | $ 1 |
Loans and Finance Receivables59
Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Active consumer loans owned by third-party lenders | $ 32.2 | $ 34.1 |
Accrual for losses on consumer loan guaranty obligations | $ 2 | $ 1.7 |
Property and Equipment - Classi
Property and Equipment - Classifications of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | $ 127,518 | $ 114,499 |
Property and equipment, Accumulated Depreciation | (80,418) | (66,444) |
Property and equipment, Net | 47,100 | 48,055 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 72,277 | 64,705 |
Property and equipment, Accumulated Depreciation | (48,680) | (40,462) |
Property and equipment, Net | 23,597 | 24,243 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 30,974 | 26,517 |
Property and equipment, Accumulated Depreciation | (22,159) | (17,918) |
Property and equipment, Net | 8,815 | 8,599 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Cost | 24,267 | 23,277 |
Property and equipment, Accumulated Depreciation | (9,579) | (8,064) |
Property and equipment, Net | $ 14,688 | $ 15,213 |
Property and Equipment - Additi
Property and Equipment - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Capitalized internal software development costs | $ 8.1 | $ 9.8 | $ 8.6 |
Depreciation expense | $ 14.4 | $ 17.9 | $ 18.7 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning Balance | $ 267,008 | $ 255,862 |
Acquisitions | 11,158 | |
Effect of foreign currency translation | 2 | (12) |
Goodwill, Ending Balance | $ 267,010 | $ 267,008 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Cost | $ 12,612 | $ 12,613 |
Acquired intangible assets, Accumulated Amortization | (7,208) | (6,073) |
Acquired intangible assets, Net | 5,404 | 6,540 |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Cost | 3,533 | 3,532 |
Acquired intangible assets, Accumulated Amortization | (2,973) | (2,812) |
Acquired intangible assets, Net | 560 | 720 |
Lead Provider and Broker Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Cost | 5,689 | 5,689 |
Acquired intangible assets, Accumulated Amortization | (3,449) | (2,809) |
Acquired intangible assets, Net | 2,240 | 2,880 |
Trademarks | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Cost | 2,590 | 2,592 |
Acquired intangible assets, Accumulated Amortization | (546) | (372) |
Acquired intangible assets, Net | 2,044 | 2,220 |
Non-Competition Agreements | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, Cost | 800 | 800 |
Acquired intangible assets, Accumulated Amortization | (240) | (80) |
Acquired intangible assets, Net | $ 560 | $ 720 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1.1 | $ 0.5 | $ 45 |
Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 3 years | ||
Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 5 years | ||
Customer Relationships | Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 3 years | ||
Customer Relationships | Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 5 years | ||
Trademarks | Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 3 years | ||
Trademarks | Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 20 years | ||
Lead Provider and Broker Relationships | Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 3 years | ||
Lead Provider and Broker Relationships | Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Expected period of life of intangible assets | 5 years |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Summary of Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,017 | $ 1,080 |
2,018 | 1,070 |
2,019 | 1,070 |
2,020 | 590 |
2,021 | $ 110 |
Accounts Payable and Accrued 66
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 23, 2015 |
Payables And Accruals [Abstract] | |||
Trade accounts payable | $ 25,420 | $ 25,665 | |
Accrued payroll and fringe benefits | 14,165 | 8,401 | |
Deferred finish out allowance | 8,939 | 8,835 | |
Deferred fees on third-party consumer loans | 6,869 | 9,465 | |
Accrued interest payable | 5,043 | 4,266 | |
Accrual for consumer loan payments rejected for non-sufficient funds | 3,680 | 5,029 | |
Promissory note | 3,000 | 3,000 | $ 3,000 |
Contingent consideration | 2,358 | 5,658 | $ 5,700 |
Liability for losses on third-party lender owned consumer loans | 1,996 | 1,756 | |
Other accrued liabilities | 201 | 66 | |
Total | $ 71,671 | $ 72,141 |
Marketing Expenses - Schedule o
Marketing Expenses - Schedule of Marketing Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketing Expenses [Abstract] | |||
Advertising | $ 66,184 | $ 80,526 | $ 74,999 |
Customer procurement expense including lead purchase costs | 30,551 | 29,327 | 42,843 |
Customer referral and revenue sharing expense | 669 | 7,029 | 10,020 |
Total | $ 97,404 | $ 116,882 | $ 127,862 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Securitization notes | [1] | $ 165,419 | |
Senior Notes | 495,622 | $ 494,867 | |
Subtotal | 661,041 | 553,267 | |
Less: Long-term debt issuance costs | (11,130) | (11,358) | |
Total long-term debt | 649,911 | 541,909 | |
Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 0 | $ 58,400 | |
[1] | The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Dec. 01, 2016 | Oct. 20, 2016 | Jan. 15, 2016 | Nov. 05, 2015 | May 30, 2014 | May 14, 2014 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 04, 2016 | Dec. 29, 2015 | Nov. 30, 2015 | Mar. 25, 2015 | |
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate availability of variable funding notes | $ 20,000,000 | |||||||||||||||
Maximum principal amount of securitization notes outstanding | $ 175,000,000 | |||||||||||||||
Carrying amount of securitization notes | [1] | $ 165,419,000 | ||||||||||||||
Unamortized debt issuance cost | $ 11,400,000 | |||||||||||||||
Revolving Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Required Leverage Ratio, current | 3.00% | 4.25% | 4.00% | |||||||||||||
Required Leverage Ratio, quarter ended September 30, 2016 | 3.50% | |||||||||||||||
Required Leverage Ratio, quarter ended December 31, 2016 | 3.50% | |||||||||||||||
Revolving line of credit | $ 0 | $ 58,400,000 | ||||||||||||||
2016-1 Securitization Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Oct. 15, 2020 | Oct. 15, 2020 | ||||||||||||||
Securitization Notes issued pursuant to an indenture, date | Jan. 15, 2016 | |||||||||||||||
Maximum principal amount of securitization facility | $ 275,000,000 | |||||||||||||||
Variable funding note maximum principal amount | 40,000,000 | |||||||||||||||
Variable funding note maximum principal amount thereafter | $ 30,000,000 | |||||||||||||||
Extended Maturity period of revolving facility | 2017-10 | |||||||||||||||
Weighted average interest rate | 9.50% | |||||||||||||||
Carrying amount of securitization notes | $ 151,400,000 | |||||||||||||||
Unamortized debt issuance cost | 1,900,000 | |||||||||||||||
Interest expense recognized | 13,500,000 | |||||||||||||||
Non-cash amortization of debt issuance costs | $ 3,200,000 | |||||||||||||||
Debt issuance cost, amortization period | 4 years | |||||||||||||||
2016-1 Securitization Facility | Agent's Base Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 1.00% | |||||||||||||||
2016-1 Securitization Facility | Prime Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 7.75% | |||||||||||||||
2016-1 Securitization Facility | LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, effective percentage | 8.75% | |||||||||||||||
2016-2 Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, maturity date | Dec. 1, 2019 | |||||||||||||||
Carrying amount of securitization notes | $ 12,100,000 | |||||||||||||||
Interest expense recognized | $ 100,000 | |||||||||||||||
Debt issuance cost, amortization period | 36 months | |||||||||||||||
Date at Issuer not permitted to prepay or redeem any outstanding securitization notes prior | Oct. 1, 2018 | |||||||||||||||
Debt issuance cost | $ 200,000 | |||||||||||||||
2016-2 Facility | Redpoint Capital Asset Funding, LLC | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Average annual percentage rate for securitized consumer loan | 135.00% | |||||||||||||||
2016-2 Facility | Redpoint Capital Asset Funding, LLC | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Annual percentage rate for securitized consumer loan | 90.00% | |||||||||||||||
2016-2 Facility | LIBOR | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, effective percentage | 12.50% | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Foreign Currency | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Unsecured Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance cost, amortization period | 37 months | |||||||||||||||
Debt issuance cost | $ 1,600,000 | |||||||||||||||
Maximum borrowing capacity | $ 40,000,000 | $ 75,000,000 | $ 35,000,000 | $ 35,000,000 | $ 75,000,000 | $ 60,000,000 | $ 65,000,000 | |||||||||
Required Leverage Ratio, current | 3.75% | 3.00% | ||||||||||||||
Voluntary commitment reductions to revolving facility | 40,000,000 | |||||||||||||||
Line of Credit Facility Increase | 15,000,000 | |||||||||||||||
Line of credit facility decrease | $ 5,000,000 | |||||||||||||||
Commitment fee, percentage | 0.50% | 0.50% | ||||||||||||||
Credit agreement, maturity date | Jun. 30, 2017 | |||||||||||||||
Revolving line of credit | $ 58,400,000 | |||||||||||||||
Weighted average interest rates | 4.18% | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Unsecured Revolving Credit Facility | Scenario One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum senior secured indebtedness basket | $ 15,000,000 | $ 20,000,000 | ||||||||||||||
Line of Credit Facility Increase | $ 5,000,000 | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Unsecured Revolving Credit Facility | Scenario Two | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Percentage of consolidated assets | 2.00% | 2.75% | ||||||||||||||
Line of Credit Facility Increase | $ 10,000,000 | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Minimum | Unsecured Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||||||||
Commitment fee, percentage | 0.25% | |||||||||||||||
Revolving Credit Facility Due 2017 | Jefferies Group, LLC | Maximum | Unsecured Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 3.75% | |||||||||||||||
Commitment fee, percentage | 0.50% | |||||||||||||||
Revolving Credit Facility Due 2017 | Agent's Base Rate | Jefferies Group, LLC | Minimum | Unsecured Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||||||
Revolving Credit Facility Due 2017 | Agent's Base Rate | Jefferies Group, LLC | Maximum | Unsecured Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | |||||||||||||||
$500.0 Million 9.75% Senior Unsecured Notes Due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||||
Debt instrument, maturity date | Jun. 1, 2021 | |||||||||||||||
Debt instrument, interest rate | 9.75% | |||||||||||||||
Debt instrument, effective percentage | 10.00% | |||||||||||||||
Unamortized debt issuance cost | $ 9,300,000 | $ 11,400,000 | ||||||||||||||
Interest expense recognized | 51,600,000 | 51,600,000 | ||||||||||||||
Non-cash amortization of debt issuance costs | $ 2,100,000 | $ 2,100,000 | ||||||||||||||
Debt issuance cost, amortization period | 7 years | |||||||||||||||
Weighted average interest rates | 10.71% | 10.59% | ||||||||||||||
Percentage of notes principal redeemable | 35.00% | |||||||||||||||
Note repurchase rate | 101.00% | |||||||||||||||
Net proceeds of senior notes | $ 479,000,000 | |||||||||||||||
Carrying amount of senior notes | $ 486,400,000 | $ 483,500,000 | ||||||||||||||
Debt instrument unamortized discount | 4,400,000 | 5,100,000 | ||||||||||||||
Non-cash amortization discount | $ 700,000 | 700,000 | ||||||||||||||
$500.0 Million 9.75% Senior Unsecured Notes Due 2021 | Cash America | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of Intercompany indebtedness | 361,400,000 | |||||||||||||||
Cash dividends payable | $ 122,400,000 | |||||||||||||||
$500.0 Million 9.75% Senior Unsecured Notes Due 2021 | Scenario One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Note redeem rate | 100.00% | |||||||||||||||
$500.0 Million 9.75% Senior Unsecured Notes Due 2021 | Scenario Two | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Note redeem rate | 109.75% | |||||||||||||||
Initial Term Note | 2016-1 Securitization Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | 107,400,000 | |||||||||||||||
Unsecured consumer loans | $ 134,000,000 | |||||||||||||||
Revolving Note | 2016-2 Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, face amount | $ 20,000,000 | |||||||||||||||
Unsecured consumer loans | $ 25,000,000 | |||||||||||||||
Debt instrument, maturity date | Dec. 1, 2019 | |||||||||||||||
Expected increase in maximum principal balance | $ 40,000,000 | |||||||||||||||
Enova Standby And Letter Of Credit | Revolving Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||||||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||||||||||
Percentage of debt face amount for fee calculation | 0.20% | |||||||||||||||
Borrowings outstanding under credit agreement | $ 6,600,000 | $ 6,600,000 | ||||||||||||||
[1] | The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
Long Term Debt - Schedule of Ma
Long Term Debt - Schedule of Maturities of Long-term Debt (Detail) $ in Thousands | Dec. 31, 2016USD ($) | |
Debt Disclosure [Abstract] | ||
2,021 | $ 500,000 | [1] |
Securitization notes | 165,419 | [2] |
Total | $ 665,419 | |
[1] | The $500.0 Million 9.75% Senior Unsecured Notes mature June 1, 2021. | |
[2] | The 2016-1 Securitization Facility matures at various dates, the latest of which will be October 15, 2020, and the 2016-2 Facility matures on December 1, 2019. |
Long Term Debt - Schedule of 71
Long Term Debt - Schedule of Maturities of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Jan. 15, 2016 | Dec. 31, 2016 | May 30, 2014 |
$500.0 Million 9.75% Senior Unsecured Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500 | ||
Debt instrument, interest rate | 9.75% | ||
Debt instrument, maturity date | Jun. 1, 2021 | ||
2016-1 Securitization Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 15, 2020 | Oct. 15, 2020 | |
2016-2 Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Dec. 1, 2019 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Loans and finance receivables, net | $ 38,275 | $ 28,629 |
Compensation and benefits | 7,397 | 4,210 |
Translation adjustments | 6,726 | 3,898 |
Accrued rent and deferred finish out allowance | 4,372 | 5,560 |
Foreign net operating loss carryforward | 1,449 | 968 |
Other | 1,960 | 1,785 |
Total deferred tax assets | 60,179 | 45,050 |
Deferred tax liabilities: | ||
Amortizable intangible assets | 60,762 | 52,882 |
Property and equipment | 11,443 | 11,359 |
Other | 483 | 108 |
Total deferred tax liabilities | 72,688 | 64,349 |
Net deferred tax liabilities before valuation allowance | (12,509) | (19,299) |
Valuation allowance | (1,807) | (1,220) |
Net deferred tax liabilities | $ (14,316) | $ (20,519) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before income taxes: | |||
Domestic | $ 57,422 | $ 70,519 | $ 176,494 |
International | 14 | 5 | |
Income before Income Taxes | 57,436 | 70,519 | 176,499 |
Current provision: | |||
Federal | 22,656 | 25,601 | 51,144 |
International | 94 | 114 | 46 |
State and local | 2,347 | 2,211 | 1,753 |
Total current provision for income taxes | 25,097 | 27,926 | 52,943 |
Deferred provision (benefit): | |||
Federal | (2,152) | (1,360) | 11,363 |
State and local | (111) | (39) | 522 |
Total deferred provision (benefit) for income taxes | (2,263) | (1,399) | 11,885 |
Total provision for income taxes | $ 22,834 | $ 26,527 | $ 64,828 |
Income Taxes - Components of Ef
Income Taxes - Components of Effective Tax Rate on Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory income tax rate | $ 20,103 | $ 24,682 | $ 61,781 |
State and local income taxes, net of federal tax benefits | 1,401 | 1,408 | 1,329 |
Share based compensation | 1,656 | ||
Other | (326) | 437 | 1,718 |
Total provision for income taxes | $ 22,834 | $ 26,527 | $ 64,828 |
Effective tax rate | 39.80% | 37.60% | 36.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 351,000 | $ 0 | $ 0 |
Expenses for interest and penalties related to tax matters | $ 0 | ||
IRS | |||
Income Tax Contingency [Line Items] | |||
Open Tax Year | 2,015 | ||
IRS | Tax Years 2011 Through 2014 | |||
Income Tax Contingency [Line Items] | |||
Tax adjustments | $ 0 | ||
State Local And Foreign Jurisdiction Tax Authority | Minimum | |||
Income Tax Contingency [Line Items] | |||
Statute of limitation period | 3 years | ||
State Local And Foreign Jurisdiction Tax Authority | Maximum | |||
Income Tax Contingency [Line Items] | |||
Statute of limitation period | 4 years | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 320,000 | ||
Brazilian Operations | |||
Income Tax Contingency [Line Items] | |||
Foreign net operating loss carryforwards | $ 1,400,000 | $ 2,800,000 | $ 1,600,000 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Account Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 1,220 | $ 670 | $ 171 |
Additions | 587 | 550 | 499 |
Balance at end of period | $ 1,807 | $ 1,220 | $ 670 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Activity Related to Unrecognized Tax Benefits (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at beginning of period | $ 0 |
Additions based on tax positions related to the current year | 118,000 |
Additions for tax positions of prior years | 233,000 |
Balance at end of period | $ 351,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015ft² | |
Commitments And Contingencies [Line Items] | ||||
Non-cancelable sublease rental income excluded from Future minimum lease obligation | $ 400 | |||
Expense related to lease termination penalty | 5,800 | $ 6,800 | $ 3,700 | |
Leased area | ft² | 86,000 | |||
Estimated sublease income | 1,700 | |||
Active consumer loans owned by third-party lenders | 32,200 | 34,100 | ||
Accrual for losses on consumer loan guaranty obligations | $ 2,000 | 1,700 | ||
Lease Termination Costs and Other Exit Costs | ||||
Commitments And Contingencies [Line Items] | ||||
Expense related to lease termination penalty | 3,669 | $ 1,400 | ||
Lease Termination Costs | ||||
Commitments And Contingencies [Line Items] | ||||
Expense related to lease termination penalty | 2,861 | |||
Other Exit Costs | ||||
Commitments And Contingencies [Line Items] | ||||
Expense related to lease termination penalty | $ 808 | |||
Minimum | ||||
Commitments And Contingencies [Line Items] | ||||
Remaining term on operating leases | 3 years | |||
Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Remaining term on operating leases | 10 years |
Commitments and Contingencies79
Commitments and Contingencies - Future Minimum Rentals Due Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 6,432 |
2,018 | 5,986 |
2,019 | 6,865 |
2,020 | 6,611 |
2,021 | 6,621 |
Thereafter | 32,498 |
Total | $ 65,013 |
Commitments and Contingencies80
Commitments and Contingencies - Exit and Disposal Activity and Liability Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Line Items] | |||
Additions | $ 5,800 | $ 6,800 | $ 3,700 |
Lease Termination Costs | |||
Commitments And Contingencies [Line Items] | |||
Beginning Balance | 1,425 | 707 | |
Additions | 2,861 | ||
Payments | (1,132) | (2,143) | |
Adjustments | 344 | ||
Ending Balance | 637 | 1,425 | 707 |
Other Exit Costs | |||
Commitments And Contingencies [Line Items] | |||
Beginning Balance | 204 | ||
Additions | 808 | ||
Payments | (604) | ||
Adjustments | (69) | ||
Ending Balance | 135 | 204 | |
Lease Termination Costs and Other Exit Costs | |||
Commitments And Contingencies [Line Items] | |||
Beginning Balance | 1,629 | 707 | |
Additions | 3,669 | 1,400 | |
Payments | (1,132) | (2,747) | |
Adjustments | 275 | ||
Ending Balance | $ 772 | $ 1,629 | $ 707 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SERP | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Compensation expense | $ 0.2 | $ 0.4 | $ 0.2 |
Bonus | Nonqualified Savings Plan | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Percentage of contribution made by participants to Savings Plan | 80.00% | ||
Other Eligible Compensation | Nonqualified Savings Plan | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Percentage of contribution made by participants to Savings Plan | 50.00% | ||
401(k) Savings Plan | Nonqualified Savings Plan | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Percentage of contribution made by participants to Savings Plan | 75.00% | ||
Percentage of matching contribution by employer | 100.00% | 50.00% | |
Percentage of matching contribution by employee | 1.00% | 5.00% | |
Rate at which company contributions vest | 20.00% | ||
Company's vested contribution | 100.00% | ||
Percentage of matching contribution by employer on the next part of pay | 50.00% | ||
Percentage of the next part of employee pay for matching contribution | 5.00% | ||
Company's consolidated contributions | $ 2.2 | $ 1.4 | $ 1 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Amounts Included in Consolidated Balance Sheets Relating to NQSP and SERP (Detail) - SERP - Nonqualified Savings Plan - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid expenses and other assets | $ 1,590 | $ 1,075 |
Accounts payable and accrued expenses | $ 1,860 | $ 1,434 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Nov. 13, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock share received value | $ 437,000 | $ 187,000 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares received | 41,931 | |||
Common stock share received value | $ 437,000 | |||
Restricted Stock Units | Officers and Certain Employees | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation units vesting period | 3 years | |||
Restricted Stock Units | Officers and Certain Employees | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation units vesting period | 4 years | |||
Enova LTIP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized | 8,000,000 | |||
Shares available for future grants | 3,171,604 | |||
Enova LTIP | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 5,200,000 | 4,900,000 | $ 100,000 | |
Compensation expenses net of tax | 3,100,000 | 3,100,000 | 89,000 | |
Unrecognized compensation cost | $ 10,600,000 | |||
Unrecognized compensation expense recognition period | 2 years 1 month 6 days | |||
Outstanding RSUs aggregate intrinsic value | $ 17,100,000 | |||
Vesting percentage | 50.00% | |||
Additional compensation expense | 300,000 | |||
Enova LTIP | Restricted Stock Units | Previously agreed | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Enova LTIP | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 3,300,000 | 4,700,000 | 200,000 | |
Compensation expenses net of tax | 2,000,000 | 2,900,000 | 100,000 | |
Unrecognized compensation cost | $ 4,000,000 | |||
Unrecognized compensation expense recognition period | 1 year 3 months 18 days | |||
Vesting percentage | 66.60% | |||
Additional compensation expense | $ 300,000 | |||
Risk-free interest rate | 1.20% | |||
Expected life (years) | 4 years 6 months | |||
Expected volatility | 49.10% | |||
Expected dividend yield | 0.00% | |||
Weighted average fair value of options granted | $ 2.60 | |||
Outstanding stock options aggregate intrinsic value | $ 2,700,000 | |||
Exercisable stock options intrinsic value | $ 300,000 | |||
Enova LTIP | Stock options | Previously agreed | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 33.30% | |||
Cash America LTIP | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | 400,000 | |||
Compensation expenses net of tax | $ 200,000 | |||
Share-based payment award, accelerated vesting, number | 0.915% | |||
Cash America LTIP | Restricted Stock Units | Chief Executive Officer | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based compensation units vesting period | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Enova LTIP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding at beginning of year, Units | 641,878 | 549,707 | ||
Units granted, Units | 1,189,136 | 356,064 | 549,707 | |
Shares issued, Units | (213,437) | (151,088) | ||
Units forfeited, Units | (258,520) | (112,805) | ||
Outstanding at end of year, Units | 1,359,057 | 641,878 | 549,707 | |
Outstanding at beginning of year, Weighted Average Fair Value at Date of Grant | $ 20.55 | $ 23.04 | ||
Units granted, Weighted Average Fair Value at Date of Grant | 6.67 | 18.39 | $ 23.04 | |
Shares issued, Weighted Average Fair Value at Date of Grant | 19.65 | 22.62 | ||
Units forfeited, Weighted Average Fair Value at Date of Grant | 15.65 | 23.04 | ||
Outstanding at end of year, Weighted Average Fair Value at Date of Grant | $ 9.49 | $ 20.55 | $ 23.04 | |
Cash America LTIP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding at beginning of year, Units | 14,260 | |||
Shares issued, Units | [1] | (14,260) | ||
Outstanding at beginning of year, Weighted Average Fair Value at Date of Grant | $ 48.19 | |||
Shares issued, Weighted Average Fair Value at Date of Grant | $ 48.19 | |||
[1] | Amount does not include 13,048 shares of common stock of the Company that were delivered by Cash America to the Company’s Chief Executive Officer in connection with his RSUs that vested on November 13, 2014. In connection with the Spin-off, such RSU awards were payable by Cash America in both shares of Cash America common stock and Enova common stock. |
Stock-Based Compensation - Su85
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Enova LTIP - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding at beginning of year, Units | 1,891,153 | 1,425,196 | |
Options granted, Units | 337,081 | 785,294 | 1,425,196 |
Options forfeited, Units | (641,178) | (319,337) | |
Outstanding at end of year, Units | 1,587,056 | 1,891,153 | 1,425,196 |
Options vested at end of year, Units | 734,896 | 475,127 | |
Outstanding at beginning of year, Weighted Average Exercise Price | $ 21.44 | $ 23.04 | |
Options granted, Weighted Average Exercise Price | 6.29 | 19.19 | $ 23.04 |
Options forfeited, Weighted Average Exercise Price | 22.01 | 23.04 | |
Outstanding at end of year, Weighted Average Exercise Price | 17.98 | 21.44 | $ 23.04 |
Options vested at end of year, Weighted Average Exercise Price | $ 21.67 | $ 23.05 |
Stock-Based Compensation - Su86
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) | Nov. 13, 2014shares |
Cash America LTIP | Restricted Stock Units | Chief Executive Officer | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock issued, RSUs to Chief Executive Officer | 13,048 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) | Dec. 31, 2016USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Outstanding derivative instruments | $ 0 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments (Detail) - Non-Designated Derivatives - Forward Currency Exchange Contracts $ in Thousands | Dec. 31, 2015USD ($) | |
Derivatives Fair Value [Line Items] | ||
Derivative Assets, Notional Amount | $ 58,723 | |
Gross Amounts of Recognized Financial Instruments, Assets | 151 | |
Net Amounts of Assets Presented in the Consolidated Balance | $ 151 | [1] |
[1] | Represents the fair value of forward currency contracts, which is recorded in “Accounts payable and accrued expenses” in the consolidated balance sheets. |
Derivative Instruments - Fair89
Derivative Instruments - Fair Values of Derivative Instruments (Parenthetical) (Detail) - Non-Designated Derivatives - Forward Currency Exchange Contracts | Dec. 31, 2015USD ($) |
Derivatives Fair Value [Line Items] | |
Gross amounts of recognized derivative instruments | $ 0 |
Derivative asset, fair value of collateral | 0 |
Amount of derivative assets | 0 |
Amount of derivative liabilities | $ 0 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Results of Operations and Accumulated other Comprehensive Income (Detail) - Non-Designated Derivatives - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments Gain Loss [Line Items] | ||||
Gains (Losses) Recognized in Income | $ 3,020 | $ 4,525 | $ 287 | |
Forward Currency Exchange Contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gains (Losses) Recognized in Income | [1] | $ 3,020 | $ 4,525 | $ 287 |
[1] | The gains (losses) on these derivatives substantially offset the (losses) gains on the hedged portion of the foreign intercompany balances. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 23, 2015 | |
Related Party Transaction [Line Items] | ||||
Business Combination, promissory note | $ 3,000 | $ 3,000 | $ 3,000 | |
Income taxes paid | 19,213 | 40,759 | $ 46,353 | |
Small Business | ||||
Related Party Transaction [Line Items] | ||||
Business Combination, promissory note | $ 3,000 | |||
Promissory note maturity date | Jun. 23, 2018 | |||
Interest expense related to promissory note | $ 100 | 100 | ||
Transition services agreement fee income | $ 34 | 100 | ||
Debt instrument, interest rate | 4.00% | |||
Transition services agreement period | 3 years | |||
Cash America | ||||
Related Party Transaction [Line Items] | ||||
Corporate overhead expense allocated by parent company | 9,100 | |||
Income taxes paid | 46,000 | |||
Professional fee | 400 | |||
Compensation loans for customers | 1,200 | |||
Consumer loans reimbursement amount | $ 1,000 | 1,200 | $ 600 | |
Related party payable, net | 100 | 100 | ||
RPAs | Small Business | ||||
Related Party Transaction [Line Items] | ||||
Paid RPAs, amount | $ 400 | 7,700 | ||
Short Term Employee Leasing Agreement | Small Business | ||||
Related Party Transaction [Line Items] | ||||
Employee lease agreement expense | $ 200 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Carrying Amounts of Consolidated VIE Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Restricted cash and cash equivalents | $ 26,306 | $ 7,379 |
Loans and finance receivables, net | 561,550 | 434,633 |
Other receivables and prepaid expenses | 19,524 | 20,049 |
Other assets | 11,051 | 9,304 |
Liabilities | ||
Accounts payable and accrued expenses | 71,671 | 72,141 |
Long-term debt | 649,911 | $ 541,909 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Restricted cash and cash equivalents | 19,468 | |
Loans and finance receivables, net | 216,766 | |
Other receivables and prepaid expenses | 3 | |
Other assets | 2,459 | |
Total assets | 238,696 | |
Liabilities | ||
Accounts payable and accrued expenses | 1,350 | |
Long-term debt | 163,550 | |
Total liabilities | $ 164,900 |
Supplemental Disclosures of C93
Supplemental Disclosures of Cash Flow Information - Schedule of Cash and Non-Cash Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid during the year for: | |||
Interest | $ 59,609 | $ 49,390 | $ 24,807 |
Income taxes paid | 19,213 | 40,759 | 46,353 |
Non-cash investing and financing activities: | |||
Loans and finance receivables renewed | $ 310,425 | 253,279 | 290,956 |
Liabilities assumed in acquisitions | $ 8,658 | ||
Affiliate interest expense | $ 7,629 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segment | 1 | |
Number of operating segment | 1 | |
Property and equipment, net | $ | $ 47,100 | $ 48,055 |
Operating Segment Information95
Operating Segment Information - Summary of Domestic and International Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | $ 745,569 | $ 652,600 | $ 809,837 |
Income from operations [Abstract] | |||||||||||
Income from operations | 121,477 | 124,387 | 215,008 | ||||||||
Depreciation and amortization [Abstract] | |||||||||||
Depreciation and amortization | 15,564 | 18,388 | 18,732 | ||||||||
Expenditures for property and equipment [Abstract] | |||||||||||
Expenditures for property and equipment | 14,396 | 32,241 | 13,284 | ||||||||
Property and equipment, net [Abstract] | |||||||||||
Property and equipment, net | 47,100 | 48,055 | 47,100 | 48,055 | |||||||
Assets | |||||||||||
Assets | 977,879 | 840,537 | 977,879 | 840,537 | |||||||
Domestic | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue | 622,991 | 510,242 | 474,715 | ||||||||
Income from operations [Abstract] | |||||||||||
Income from operations | 204,084 | 183,582 | 177,435 | ||||||||
Depreciation and amortization [Abstract] | |||||||||||
Depreciation and amortization | 6,005 | 7,920 | 8,706 | ||||||||
Expenditures for property and equipment [Abstract] | |||||||||||
Expenditures for property and equipment | 6,955 | 6,268 | 7,398 | ||||||||
Property and equipment, net [Abstract] | |||||||||||
Property and equipment, net | 19,734 | 15,410 | 19,734 | 15,410 | |||||||
Assets | |||||||||||
Assets | 823,390 | 681,050 | 823,390 | 681,050 | |||||||
International | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue | 122,578 | 142,358 | 335,122 | ||||||||
Income from operations [Abstract] | |||||||||||
Income from operations | 19,787 | 42,787 | 144,487 | ||||||||
Depreciation and amortization [Abstract] | |||||||||||
Depreciation and amortization | 2,167 | 2,254 | 2,448 | ||||||||
Expenditures for property and equipment [Abstract] | |||||||||||
Expenditures for property and equipment | 3,158 | 3,797 | 870 | ||||||||
Property and equipment, net [Abstract] | |||||||||||
Property and equipment, net | 5,410 | 6,193 | 5,410 | 6,193 | |||||||
Assets | |||||||||||
Assets | 96,606 | 103,470 | 96,606 | 103,470 | |||||||
Corporate Services | |||||||||||
Income from operations [Abstract] | |||||||||||
Income from operations | (102,394) | (101,982) | (106,914) | ||||||||
Depreciation and amortization [Abstract] | |||||||||||
Depreciation and amortization | 7,392 | 8,214 | 7,578 | ||||||||
Expenditures for property and equipment [Abstract] | |||||||||||
Expenditures for property and equipment | 4,283 | 22,176 | $ 5,016 | ||||||||
Property and equipment, net [Abstract] | |||||||||||
Property and equipment, net | 21,956 | 26,452 | 21,956 | 26,452 | |||||||
Assets | |||||||||||
Assets | $ 57,883 | $ 56,017 | $ 57,883 | $ 56,017 |
Operating Segment Information96
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | $ 745,569 | $ 652,600 | $ 809,837 |
United States | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue | 622,991 | 510,242 | 474,715 | ||||||||
United Kingdom | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue | 103,478 | 129,703 | 325,014 | ||||||||
Other International Countries | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue | $ 19,100 | $ 12,655 | $ 10,108 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfer of Liabilities, amount | $ 0 | $ 0 |
Transfer of assets, amount | 0 | 0 |
Assets fair value non-recurring | 0 | 0 |
Liabilities fair value non-recurring | 0 | 0 |
Accrual for losses on consumer loan guaranty obligations | $ 2,000,000 | $ 1,700,000 |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalent maturity period | 90 days | |
Maximum | Short-term Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term of loan | 12 months | |
Maximum | Line of Credit Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term of loan | 12 months | |
Maximum | Installment Loans and RPAs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term of loan | 60 months | |
Maximum | RPAs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated delivery term | 18 months | |
Minimum | Installment Loans and RPAs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Term of loan | 2 months | |
Minimum | RPAs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated delivery term | 6 months |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 23, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ (2,358) | $ (5,658) | $ (5,700) | |
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration | (2,358) | (5,658) | ||
Fair Value, Measurements, Recurring | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Forward currency exchange contracts | 151 | |||
Nonqualified savings plan assets | [1] | 1,590 | 1,075 | |
Contingent consideration | (2,358) | (5,658) | ||
Total | (768) | (4,432) | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Nonqualified savings plan assets | [1] | 1,590 | 1,075 | |
Total | 1,590 | 1,075 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Forward currency exchange contracts | 151 | |||
Total | 151 | |||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration | (2,358) | (5,658) | ||
Total | $ (2,358) | $ (5,658) | ||
[1] | The non-qualified savings plan assets have an offsetting liability of a greater amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Fai99
Fair Value Measurements - Fair Value Measurement for Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent consideration, Beginning balance | $ 5,658 | ||
Contingent consideration, Issuance of contingent consideration | $ 5,658 | ||
Contingent consideration, Remeasurement of contingent consideration | $ 500 | (3,300) | |
Contingent consideration, Ending balance | 5,658 | 2,358 | 5,658 |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Contingent consideration, Beginning balance | 5,658 | ||
Contingent consideration, Issuance of contingent consideration | 5,658 | ||
Contingent consideration, Remeasurement of contingent consideration | (3,300) | ||
Contingent consideration, Ending balance | $ 5,658 | $ 2,358 | $ 5,658 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | $ 1,996 | $ 1,756 | $ 1,576 | $ 2,047 | |
Carrying Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 39,934 | 42,066 | |||
Short-term loans and line of credit accounts, net | [1] | 162,824 | 129,269 | ||
Installment loans and RPAs, net | [1] | 398,726 | 305,364 | ||
Restricted cash | 26,306 | 7,379 | |||
Investment in unconsolidated investee | [2],[3] | 6,703 | 6,703 | ||
Total | 634,493 | 490,781 | |||
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,996 | 1,756 | |||
Promissory note | 3,000 | 3,000 | |||
Securitization Notes | 165,419 | ||||
Credit agreement borrowings | 58,400 | ||||
Senior Notes | 495,622 | 494,867 | |||
Total | 666,037 | 558,023 | |||
Level 1 | Estimated Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 39,934 | 42,066 | |||
Restricted cash | 26,306 | 7,379 | |||
Total | 66,240 | 49,445 | |||
Level 2 | Estimated Fair Value | |||||
Financial liabilities: | |||||
Securitization Notes | 168,216 | ||||
Senior Notes | 495,940 | 374,500 | |||
Total | 664,156 | 374,500 | |||
Level 3 | Estimated Fair Value | |||||
Financial assets: | |||||
Short-term loans and line of credit accounts, net | [1] | 162,824 | 129,269 | ||
Installment loans and RPAs, net | [1] | 430,895 | 283,700 | ||
Investment in unconsolidated investee | [2],[3] | 6,703 | 6,703 | ||
Total | 600,422 | 419,672 | |||
Financial liabilities: | |||||
Liability for estimated losses on consumer loans guaranteed by the Company | 1,996 | 1,756 | |||
Promissory note | 3,111 | 2,984 | |||
Credit agreement borrowings | 58,400 | ||||
Total | $ 5,107 | $ 63,140 | |||
[1] | Short-term loans, line of credit accounts and installment loans and RPAs are included in “Loans and finance receivables, net” in the consolidated balance sheets. | ||||
[2] | Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. | ||||
[3] | See Note 2 for additional information related to the investment in unconsolidated investee. |
Condensed Consolidating Fina101
Condensed Consolidating Financial Statements -Additional Information (Detail) | Dec. 31, 2016 |
Guarantor Subsidiaries | |
Condensed Financial Statements Captions [Line Items] | |
Percentage of ownership | 100.00% |
Condensed Consolidating Fina102
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets - (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 39,934 | $ 42,066 | $ 75,106 | $ 47,480 |
Restricted cash | 26,306 | 7,379 | ||
Loans and finance receivables, net | 561,550 | 434,633 | ||
Income taxes receivable | 5,503 | |||
Other receivables and prepaid expenses | 19,524 | 20,049 | ||
Property and equipment, net | 47,100 | 48,055 | ||
Goodwill | 267,010 | 267,008 | 255,862 | |
Intangible assets, net | 5,404 | 6,540 | ||
Other assets | 11,051 | 9,304 | ||
Total assets | 977,879 | 840,537 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 71,671 | 72,141 | ||
Income taxes currently payable | 282 | |||
Deferred tax liabilities, net | 14,316 | 20,519 | ||
Long-term debt | 649,911 | 541,909 | ||
Total liabilities | 736,180 | 634,569 | ||
Commitments and contingencies | ||||
Stockholders' equity | 241,699 | 205,968 | 153,984 | $ 173,048 |
Total liabilities and stockholders' equity | 977,879 | 840,537 | ||
Parent | ||||
Assets | ||||
Income taxes receivable | 37,201 | |||
Other receivables and prepaid expenses | 127 | 162 | ||
Investment in subsidiaries | 294,647 | 233,632 | ||
Intercompany receivable | 363,941 | 480,112 | ||
Other assets | 597 | 2,284 | ||
Total assets | 659,312 | 753,391 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 4,310 | 5,514 | ||
Income taxes currently payable | (72,704) | |||
Deferred tax liabilities, net | (354) | |||
Long-term debt | 486,361 | 541,909 | ||
Total liabilities | 417,613 | 547,423 | ||
Commitments and contingencies | ||||
Stockholders' equity | 241,699 | 205,968 | ||
Total liabilities and stockholders' equity | 659,312 | 753,391 | ||
Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 36,057 | 40,927 | 72,367 | |
Restricted cash | 6,838 | 7,379 | ||
Loans and finance receivables, net | 335,161 | 430,862 | ||
Income taxes receivable | (31,709) | |||
Other receivables and prepaid expenses | 19,095 | 19,791 | ||
Property and equipment, net | 46,507 | 47,821 | ||
Goodwill | 267,010 | 267,008 | ||
Intangible assets, net | 5,400 | 6,532 | ||
Investment in subsidiaries | 25,131 | 14,177 | ||
Other assets | 7,995 | 7,020 | ||
Total assets | 749,194 | 809,808 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 65,714 | 66,220 | ||
Intercompany payables | 295,764 | 480,906 | ||
Income taxes currently payable | 73,006 | |||
Deferred tax liabilities, net | 15,156 | 20,562 | ||
Total liabilities | 449,640 | 567,688 | ||
Commitments and contingencies | ||||
Stockholders' equity | 299,554 | 242,120 | ||
Total liabilities and stockholders' equity | 749,194 | 809,808 | ||
Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 3,877 | 1,139 | $ 2,739 | |
Restricted cash | 19,468 | |||
Loans and finance receivables, net | 226,390 | 3,771 | ||
Income taxes receivable | 11 | |||
Other receivables and prepaid expenses | 302 | 96 | ||
Property and equipment, net | 593 | 234 | ||
Intangible assets, net | 4 | 8 | ||
Intercompany receivable | 794 | |||
Other assets | 2,459 | |||
Total assets | 253,093 | 6,053 | ||
Liabilities and Stockholders' Equity | ||||
Accounts payable and accrued expenses | 1,647 | 407 | ||
Intercompany payables | 68,179 | |||
Income taxes currently payable | (20) | |||
Deferred tax liabilities, net | (486) | (43) | ||
Long-term debt | 163,550 | |||
Total liabilities | 232,870 | 364 | ||
Commitments and contingencies | ||||
Stockholders' equity | 20,223 | 5,689 | ||
Total liabilities and stockholders' equity | 253,093 | 6,053 | ||
Eliminations | ||||
Assets | ||||
Investment in subsidiaries | (319,778) | (247,809) | ||
Intercompany receivable | (363,941) | (480,906) | ||
Total assets | (683,719) | (728,715) | ||
Liabilities and Stockholders' Equity | ||||
Intercompany payables | (363,943) | (480,906) | ||
Total liabilities | (363,943) | (480,906) | ||
Commitments and contingencies | ||||
Stockholders' equity | (319,777) | (247,809) | ||
Total liabilities and stockholders' equity | $ (683,720) | $ (728,715) |
Condensed Consolidating Fina103
Condensed Consolidating Financial Statements - Consolidating Statements of Income and Comprehensive Income - (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Condensed Financial Statements Captions [Line Items] | ||||||||||||
Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | $ 745,569 | $ 652,600 | $ 809,837 | |
Cost of Revenue | 97,545 | 95,391 | 65,453 | 69,577 | 71,138 | 65,614 | 41,536 | 38,570 | 327,966 | 216,858 | 266,787 | |
Gross Profit | 104,893 | 100,552 | 107,082 | 105,076 | 104,279 | 99,613 | 104,744 | 127,106 | 417,603 | 435,742 | 543,050 | |
Expenses | ||||||||||||
Marketing | 97,404 | 116,882 | 127,862 | |||||||||
Operations and technology | 85,202 | 74,012 | 73,573 | |||||||||
General and administrative | 97,956 | 102,073 | 107,875 | |||||||||
Depreciation and amortization | 15,564 | 18,388 | 18,732 | |||||||||
Total Expenses | 296,126 | 311,355 | 328,042 | |||||||||
Income from Operations | 121,477 | 124,387 | 215,008 | |||||||||
Interest expense, net | (65,603) | (52,883) | (38,474) | |||||||||
Foreign currency transaction gain (loss), net | 1,562 | (985) | (35) | |||||||||
Income before Income Taxes | 57,436 | 70,519 | 176,499 | |||||||||
Provision for income taxes | 22,834 | 26,527 | 64,828 | |||||||||
Income (loss) before Equity in Net Earnings of Subsidiaries | 34,602 | 43,992 | ||||||||||
Net Income | $ 8,714 | $ 7,837 | $ 8,188 | $ 9,863 | $ 4,181 | $ 4,417 | $ 10,864 | $ 24,530 | 34,602 | 43,992 | 111,671 | |
Other comprehensive (loss) gain, net of tax: | ||||||||||||
Foreign currency translation (loss) gain | [1] | (6,956) | (1,451) | (6,272) | ||||||||
Total other comprehensive loss, net of tax | (6,956) | (1,451) | (6,272) | |||||||||
Comprehensive Income | 27,646 | 42,541 | $ 105,399 | |||||||||
Parent | ||||||||||||
Expenses | ||||||||||||
General and administrative | 315 | 673 | ||||||||||
Total Expenses | 315 | 673 | ||||||||||
Income from Operations | (315) | (673) | ||||||||||
Interest expense, net | (53,512) | (52,816) | ||||||||||
Foreign currency transaction gain (loss), net | 1,569 | 532 | ||||||||||
Income before Income Taxes | (52,258) | (52,957) | ||||||||||
Provision for income taxes | (20,776) | (19,921) | ||||||||||
Income (loss) before Equity in Net Earnings of Subsidiaries | (31,482) | (33,036) | ||||||||||
Net earnings of subsidiaries | 66,084 | 77,028 | ||||||||||
Net Income | 34,602 | 43,992 | ||||||||||
Other comprehensive (loss) gain, net of tax: | ||||||||||||
Foreign currency translation (loss) gain | (6,956) | (1,451) | ||||||||||
Total other comprehensive loss, net of tax | (6,956) | (1,451) | ||||||||||
Comprehensive Income | 27,646 | 42,541 | ||||||||||
Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements Captions [Line Items] | ||||||||||||
Revenue | 653,517 | 650,295 | ||||||||||
Cost of Revenue | 260,996 | 215,637 | ||||||||||
Gross Profit | 392,521 | 434,658 | ||||||||||
Expenses | ||||||||||||
Marketing | 95,972 | 116,330 | ||||||||||
Operations and technology | 80,999 | 71,993 | ||||||||||
General and administrative | 95,840 | 100,642 | ||||||||||
Depreciation and amortization | 15,464 | 18,350 | ||||||||||
Total Expenses | 288,275 | 307,315 | ||||||||||
Income from Operations | 104,246 | 127,343 | ||||||||||
Interest expense, net | 562 | (71) | ||||||||||
Foreign currency transaction gain (loss), net | (7) | (1,516) | ||||||||||
Income before Income Taxes | 104,801 | 125,756 | ||||||||||
Provision for income taxes | 41,665 | 47,306 | ||||||||||
Income (loss) before Equity in Net Earnings of Subsidiaries | 63,136 | 78,450 | ||||||||||
Net earnings of subsidiaries | 2,948 | (1,422) | ||||||||||
Net Income | 66,084 | 77,028 | ||||||||||
Other comprehensive (loss) gain, net of tax: | ||||||||||||
Foreign currency translation (loss) gain | (8,269) | (245) | ||||||||||
Total other comprehensive loss, net of tax | (8,269) | (245) | ||||||||||
Comprehensive Income | 57,815 | 76,783 | ||||||||||
Non-Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements Captions [Line Items] | ||||||||||||
Revenue | 95,646 | 2,305 | ||||||||||
Cost of Revenue | 66,970 | 1,221 | ||||||||||
Gross Profit | 28,676 | 1,084 | ||||||||||
Expenses | ||||||||||||
Marketing | 1,432 | 552 | ||||||||||
Operations and technology | 4,203 | 2,019 | ||||||||||
General and administrative | 5,395 | 758 | ||||||||||
Depreciation and amortization | 100 | 38 | ||||||||||
Total Expenses | 11,130 | 3,367 | ||||||||||
Income from Operations | 17,546 | (2,283) | ||||||||||
Interest expense, net | (12,653) | 4 | ||||||||||
Foreign currency transaction gain (loss), net | (1) | |||||||||||
Income before Income Taxes | 4,893 | (2,280) | ||||||||||
Provision for income taxes | 1,945 | (858) | ||||||||||
Income (loss) before Equity in Net Earnings of Subsidiaries | 2,948 | (1,422) | ||||||||||
Net Income | 2,948 | (1,422) | ||||||||||
Other comprehensive (loss) gain, net of tax: | ||||||||||||
Foreign currency translation (loss) gain | 1,331 | (866) | ||||||||||
Total other comprehensive loss, net of tax | 1,331 | (866) | ||||||||||
Comprehensive Income | 4,279 | (2,288) | ||||||||||
Eliminations | ||||||||||||
Condensed Financial Statements Captions [Line Items] | ||||||||||||
Revenue | (3,594) | |||||||||||
Gross Profit | (3,594) | |||||||||||
Expenses | ||||||||||||
General and administrative | (3,594) | |||||||||||
Total Expenses | (3,594) | |||||||||||
Net earnings of subsidiaries | (69,032) | (75,606) | ||||||||||
Net Income | (69,032) | (75,606) | ||||||||||
Other comprehensive (loss) gain, net of tax: | ||||||||||||
Foreign currency translation (loss) gain | 6,938 | 1,111 | ||||||||||
Total other comprehensive loss, net of tax | 6,938 | 1,111 | ||||||||||
Comprehensive Income | $ (62,094) | $ (74,495) | ||||||||||
[1] | Net of tax benefit of $3,939, $592 and $4,011 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Condensed Consolidating Fina104
Condensed Consolidating Financial Statements - Consolidating Statements of Cash Flows - (Detail) - USD ($) $ in Thousands | Jun. 23, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | $ 393,373 | $ 283,921 | $ 429,935 | |
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (1,308,197) | (1,172,169) | (1,298,008) | |
Loans and finance receivables repaid | 858,048 | 849,358 | 1,006,762 | |
Change in restricted cash | (20,126) | (7,868) | ||
Acquisitions | $ (17,700) | (17,735) | ||
Purchases of property and equipment | (14,396) | (32,241) | (13,284) | |
Other investing activities | 95 | 618 | 4 | |
Net cash used in investing activities | (484,576) | (372,169) | (313,097) | |
Cash Flows from Financing Activities | ||||
Debt issuance costs paid | (6,702) | (1,596) | (16,330) | |
Treasury shares purchased | (437) | (187) | ||
Borrowings (Repayments) under revolving line of credit, net | (58,400) | 58,400 | ||
Borrowings under securitization facility | 280,075 | |||
Repayments under securitization facility | (114,656) | |||
Net cash provided by (used in) financing activities | 99,880 | 56,617 | (79,039) | |
Effect of exchange rates on cash | (10,809) | (1,409) | (10,173) | |
Net (decrease) increase in cash and cash equivalents | (2,132) | (33,040) | 27,626 | |
Cash and cash equivalents at beginning of year | 42,066 | 75,106 | 47,480 | |
Cash and cash equivalents at end of period | 39,934 | 42,066 | 75,106 | |
Parent | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | 59,337 | 31,259 | ||
Cash Flows from Investing Activities | ||||
Capital contributions to subsidiaries | (87,876) | |||
Net cash used in investing activities | (87,876) | |||
Cash Flows from Financing Activities | ||||
Debt issuance costs paid | (500) | (1,596) | ||
Treasury shares purchased | (437) | (187) | ||
Borrowings (Repayments) under revolving line of credit, net | (58,400) | 58,400 | ||
Net cash provided by (used in) financing activities | (59,337) | 56,617 | ||
Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | 296,876 | 331,954 | ||
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (1,293,273) | (1,167,107) | ||
Securitized loans transferred | 359,000 | |||
Loans and finance receivables repaid | 669,088 | 849,638 | ||
Change in restricted cash | (658) | |||
Acquisitions | (17,735) | |||
Purchases of property and equipment | (14,007) | (31,977) | ||
Capital contributions to subsidiaries | (10,255) | (7,255) | ||
Other investing activities | 95 | 618 | ||
Net cash used in investing activities | (290,010) | (373,818) | ||
Cash Flows from Financing Activities | ||||
Payments for (proceeds from) member's equity | (699) | 11,279 | ||
Net cash provided by (used in) financing activities | (699) | 11,279 | ||
Effect of exchange rates on cash | (11,037) | (855) | ||
Net (decrease) increase in cash and cash equivalents | (4,870) | (31,440) | ||
Cash and cash equivalents at beginning of year | 40,927 | 72,367 | ||
Cash and cash equivalents at end of period | 36,057 | 40,927 | 72,367 | |
Non-Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | 37,859 | (2,695) | ||
Cash Flows from Investing Activities | ||||
Loans and finance receivables originated or acquired | (14,924) | (5,062) | ||
Securitized loans transferred | (359,000) | |||
Loans and finance receivables repaid | 188,960 | (280) | ||
Change in restricted cash | (19,468) | |||
Purchases of property and equipment | (389) | (264) | ||
Net cash used in investing activities | (204,821) | (5,606) | ||
Cash Flows from Financing Activities | ||||
Payments for (proceeds from) member's equity | 10,255 | 7,255 | ||
Debt issuance costs paid | (6,202) | |||
Borrowings under securitization facility | 280,075 | |||
Repayments under securitization facility | (114,656) | |||
Net cash provided by (used in) financing activities | 169,472 | 7,255 | ||
Effect of exchange rates on cash | 228 | (554) | ||
Net (decrease) increase in cash and cash equivalents | 2,738 | (1,600) | ||
Cash and cash equivalents at beginning of year | 1,139 | 2,739 | ||
Cash and cash equivalents at end of period | 3,877 | 1,139 | $ 2,739 | |
Eliminations | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Cash Flows from Operating Activities | (699) | (76,597) | ||
Cash Flows from Investing Activities | ||||
Capital contributions to subsidiaries | 10,255 | 95,131 | ||
Net cash used in investing activities | 10,255 | 95,131 | ||
Cash Flows from Financing Activities | ||||
Payments for (proceeds from) member's equity | (9,556) | (18,534) | ||
Net cash provided by (used in) financing activities | $ (9,556) | $ (18,534) |
Quarterly Financial Data (Un105
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Total Revenue | $ 202,438 | $ 195,943 | $ 172,535 | $ 174,653 | $ 175,417 | $ 165,227 | $ 146,280 | $ 165,676 | $ 745,569 | $ 652,600 | $ 809,837 | ||||||||
Cost of Revenue | 97,545 | 95,391 | 65,453 | 69,577 | 71,138 | 65,614 | 41,536 | 38,570 | 327,966 | 216,858 | 266,787 | ||||||||
Gross Profit | 104,893 | 100,552 | 107,082 | 105,076 | 104,279 | 99,613 | 104,744 | 127,106 | 417,603 | 435,742 | 543,050 | ||||||||
Net income | $ 8,714 | $ 7,837 | $ 8,188 | $ 9,863 | $ 4,181 | $ 4,417 | $ 10,864 | $ 24,530 | $ 34,602 | $ 43,992 | $ 111,671 | ||||||||
Diluted | $ 0.26 | $ 0.23 | $ 0.25 | $ 0.30 | $ 0.13 | $ 0.13 | $ 0.33 | $ 0.74 | $ 1.03 | $ 1.33 | $ 3.38 | ||||||||
Diluted weighted average common shares | 33,767 | [1] | 33,558 | [1] | 33,335 | [1] | 33,187 | [1] | 33,061 | [1] | 33,022 | [1] | 33,015 | [1] | 33,008 | [1] | 33,462 | 33,026 | 33,008 |
[1] | See Note 2 for Basis of Presentation. |